Chapter 306: 1.5 billion, she is worth it!
Lake Okeechobee in December gives people a sense of silence and desolation, but the atmosphere on the yacht is not desolate at all.
The people Mi'er invited today all belong to the same circle of successors, and they don't get together often.
Like Giojo, he stayed in South Africa for a long time and may only return to the United States a few times a year.
There are also people like Mier's brother Achilles who often travel abroad for business and vacation.
Although we are not very familiar with each other, we are still very happy to get together, especially because Mier’s OC will give them a piece of cake.
"Chan, come, sit next to me."
Achilles is a person who can't even figure out Cheng Daqi. Instead of calling his sister, he actually called Cheng Daqi. total.
After previous exchanges, Cheng Daqi already had a good idea.
Achilles has an informant among the people around Mi'er and knows a lot about him and Mi'er.
But in fact, he and Mi'er were very cautious about what was really important, so there was a lot Achilles didn't know.
When traveling in the world, it is very important to keep one's tone tight.
"Mr. Achilles, have you been to Lake Okeechobee before?"
Mier was sending information to several potential investors. Mr. Cheng didn't pay much attention. He was careful. Faced with Achilles.
This man is two meters tall and extremely strong. Even when he is sitting, he is half a head taller than Mr. Cheng.
He took the wine from the waiter and handed it to Cheng Daqi first.
“I’ve never been here before. The scenery here is nice and the bass is famous. It’s a good place for fishing.”
Taking the wine handed over by Achilles, Mr. Cheng replied with a wry smile.
“I fished for half an hour yesterday and encountered a black drift, but I was a little careless at the time and fished it in too quickly and the fish ran away.”
I’ll talk about anything you want. I can chat with you, Mr. Achilles. I am professional in chatting with you.
Mi'er, the eldest brother, is a very difficult person to deal with. He came here today without any good intentions, but he also behaved very 'caring' in front of everyone. He simply played the game of being both at once and at the same time to the point of proficiency.
Mr. Cheng understood why he pulled him into pretending to be late, but he also believed that Mi'er would not be misled by this little trick.
"Ha, there should be a fishing rod on a boat like this. We can fish together later."
Achilles said and lit Giojo.
"Qiao, Chan and I are planning to go fishing later. Do you want to come with us?"
The affectionate Mr. Woodchuck did not expect to be invited by Achilles, so he answered with a smile of surprise.
“Oh my God, okay, let’s fish together.”
This guy’s voice was a little magnetic, and because he might be a little excited, he answered in a higher pitch.
Everyone else on the boat got goosebumps from his voice, but Achilles had no reaction.
“Lake Okeechobee is famous for its bass, Honey, you picked a good spot.”
Talking loudly, calling friends, and pointing fingers, Achilles relied on the fact that he was Mi'er's brother, and really regarded the game that Mi'er had accumulated today as his home court.
Cheng Daqi realized something was wrong. If Achilles had been acting as a master, he would have the ability and reason to disrupt Huang Mier's plan later.
"Of course, but let's start talking about financing first. After all, this is the top priority today. Let's take a look at the information I sent you first."
The rich black-haired woman seems After thinking about it with Mr. Cheng, she chose to get down to business directly, not giving Achilles room to continue looking for pictures.
"Mi'er, are you serious? The valuation is 1.5 billion, is your OC going to be the Internet or high technology?"
Giorgio's words raised a common question among many people.
Mier's OC is not short of cash flow now, but after all, it is a medium-sized company in a traditional industry, and the ceiling is there.
With OC’s current business model and scale, even if it goes public in the future, its market value may only be within three to four billion.
The market value of thirty or forty does not mean that it is really worth thirty or forty, but if we raise funds at a valuation of 1.5 billion, then people who come today will have to pay according to the value of 1.5 billion - OC is really not worth it .
The head structure and market size growth space of traditional industries are actually fixed. No matter how OC develops, its potential will only be that way.
That's why Giojo asked that. After all, the Internet and high technology are the most expensive and imaginative models.
Seeing Giorgio look at him after questioning, Achilles just smiled and had no intention of explaining for his sister.
"Of course not. Let me briefly talk about the current competitive landscape that OC is facing."
