diskusbooks Chapter 89: A Brand Analysis of Shen Wancheng
Chapter 89: A Brand Analysis of Shen Wancheng
Shen Wancheng countered with a question.
What do you think is the typical profit margin for existing manufacturing industries on Hong Kong Island?
Li Su thought for a moment and answered cautiously.
"It's definitely over 50%, with self-production and self-sales reaching 100% to 200%, while contract manufacturers probably don't reach 50%."
"You're talking about the current state of watch manufacturers in Hong Kong. What if it were the Omega you're wearing on your wrist?"
In Hong Kong Island, a watch is like a second face for men; from ordinary citizens to business and political figures, everyone wears a watch on their wrist.
Like Li Su, the most expensive thing he wore was the watch on his wrist.
When Li Su heard Shen Wancheng mention his watch, he unconsciously turned the watch strap slightly.
The confidence in his expression increased.
“My Omega watch is from the most common and affordable series of the brand, priced at less than 50,000 yuan. If you calculate it based on its production cost, it's definitely less than 500 yuan. But what we value in buying this watch is not the watch itself, but the personal wealth and social status that the brand represents.”
"Regardless of the watch's function, its fundamental purpose is that the actual production cost is less than 10%. Even if you add another 10% for transportation and sales costs, the manufacturer still has an 80% profit."
Shen Wancheng's words were just an objective analysis, but to the buyers, they sounded like suckers who let the manufacturers make so much money.
Li Su instinctively wanted to defend himself.
"The premium here is the intangible value that the brand gives to the watch, and the buyer believes that this value is worthwhile."
Shen Wancheng smiled.
Li Su finally gave the answer she wanted.
“You’re right. That 80% profit is called brand premium. Brand value allows manufacturers to earn enough profit, and consumers are willing to pay for it.”
"Even though the profit margin is ten times higher than the production cost, which is so high, buyers still feel that it is worth the price. That is the value of a brand."
Li Su was stunned.
If Shen Wancheng directly told him that she wanted to create a brand, to make luxury goods, and to enhance the brand value of her products.
Li Su only had a vague and unrealistic concept of a brand; his impression of a brand was simply the name of a product or company, and he couldn't truly feel the importance of a brand.
But Shen Wancheng's simple question and answer allowed Li Su to truly understand what brand value is.
Shen Wancheng's words about her vision for the company's future, without mentioning any specific goals, inexplicably stirred a sense of pride and confidence within Li Su.
It's as if I can already see the name "Oriental Chanson" becoming famous worldwide.
Only a few minutes had passed since Li Su nervously agreed to do things for Shen Wancheng, but Li Su was already certain that he would never regret his decision.
Li Su praised it.
"Ms. Shen, your analysis is very accurate. I understand, and I believe that following you will be the wisest choice for my career."
Shen Wancheng raised an eyebrow, a hint of confidence in her expression.
If Shen Yao or Gu Jinxing were here, they would surely notice that Shen Wancheng looked even more radiant and dazzling than when she attended the banquet in her finest attire.
Shen Wancheng said to Li Su.
"It's too early for you to say that now. But I can assure you that within two years you will have the capital to buy property in Central."
Shen Wancheng's promise made Li Su's heart start to race.
"I'm going to the horse farm this afternoon to process my resignation. What are your instructions, Ms. Shen?"
Shen Wancheng was very satisfied with Li Su's self-awareness.
"The company is still in the preparatory stage, and time is indeed very tight. First, you need to recruit a small team to work for you within three days. Most importantly, you need someone familiar with the securities trading center across the street. I need him to pass on a message..."
"As for the small team, they are just your own assistants. You are responsible for the initial interviews, but I will handle the final interviews."
"In addition, the company registration procedures will need to be handled by your people. I will send someone to assist you with the process, but it will only be assistance, do you understand?"
Li Su is not a superman. Although he studied management, his previous job was just as a department manager. Shen Wancheng gave him a lot of things to do, and there were bound to be things he didn't understand that would delay his efficiency. Therefore, Shen Wancheng planned to have Xu Pingtao send a professional to accompany Li Su.
Furthermore, since the two come from different backgrounds, they can also serve as a source of mutual supervision.
There's a saying: "If you doubt someone, don't use them; if you use someone, don't doubt them."
Since Shen Wancheng chose to use Li Su, she must have trusted him.
But Shen Wancheng also believes that one should not completely trust anything or anyone.
Li Su nodded.
"I see."
Finally, Shen Wancheng placed a card she had prepared in advance in front of Li Su.
"Here is HK$10, your activity fund."
Li Su accepted the card without hesitation.
"Don't worry, Miss Shen, I will definitely expedite the task you have arranged."
"it is good."
*
After saying goodbye to Li Su, Shen Wancheng estimated the distance and returned to her residence from where she was. Compared to going to the club owned by Gu Jinxing, which she had visited the day before, going to the club was actually closer.
Shen Wancheng did not return to her residence, but went to that club again.
Yesterday's dinner at the club suited Shen Wancheng's taste perfectly. Although her morning sickness wasn't severe lately, her palate had become much more discerning.
Furthermore, Shen Wancheng could also read a book there and continue to maintain her image as a top student.
Shen Wancheng did not tell Gu Jinxing beforehand that she was coming over, so Gu Jinxing was not at the club.
However, the people at the club already knew Shen Wancheng and took her directly to Gu Jinxing's private room.
Shen Wancheng ordered three dishes and a soup for lunch, and each dish was of very high quality.
Shen Wancheng ate to her heart's content, but she also ate only until she was about 70% full.
Shen Wancheng hadn't noticed before that there was a small partition in this room, which was a small bedroom.
So after lunch, Shen Wancheng took a nap here.
After she woke up at 2:30, a waiter brought her a serving of bird's nest stewed with rock sugar.
Shen Wancheng didn't order this, but the waiter brought it over anyway, so Shen Wancheng knew that Gu Jinxing knew she was here.
Sure enough, Gu Jinxing arrived right after Shen Wancheng finished eating bird's nest.
Cheng Ming pushed Gu Jinxing into the room, and Shen Wancheng only spoke after watching Cheng Ming leave.
“You said you could come over to read and rest if I had nothing to do, but as soon as I arrived, your people tipped me off, and you immediately came over. People would think you were worried that I was going too far by eating and drinking too much here.”
Gu Jinxing explained.
"The people below were afraid of not being able to provide adequate hospitality, so they informed me."
"I knew you were here this morning. I only came now because I have something to discuss with you; otherwise, I wouldn't have bothered you."