Chapter 1696 Change People's Way of Life

Yang Cheng feels that LVMH's matrix game is quite similar to Disney. They are actively completing a series of external acquisitions. The reason behind it is closely related to the slowdown in the growth rate of their own industry environment.

The luxury industry and the entertainment industry are undoubtedly facing a severe winter test. Both LVMH and Disney are trying to build different echelons and use combination punches to continue to maintain their dominance in the luxury industry.

And Yang Cheng expects that this severe winter will be extremely long, and the growth rate will even slow down further. According to the current situation of the entire industry, in the future, various luxury brands will compete across traditional fields, and the brand development model will either focus on a certain category to become Specialist, or Diversified Brand Positioning Development.

This may sound like nonsense at first glance, but Yang Cheng thinks that sometimes the complex is simple, but when a company develops to a certain extent, there are only two ways to go, either diversify and develop horizontally, or monopolize your industry, one trick Fresh food has changed, you can sell fried dough sticks and soy milk to the extreme, and you are also the industry leader. Who dares to underestimate you?

LVMH is taking the road of diversification, which is equivalent to widening the moat, and Liu Yun's suggestion to Yang Cheng is to imitate this road and go forward on the road of diversification.

But there is no comparison between the two, not in the same order of magnitude.

After LVMH's acquisition of Dior is successful, LV and LV will undoubtedly act as the "vanguard" of the first echelon of LVMH Group, expanding and developing in the fashion and leather fields, the main battlefield of luxury goods, and then forming the second echelon with new Celine, Loewe, Givenchy and other brands.

Kenzo, Fendi, etc. form a multi-level matrix, allowing LVMH Group to dominate the field of luxury fashion.

It is not enough to dominate the fashion field. LVMH has built a jewelry and watch echelon led by Bulgari. The six jewelry and watch brands can use the "combination punch" to reach customer groups with different characteristics in order to maintain The group's presence in the fine jewelry market.

In addition, according to what Liu Yun said, LVMH will expand the layout of the lifestyle field, hoping to use the horizontal matrix to expand the share of the tourism and life field, and use the luxury lifestyle to promote its products. Undoubtedly, this is a great attempt. Once successful , LVMH can almost be said to be standing still.

Yang Cheng can't help admiring this plan. No matter how you look at it, it is very difficult for the New Era Fashion Group to reach this level. What he is thinking now is to acquire a few more companies, expand their superficial strength, and then go public to cash out. Even if the luxury industry is over in the future , he is not at a loss.

Now that you have decided to go the way of LVMH, you must first let them have nowhere to go.

Now the two are eyeing Belmond at the same time, and Yang Cheng and senior staff should provide information.

If you can't take it down, you will lose face in the future.

When he arrived at the company the next day, he called Ruiz and Ericson Schuberg directly.

"Boss~" The two greeted in unison.

Yang Cheng pointed to the sofa, "Go over there and talk, what do you want to drink?"

“Coffee is good~”

"Me too~"

Yang Cheng said to Liu Jun, "Three cups of coffee~"

Immediately afterwards, he said to Schuberg, "Have you read the information on Belmond? What do you think?"

Schuberg's temper is still as straightforward as ever, although he is much more tactful than before. "Boss, we just proposed this idea, why are you suddenly rushing to make an offer?"

"I received news that Belmond is being targeted by LVMH. This is a big piece of fat, and I don't want to miss it."

"So it's like this~" Schuberg's rigid personality doesn't mean he's stupid, and he didn't ask about the source and authenticity of the information.

Ruiz continued, "Belmond currently has 46 hotels, cruise ships or trains and other tourism assets in 24 countries, and the room rate of its hotel properties is between 440 and 1,200 US dollars per night.

Belmond's total revenue so far this year is $531 million, with profits in the neighborhood of $120 million.

These are all public data from the New York Stock Exchange, and when I checked the information, I heard some bad news for us~"

"what?"

