Chapter 1696： Change people's lifestyle

Yang Cheng feels that LVMH's matrix gameplay is very similar to Disney. They are actively completing a series of external acquisitions. The reason behind this is closely related to the slowdown in the overall environment of their industry.

The luxury industry and the entertainment industry are undoubtedly experiencing the severe winter test. Both LVMH and Disney are trying to build different echelons, using combo boxing methods to continue to maintain their dominant position in the luxury industry.

Yang Cheng expects that this severe winter will be extremely long, and the growth rate will even further slow down. 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. Experts, or diversified brand positioning development.

This may sound like nonsense at first, but Yang Cheng feels that sometimes it is too complicated to be simple, but when the company develops to a certain level, there are only two ways to go. Either diversify and develop horizontally or monopolize your industry. Fresh food changes, you can sell fried dough tiao soy milk to the extreme, and you are also the industry leader. Who dares to look down on you?

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

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

After the successful acquisition of Dior by LVMH, LV, will undoubtedly serve as the "vanguard" of the first echelon of the LVMH group, expanding and developing in the fashion and leather field, the main battlefield of luxury goods, and then forming the second echelon with new brands such as Celine, Loewe and Givenchy.

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

It is not enough to dominate the fashion industry. LVMH has built a jewellery and watch echelon with Bulgari as the leader. 6 jewellery and watch brands can reach customers with different characteristics through the "combination punch" method to maintain The group's position in the fine jewelry market.

In addition, according to Liu Yun, LVMH will expand its layout in the field of lifestyle, and hope to expand its share in the tourism life field with a horizontal matrix approach, and promote its products with a luxurious lifestyle. Undoubtedly, this is a great attempt. Once successful , LVMH can almost stand tall.

Yang Cheng couldn’t help but admire this plan. No matter how you look at it, the New Era Fashion Group is difficult to reach this level. What he thinks now is that he will acquire a few more companies, expand the surface strength and then go public, even if the luxury goods industry is over. , He is not at a loss.

Since they have decided to take the LVMH path, they must first have nowhere to go.

Now the two are eyeing Belmond at the same time, and Yang Cheng and the senior insider should provide information. If they can't get it, they will lose face in the future.

When he arrived at the company the next day, he directly called Ritz and Eriksen Schuberg.

"Boss~" The two greeted in unison.

Yang Cheng pointed to the sofa, "Let’s go over there and talk, what to drink?"

"Coffee is good~"

"Me too~"

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

Then he said to Schuberg, "Have you read Belmond's information? What do you think?"

Schuberg's temperament is still as straightforward as ever, although it has been a lot smoother than the old-fashioned before, "Boss, we just proposed this idea, why are we suddenly rushing to bid for an acquisition?"

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

"It turns out to be like this~" Schuberger's rigid personality doesn't mean that he is stupid, and he didn't ask the source of the information and the authenticity.

Ryze continued, "Belmond currently has 46 hotels, cruise ships or trains and other tourism assets in 24 countries, and its hotel properties cost between US$440 and US$1,200 per night.

Belmond's total revenue so far this year is 531 million U.S. dollars, and its profit is around 120 million U.S. dollars.

These are all public data from the New York Stock Exchange. When I checked the information, I also heard a bad news for us~"

"what?"

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

Yang Cheng cursed secretly, which was really not good news.

Schuberg added, "Belmond still has $600 million in debt, which may also need to be borne by the acquirer."

Ryze nodded, "It's okay for other competitors to say that they must be more vigilant about LVMH, and they might buy with all cash."

Yang Cheng took a breath. Just when she was about to scold LV, she knew the stinky gangster who had thrown money. Liu Junyu came in with coffee. Yang Cheng immediately shut her mouth. After she set it up one by one and leaned out of the office, she said, "This is almost It’s for sure. Let’s prepare for an all-cash acquisition and leave room for premium."

Ryze can understand, but can't accept it. Why? Because there is not so much money on the books, according to Belmond's stock price at this moment, the market value is about 1.7 billion U.S. dollars, while the four-dimensional space has less than 1 billion cash on the books. This is the number after the recent sale of arms and a quick cash. , It was even more ugly before.

He told Yang Cheng about this situation. Yang Cheng was helpless except for helplessness. He hated less when the money was used!

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

Schuberg lowered his head in thought for a moment, "300 million! Up to 300 million!"

Yang Cheng said, "You have 300 million yuan, 800 million yuan in the four-dimensional space, and some activity funds should be left. This is 1.1 billion yuan. At a 30% premium, we have to prepare at least 1.2 billion yuan. , It’s better to have 1.5 billion, let’s talk about it, where can I get this money?"

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

Yang Cheng knew that this was the balance of the arms business, and didn't say much in front of Schuberg. The less people know about this business, the better.

"Money matters are easy to say. If it doesn't work, take a loan. The major investment banks on Wall Street have given us so many low-interest lines.

The key is the next plan after the acquisition. Holding the two luxury boutique hotel brands in Amman and belmond is equivalent to holding the contact information of 40% of the global high-net-worth population. Does this mean I don’t need to say more? "

Ritz took the conversation, "We should continue to dig deeper into this field. Although this is the era when traffic is king, the talents who really hold customers have the right to speak."

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

Yang Cheng muttered the word, "Is this an old term? And the experience impact of the hotel industry is far less extensive and profound than that of Ins 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 routes like traditional travel agencies, we impose routes. Dissatisfaction will definitely be singled out. If passengers are allowed to make their own decisions, they will be more tolerant of their choices."

Yang Cheng took a sip of coffee I understand what you mean, do you want to launch a customized travel service? Increasing the sense of participation of passengers 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 counts, but we are a bit smarter. In fact, this is similar to the LVMH Group’s strategy. We must make every traveler who chooses our group’s travel services get used to the lifestyle we provide them. With this habit, our revenue can usher in a steady growth.

Amman and belmond almost cover the popular and non-popular attractions on the earth. Vacationers 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, and they must also live. To choose a hotel under our name, this is the way of life! "

"Before, we have also launched similar activities, one-stop service, from the time when passengers place an online order to when they travel home, we will contract them, but the effect is not very good~"

"That's because we lack effective integration, and there is only one brand in Amman, so we can provide customers with few choices."

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