Chapter 3510: Iron Tree Blooms
Bernard Arnault's business acumen is such that even Ye Chen would feel ashamed by comparison.
He has spent his entire life thinking about one thing: how to make more money, so his financial sense is extremely strong.
Co-branding has long been a common tactic in the luxury and fashion industries; a few years ago, LV collaborated with the streetwear brand Supreme, and an ordinary short-sleeve T-shirt, due to the fusion of the two brands' logos, sold for a five-figure price, and after a group of terminal speculators kept hyping it, the price even doubled on top of the original.
Even in the digital world, co-branding often occurs—for example, some computer and hardware brands collaborate with well-known games, thereby further increasing their sales.
For consumers, co-branded products also offer good value for money, because they only need to buy one item to get the endorsement of two brands, naturally making it more cost-effective.
For Bernard Arnault, in most cases, he looks down on co-branding, because most brands lack the fame of his own, and if he were to collaborate with brands of lower standing, it would be equivalent to letting others take advantage of him.
But now the situation is different—his production capacity is severely limited, and consumers are holding money, waiting to buy his products!
His supply chain, after years of refinement, perfectly matches his previous needs in terms of production cost, efficiency, and quality, but they never imagined sales could suddenly surge dozens of times, selling in one day what used to take several months.
Now asking them to increase production capacity, they would exhaust themselves to the point of breaking a sweat, at most achieving a 30% increase, which is far from meeting current demand.
Bernard Arnault also clearly understands that public enthusiasm, like the tide of the sea, will recede.
If he can fully meet their purchasing demand before the enthusiasm fades, he can maximize the extraction of their value; but if the supply chain falters at this time, once public enthusiasm fades, it will be equivalent to completely missing this good opportunity to make money.
And co-branding happens to solve this problem.
By entrusting production tasks to other enterprises, it is equivalent to simultaneously opening N production lines and supply chains, and all problems can be readily solved!
Moreover, due to his current fame being at its peak, people all want to buy products under his brands, which naturally squeezes the market share of other brands, causing their products to stagnate; many brands today have seen sales plummet by over 80% compared to before, so if they can collaborate with Bernard Arnault's brands at this time, it also counts as resolving their own excess production capacity and earning more money.
Thus, the major brands that received the co-branding invitation almost all accepted the proposal immediately.
Next, these brands' designers, upon receiving authorization, began busily using the classic elements of Bernard Arnault's brands to design co-branded products.
Bernard Arnault was extremely excited.
He had people calculate that if this heat lasts a month, his nominal three-year loss in the American market could be directly recouped.
If we also include the spillover effect in the American market, he might very well reap even higher profits from this—meaning he not only doesn't need to lose a single cent, but could earn an extra several billion in a year!
He felt thrilled inside, secretly thinking: "This damn is truly the real meaning of gaining both fame and fortune!"
"And this kind of fame gained is something I never dared to hope for in the past half of my life!"
And this also made him feel grateful toward Ye Chen.
Next, he fulfilled his promise to Ye Chen: not only did he donate two billion US dollars to Wanlong Hall, but he also spent over one hundred million US dollars to purchase from Sri Lanka the 99-year usage rights to an island, and then transferred it to Wanlong Hall.
This island happens to be located near the international shipping routes of the Indian Ocean; from East Asia to the Middle East, Europe, and Africa, Sri Lanka is a necessary passage, and Wanlong Hall now derives half of its revenue from ocean escort services; having already acquired an island in the Maldives, adding this Sri Lankan island would make escort work even more time- and cost-efficient.
Bernard Arnault specially called Ye Chen to inform him about the island, and added: "Sorry, Mr. Ye, I acted first and reported later, without first consulting you, so I must apologize to you..."
Although this island is only worth two or three hundred million US dollars, Ye Chen saw from this matter Bernard Arnault's attitude.
In fact, he had long seen through Bernard Arnault: this old brother, though very rich, is also stingy at heart—for a product priced at 199, it's exactly 199; he wouldn't give 200 and not take back the one dollar just because he has money, which would make him uncomfortable for a long time, absolutely unacceptable.
This kind of old aristocrat, like a miser, usually insists on the agreed price and won't pay even one cent more, but this time he actually proactively gave an island on top of the agreed basis, which shows that the old brother has made some progress, however small.
Using a Chinese idiom, he has also achieved "iron tree blooming."
Thus, Ye Chen affirmed his approach, smiling: "Mr. Arnault means well; I thank you on behalf of Wanlong Hall."
Bernard Arnault quickly said: "Mr. Ye, you need not be polite; this is just my little token of thought."
After speaking, he hurriedly said to Ye Chen: "By the way, Mr. Ye, what about that Mr. Hamid who narrowly escaped assassination—is your relationship with him not bad?"
Ye Chen smiled: "Hamid and I get along quite well; what's up?"
Bernard Arnault immediately said: "Mr. Ye, I personally feel that Mr. Hamid's situation in Syria should be rather dangerous; since he is your friend, I wish to take out two hundred million US dollars as a small token of thought, hoping you will transfer it to him to help him consolidate his foothold in Syria."
Ye Chen said in surprise: "Mr. Arnault, why would you suddenly want to sponsor Hamid?"
Bernard Arnault chuckled: "Ah, Mr. Ye, let me be frank—this is just my little token of thought, hoping Mr. Hamid can further enhance his own strength, and also try not to let you, Mr. Ye, worry too much."
"Very good." Ye Chen praised: "You can have this thought—I really didn't expect it; Hamid now needs to form alliances in Syria, which inevitably requires spending money to win over some warlords, and this sum happens to be able to help him; I thank you on his behalf."
Bernard Arnault excitedly said: "Mr. Ye, you're being too polite; as long as I can share your worries within my ability, I am already quite satisfied! After all, you've helped me too much, too much!"
Ye Chen smiled: "No need for polite words; I'll later greet Hamid and tell him this news."
"Okay, Mr. Ye!" Bernard Arnault quickly added: "If two hundred million US dollars is not enough, just say the word—I can still add more!"
Ye Chen teased him: "Mr. Arnault, let me remind you: Syria is unlikely to become a luxury consumption market; investing so much in Hamid may not yield a chance to recoup the investment."
Bernard Arnault hurriedly said: "Mr. Ye, you misunderstand me—I am not doing this for profit, but purely to share a bit of your burden..."
End of Chapter
