Chapter 81: Huge Profits of Cosmetics

Zhang Junfeng, who was accompanying him, smiled and joked, "Dear, have you ever thought about acquiring a cosmetics company? In addition to meeting your daily needs, you can also make huge profits?"

"Ah?! Is it profitable to produce cosmetics?" Li Fuzhen was a little surprised. In her understanding, the production costs of these expensive big-name cosmetics should account for at least half of the sales, right?

Excluding a series of expenses incurred in the process from production to sales, the profit should not exceed 30%.

Before the financial crisis, there were many subsidiaries of their Five Star Group that had profits exceeding 30%. Didn't they think opening a cosmetics company was cost-effective?! Seeing that Li Fuzhen didn't understand the tricks in the cosmetics industry, Zhang Junfeng raised his lips slightly and whispered in her ear, "What if the net profit of cosmetics can be as high as 70%, or even more than 100%?! Do you still think that cosmetics companies are not profitable?!"

Hearing Zhang Junfeng's sudden whisper, Li Fuzhen was very surprised! This was too much to subvert her cognition! Didn't the cosmetics advertisements of these well-known brands always boast about how advanced the technology they used was and how expensive the raw materials were? ! In this case, the profit can still reach such an exaggerated level? Is it true? Looking at Li Fuzhen's surprised expression, Zhang Junfeng's smile became even brighter!

If it weren’t for a sissy anchor in his previous life who sold an eyebrow pencil that cost less than 10 RMB for 79 RMB during live broadcast, which caused netizens to mock him and revealed the inside story of the huge profits of cosmetics, he and others would not have noticed how "money-making" the cosmetics industry that has been ignored is! ……

Li Fuzhen, who was originally full of joy and wanted to purchase a wave of high-end cosmetics, was greatly stimulated by Zhang Junfeng's words. She always felt that her previous experience of buying those high-end cosmetics abroad seemed a bit "cheated"! If what this guy said was true, it would be better to directly acquire a cosmetics company for better cost-effectiveness!

As for the type of cosmetics he needed, couldn't he just let the R&D staff in the company develop and produce them themselves? The more he thought about it, the more he felt that his method was feasible, and soon he set his sights on Zhang Junfeng.

After all, it was this guy who first brought up the matter of the cosmetics company. Based on her understanding of Zhang Junfeng, this guy had most likely already been eyeing a certain cosmetics company, so he mentioned this matter in front of her!

Seeing that Li Fuzhen had no intention of buying cosmetics but kept looking at him and repeatedly asking about the cosmetics company, Zhang Junfeng was a little amused.

I just mentioned it casually on a whim, why did this woman really take it seriously? ! Zhang Junfeng was a little scared by the question, so he could only say that there were too many people outside and he would discuss it after returning. This calmed down Li Fuzhen who was about to ask for clarification.

…

AmorePacific (AP), one of the largest cosmetics companies in Korea, was founded in 1932. Its business focuses on cosmetics, daily chemicals and tea products! AmorePacific has more than 20 brands covering cosmetics, hairdressing, perfume, bath and personal care, tea and other categories. It emphasizes botanicals and herbs, and each brand has distinct characteristics, competing with European and American brands in a differentiated manner.

According to the TOPBEAUTY analysis conducted by the French FASHIONLIFE magazine since 1992, Pacific Co., Ltd. is the number one cosmetics company in Korea and one of the top 20 international cosmetics companies in the world.

In later generations, in order to further increase the popularity of its own products, the Amorepacific Group bundled its marketing with Korean entertainment.

Its classic marketing cases include: promoting IOPE air cushion, Laneige lipstick, IOPE lipstick, etc. through the placement of star Jeon Ji-hyun in "My Love from the Star", and extending the popularity to AP's entire product line; and promoting Laneige air cushion BB cream, two-color 3D lipstick, etc. through the placement of Song Hye-kyo in "Descendants of the Sun", the concept of "two-color lipstick" spread around the world.

This series of operations has led to a year-on-year increase in the cosmetics revenue of the Amorepacific Group, and the group's chairman Xu Qingpei has become the sixth richest man in Korea in 2019!

……

In addition to the Amorepacific Group, another giant in the Korean beauty industry, the LG Group, is not far behind. The LG Group initially started its multinational business by developing beauty and daily necessities.

In 1947, LG developed the first facial cream, which marked the beginning of LG's beauty legend. In 1950, the "Cosmetics Laboratory" was established, which is currently the only cosmetics research and development laboratory in Korea with international certification. In 1993, it became the first cosmetics company in Korea to obtain the CGMP international certification.

LG Cosmetics Company's brands such as WHOO, OHUI, SU:M37°, belif, ISAKNOX, Diezhuang, Sooyahan, and Aizhinongsi are all very famous.

However, the status and situation of these two cosmetics companies in Korea are very different. In addition to cosmetics companies, LG Group's subsidiaries such as LG Electronics, LG Display, and LG Chem also have excellent management and production capabilities. LG Group has become one of the top ten large companies in Korea, which is something that the Amorepacific Group cannot compare with!

…

After hearing Zhang Junfeng's comparative analysis of the two major cosmetics companies in Korea, Li Fuzhen quickly understood what Zhang Junfeng meant, and then excitedly spoke up to confirm, "So, you are planning to... take action against the Emily Group and take over this company that is not particularly ranked?!"

Zhang Junfeng smiled and asked, "Why can't it be a cosmetics company under the LG Group?!"

Li Fuzhen said proudly, "Although the scale of LG Group is not as large as our Five Star Group, it is still the top enterprise in Korea. If you want to take over LG Cosmetics Company from them, it is no less than 'snatching food from a tiger's mouth'. The probability of success is very small!"

"And if it really succeeds in the follow-up, can you withstand the counterattack of LG Group?!" Li Fuzhen said with certainty.

In her opinion, although Zhang Junfeng made a lot of money through investment in a short period of time and even had close relations with Goldman Sachs, one of the financial giants on Wall Street, his own strength and background were still unable to compete with such large enterprises and chaebols!

There is no mistake in the poem, post, content, and read the book on 6, 9, and bar!

Seeing that Li Fuzhen's analysis was very logical, Zhang Junfeng pulled the proud Li Fuzhen into his arms and kissed her hard.

It took a long time before he let go of her. Seeing her panting and pouting, Zhang Junfeng smiled and teased, "Since you are so smart, when we return to Goryeo and take over the cosmetics company, I will let you run and manage it, right?!"

(End of this chapter)