In Hong Kong, we build a global business empire

After thinking it through, Lin Haoran wasn't surprised.

Why do large international companies enter the mainland market? Isn't it because of this untapped market?

Therefore, these international big brands naturally try every means to extract every possible benefit from the mainland.

This is business logic, and has nothing to do with morality.

Just like CLP Power before, the same principle applies. The Kadoorie family relied on the mainland's need for them and the need to earn foreign exchange by selling electricity to Hong Kong. They refused to budge an inch in negotiations, were unwilling to take any risks, and had such harsh conditions that the Daya Bay project could hardly be advanced.

It was only after his intervention that this "passive acceptance" situation was broken, giving the mainland more choices.

The same logic applies to the automotive industry.

If the only option for mainland China is to beg giants like Volkswagen to form joint ventures, then these automotive giants will naturally have the upper hand in negotiations, resulting in low localization rates, no sharing of core technologies, no exports, and taking the lion's share of profits.

However, if there were an international car brand owned by Chinese people to choose from in mainland China, Volkswagen would no longer have as much bargaining power.

Even if the scale of this independent brand is not large in the early stages, as long as there is a difference between having it and not having it, the balance of negotiations will shift.

However, he is not without solutions to the current predicament facing the mainland.

Just as he planned to acquire a stake in a top automotive giant, if he became a major shareholder of Volkswagen and gained some influence within the company, he might actually be able to fight for more rights and interests for himself and for the mainland.

For example, the models that Volkswagen produces in mainland China are not only for the mainland market, but also exported to other emerging markets such as Southeast Asia, the Middle East, and Africa.

In this way, the joint venture factory can actually generate foreign exchange earnings, rather than just meeting the needs of the domestic market.

Ideally, he would gain the power to expand into the Asian market, such as by obtaining the position of President of Volkswagen Group Asia. This would allow him to directly lead Volkswagen's production capacity layout and export strategy in mainland China, without having to propose motions and wait for votes at the supervisory board meeting every time.

The more direct the power, the higher the efficiency.

If all else fails, as a major shareholder of Volkswagen, he could also propose optimizing the production capacity layout in the supervisory board. Since the cost of production in mainland China is much lower than in Germany, why not export these low-cost models to other markets?

This would improve the capacity utilization rate of factories in mainland China, create higher profits for the public, and bring foreign exchange earnings to the mainland, making it a "win-win-win" solution.

In the eyes of the public, the mainland has no bargaining power whatsoever; this is a harsh reality.

But Lin Haoran is different. He will become one of Volkswagen's major shareholders and one of its owners. He has the ability to change this reality.

If he can successfully push for an export-oriented production capacity layout on Volkswagen's supervisory board, then the joint venture factory in mainland China will no longer be just an "assembly workshop," but a real production base oriented towards the global market.

In this way, the mainland not only gains employment and tax revenue, but also truly earns foreign exchange.

As for how to get the public to agree to this, Lin Haoran is naturally still unclear, since he has not yet had any contact with the public.

In other words, these things can only be truly started once he joins the Volkswagen board of directors.

Thinking about it now is just empty talk.

He needs to get that ticket first, to obtain a seat on the Volkswagen Supervisory Board, before he can exert influence within Volkswagen.

If Volkswagen's top management refuses to compromise, he will then decide on the next step.

Lin Haoran put down the report, his gaze falling on the stack of fax papers on the desk, and couldn't help but stretch.

I checked the time and realized it was already 11:30 p.m. without me even noticing.

I don't want to think about it anymore. I've already prepared everything I needed to. It's very late.

With that thought in mind, Lin Haoran put the documents into his briefcase, got up, and left the study.

After taking a shower in the bathroom outside the hall, I quietly opened the bedroom door.

He thought that Kwan Ka-wai should be asleep with her daughter, but to his surprise, her daughter was not in the room. She was obviously sleeping with the nanny.

