Chapter 396 Magic Water from the East

【Krating Daeng】

"this?"

Looking at the note Li Changhe wrote to him, Farol was a little confused.

"Next, I will set up a company and inject 10 million US dollars into it. You take this 10 million US dollars to Thailand and find a person there. His Chinese name is Xu Shubiao. He has a beverage product with the name I wrote to you."

"Your mission is to buy this drink and promote it in Europe and America!"

Li Changhe slowly explained to Farol at this moment.

In 1982, an Austrian named Dietrich Mateschitz went on a business trip to Bangkok, Thailand, and bought a bottle of local drink on the roadside. After drinking it, the fatigue brought by the journey quickly subsided.

This magical effect aroused his strong interest in this drink, so Dietrich Mateschitz decisively found the manufacturer of this drink, and then reached a cooperation with the manufacturer's owner to re-launch the newly packaged drink in Europe and the United States.

And the name of this drink in the future will be Red Bull!
In the future, most people in China will be familiar with the Gold Can Red Bull, which is a Red Bull beverage brand created in China by Red Bull’s founder Xu Shubiao.

When he was working with Dietrich in 84, they deliberately reserved Asia and domestic areas for their sales scope. This was the beverage area that Xu Shubiao reserved for himself. It may also be that Dietrich looked down on the Eastern market at that time.

The two men worked together to establish a new company, and Dietrich launched the blue can Red Bull in Europe, which also became a world-class beverage brand with a market value of over 100 billion US dollars.

Now in 1980, the industry direction that Li Changhe pointed out to Farol was Red Bull!

“Beverage market?”

“Are you sure we can build a world-class business with just one drink?”

"The current beverage market is dominated by Coca-Cola and Pepsi. They have almost occupied most of the global market, even including Sulian."

“To be honest, it’s hard for us to compete with them.”

Farol said at this time, frowning.

He wasn't being intimidated; he was simply stating a fact.

Coca-Cola and Pepsi have now expanded into most of the global markets. Most importantly, they have now reduced costs to the extreme and are not afraid of competition such as price wars.

It can be said that the fight between the two beverage giants has actually eliminated the rise of all third parties in disguise.

Whenever the eldest and the second oldest fight, they will kill the third oldest.

No matter how arrogant Farol is, he still has to follow basic market logic. It doesn't mean that if you give him a product, he will definitely be able to grow the company.

"No, no, no, Farol, I have to tell you something first, this thing is different from Coke."

“Its effectiveness does not lie in daily drinking, but in exercise!”

"You can think of it as a specialized sports drink."

"Sports drink? The Gatorade kind?"

When Farol heard what Li Changhe said, he frowned slightly.

Nowadays, there is not much of a market for professional sports drinks, and of course, not many people are willing to segment this field.

Gatorade appeared in 1965, but it has not become a giant now. It can only be said to be a slightly famous brand.

"Yes, it's somewhat similar, but not exactly the same. This one I'm talking about tastes better and is more refreshing after drinking it."

"In fact, we can bundle it into a branded drink that is associated with sports."

"Cola has too much sugar and carbonation, which is not user-friendly. But this drink I'm talking about is different. It's just right for athletes to replenish their energy after drinking it."

"We don't need to surpass Coca-Cola, we just need to expand into all the sports markets around the world."

"Football, basketball, rugby, tennis, running, swimming, mountain climbing, etc. As long as you like sports, you are a potential customer of our beverages."

"Farol, now do you think we can build a world-class beverage company?"

Li Changhe asked calmly.

At this moment, an inexplicable light appeared in Farol's eyes.

If that drink really has the effect that Li Changhe said, and this product can be bundled with sports, then there is no doubt that they can build a world-class beverage company.

You have to know that the number of sports enthusiasts around the world is beyond imagination, and these people have one thing in common, that is, they tend to be accustomed to specific products.

This type of customer has very strong customer stickiness and purchasing power. Therefore, once they are converted into customers, they represent a stable and long-term consumer market.

This is also the reason why the endorsement value of future sports stars will far exceed that of ordinary entertainment stars.

The consumption power of sports product users makes them a target customer group with stronger consumption power than that of entertainment star fans.

The most important thing is that neither Coca-Cola nor Pepsi has paid attention to the sports track. Coke is a popular drink, but its high sugar content and carbonation are actually not suitable for people to drink.

