hollywood billionaire

Chapter 444 Why Can’t I Spend All the Money? (Part )

As soon as Han Yi finished speaking, three little heads popped out from behind the porch wall.

Their movements were different, and their expressions were also different, but in Han Yi's eyes, their expressions at this moment were very similar to Jerry, who had his hands behind his back, an awkward but polite smile, and blinked his big eyes to act cute.

"We..." Xu Yiru glanced at Yuzhen and Maddie standing on her left, opened her mouth, not knowing what to say.

"In..." Yuzhen, who was already tongue-tied, could only squeeze out one word.

"Discuss a surprise...about you."

In the critical moment, young Maddie was more resourceful, probably because compared to the other two girls, her brain was not used as frequently and was still relatively new, so she processed and responded faster.

"Yes, a big surprise." Xiaoru nodded seriously in agreement, "The kind that cannot be revealed for the time being."

"uh-huh."

Yuzhen still hadn't figured out how to respond. After all, she had accidentally overheard the conversation between Han Yi and Jordan Bromley just now, and she had been humming happily for a long time in the kitchen.

However, the Korean girl didn't want Xu Yiru and Madison to know the special surprise Han Yi had prepared for her, so she had to continue acting hesitantly according to their script.

"Since you can't reveal it, I won't ask."

Han Yi turned his head slightly and exchanged a knowing look with Jordan. He did not choose to expose this obvious but harmless lie, but responded seriously.

"Were we talking a little too loud just now and disturbing you?"

"It wasn't very loud, but..."

Xu Yiru and Madison also exchanged glances and quickly reached a tacit understanding.

“I did hear part of it.”

“Then I got a little curious, so I stopped discussing it and continued listening.”

“We should have avoided it.”

"I'm sorry, I won't do it next time."

"Excuse me."

Both girls were very sincere.

They know very well that it is okay to be clever in the details, and it will add to the mood and fun of daily interactions. But in the key areas, they must remain honest and truthful.

Because only in this way can they get in touch with Han Yi, who is equally honest and real, and gradually uncover his mysterious veil.

"…Me too, sorry."

On the other hand, Yoo Jin did feel very sorry.

Others only eavesdropped once, but she eavesdropped twice.

I also sneaked away once without realizing it.

I'm so sorry.

Hey.

"Why should I say sorry? I never thought of hiding anything from you. Everything..." Han Yi coughed twice and waved his hand to hide his embarrassment. "Anyway, I'm really glad that you heard our conversation, because I really need to hear some different opinions...Would you like to join us?"

"Ok."

"If it can help you."

At this point, the girls did not refuse. Madison and Xu Yiru sat down on each side, next to Han Yi, while Zhao Youzhen was the last to sit down on a single sofa.

Han Yi has decided to loan a $1.5 million Klimt painting to the Metropolitan Museum of Art for exhibition, just so that she can get a seat on the board of directors and treasure the encounter that began at 1000 Fifth Avenue.

It has come to this, what's the point of arguing with them about this?
"Perfect timing, ladies. Just the right time to start a new topic so I don't have to repeat myself."

The client happily extended an invitation to the three girls, so Jordan naturally had no reason not to accept it with open arms. He looked around the salon, smiled and said hello to them, and after making sure that everyone had received his goodwill, Jordan opened the conversation again.

"I don't think I need to introduce the Supreme brand in detail. Everyone here is young, much younger than me, and should be very familiar with its brand history and brand image - a bright red square with seven Futura Bold italic letters, 'Supreme'. Such a simple logo has become the most influential logo in the 2010s. It is said that in terms of brand recognition, it has surpassed Gucci, Fendi, Prada, and even Louis Vuitton."

"The brand image is very familiar. Kids on the street nowadays are embarrassed to call themselves fashionistas if they don't have a Supreme piece of clothing." If everyone didn't know that she is also a 17-year-old girl, Madison Beer's mature tone would really scare people. "But as for the history, I really don't know much about it. I feel like this brand... I don't know where it came from. Suddenly one day, I can see it everywhere."