The bedroom light was on, and Guan Jiahui was reading a book, occasionally yawning.

"Why aren't you asleep yet?" Lin Haoran walked up to her in his pajamas and asked with a smile.

"I missed you, Haoran!" Upon seeing Lin Haoran, Guan Jiahui immediately perked up, her eyes sparkling with a mischievous glint, like a wolf spotting its prey.

She put the book aside, turned to look at him, and said, "You've been busy all night. I thought you were going to spend the night in the study."

Lin Haoran smiled and lay down beside her, putting his arm around her shoulder: "There's a lot to do, but it's all arranged. All that's left is to wait for news."

Guan Jiahui unconsciously began to stroke Lin Haoran's body with both hands.

Although, she had been waiting for Lin Haoran all night with a hint of "ulterior motives".

Although Guan Jiahui already has a daughter, she is actually only 21 years old, which is the most charming age for a woman. She has both the charm of a young girl and the beginnings of a mature elegance.

Every move she makes exudes the vibrancy and agility unique to her age, making it hard not to be captivated.

"What? Want a second child?" Lin Haoran said jokingly.

Unexpectedly, Guan Jiahui said seriously, "Yes, Haoran, I want to have your second and third children!"

Lin Haoran had only made a casual joke, but Guan Jiahui took it so seriously.

He paused for a moment, looked down at her, and found that there was no hint of joking in her eyes, but rather a firm seriousness.

"Do you really want another one?" he asked.

"Yes," Guan Jiahui said. "Lele is too lonely by herself. I want to give her a younger brother or sister, and..."

She paused, her voice softening slightly, "I just want to have more children for you. I'm not doing this to compete with Xiaohan's children for the inheritance. My own company is doing quite well, although it can't compare to your business at all. But if our children inherit my business in the future, they can live a good life."

In the past two years, my Modern Girl Clothing Chain Company has been developing better and better with the support of Hongkong Land Group, and its stores are located in high-end consumption areas such as Central, Causeway Bay, Wan Chai and Tsim Sha Tsui.

Currently, Modern Girl has 48 stores, and the company's daily total revenue reaches HK$700,000 to HK$800,000. On holidays, the revenue often exceeds HK$1 million. Last year, the annual profit exceeded HK$20 million, and it is expected to double this year!
In the future, I also plan to IPO the Modern Girl brand and make it one of the largest local women's apparel brands in Hong Kong.

Guan Jiahui’s voice carried a hint of confidence, “So, Haoran, you don’t need to feel wronged. I have my own career and my own income. I have children not to depend on you, but simply because I want to have children for you. I just want to have more children for you to make this family more lively.”

When Kwan Ka-wai wanted children before, she said something similar.

Now it seems the other party was serious.

Of course, although Guan Jiahui said that, they are all Lin Haoran's children after all. When he divides the family property in the future, he will definitely receive a share, but he will definitely favor the children of Guo Xiaohan, his legal wife. He still has a scale in his heart to distinguish between legitimate and illegitimate children.

But this doesn't mean he will mistreat Guan Jiahui's children; it just means he will prioritize them in resource allocation.

After all, Guo Xiaohan was his lawfully wedded wife, and Lin Yaoguang was his legitimate eldest son, so they naturally had priority in family succession and property inheritance.

This is tradition, and this is reality.

Moreover, he also believed that having many children was a blessing.

The Lin family now owns far too many businesses, reaching a point where they are as wealthy as a country. Such a large family fortune would seem weak if it only had one or two heirs.

Having more children means they can each take over different business sectors in the future, each contributing their strengths. This is much more reliable than putting all the burdens on one or two people.

Moreover, he will likely establish a family foundation in the future. If his children lack business acumen, he might set up a family trust, entrusting the company directly to professional managers. With the empire he built, as long as his descendants don't start their own businesses, it would last for ten generations.