In other words, they can completely open up a professional track outside of Coca-Cola and lead or even surpass the two Coca-Cola companies in this track.

"Vic, I take back what I said now. I want to apologize to you sincerely."

“No matter whether the drink you mentioned is really that amazing, at least I am impressed by the sports drink track you thought of.”

"Your vision is indeed better than ours!"

Farol spoke seriously to Li Changhe at this moment.

Apart from anything else, the fact that he was able to find a new track in the beverage market beyond Coke is something that makes Farol admire him.

And to be honest, the sports drink market is not difficult. As long as the product quality is good enough, the next thing is publicity. As long as the product is promoted, its customers and sales will increase quickly.

The premise is that you just have to spend money!

“I’ve already thought of a name for the product. It’s called Red Bull.”

"Slogan: Magic water from the East!"

"Next, you can consider how to set your own standards for the bet."

Li Changhe said with a smile.

"Red bull? A fierce bull. It reminds me of Spanish bullfighters. But it does sound very sporty."

"Magic Water from the East, Red Bull"

At this moment, Farol had a clearer understanding of the product positioning. He even thought that the slogan given by Li Changhe was great.

Magic water from the East, sounds really cool!

Of course Li Changhe would not tell him that "Oriental Magic Water" was the beautiful name given to Jianlibao by the United States at that time.

1984

Farol nodded seriously and said, "No problem. I will draw up a contract when I return today."

Now he can't wait any longer.

Farol left excitedly, and Su Haiwen looked at Li Changhe curiously at this time.

"Vic, are you sure that unknown drink in Thailand can be made?"

"I thought you would hand over the clothing business to him?"

Su Haiwen knew clearly that Li Changhe had clothing industries under his control, and those industries were targeting the European and American markets.

"The clothing industry already has Wells and Pierre Cardin, so there's no need to keep sending someone in."

"But if Farol can really make Red Bull a success, then it's not impossible to give him a portion of the clothing industry!"

Li Changhe smiled and said to Su Haiwen, "If Farol can really make Red Bull a success, then the sports shoes and sportswear categories can also be handed over to it next."

After all, sports shoes and sportswear are high-premium products, and this kind of clothing and shoes are not suitable for low-price strategies.

Sports shoes and clothing, he was ready to take advantage of Jordan's momentum, and now it was still three years before Jordan entered the NBA.

If Farol can make the drink successful within three years, that would be great.

But if he can't do it, he doesn't really care.

At worst, I can just find someone else to do it next time!

For Li Changhe, there are so many future industries that he knows about in his mind that it is impossible for him to get involved in every industry.

Among these industries, some are important and some are light. For example, future investment and the Internet, Li Changhe will definitely do this with all his heart.

But in industries like clothing, beverages, and real estate, he doesn't mind leaving it entirely to professional managers. If they succeed, it's icing on the cake, and if they fail, it's no big deal.

Just like Red Bull, he was successful in his previous life, and he can do it in this life as long as he buys it.

If Farol can't do it, just switch to another one. It has been proven in the past that there will always be business elites who can make a product successful.

"Brother-in-law, I'll trouble you to draft a betting contract with Farol, including company registration."

"Also, if you have other friends, you can introduce them to me. I will also need a legal and commercial team, which will include company registration, contract drafting, staff expansion, and other tasks."

“This requires a lot more professional talent.”

Li Changhe said to Su Haiwen.

It is impossible for Su Haiwen to accompany Li Changhe in the United States all the time. After all, his main job is in Global Shipping, so the best way for Li Changhe is to let Su Haiwen help him form a legal and business team.

Of course, this time he came from Hong Kong Island and also transferred a few people from the corporate legal team of Hutchison Whampoa. However, the lawyers from Hong Kong Island are not as good as the local commercial lawyers in the United States.

"I know this. I have contacted some of my former classmates and friends and asked them to help introduce me. At the same time, I have also found a consulting company in Chicago to help us look for it here."

"There will probably be news in the next few days."

Su Haiwen said to Li Changhe with a smile.

"Thank you!"

Li Changhe smiled and thanked him, while thinking about how to thank this cheap "brother-in-law"

If you give money directly, the other party may not accept it. After all, on the "surface" they are a family. Although Westerners pay attention to the distinction between public and private, Su Haiwen has been working in the East for many years and he is very familiar with many Eastern customs.

