In Hong Kong, we build a global business empire

Chapter 669 Langwei Group, the future hegemon of the fast-moving consumer goods industry!

While the outside world was in chaos because of Huifeng Bank, Lin Haoran's focus was not on Huifeng Bank at this moment.

At this moment, in the president's office of Landsea Group, Ma Shimin was excitedly reporting to Lin Haoran on the acquisition of Dairy Farm International.

"Boss, in the past six months, Milk International has made great strides in the international market, successfully acquiring more than 20 brand companies that you have carefully selected, such as Red Bull, Heineken, L'Oréal Paris, Carlsberg, Kraft Heinz, Snickers, etc., and has now gradually built a sizable multinational fast-moving consumer goods group."

Although the acquisition of these fast-moving consumer goods brands has already cost Dairy Farm International Holdings approximately HK$30 billion, this money has been absolutely well spent!
Currently, all acquisitions have entered the resource consolidation phase, and the connection with Wellcome Supermarket and Mannings Beauty Chain Store is going quite smoothly. Once the products were launched in Wellcome Supermarket and Mannings Beauty Convenience Store, they quickly gained recognition from citizens, and sales were very good.

"Therefore, we can now easily connect with the sales channels of the convenience store chains you've recently acquired, such as 711-Eleven and Lawson. Once the connection is successful, the sales of these fast-moving consumer goods brands will definitely increase significantly," Ma Shimin reported.

Lin Haoran nodded in agreement.

Ma Shimin continued, "Moreover, once the connection is successfully established, we will be able to create a complete and highly competitive closed-loop industrial chain from the source to sales."

Upstream, thanks to the acquisition of these globally renowned FMCG brands, we have firmly controlled the source of high-quality products, laying a solid foundation for future development.

In the midstream segment, during the resource consolidation process, we can deeply optimize and upgrade the production processes of various brands. For factories of different brands, we can introduce internationally advanced production technologies and management models to significantly improve production efficiency and ensure that the quality of each product is stable and reliable.

Downstream, after successfully connecting with sales channels such as 711-Eleven, Lawson, and Wellcome supermarkets, these branded products will be quickly distributed to various stores.

These convenience stores and supermarkets have a wide and dense network of stores and a huge daily customer flow, which allows the FMCG brands we acquire to reach a massive number of consumers at the fastest speed.

Moreover, we can tailor personalized marketing strategies based on the characteristics of different sales channels and the diverse needs of consumers.

For example, 711-Eleven could launch promotional activities for Red Bull energy drinks targeting young office workers, such as buy two get one free or bundled with breakfast sets.

In Wellcome supermarkets, a dedicated L'Oréal Paris counter can be set up, with professional beauty consultants providing consultation services to attract families to stop and make purchases.

Furthermore, during our trial operation of the closed-loop system, we discovered that this complete industry chain can also achieve efficient data flow and in-depth utilization. By collecting detailed consumer purchasing behavior and preference data through sales terminals, we can accurately feed this data back to the production process, enabling us to adjust our product strategies and R&D directions in a timely manner.

For example, if we find that consumer demand for a certain flavor of Snickers chocolate is on the rise, we can quickly notify the factory to increase the production of that flavor; based on Red Bull's sales data in different regions, we can conduct in-depth analysis of market demand differences and then carry out targeted marketing activities.

I must say, boss, your decision to acquire these brands was incredibly visionary and wise!

Ma Shimin smiled, his eyes full of admiration, and said.

Whether it's acquiring various fast-moving consumer goods brands, or acquiring 711-Eleven and Lawson convenience stores, it was all decided by the boss, Lin Haoran. Based on the current progress, this strategy will likely have a significant impact on the world in the future.

In particular, the number of convenience stores under the owner's name has now exceeded 10,000. With these 10,000+ convenience stores selling these products, one can imagine the terrifying increase in the sales of these fast-moving consumer goods.

"Oh? Not bad. Let's get in touch with 711-Eleven and Lawson as soon as possible. After all, these two big brands mainly sell other companies' products, and most of the money is going to other people. I'm a little unhappy about that!" Lin Haoran laughed.

711-Eleven and Lawson convenience stores are expanding at an extremely rapid pace, opening nearly a thousand stores per month, and are rapidly expanding in Japan, the United States, Mexico, Southeast Asia, Hong Kong, Europe and other places.

Therefore, the total daily revenue of 711-Eleven convenience stores is now an incredibly high figure.

However, 711-Eleven is not a subsidiary of Hongkong Land Group. Although they are all Lin Haoran's private companies, they are independently operated. Hongkong Land Group needs to negotiate with Southern Company separately when dealing with them.

Therefore, in the initial stage, Dairy Farm International mainly focused on connecting the products of these acquired brands with distribution channels such as Wellcome Supermarket and Mannings Beauty.