The black-haired rich woman's subordinates set up a whiteboard for her, and she started to explain directly with a marker pen.
It’s not that we played carelessly today, but that Mi’er and the people who came today have already had mutual trust. We are all in the same circle. There is no need to use PPT to fool people. Just say what you want.
"A professional term for the perfume industry should be the flavor and fragrance market. OC is a small player in this market, but it has initially touched the head line.
The current head of the perfume industry There are about a dozen companies, including outstanding companies from France, the United States, Japan, Brazil and other countries. Their overall share is about 47%.
OC ranks about 20th. About 50 billion, and my specific goal is to increase OC’s revenue to 2 billion US dollars within three years.
The problem is that the global market size of the perfume industry is only about 50 billion, corresponding to the cosmetics industry. 10% of the 500 billion dollar scale.
In other words, if OC only focuses on the field of perfumes and flavors, 2 billion dollars is equivalent to 4% of the industry share. ”
Temir's meaning is very simple, her OC is going to diversify and develop.
Diversification is a choice that many companies and entrepreneurs make invariably after they develop to a certain level. Although many of them die because of diversification, its universality reflects the success of companies after they develop to a certain scale. Dilemma.
The total size of the industry is 50 billion U.S. dollars, and only a dozen leading companies account for less than 50 points of market share. The ceiling of the perfume industry is there.
For OC, there is no development without diversification!
"Mi'er, what is OC's annual revenue now?"
After flipping through the information, but it was too thick and she couldn't find the data she wanted, Alexandra asked directly.
“310 million, which is about a little over 0.6% of the industry. Note that the dozen industry leaders I just mentioned all have a market share of more than 1%. .
There is a very, very, very counter-intuitive point in the perfume industry, that is, any attempt to expand the popularity of a single product will be disliked by the market
Because most of the users who buy perfume. They all care about personalization, Sandy, let me think about it, the one you used today is Burberry’s, right?”
The rich black-haired woman smiled and guessed what Alexandra used today. Which brand of perfume is it?
Big Bear sister Alexandra smiled bitterly and replied,
“I completely understand now. I will never use any Burberry perfume again in the future. Therefore, what specific attempts should you make to diversify your OC’s expansion? Which ones? ”
For people like Alexandra, wearing clothes is almost as embarrassing as wearing clothes.
With her interaction with Mi'er as an example, others probably understood the meaning of Mi'er's words.
“Let’s talk about this later. Let’s continue to look at the industry structure. Look at page seven, which contains a curve chart.”
Temir drew these two lines on the whiteboard directly from memory.
“Look here, the cosmetics industry is growing at a very good rate, with a growth rate of 5% in the third quarter of this year!
From 2015 to now, the industry has grown by $80 billion. , but like the perfume industry, there is no giant in it. This is a market with full competition.”
Alexandra once again opened the door, and her family has the daily chemical giant Unilever. Shares, she didn't think Mi'er was right.
"Mier, Unilever, L'Oréal, Procter & Gamble, etc. are all giants in the cosmetics industry. Shiseido and Estee Lauder are also very powerful, not to mention Kao and Colgate who have been sprinting in the industry for a long time. Big player in the head.”
Achilles glanced at Alexandra contemptuously, he didn't like fools.
Mr. Cheng captured this scene and said nothing, just silently watching Mi'er deal with it.
The rich black-haired woman is not afraid of questioning. She even feels that Sandy is helping her on purpose.
“Well, you may not know the specific data in the industry. After all, the cosmetics market is a small market. The data for the third quarter of this year came out last month.
In the global cosmetics market , the top three are L'Oreal, Procter & Gamble and Unilever, but their market shares are less than 10%
In fact, the market share of the global top ten in the cosmetics industry is only 43.2, and this scale is still shrinking. Yes, the market they have been hit by the competitors behind has shrunk. ”
The rich black-haired woman is an elite in the industry. All kinds of data are clearly printed in her mind, so no matter what Sandy’s problem is, she can easily deal with it.< br>
“No, if the profits of the industry leaders cannot be stable, does that mean that the cosmetics market is not a good market? "
Giocho's question was a bit silly, but Mi'er replied patiently.
"Giocho, it's like this, because the overall scale of the industry is growing, so , even if the market share of some leading companies has declined, their profitability is still good.