Of course, he wouldn't voice these thoughts now. He's not even 30 yet, so how could he be thinking about dividing the family property so soon?

After listening to Guan Jiahui's words, Lin Haoran remained silent for a moment.

He hadn't paid much attention to Guan Jiahui's company in the past two years, and he never expected that in just a few years, this women's clothing brand, which Guan Jiahui founded, would develop to this extent. It was truly unexpected for him.

Back then, Lin Haoran didn't want Guan Jiahui to follow the same old path as someone else and become an actress, so he arranged some things for her to do.

Unexpectedly, the other party did so well, which was indeed beyond Lin Haoran's expectations.

Of course, this is also due to the support of his affiliated group.

It's no secret among the senior management of Lin Haoran's various groups that Guan Jiahui is Lin Haoran's woman. A few years ago, Lin Haoran and Ma Shimin secretly reminded them to allocate more resources to Guan Jiahui's shops.

Everyone tacitly refrained from discussing the fact that the boss had other women, let alone spreading it around.

The boss's private life is none of their business.

Moreover, in this era, it was all too common for wealthy men to have multiple wives and concubines.

After all, Hong Kong officially abolished the concubine system on October 7, 1971. Only 12 years have passed since then, and those wealthy people who took concubines in the past can still legally have multiple partners.

Therefore, in Hong Kong's high society, it is not uncommon for men to have women and children outside of marriage.

People take such things lightly. As long as no scandals occur and the family's reputation is not affected, they generally turn a blind eye.

Although Lin Haoran is young, his status and wealth in Hong Kong's business world are enough for him to enjoy this kind of "tacit approval".

However, during its expansion, Kwan Ka-wai's Modern Girl brand did indeed benefit from this relationship, such as prime locations in major shopping malls under the Hongkong Land Group, rental discounts on properties under the HK Electric Group, and advertising discounts from the Oriental Press Group.

Without Lin Haoran's connection, Guan Jiahui would have had a hard time obtaining these resources on her own.

However, Guan Jiahui did not rely entirely on these resources.

Her own business acumen and management skills are the fundamental reasons why Modern Girl was able to grow so quickly.

She understands product selection, product display, marketing, and how to grasp the consumption psychology of young women. These abilities are irreplaceable.

"48 stores, annual profit of 20 million, and still growing rapidly—your achievements are already top-tier in Hong Kong's apparel retail industry," Lin Haoran exclaimed in surprise.

"We're still far from it. Putting aside everything else, just the Lane Crawford Group that you recently acquired, Brother Haoran, is something Modern Girl can't compare to. And those international brands in Central are the real leaders. My scale is still far behind them!"

“Those are different types of businesses. Lane Crawford is a high-end department store, while you are a brand chain. The approaches are different, so there is no comparison.”

"Besides, Lane Crawford has a history of over a hundred years, and you've only been doing this for a few years? This starting point is already very high," Lin Haoran said with a smile.

Upon hearing this, a glint of light flashed in Guan Jiahui's eyes: "You really think I did a good job?"

"When have I ever lied to you? The fact that you were able to achieve 48 stores and an annual profit of 20 million in just a few years, while maintaining rapid growth, proves that your business model is viable. All that's left is to replicate and expand."

"To be honest, if your company really goes public, based on its current profits and revenue, its market value could easily reach hundreds of millions of Hong Kong dollars. At that time, you'll be a billionaire!" Lin Haoran said with a smile.

"Hundreds of millions of Hong Kong dollars?" Kwan Ka-wai blinked, as if startled by the number. "Can it really be that high?"

"What, don't you believe in yourself?" Lin Haoran laughed. "Although the Hong Kong stock market isn't very large, the consumer retail sector has always been very popular with investors."

For a company like yours with a brand, stores, and stable growth, a price-to-earnings ratio of 20 to 30 is quite normal. Twenty million in profit multiplied by twenty equals a market capitalization of four hundred million.

