Last month, L'Oreal spent 40 million US dollars to get one of the three cooperation places in advance, which made some people think that this was the result of the price far exceeding Han Chudong's psychological price, and they thought that it would not be so crazy when the auction came.
After all, this money can only buy the cooperation rights for two and a half years. If you want facial mask paper, you will have to pay a heavy price to Han Chudong and buy it at the price of one US dollar per piece.
Even if this part of the cost can be passed on to consumers, there is no doubt that their products will lose some of their competitiveness.
If I sell the masks at the same price as my ex-boyfriend, and put eight masks in the box, it means that I will take out one-fifth of the retail price and pay it to Han Chudong as patent fee before the products are sold.
However, the production of facial mask paper also has costs, and there are also taxes, tax deductions and other aspects to consider. The numbers on the surface are indeed very high, much higher than the general patent authorization, but who can blame you for still having profit margins? Even if the profit is only 50%, there are companies willing to fight for it.
No one wants the sales of other products to decline due to the inability to produce facial masks.
Because facial masks are just a type of skin care products, consumers are likely to buy cosmetics and other types of skin care products at the same time as facial masks. However, if soft facial masks are not sold, some companies may lose old customers.
Looking at it from another angle, isn't bidding high for the cooperation rights also an opportunity to advertise?
Reporters from some fashion magazines and mainstream newspapers have already arrived and started interviewing executives from large companies...
The participation of this company and Procter & Gamble Group is the biggest uncertainty in the auction. These two Fortune 500 companies have strong financial strength, so strong that even the executives of Estee Lauder and Shiseido are nervous.
Their presence has already demonstrated the attitudes of Johnson & Johnson and Procter & Gamble respectively. The only thing worth discussing is what price the board members of these two companies are willing to pay for the right to cooperate with Rainbow Beauty.
If we try our best, the only company that can compete is Japan's Shiseido, which has several Japanese financial companies behind it.
Let’s look at Estee Lauder. Procter & Gamble is one of its shareholders, and the possibility of the two competing with each other is not high.
These executives almost all make their livings in the beauty industry. They may not have much money, but they have very keen noses. Before the auction even starts, they can already see some signs and guess the final outcome.
Christian Dior was founded in 1947 and has continued to grow in recent years, but in terms of funding, it is clearly at a disadvantage.
The French executives of the company, seeing that they were wary of each other and hearing some news from old friends, soon lost hope for tonight's auction.
The senior vice president sent by Johnson & Johnson today is named Daniel.
After shaking hands with Dawson, the senior vice president of Procter & Gamble, Daniel asked tentatively, "How about we each take one spot instead of competing with each other? We brought a large sum of money this time, and the one who will benefit in the end will only be the lucky little Chinese guy. You definitely don't want to go head-to-head with us."
He spoke in a loud voice, both to intimidate the P&G people and to warn others present not to interfere.
Dawson was potbellied and over fifty years old. He smiled and said very clearly: "The conditions set by that little Chinese guy are a bit harsh. Even if we get the agency rights, we are only allowed to produce products of one brand. We must get the cooperation rights. Others are afraid of you, Johnson & Johnson, but we, Procter & Gamble..."
After saying that, he spread his hands indifferently.
The implication was very clear, he didn't care about Daniel's half-kindness, half-threat at all.
This made Daniel a little confused, but when he saw Dawson entering with people from Estee Lauder, he finally had some idea.
He immediately began to wonder whether his company's old rival wanted to bring his younger brother along to jointly take up both cooperation rights.
Those with insufficient funds aim for cooperation rights, while those with more abundant funds have a bigger appetite.
Han Chudong had just arrived at the hotel entrance when he was blocked by a Japanese man. The man bowed and saluted, then revealed his identity and said, "Mr. Han, I am Ryosuke Oda, the head of the North American branch of Shiseido Japan. I have something important to discuss with you. This is the contract we prepared. As long as you sign it, the funds will be deposited immediately!"
As Japan's largest beauty and cosmetics company, Shiseido Co., Ltd. has long been a hot commodity in the eyes of capital groups, and there are also some American companies on its list of shareholders.
He instantly thought of something, but when Han Chudong saw the English content on the contract clearly, he couldn't help but be shocked.
A truly grand deal.
The contract stated that Shiseido Co., Ltd.'s U.S. branch wanted to acquire all the shares of Rainbow Cosmetics for $880 million! In an instant, Han Chudong's hair stood up.
Because he thought that if he signed the contract now, his assets would soon reach the "Billion" threshold and he would officially join the world's top super-rich club!
One billion US dollars, this is roughly the amount of money Howard Hughes left behind.
How long has it been since I last saw Howard Hughes with such envy? How long has it been since I started my business? Thinking about it, Han Chudong still resisted the urge, shook his head and whispered: "Rainbow Beauty's turnover is as high as about 2.3 million US dollars a day. Now there are only more than 40 stores. It will expand to 200 within two months. How much money can you make in a month? What about a year? I think you should be good at math. I hope to cooperate with Shiseido Co., Ltd. In fact, I also value the Japanese market very much, but I can't sell it now. I can make more money when I start selling facial mask paper and get the franchise fee. I suggest you spend more money to get the cooperation rights, and the profit is still very considerable."
There is no wrong version in the 1619 book forum!
Ryosuke Oda was stunned for a moment. He originally thought that with the offer on the contract, he had already secured the deal.
He even thought about canceling the auction immediately after Han Chudong signed, and even if it meant breach of contract, he would still have to take back the authorization from the French L'Oréal Group. Then he would wait until the calf grew up before talking about slowly milking it or slaughtering it for meat.
Han Chudong was worried that someone would cause trouble, so he cultivated competitors for himself to avoid being eaten alive by others.
Shiseido Co., Ltd. is not afraid. It has big financial backers behind it. They have long extended their hands to the United States and have close ties with several investment companies on Wall Street.
Rainbow Beauty is not a listed company and there is no need to release financial statements to the public, so no one is sure about its specific financial situation.
Oda Ryosuke was unwilling to give up and said seriously: "But your competitor is about to appear, and it is almost impossible to maintain your current position. It is much safer to get cash! This is my advice, please consider it seriously!"
"There's no need to think about it. The global facial mask market has only been developed to such a small extent. Even if a competitor emerges, it will be enough to satisfy my appetite."
Han Chudong said with a smile.
Stretch out your right hand, pinch your little finger with your thumb, and indicate the size of your fingertips to represent the current soft facial mask market.
Enter without hesitation.
After going upstairs and seeing my colleagues, I felt that they all wanted to eat me alive and have a full meal.
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