Moreover, a market without competition means there is no opportunity. Only with competition can there be opportunities. I am confident that I can achieve a revenue of 2 billion US dollars in three years with OC. "
Cheng Daqi nodded approvingly. Mi'er has a lot of problems, but she is really a top-notch strong woman.
The competition is fierce?
With fierce competition, there is no chance!
Without competition, there is no chance!
I have confidence!
“But why doesn’t OC try to expand in the upstream and downstream of the perfume industry? I understand that the cosmetics industry and the perfume industry are closely related. Maybe the difficulty of crossing the industry is not that big, but is it better to expand in the upstream and downstream of the industry first? Be more steady? "
Giocho is thoughtful, and his question made many people think.
Yes, you OC want to diversify and go public, but why do you have to cross borders? The risk is actually smaller if you do it upstream and downstream.
Mr. Cheng raised his cup and took a sip. He was worried about whether Mi'er could deal with these people's problems.
From Alexandra to Giojo, in terms of assets and wealth, they are all children of the top families in mankind. The points they focus on are all very critical. Although some of the questions raised are of low level, most of them are Very critical.
Mi'er, come on.
The rich black-haired woman looked at Giorgio with a smile and replied.
"Giocho, I actually know how to answer your question, but since you asked it, I will explain it clearly at once, including the specific direction of OC diversification, etc."
As she spoke, she wiped the whiteboard sideways. The audience noticed the actions of OC President Ms. Temir, and they all looked forward to it with serious expressions.
The meat show is coming.
“The expansion and diversified expansion of the upstream and downstream industries can actually be said to be similar, but in specific operations, we will always face various problems. After all, every industry has its own unique characteristics. "Speciality, everyone may have this experience."
The rich black-haired woman quickly drew a quadrant diagram.
“But for OC, upstream and downstream expansion and diversified expansion are actually a matter of expectations between costs and benefits.
From a broad perspective, cosmetics belong to the consumer goods industry, and consumer goods The market size of specific products and businesses in the industry depends on brand power and marketing level. Other factors are also important, but these two points are the core.
If the product is good enough, then the brand power will naturally increase and the market will buy it.
If the brand power is average, but the marketing level is high enough and the profit can cover the cost of marketing, then there can be a market.
OC’s diversification will focus on the cosmetics field. Our cross-border business is not big. At the same time, our marketing model and product quality are also OK. Under these premises, our diversification success rate can be compared. Considerable value.
This is a general analysis from a broad perspective. In specific dimensions, there are four points that need to be explained clearly to everyone. "
Themir finished drawing the quadrant diagram and continued.
"The first point is that the upstream of the perfume industry are cosmetic raw material manufacturers such as flavor and fragrance companies, and manufacturers such as OEMs. Their profit margins are between 5% and 15%. This profit margin Although it sounds low, it can actually be done.
This is a good business, yes, a good business.
The problem is the concentration of the upstream of the global fragrance and flavor industry. It’s too high, CR5 accounts for more than 60%.
From 1999 to 2017, the global CR10 sales share in the industry increased from 64.6% to 77.2%.” (CR stands for concentration rate in English. The abbreviation of ", meaning "concentration")
At this point, the black-haired rich woman looked at Giocho and said.
"OC can do upstream, but the profit expectations of upstream are not very good. As shown in the picture, the brand concentration of raw materials and production is very high. Even if OC invests a lot of money, it may only make a small amount of money.
Now let’s talk about the situation in the downstream of the perfume industry, which is the second point.”
Just when Tamir was about to continue talking, Sandy raised her hand, which was clearly to support her best friend. The place has come.
Mi'er was very happy, it seemed that it would not be a bad idea to give away the necklace.
"Mi'er, back to your expectations for OC's diversified expansion just now, you said that OC's marketing is very good. Do you have any specific examples?"
Achilles realized something was wrong. How could Alexandra look so flattering when she was asking questions?
Actually, this is normal. Everyone is a top-notch family. My kids, none of them are too stupid, their basic skills are all online.
“OC has less than 100 offline stores, but we have created sales of 300 million. The core points lie in two, one is successful online marketing, and the other is differentiated marketing. .
However, Sandy, everyone, this marketing success is not actually a specific form of success, but my success.