If the company's performance continues to grow after listing, its market capitalization will be even higher.

“I have actually been using the money I earn to open new stores, which is why the store expansion speed is so fast. However, I still feel that it is too slow. I want to make Modern Girl an international brand.”

Kwan Ka-wai's voice carried a rare hint of ambition: "Not just the largest local women's clothing brand in Hong Kong, but like those international brands, to go to Asia and the world."

Lin Haoran raised an eyebrow slightly upon hearing her words.

This ambition is truly remarkable.

However, top international high-end women's clothing brands like Armani, Alaa, and Mugler have actually not been established for very long.

Armani was officially established in 1975, Alaa started in the 1970s, and Mugler also emerged in the late 1970s.

Their ability to grow from new brands to top international brands in just a few years or a decade is not due to the length of their history, but rather to their clear positioning, unique design language, and precise market strategies.

This shows that a brand's success does not depend entirely on the accumulation of time, but more on the founder's vision and execution.

Although Modern Girls started late, as long as they have the right direction and the right strategy, they may still be able to follow a similar path.

Moreover, with Lin Haoran's support behind her, Modern Girl's future achievements will be no less than those of these international high-end brands.

"Since you want to list Modern Girls for financing, it's because you lack funds to expand beyond Hong Kong and want to accelerate your expansion beyond Hong Kong, right?" Lin Haoran said with a smile.

“Well, the high-end market in Hong Kong is actually almost saturated, so it’s becoming increasingly difficult for me to choose locations. If I can raise tens of millions of Hong Kong dollars, then I can open Modern Girl stores in Singapore, Tokyo, Seoul, Los Angeles, New York and other places.” Guan Jiahui’s voice carried a rare excitement.

“These cities have a large number of high-income women and a fashion consumer market. If you can gain a foothold in these places, you will have taken the first step towards internationalization.”

Over the past few years, I have been focusing on quality and fashion research, which has gradually made the Modern Girl brand influential in Hong Kong. Now, many wealthy women like to wear our clothes!

They felt that the Modern Girl designs were fashionable without being too over-the-top, making them stylish without being too flashy.

Guan Jiahui's tone carried a hint of pride; clearly, she was proud of having created such a brand.

Upon hearing this, Lin Haoran smiled and said, "The spending power of wealthy women is indeed very strong, and they also have a strong social influence. If one person wears it, her circle will follow suit."

By capturing this group, you've essentially captured a stable base of consumers.

"Yes, that's why I've always focused on serving this group. I regularly invite some of my regular customers to the store to attend new product previews, and I prepare some tea, snacks, and drinks to make them feel valued."

"When they feel valued, they're more willing to come and more willing to recommend it to their friends," Guan Jiahui said.

Lin Haoran listened and secretly praised him.

Although Guan Jiahui has not received systematic business training, her grasp of customer psychology and handling of service details have reached a very high level.

This ability cannot be taught in business schools; it can only be developed through talent and practical experience.

"Since that's the case, then you shouldn't do an IPO yet. Although Modern Girls is quite large in Hong Kong, it's still a small player on a global scale. Here's what I'll do: I'll have Hongkong Land Group invest HK$2 million in Modern Girls as an investor, acquiring 49% of the shares, without interfering in any operations. What do you think?"

Hongkong Land has developed commercial buildings or properties in Japan, the UK, Singapore and other places. If you need to select a location for an overseas store, Hongkong Land's projects in the local area can give you priority access to the best locations.

Moreover, the brand endorsement of Hongkong Land Group itself can help you open up the local market. The label of "stores in Hongkong Land Plaza" itself means quality and class to consumers. "Lin Haoran said with a smile.

When Kwan Ka-wai heard the figure of "HK$2 million and 49% of the shares", she was clearly stunned for a moment.

She clearly hadn't anticipated that Lin Haoran would directly propose a strategic investment through the Real Estate Group, and for such a large sum. (End of Chapter)