"It's your New York brand." Han Yi explained to her, "James Gebbia, a Hollywood child star who didn't make a name for himself and Sean Stacey's former partner, started out on his own in 1994 and founded this brand on Lafayette Street in Manhattan."

"Where on Lafayette Street?" Maddie, a real old New Yorker, asked in a very authentic Long Island accent. "That street is very long, from Tribeca to SoHo."

"what……"

"274 Lafayette Street." Jordan Bromley, who has carefully studied the history of Supreme for this investment project, still remembers this street number that is regarded as a holy place by streetwear enthusiasts. He himself is a New Yorker born and raised in Brooklyn. "It's right next to the Mercer Hotel."

"I see. That's the intersection of SoHo and NoHo." Madison raised her eyes and thought for a moment. "That neighborhood has indeed been a gathering place for fashion brands since a long time ago, especially local fashion brands."

"Strictly speaking, Supreme in 1994 was not considered a fashion brand... Well, I don't know how kids today define 'fashion', but at least when I was young, a small street shop selling skateboards, skateboard shoes and skateboard clothes was not considered a 'fashion brand'." Jordan spread his hands and smiled.

"Supreme started out by selling skateboards?" Xiaoru, who knew little about street fashion brands, was a little surprised.

"Yes, it was because Gebbia gained a loyal following in the local skateboard and punk circles that Supreme survived. In the following years, Supreme was not only a store, but also a social center for young people in Manhattan. The store was considered the main gathering place for cool kids in New York in the 1990s." Jordan nodded and replied, "The kids want people to know that they have been to that store, and want everyone to know that they are the real popular group. And when you want people to know that you have been to a store, what do you do? You buy their most iconic products and wear them on your body."

“That’s when Supreme T-shirts with the red square logo became popular,” Han Yi continued. “Not everyone could bring a skateboard to school, but everyone could wear Supreme T-shirts to meet friends.”

"That's exactly right, I guess that's what streetwear is all about... when you wear it, you get street cred."

"Street reputation." Han Yi couldn't help laughing. "It's a bit awkward to hear this word from a big lawyer."

"I have enough rappers among my clients, so I am qualified to use this term." Jordan also joked, "But seriously, people's pursuit of 'street reputation' has given Supreme the opportunity to influence and develop. Since the late 1990s, it has become one of the symbols of the New York fashion industry. The distinctive local color has made the brand not only respected by local residents, but also favored by overseas markets."

"In 1998, four years later, Supreme opened their second store, which was not in New York, not on the East Coast, or even in the United States, but in Daikanyama District, Tokyo, Japan. At that time, Japanese consumers were very keen on American clothing and skateboarding culture. So, in the same year, Supreme opened two more branches in Osaka and Fukuoka. This experience made James Gebbia realize that his skateboard store might be able to expand into a broader and richer platform."

“So, in the next two years, he began to consciously move closer to the fashion world, but the way he did so may be debatable. In 2000, the world really began to know Supreme. Because, in that year, the brand launched a new series of skateboards, beanies and T-shirts, all with Louis Vuitton prints.”

"Oh." Madison's eyes widened slightly, "I thought that was a joint series."

"Have you bought one?" Han Yi smiled gently.

"I bought it when I was young and ignorant and loved to wear all kinds of famous brands." Madison scratched her cheek, a little embarrassed. "I think I saw it in a boutique in Fairfax... I didn't know it was fake."

"Soon," Jordan shook his finger. "This news has not been officially released, so it is highly confidential. But people from the Carlyle Group told us that in the first quarter of next year, Louis Vuitton will launch its first limited-edition joint series with Supreme, making James Gebbia's spoof sixteen years ago the beginning of an unprecedented brand cooperation." "This will be one of the most interesting and most watched collaborations in history... in any field." Han Yi, who traveled from the future seven years later, is naturally familiar with the collaboration between Louis Vuitton and Supreme. "It will become a reference point in fashion history, showing how two brand masters work together to create a series that meets the needs of such a diverse customer base."