Yes, I am the founder of OC. Man, I know perfume, I know the cosmetics industry, I know the market, I know how to run a business, and now I also know how to make products
This is my success. Under my personal management as the founder, OC has more advantages than many peers in all aspects. ”
Everyone, I am Temir, let’s get to know each other, my OC is very successful!
“There are two models of companies led by founders and companies led by professional managers. Definitely understand.
In the past, OC’s achievements have been proven by the market. In the future, I will continue to grasp all key points such as marketing, products, channels, etc., so that OC can continue to succeed. ”
Looking at his high-spirited sister, Achilles’ eyes had a hint of gloom. Oh, your success, this is the funniest joke I’ve heard this year!
Seeing that Sandy had no intention of continuing to ask, Mi'er returned to her previous rhythm and continued talking.
“The downstream of the perfume industry is specific channels. This is a very difficult problem to solve. Most of the small start-up perfume companies are stuck in opening physical stores-single perfume stores. Profitability is too problematic.
The channel changes in the perfume market are highly consistent with the cosmetics market. From the last century to the beginning of this century, department stores and KA (large supermarkets) were the main channels, and later from 2007 From 2000 to now, CS channels are cosmetics stores, such as Guerlain Beauty, etc. In the early days of OC, the initial expansion was completed through CS channels.
The important thing about how we can get to where we are today is that I did not blindly do so. Most of the physical brand stores are opened offline in the form of counters and small stores
The strongest channel for OC is actually e-commerce. We have achieved an explosion in revenue through full-category e-commerce platforms such as Amazon and classified e-commerce platforms specializing in beauty.
The logic here is that many major beauty brands and luxury brands will only launch their fragrance categories on their own platforms - to a certain extent I have to thank them for their arrogance.
Generally speaking, as far as the perfume industry is concerned, downstream expansion is a trap, and there is no good solution. This is why I must diversify - after all, online platforms have ceilings, and marketing The cost is not low either. "
Giocho stopped talking. Mi'er has a deep understanding of the perfume industry. Most people may not be able to realize what she said in their lifetime.
"Now Let’s talk about the third point. Now that we’ve talked about the reasons why we need to cross-border, let’s talk about OC’s expectations after financing. Friends, please read pages 19 to 22 of the information. You should read it again first, and then I will talk about it. ”
Everyone looked at the information. Mi'er took the water glass from the waiter, took a quick sip, and then looked at her brother pretending to be casual.
Achilles is looking at her too!
This humanoid giant gave a thumbs up to his dear sister.
You are great, Mier.
The rich black-haired woman forced a smile and turned around to wipe the whiteboard without giving him any more pictures.
Achilles shrugged, and boredly flipped through the information Mi'er prepared for them.
"Chan, your MAS is valued at 120 million in one round. How many shares does Mier still have in it?"
Mr. Cheng was asked this question by Achilles. Some of them are heartbroken.
"More than thirty points, what's the problem?"
Brother, what do you mean?
"Oh, it's okay. It's really impressive that you valued it so high in one round. I remember her OC's valuation was only 73 million in one round of financing at that time."
Achilles seemed to be just asking. , casually chatted with Mr. Cheng.
"There are big differences in the industry. MAS, which has a little bit of involvement in the Internet, actually has some advantages."
Cheng Daqi is not proud at all. He is today Taking low profile to the extreme.
“Okay, everyone should have read this. To put it simply, OC’s diversification is divided into three directions: cosmeceuticals, skin care, and niche perfume mass creation incubation.
Cosmeceuticals correspond to OC's expansion attempts in the major categories of the cosmetics industry. We focus more on marketing rather than products.
Cleaning and care is an extension of perfume, mainly using OC’s brand background as the anchor point of differentiation. The model of perfume + care is very old, but it is still easy to use.
The incubation of niche perfumes is the focus of OC in the future. The cosmetics market environment is constantly changing, and opportunities and declines are hidden in the details of these changes.
In order to better adapt to the future market, OC needs to transform from a brand owner to a 'perfume incubation platform', which targets the increasingly personalized needs of users. ”
No one questioned Mi’er’s plan. In fact, what she said was very general, and there were many details that could be discussed.
But like she said, OC is her company and she has succeeded.