"In August this year, Belmond invited Goldman Sachs and JP Morgan as strategic advisors. It is said that it received acquisition offers from many real estate companies, sovereign wealth funds, and hotel companies, including Blackstone and KKR."

Yang Cheng cursed secretly, it's really not good news.

Schuberg added, "Belmond still has $600 million in debt, and I'm afraid the acquirer will also need to bear it."

Ruiz nodded, "It's okay for other competitors to say that they must be more vigilant against LVMH. They might use all cash to acquire it."

Yang Cheng took a deep breath. As soon as she was about to scold LV, she knew the stinky hooligan who wasted money. Liu Junyu came in with coffee, and Yang Cheng immediately shut up. It is a certain thing, we are also ready for an all-cash acquisition, and we must leave room for a premium.”

Ryze can understand, but can't accept, why? Because there is not so much money on the books, based on Belmond's stock price at this moment, the market value is about 1.7 billion US dollars, while the four-dimensional space has less than 1 billion cash on the books. , it was even uglier before.

He told Yang Cheng about this situation, and Yang Cheng had nothing but helplessness, and when the money was used up, he hated less!

Turning to look at Schuberg, "How much cash can the Cultural Tourism Group withdraw without affecting the company's business~"

Schuberg lowered his head and pondered for a moment, "300 million! Up to 300 million!"

Yang Cheng hummed, "You have 300 million here, 800 million from the four-dimensional space, and you have to leave a part of the activity funds, which is 1.1 billion. Calculated at a 30% premium, we have to prepare at least 1.2 billion. , preferably 1.5 billion, tell me, where can I get this money?"

Ruiz hesitated for a moment, then said vaguely, "Boss, there should be another 100 million in the Middle East next month~"

Yang Cheng knew that this was the final payment of the arms business, so she didn't say much in front of Schuberg. The less people knew about this business, the better.

"It's easy to talk about money, if it doesn't work, just take a loan. The major investment banks on Wall Street have given us so many low-interest loans, and it's a waste to not use them.

The key is the next plan after the acquisition. Holding the two luxury boutique hotel brands of Amman and Belmond is equivalent to holding the contact information of 40% of the world's high-net-worth individuals. What does this mean? "

Ruiz continued, "We should continue to develop this field. Although it is an era when traffic is king, only those who really hold customers have the right to speak."

Schuberg echoed, "That's right. Recently, an expert proposed a term called the experience economy. I think it's very interesting, and it can be applied to our industry."

Yang Cheng muttered the word, "Is this an old word? And the experience influence of the hotel industry is far less extensive and far-reaching than Ins and Twitter."

Schuberg explained, "I mean, once the acquisition of Belmond is successful, we need to strengthen experience services, such as allowing vacationers to freely customize their own travel plans, instead of planning travel itineraries like traditional travel agencies, we impose itineraries They will definitely be singled out for dissatisfaction, and if passengers are allowed to make their own decisions, they will have a stronger sense of tolerance for their own choices."

Yang Cheng took a sip of coffee, "I understand what you mean, you want to launch a customized travel service? It can improve the participation of tourists, which can better mobilize the enthusiasm of tourists to travel. In addition, you also want to connect the business of the group Together, is this a kind of offline promotion?"

"Of course, it's just that we do it more cleverly. In fact, this is similar to the strategy of the LVMH Group. We want every passenger who chooses our group's travel services to get used to the lifestyle we provide them. When this way becomes a With this habit, our revenue will usher in a steady growth.

Amman and Belmond almost cover popular and non-popular spots on the earth. Holidaymakers can customize different travel routes according to their preferences every year. Of course, no matter where they go, they must choose our planes and trains for travel, and they must also live To live in a hotel under our name, this is the way of life! "

"We have launched similar activities before, one-stop service, from the moment passengers place an order online to travel home, we will contract it all, but the effect is not very good~"

"That's because we lack effective integration, and there is only one brand in Amman, so we don't have many choices for customers."

txt download address:

phone-reading: