541: Chapter 89: 1.5 Billion, She’s Worth It!_2 541: Chapter 89: 1.5 Billion, She’s Worth It!_2 Temir’s aning was simple; her OC was going to play with diversification.
Diversification is the choice that many enterprises and entrepreneurs inevitably make after developing to a certain stage.
Although many have perished on the path of diversification, its ubiquity reflects the predicant faced by businesses when they scale to a certain size.
The industry has a total scale of fifty billion Dollars, and just over a dozen top players hold less than fifty percent of the market share; the ceiling of the perfu industry is right there.
For OC, without diversification, there’s no developnt!
“Mi’er, what is OC’s annual revenue now?”
After flipping through the materials, but finding them too voluminous to locate the desired data, Alexandra directly asked.
“Three point one billion, roughly point six percent of the industry, a bit more than that.
Mind you, the dozen or so industry leaders I just ntioned each have a market share exceeding one percent.”
The perfu industry has a very, very, very counterintuitive point, that is, any attempt to increase the fa of a single product will be disliked by the market.
That’s because the majority of perfu buyers care deeply about personalization.
Sandi, let think, you’re wearing Burberry’s ** today, aren’t you?”
The brunette wealthy woman guessed with a smile which brand of perfu Alexandra was wearing that day.
The big bear sister Alexandra answered with a wry smile,
“Now I understand completely.
I will never use any perfu from Burberry again.
So, what specific diversification expansions are you OC attempting?”
For soone like Alexandra, wearing the sa scent was almost as embarrassing as wearing the sa dress.
With her and Mi’er’s interaction as an example, others also probably grasped the implication behind Mi’er’s words.
“We’ll talk about that later.
Let’s continue to look at the industry structure.
Everyone, please look at page seven, there’s a curve chart in there.”
Temir drew the two lines from mory on the whiteboard.
“Look here, the growth speed of the costics industry is quite good, with a growth rate of five percent in the third quarter of this year!
From 2015 to now, the industry scale has grown by eighty billion Dollars, but like the perfu industry, it doesn’t have a giant; it is a market with ample competition.”
Alexandra chid in once again.
Her family owned shares in the household product giant Unilever, and she didn’t agree with Mi’er’s statent.
“Mi’er, Unilever, L’Oréal, Procter & Gamble, and others are all giants in the costics industry, and Estée Lauder and Shiseido following them are also formidable, not to ntion Kao and Colgate, who are long-term major players vying for industry leadership.”
Achilles glanced at Alexandra with contempt; he didn’t like fools.
CEO Cheng caught this scene and remained silent, just silently watching how Mi’er would respond.
The brunette wealthy woman wasn’t afraid of challenges; she even felt like Sandi was deliberately helping her.
“Here’s the thing, everyone may lack understanding of the specific data within the industry since the costics market is a small market.
The data for the third quarter of this year ca out last month.
Among the global costics market, the top three are L’Oréal, Procter & Gamble, and Unilever, but none of them hold more than ten percent market share.
Actually, the global top ten in the costics industry only have a 43.2 percent market share, and that scale is shrinking.
Yes, their market is shrinking due to the impact of competitors behind them.”
The brunette wealthy woman was an industry elite who erged through competition, with various data imprinted clearly in her brain; thus, no matter what Sandi’s question was, she could easily handle it.
“Wait, if the profits of the industry leaders cannot remain stable, doesn’t that suggest that the costics market isn’t a good market?”
Giorgio’s question was a bit naive, but Mi’er patiently replied.
“Giorgio, it’s like this, because the overall scale of the industry is growing continuously, even if so of the top enterprises see a decline in their market share, their profitability remains considerable.
Moreover, a market without competition ans no opportunity; only where there is competition, there is a chance.
I’m confident I can take OC to a revenue of twenty billion Dollars in three years.”
Cheng Daqi nodded in approval.
Mi’er might have her issues, but she truly was a top-level powerhouse.
Intense competition?
Intensity brings opportunities!
No competition ans no chance!
I am confident!
“But why doesn’t OC try to expand in the upstream and downstream of the perfu industry?
I understand that the costics industry and the perfu industry are strongly related and that the difficulty of cross-industry might not be that large, but maybe expanding in the upstream and downstream first is a bit more prudent?”
Giorgio had put thought into his question, and it made many people start to ponder.
Indeed, if OC wants to play with diversification and then go public, but why insist on cross-industry?
Exploring upstream and downstream could actually present less risk.
CEO Cheng lifted his cup and took a sip; he was worried about whether Mi’er could handle these people’s questions.
From Alexandra to Giorgio, in terms of assets and wealth, they were descendants of top human families, the points they focused on were critical, and though so questions were not very sophisticated, most were very key.
Go for it, Mi’er.
With a smile, the brunette wealthy woman glanced at Giorgio and replied.
“Giorgio, I was actually going to talk about that, but since you’ve asked, I’ll just explain it all at once, including the specific directions of OC’s diversification, all cleared up at once.”
With that, she turned to wipe the whiteboard.
The audience, noticing the action of OC’s president, Temir, sat up straight, anticipating with earnest expressions.
The real drama was about to unfold.
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