People always have more faith in successful people.
“The fourth point is the target market of OC. I chose China and India. They are both late-developing economies. As far as the perfume and cosmetics industries are concerned, their market size is still growing at a very fast rate. Considerable - compared to the United States and the European Union
The specific data may be convincing. (Sorry, it’s not that I am lazy, but I have written enough before, and this part is easy to understand for domestic readers. I won’t write more)
In other words, after this financing, OC will have two directions, diversification of categories, and opening up the Asian market. That’s about it in general. You still have Have questions?
If there are no doubts, I will start talking about OC’s current specific business situation and data reports. ”
Let’s talk about the big framework first, then the small details, and finally the price. Mi’er’s idea is fine.
But.
This thing is not worth 1.5 billion.
"Mi'er, if your plan or OC's plan is just this, I really don't see anything worth 1.5 billion in OC, and there's no need to tell you the specific data.
You made 300 million US dollars a year, with a profit of just over 30 million US dollars, and a profit margin of 12 points. It was actually very successful, but this kind of success is not worth 1.5 billion. ”
Sandy’s words were not too polite. In fact, she was helping Mi’er.
From her perspective, Mi’er’s story is good, but useless – because it’s easy to tell. It's still the model of a traditional daily chemical giant.
With a valuation of 1.5 billion dollars, it requires hundreds of millions of dollars in cash.
This model cannot be used. Today’s OC supports the vision of 1.5 billion!
Alexandra was reminding Mier.
The black-haired rich woman understands what Sandy means. She knows that everyone here is superficial friends and will definitely have objections when spending money, so she is relatively calm.
"Sandy, everyone, this is it. My expected valuation is 1.5 billion, and the specific financing amount is 300 million U.S. dollars, which means selling 20% of the shares.
100 million of the 300 million will be inferior funds. We can design a bet with a total revenue of 2 billion US dollars in three years.
In fact, the current market valuation of OC can reach about 10. 1.5 billion is not an overestimation. The reason why I signed the bet is not that OC is worthless, but just to make everyone believe in me.”
One billion, this valuation is actually not low compared to the profit of more than 30 million. Thirty times is even outrageous, but after all, start-up companies have a premium - they buy based on expectations.
It has only been a few years since OC was founded, and the decline has not yet been revealed. Current revenue and profits are still growing. In other words, there is room for imagination in the future of OC.
But Alexandra’s doubts are correct. Correspondingly, the bet proposed by Mier is also necessary. She wants to use this method to make investors boldly spend money.
In the final analysis, the overall growth rate and competition pattern of the perfume industry are actually very poor. The total size of the industry increases by a few percent every year, and the top players do not account for much market share.
Under this premise and current situation, OC has reached its ceiling and needs diversified expansion to break through the limitations of the industry, so Temir plans a third round of financing.
"Hahaha, the 100 million was provided by our University of Missouri Bioindustry Fund, don't worry."
Someone spoke up, and everyone gave him respect, and the feedback was very good.
Only Mr. Cheng was paying attention to Mi'er at this moment. He noticed that the black-haired rich woman's face was a little stiff.
Seeing her boy looking over, Mi'er smiled at Cheng Daqi, shook her head slightly, and told him not to worry.
"Mi'er, at this point in time, is it appropriate for OC to expand its market in China?"
Giorgio is paying attention to the situation, or everyone sitting here is paying attention to the situation - this is their world.
"Mr. Giorgio, that's why I invite you to invest!"
The rich black-haired woman spread her hands and said with a smile. The girl even winked at Giorgio playfully. Blinked. (Giocho is a 0, he and Mi'er are of the same sex, and Mr. Cheng was not mentally green)
"Hahahaha."
Everyone on the yacht was amused by Mi'er's words.
Yes, the companies they invest in are not high-end traditional consumer goods companies. How can they be affected by the overall situation?
In a sense, they are part of the overall situation!
After the people on the boat calmed down, Mi'er added meaningfully again.
“Actually, with OC’s cash flow and my funds, this third round of financing is completely unnecessary, but since we are all friends, I will definitely not forget you if good things happen.
In addition, if you are willing to support me, OC can develop faster
Therefore, 1.5 billion dollars is really not expensive. I hope everyone understands. ”
Sure, everyone here is knowledgeable. They understand that what Mier said is actually right.