"Boss, I have already discussed with Mr. Toshifumi Suzuki and we have basically finalized the details of the cooperation. In August, our fast-moving consumer goods will be sold in cooperation with Southern Company, which will allow us to cover all of Southern Company's chain convenience stores."

However, I've noticed that as the number of acquired brands increases, it becomes somewhat bloated if these FMCG brands are still managed by Dairy International.

After all, Dairy Farm International mainly focuses on sales channels, such as Wellcome supermarkets, Hong Kong 711-Eleven convenience stores, and Mannings cosmetics chain brands, which are more sales-oriented.

Today, brands like Red Bull, Heineken, L'Oréal Paris, Carlsberg, and Snickers are all fast-moving consumer goods (FMCG) brands. While managing them with Dairy International allows for better resource consolidation, the complexity of the management structure increases exponentially as the brand matrix grows larger.

Moreover, from a supply chain perspective, there are huge differences in the raw material procurement, production and processing, and logistics and distribution of different fast-moving consumer goods.

Carlsberg beer requires specific raw materials such as malt and hops, and its production process has strict requirements for temperature and hygiene conditions.

Snickers chocolate has unique standards for the quality of cocoa beans and the ratio of sugar, and temperature and humidity need to be controlled during storage and transportation.

While the existing international milk supply chain system can meet the demand for some products in its own sales channels, it is somewhat inadequate for these newly acquired fast-moving consumer goods brands with a wide variety of products.

"If the supply chain cannot be optimized in a timely manner, it may lead to a series of problems such as increased costs, unstable product quality, and delivery delays, which in turn will affect the brand's reputation and market competitiveness." Ma Shimin said, taking a sip of hot coffee.

Lin Haoran nodded, not interrupting, but waiting for Ma Shimin to continue.

"In addition, talent structure is also a major challenge. Most of the existing management team and employees of Dairy International have experience in sales channel operation and management, but they may have shortcomings in knowledge and skills for the comprehensive operation of FMCG brands, especially in brand building, market insight, and product innovation."

Managing so many FMCG brands across different sectors requires a team of talents with diverse professional backgrounds and rich industry experience. The current talent pool is clearly insufficient to meet this need. If talent is not introduced and trained in a timely manner, these newly acquired brands may not be able to fully realize their potential.

In addition, the acquisition of fast-moving consumer goods (FMCG) brands has also hampered the development of Dairy Farm International's main business of sales channels. Brands such as Wellcome Supermarket and Mannings Beauty have made slow progress in overseas expansion, mainly due to the drag from the development of FMCG brands and insufficient attention from Dairy Farm International's senior management.

Therefore, I am considering separating these acquired FMCG brands from Dairy Farm International and having them directly led by Hongkong Land Group to form a multinational group focusing on FMCG products. We will recruit management talent from top international FMCG groups such as Procter & Gamble and Nestlé so that they can develop better on their own.

As for resource integration, the parent company, Land Group, will take the lead and maximize its role. Boss, what do you think of my plan? Ma Shimin explained his plan and handed over a proposal.

Lin Haoran took the proposal but did not open it immediately. Instead, he tapped his fingers lightly on the table and pondered for a moment before slowly speaking: "Mr. Ma, your idea is very forward-thinking. Go ahead and implement it with confidence. I will definitely give you my full support. However, have you thought about what to name this fast-moving consumer goods group after the split?"

He has an extremely large and ambitious plan for the FMCG business, aiming to surpass industry giants such as Procter & Gamble and Nestlé and reach the top of the global market.

Therefore, separating the FMCG business is indeed more beneficial to the FMCG group's own development.

That's why, when Lin Haoran heard Ma Shimin's plan, he agreed on the spot without any hesitation.

Ma Shimin said with a smile, "Boss, I think it would be more appropriate for you to choose this name. After all, with our current careful planning in the FMCG field, this group will definitely become the most well-known FMCG group in the world in the future. It would be of great significance for you to name it."

Upon hearing this, Lin Haoran did not refuse, but began to ponder.

After a while, he looked up and said, "How about we just call it Langwei Group? 'Lang' conveys the bright and clean quality of our products, such as beverages, fast food, and cosmetics. 'Wei' implies 'maintaining the quality of life.' The pronunciation is easy to remember and is suitable for the pronunciation habits in a multilingual environment."

He just came up with this name on a whim, but upon closer inspection, it's actually not a bad name.

Ma Shimin's eyes lit up, and a smile of approval appeared on his lips. He quickly said, "Langwei Group, boss, the name you came up with is absolutely brilliant!"
The word "朗" (Lang) immediately evokes a sense of vitality and freshness in a product, much like the Red Bull energy drink we acquired, which instantly invigorates and energizes you with just one sip; and Snickers chocolate, whose rich and sweet flavor spreads in your mouth with each bite, also giving you a bright and pleasant feeling.

