My American magical life
Chapter 541 - 541 89 15 Billion She's Worth It!_2

541: Chapter 89: 1.5 Billion, She’s Worth It!_2 541: Chapter 89: 1.5 Billion, She’s Worth It!_2 Temir’s meaning 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 predicament 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 perfume industry is right there.

For OC, without diversification, there’s no development!

“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 mentioned each have a market share exceeding one percent.”

The perfume industry has a very, very, very counterintuitive point, that is, any attempt to increase the fame of a single product will be disliked by the market.

That’s because the majority of perfume buyers care deeply about personalization.

Sandi, let me think, you’re wearing Burberry’s ** today, aren’t you?”

The brunette wealthy woman guessed with a smile which brand of perfume Alexandra was wearing that day.

The big bear sister Alexandra answered with a wry smile,

“Now I understand completely.

I will never use any perfume from Burberry again.

So, what specific diversification expansions are you OC attempting?”

For someone like Alexandra, wearing the same scent was almost as embarrassing as wearing the same 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 memory on the whiteboard.

“Look here, the growth speed of the cosmetics 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 perfume industry, it doesn’t have a giant; it is a market with ample competition.”

Alexandra chimed in once again.

Her family owned shares in the household product giant Unilever, and she didn’t agree with Mi’er’s statement.

“Mi’er, Unilever, L’Oréal, Procter & Gamble, and others are all giants in the cosmetics industry, and Estée Lauder and Shiseido following them are also formidable, not to mention 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 cosmetics market is a small market.

The data for the third quarter of this year came out last month.

Among the global cosmetics 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 cosmetics 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 emerged 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 cosmetics 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 some of the top enterprises see a decline in their market share, their profitability remains considerable.

Moreover, a market without competition means 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 means no chance!

I am confident!

“But why doesn’t OC try to expand in the upstream and downstream of the perfume industry?

I understand that the cosmetics industry and the perfume 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 some 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.