OC may only earn 30 million a year, but it can leverage Hundreds of millions of funds - this is not difficult.
Mi'er continued to talk about OC's data, and everyone began to quietly think about how much they would invest.
Aren't they worried about losing money?
Nonsense, with the inferior funds and Achilles' promise, and the endorsement of OC's current data, where can the loss be?
And Mi'er's logic that they can do it themselves is fine. If they don't invest, they may really miss an opportunity.
Although OC is not as sexy as those Internet companies and technology companies, Xiaojiabiyu is also a kind of beauty.
What’s more important is that Kalamacris’ home is in Missouri, and Honey can’t run away.
There is gambling, inferiority and temples. Tamir is not a big talker like Accountant Jia, and their money will not be wasted!
After a long time, Mi'er finally finished talking about the OC data, and Alexandra was the first to ask a question.
However, this time she is not flattering Mi'er. Who can not care about their own interests?
"Mi'er, when you contacted me, you said that this round of financing is to prepare for the listing of OC. You have said so much, but you haven't mentioned the listing plan yet, right?"
Lean on Achilles on the back of the sofa narrowed his eyes.
The distracted Giorgio turned his attention away from Mr. Cheng.
Even Cheng Daqi's heart became awe-inspiring.
Listing, this topic is accompanied by wealth and success. It is an attractive word in front of anyone at any time.
The rich black-haired woman looked at everyone deeply, her eyes were a little strange, and the girl replied humorously.
“Of course we will wait until OC becomes unprofitable before going public. Do you still need to ask?”
Silence.
The silence here contains thunder, which explodes in everyone's heart.
Mi'er, Mi'er, she is a wonderful girl. She conquered all investors with her clever answers.
It seemed that she was talking nonsense, but after the investors realized it, they all respected her.
There is no better entrepreneur than her.
Cheng Daqi smiled and shook his head, taking the lead in applauding.
He stood up while applauding. This was not to set the rhythm, but to express President Cheng's respect for Themir Kalamacris.
Themir, you are really a very powerful capitalist.
Under the leadership of Mr. Cheng, everyone stood up and applauded Themir for his wonderful explanation today.
She deserves it.
Even Achilles had to stand up and applauded with everyone with solemn eyes.
Achilles and Mier are competitors behind closed doors, and both of them know it.
In the past, Achilles didn't care about Themir's petty quarrels.
But today, he saw the towering beauty of Mier.
This sister is a bit powerful, Achilles saw her beating, hidden, and tireless burning ambition.
——
The plane passed through the troposphere, and white clouds could be seen outside the window of the adult seat. He and Mi'er finally dared to chat on the plane.
"How does it feel?"
The rich black-haired woman leaned into his arms and asked in a low voice.
Cheng Daqi knew what she was asking.
"Why don't you apologize to him? African industries are actually OK. Africa earns money and spends it in Europe without affecting the quality of life."
Temir didn't speak, she just silently hugged Mr. Cheng a little tighter.
"You promised me, Chan."
Of course she knew Cheng Daqi was joking. If Mr. Cheng was afraid, he wouldn't be here today.
Cheng Daqi stroked her hair and asked.
“The transformation you designed for OC is actually a bet on the short video bonus I mentioned. Do you believe me so much?”
Themir held her beloved boy in her arms. This was the person she trusted the most, and he was also a fool with great principles and ideals.
“Don’t you keep asking me this question? Why, are you afraid if I really do it?”
“Don’t be afraid, fuck him!”
“You are so Talking about GAYGAY.”
“So, you know that Giojo is gay and you let him harass me?”
"Goose~goose~goose~You reject me every day, people think you like men."
"Tell me, if we find a gay to fuck him in the future, what will his expression be like?"< br>
Mr. Cheng was so imaginative that Mi'er raised her head in surprise.
"Although your suggestion is outrageous, I think Lille will like him very much, what do you think?"
"Lille, come here, you"
The plane shuttled through the clouds. The first stop was Florida, and it was currently heading to the second stop - the Bahamas!
Not much explanation, brain failure, starting tomorrow will be 10,000 per day, and will be 10,000 per day during the holidays!
(End of this chapter)