The character '维' (wei) is particularly ingenious, signifying the maintenance of quality of life. This perfectly aligns with the positioning of our fast-moving consumer goods (FMCG) products. Our FMCG products are designed to improve the quality of consumers' daily lives, allowing them to experience convenience and enjoyment amidst their busy schedules, and maintain a high-quality lifestyle.

He became more and more agitated as he spoke, pacing back and forth in his office.

He continued, "Moreover, the name is easy to pronounce and remember, both domestically and internationally, in various language environments. This will be a huge advantage for us in promoting our brand globally and attracting consumers from different countries and regions."

Imagine what a spectacular scene it would be if, in the future, people all over the world could associate the Langwei Group with a series of high-quality fast-moving consumer goods when they hear the name!

"Boss, your naming skills are truly worthy of a visionary business leader. I firmly believe that under your leadership, Langwei Group will surpass Procter & Gamble and Nestlé to become a global leader in the FMCG industry!"

Lin Haoran was amused by Ma Shimin's praise and laughed heartily. He waved his hand and said, "Mr. Ma, you flatter me. But since you think this name is good, let's settle on it."

Next, proceed according to your previous plan, and fully advance the establishment of the Langwei Group. From talent recruitment to resource integration, every step must be strictly controlled to ensure that the Langwei Group can launch smoothly and carve out its own niche in the fast-moving consumer goods industry.

“Yes, it just so happens that the tenant on the 36th floor of the Kang Le Building is moving out this month, so let’s put the headquarters office of Langwei Group on the 36th floor. I will communicate with the senior management of Dairy Farm International and spin off the FMCG business as soon as possible!” Ma Shimin nodded and said.

"Develop this FMCG group well. I plan to raise funds and list it on the stock exchange in the future to attract some international conglomerates. So, before raising funds, I hope that Langwei Group can acquire as many high-quality FMCG brands as possible and strive to go public in a few years!" Lin Haoran continued.

Lin Haoran, who had traveled from the future, knew very well that although he could handle continuing to manage the fast-moving consumer goods (FMCG) brand entirely on his own, the large size of the FMCG group would easily lead to various problems. Taking the company public would provide others to share the burden.

Most importantly, competition among FMCG brands going global will become increasingly fierce. If Langwei Group continues to rely on its individual efforts, it will inevitably be attacked by other groups sooner or later. The FMCG sector is not so simple.

Just because he can resist attacks from other forces in Hong Kong with his own strength doesn't mean he can resist attacks from other forces globally.

Having more financial groups behind it will provide immeasurable assistance to its global development, and many problems will be solved.

Therefore, from the moment he decided to enter this field, Lin Haoran had the intention of taking it public in the future.

In addition, larger scale can easily lead to difficulties, especially in highly competitive industries.

The fast-moving consumer goods (FMCG) industry is definitely an extremely competitive one.

For example, Nestlé, one of the world's largest fast-moving consumer goods giants, is now also in trouble. From 1975 to last year, the global economic environment deteriorated, leading to a slowdown in economic growth, a decline in consumer purchasing power, and a corresponding impact on the demand for consumer goods such as food. Nestlé's products are facing market sales pressure.

In addition, coffee beans and cocoa are important raw materials for Nestlé products. During this period, the price of coffee beans increased threefold, and the price of cocoa increased twofold. The sharp rise in raw material costs squeezed Nestlé's profit margins, leading to a decline in the company's profitability.

During this period, Nestlé embarked on a period of rapid expansion, extending its business from dairy and coffee to condiments, ice cream, vegetarian food, and water, and even venturing into non-food sectors such as mining, hotels, and restaurants. This excessive diversification dispersed corporate resources, increased management complexity, and, in the face of intensified market competition, made it difficult to focus on addressing the challenges of its core businesses, thus impacting overall performance.

In addition, intense industry competition, with other food companies constantly launching new products and marketing strategies to seize market share, has brought enormous competitive pressure to Nestlé, leading to a slowdown in its performance growth.

These problems have led Nestlé Group into a crisis of stagnant growth. Its revenue has grown by only 4.3% in the past five years, and its profit margin has continued to decline, leaving it with almost no profit. As a result, Nestlé's stock price has stagnated.

This is also the biggest reason why Lin Haoran included Nestlé in the acquisition list, because he knew that Nestlé would soon be able to get out of its predicament.

If Nestlé could be acquired when it is in trouble, or if Nestlé could become one of its major shareholders, it would be of great benefit to his future.

After all, Nestlé remains one of the kings in the fast-moving consumer goods industry, both now and decades from now.

If he can acquire Nestlé now, his Langwei Group will definitely become even stronger.

However, acquiring Nestlé would certainly be much more difficult than acquiring Red Bull, Heineken, L'Oréal Paris, Carlsberg, Kraft Heinz, Snickers, and so on.