No matter how people evaluate the design of the Louis Vuitton x Supreme joint series, its cultural influence and commercial value are unquestionable. After the series was released, no matter where you go in the world, you can see the Louis Vuitton logo embedded in the red square, whether it is T-shirts, hats, glasses, suitcases, mobile phone cases, square towels...anything that anyone needs in life is printed with this joint logo and put on the shelves for sale.

In the first half of 2017, LVMH Group recorded revenue of $230 billion, a full 23% increase over the same period last year, most of which was attributed to the joint series with Supreme. After the series was discontinued, the sales of the entire group fell sharply.

"Supreme is always good at using limited-edition co-branded series to expand the market and increase its popularity." Zhao Youzhen agreed, "I remember... in the 2000s, Supreme and The North Face also launched a co-branded product, which was very popular at the time. Or at least, it was very popular in Korea."

"In fact, the limited edition sales format became popular from Supreme. Even if the demand far exceeds the supply, Supreme will never make additional investments to ensure the popularity and liquidity of each series in the secondary market, thereby supplementing the brand itself and consolidating Supreme's high-end image. Nike, Vans, Chelsea, Adidas, these big brands have launched limited editions in recent years, such as Yeezy, which are also based on Supreme's sales model of taking the niche elite route." Jordan pointed at the project book of Carlyle Group with the pen in his hand. "This introduction clearly states that Carlyle Group believes this is Supreme's most powerful advantage. The ability to set new business norms, they only invest in companies that can do this."

"I like this mentality of only investing in companies that can set new business norms." Han Yi appreciated this statement very much. "Supreme has found the business model that suits it best and has persisted with it for many years. Although they have cooperated with many brands and opened stores in London, Paris and other places, people can still only buy Supreme products in their own physical stores. Each series is sold in limited quantities, and no retailer has ever been granted sales permission."

“High-end and scarce, this is the image that Supreme has successfully established and maintained. I heard that there is now a niche market online that specializes in selling second-hand Supreme products, and the profits are particularly high.”

"I know a friend who specializes in this," Xu Yiru testified, "It seems that many styles can be sold at ten times the original price."

“It sounds crazy, but that’s what social media does to people’s minds. Instead of waiting for the next batch of clothing to come out, they’ll buy it on the second-hand market for several times the original price because it gives them instant attention and influence on Instagram.”

"And both of these things, like street fashion, have a short shelf life and are ephemeral novelties."

"So, you're not optimistic about the future of street fashion?" Jordan Bromley asked.

"What do you think?" Han Yi did not answer directly, but turned his gaze to the girls.

“I’m not very interested in fashion, and I’ve never studied streetwear and its market… so I’m afraid I can’t offer much advice.” Yujin remained as cautious as ever.

"I personally think this craze will eventually die down." Madison's thoughts and answers were very serious. "Young people of every generation have their own unique identity. Just like in the Beatles era, most girls had a beehive hairstyle, but it's simply a fantasy to expect young people today to have this hairstyle. Street style has been popular all over the world since the 1990s. Millennials think it's cool, and people like me from Generation Z may want to follow these trends when our aesthetics are not yet fully established, because they represent the cool-looking older kids around me that I have admired since I was a child."

“But once kids like me are fully grown, we’re going to want our own identity and our own way of defining fashion. At that point, brands like Supreme, Alexander Wang, and… I don’t know… oh, yeah, Fear of God!, will start to fade away.”

"I came to a similar conclusion, but the path to that conclusion is a little different." Xu Yiru pondered for a while, and finally answered, "I think street fashion will disappear. Or more accurately, street fashion will no longer exist as an independent thing, because it is now widely accepted as part of mainstream culture. Just like... the pop music that you are more familiar with, when hip-hop becomes mainstream, naturally there will be big companies that want to take over it, control it, and redefine it."