Otherwise, he would not have named his son Bao Suwengang, but would have directly taken the Bao family's surname!
Therefore, if offered hard work pay, Su Haiwen may not accept it.

It seems that I can only give something valuable as a gift.

So after returning to the hotel, Li Changhe called Steven over.

"Mr. Steven, can you do me a favor?"

"Master Ze, just give me your orders."

Steven came over immediately and said respectfully.

He was not afraid of Li Changhe giving orders, but he was afraid that he would not give orders.

"Well, help me find someone to go to Beverly Hills in Los Angeles to buy houses. Pick out a few high-quality properties and bring the information over. I plan to buy a few."

On the way back, Li Changhe thought about it and felt that it would be a good idea to give Su Haiwen a house in Beverly Hills.

Li Changhe originally wanted to give someone a high-end watch or something like that, but after thinking about it, he felt that it was too embarrassing. Nowadays, a top-level watch only costs about 100,000 US dollars, and it would be a bit stingy to give it as a gift.

So after much thought, I decided to just give her a villa in Beverly Hills. It doesn’t have to be a top-notch one, but one worth a few million dollars will do.

As for whether the other party will live there in the future, he doesn't care.

Anyway, when the land appreciates in value in the future, Su Haiwen and his elder sister Bao Peiqing won’t feel like they’ve lost out when they think about it.

"The house in Beverly Hills?"

"Understood. I'll arrange for someone to go over there and find a real estate agent to help us find it."

Steven nodded immediately.

"Well, good job, Mr. Steven!"

Li Changhe smiled and thanked Steven.

Speaking of which, he was also curious. This guy was not responsible for the company's business every day, but was busy running around for them. He didn't know how he talked to Bao Yugang.

But I have to say, it feels really good to have someone ready to give you orders at any time.

Li Changhe now understands why many people cannot withstand the corruption of capital.

You may be full of righteousness at the beginning, but as time goes by, with someone fawning over you and saying sweet words to you, you will gradually become content with pleasure.

Farol worked very quickly. He drafted the bet agreement in just one afternoon and one night.

Early the next morning, he came to Li Changhe's hotel and handed the drafted gambling agreement to Li Changhe.

Li Changhe took it and looked at it curiously. Wow, now he understood Farol's arrogance.

From the date of the company's establishment, the profit exceeded one million US dollars within half a year, the profit exceeded ten million US dollars within a year, and the profit exceeded fifty million US dollars in two years.

Similarly, his demands were also exaggerated. He would use the initial 10 million US dollars for half a year. If the profit exceeded one million within half a year, he would want Li Changhe to continue to invest 20 million US dollars.

Then, for each subsequent target, Li Changhe would inject funds in batches until the investment amount reached 100 million US dollars.

"Are you sure you want to make the profit so high? As far as I know, Coca-Cola's profit last year was only over 300 million US dollars!"

Li Changhe asked Farol with a smile.

Farol nodded. "I know, but Coca-Cola is different from us. If we make professional beverages, then the price will be higher than that of Coke. This also means that our profit per bottle will be greater than that of Coke."

"The beverage industry is an industry that can expand rapidly. As long as our products are recognized by the market, the next step is advertising and building sales channels."

"Of course there is production, but production is actually very simple. I know there are many beverage factories just arrived. Coca-Cola Asia's bottling factory is on Hong Kong Island."

"And as far as I know, that's your headquarters, Mr. Vic. I believe there shouldn't be any problem putting the production in Hong Kong Island. Being in the East can also reduce our costs."

At this time, Farol seemed to have entered the decision-making level of the company's CEO and began to seriously express his ideas to Li Changhe.

"Of course, I am only making a preliminary draft of this agreement now. The specific signing will have to wait until I go to the East to decide."

"I need to confirm first whether the product you mentioned really has such an effect, Vic. This is the premise of our cooperation!"

At the end, Farol stated his request.

All he did was based on the premise that the product was really as magical as Li Changhe said.

Only with products can all marketing and development be carried out step by step. Otherwise, everything we do now is just castles in the air and complete imagination.

"No problem, you can prepare to set up the company now. Next, you can cooperate with Hammer to set up the company first, and then recruit people."

"I told you, I only look at the results!"

Li Changhe said to Farol with a calm expression.

Since Farol had set such a high profit for himself, he would just quietly watch the other party's performance.

(End of this chapter)