Many other brands have not yet been developed, or are just independent brands with a relatively small scale, making them relatively easy to acquire.

But Nestlé, after so many years of acquisitions, has become incredibly large, backed by some very powerful conglomerates that want to acquire it.
Therefore, Dairy Farm International has not yet taken action against Nestlé, but instead has chosen to start with brands that are easy to acquire.

His initial motivation for entering the fast-moving consumer goods (FMCG) industry was very pure: the North hoped that he could bring more industry to the Pearl River Delta, and factories in the FMCG sector were obviously the most suitable for the Pearl River Delta at this time.

Today, the north is striding into a new era of reform and opening up, and is making every effort to promote the development of the Pearl River Delta region.

As things stand, the North has no shortage of manpower; what it truly lacks is basic industrial support, such as the fast-moving consumer goods industry.

Fast-moving consumer goods (FMCG) are characterized by rapid sales and high market demand; once the market is opened up, orders will flow in continuously.

With increased orders, production capacity can be fully and effectively utilized, thereby driving the vigorous development of related industries and truly enabling a segment of the mainland population to become wealthy first.

This is undoubtedly a win-win situation for Lin Haoran.

On the one hand, he can earn substantial profits in the fast-moving consumer goods market;

On the other hand, his active response to and support for the development of the North will leave a good impression on the North.

In this way, his business layout in the north will be smoother, and his future development prospects will be broader.

For the north, Lin Haoran's move could help the Pearl River Delta region get on a faster development track ahead of time, allowing the fruits of reform and opening up to take root more quickly and effectively.

So, in the beginning, he didn't actually think about how much money he could make from fast-moving consumer goods brands.

These industries don't generate as much money as the financial or real estate sectors.

However, as he continued to develop the business, he also included convenience stores in the mix.

Thus, the current situation has arisen.

"Going public? I understand, boss. I will devote some energy to Langwei Group and make sure to develop it as soon as possible." Ma Shimin's eyes lit up.

He knew perfectly well what it meant to take a global giant public.

In fact, as a professional manager, he prefers to take the company public rather than privatize it, because going public means more capital, broader development space, and higher brand awareness.

Undeniably, Hongkong Land Group is not short of funds these days.

However, the significance of going public goes far beyond just funding; it is a strategic move and a crucial step for Langwei Group to become a top global FMCG giant.

Otherwise, the soon-to-be-established Langwei Group will never be able to become the world's number one in the fast-moving consumer goods industry!
"By the way, how is the situation of Landsea Group in the Pearl River Delta?" Lin Haoran asked with a smile.

His initial motivation for entering the fast-moving consumer goods (FMCG) industry stemmed from a request from the northern government and his recognition of the development potential of the Pearl River Delta.

Today, the efforts in this field are beginning to show results.

However, he had been focusing his energy on the Japanese market for some time, and after returning to Hong Kong, he was busy dealing with matters related to Huifeng Bank, so he hadn't had time to pay attention to the situation in the north.

Currently, his Wanqing Group has been deeply involved in the Pearl River Delta for nearly two years.

After being acquired, Hongkong Land Group followed in the footsteps of Wanqing Group and entered the Pearl River Delta.

After all, the initial investment cost for starting a business there is not high.

The land price was low, and the local government not only offered significant discounts but also fully cooperated in advancing various tasks.

This is why Wanqing Group's layout in the north is already very complete.

However, Hongkong Land entered the northern market slightly later than Man Tsing Group, so its development progress was naturally slower than that of Man Tsing Group.

"Boss, our Land Group has already acquired a considerable amount of land in the core areas of the Pearl River Delta, such as Shenzhen, Guangzhou, Dongguan, and Chancheng."

The local government was extremely supportive of us. We were warmly welcomed wherever we went, and all kinds of procedures and formalities were given the green light, greatly simplifying the process.

As per your request, we need to promote the establishment of factories for the FMCG brands we have acquired in the Pearl River Delta. Currently, we have planned and started the construction of several large-scale industrial parks in these core cities.

However, the construction period for the factory buildings in the park is relatively long, requiring at least one to two years, so our own FMCG brands are not yet able to move into the self-built park.

Fortunately, the local government had built some industrial parks two or three years ago, and Wanqing Group had also built related parks. Therefore, we can immediately make use of these existing factory resources to allow the factories of FMCG brands to quickly take root in the mainland.

Moreover, Guangdong Province has promised us a five-year tax exemption policy, and product exports will also be tax-free. Based on these favorable conditions, we plan to build several factories in Guangzhou, Shenzhen, and Dongguan this year, including Red Bull, Snickers, and Heineken factories.

"We're striving to have all the FMCG brands we've acquired establish production bases in mainland China by next year!" Ma Shimin reported methodically upon hearing this.

Upon hearing this, Lin Haoran smiled with satisfaction.

(End of this chapter)