"If what you said about the collaboration between Louis Vuitton and Supreme is true, then in my opinion, it will definitely be the peak of street fashion, but after that, it will start to go downhill. Because when LVMH begins to embrace street fashion, you know that it will definitely be digested and absorbed into the mainstream fashion world. Do you understand what I mean? When the boundary between street wear and traditional fashion disappears, when Gucci, LV, and Chanel are all making the same style of work, what competitiveness does a brand like Supreme have?"

“People are going to stop buying Supreme. Not because Supreme isn’t successful anymore, but because it’s so successful that now everyone is doing the same thing, so Supreme loses its scarcity, and scarcity is what’s kept it going, right?”

"That's... a convincing analysis." Jordan's eyes showed a hint of admiration. "I feel that Supreme will really develop in the direction you mentioned, just like Dr. Marten... Every fashion brand is making its own Martin boots, so the original brand of Martin boots has become less popular, because since this style of shoes can be bought everywhere, why do people still line up in front of Dr. Marten's store?"

“So, Grace, you don’t think it’s a good idea to invest in Supreme with Carlyle Group right now, right?”

Han Yi obviously has a deeper understanding of Xu Yiru, but even so, the latter often refreshes his cognition in such unexpected ways.

Her keen business insight, like an innate talent, enables Xiaoru to always make judgments in line with future development trends.

The Netflix shares she still holds and her Scottrade account that continues to appreciate in value are the best proof of this.

"On the contrary, I think investing in Supreme now is the best opportunity." Xu Yiru licked her lips, her eyes sparkling with an indescribable brilliance, and said with interest, "The market reaction is always delayed. I dare say that in the first few years after this cooperation, people will want Supreme more. It will take a long time before they find that Supreme can no longer prove their status, because everyone can own Supreme, just like everyone can own Uniqlo. And this time difference is our opportunity... to get in and out quickly."

"We participate in this investment project together with Carlyle, and then exit when the market value reaches its peak. We only need to wait for a few years to cash out a large amount. What's your suggestion?" Han Yi's eyes also lit up.

"Yes, I don't want to say that my judgment is absolutely correct. Because maybe something terrible could happen tomorrow and completely destroy Supreme, so I can't and won't guarantee anything. But I am still quite confident that if the situation develops at the current rate, Supreme can still enjoy a few good years, and if you want to exit in the future, many buyers in the clothing industry will be willing to buy your shares... But the premise is that we have to choose the right exit time."

"Xiao Ru, you..."

Han Yi opened his eyes wide, stared at Xu Yiru in disbelief, and laughed.

"We'll talk about this later, but you really are...very talented."

Han Yi lowered his voice so that only the other party could hear it, and praised it sincerely. Supreme's future development trajectory will indeed continue to enjoy a few years of good times as Xu Yiru predicted. In the second half of 2017, Carlyle Group will successfully acquire 5% of Supreme's shares for US$50 million, pushing the brand's valuation to US$10 billion.

In December 2020, VF Corporation, the parent company of Vans, Timberland and The North Face, will offer a cash transaction of $12 billion to acquire Supreme. In three years, Carlyle Group has earned more than the investment amount.

And what happened next?
After the Black Swan incident, the popularity of street fashion quickly receded, and all streetwear brands that dominated the 2010s, including Supreme, fell into an irreversible decline. In the end, VF Group had no choice but to cut its losses and sold Supreme as a whole to the European eyewear giant, EssilorLuxottica, for $15 billion.

In the same three years, Carlyle made 5.5 million and VF lost 6 million.

This is the difference caused by the choice of entry and exit timing.

"Jordan, regarding the acquisition of Supreme, has the Carlyle Group put forward any specific conditions?"

Thinking of this, Han Yi looked up at Jordan Bromley again and asked.

"Not yet. Carlyle has only sent us some basic information about a few projects and asked if we are interested in learning more. Since you are looking for future investment projects, I brought them here as well... If you are interested in moving forward, I will contact them and make a more detailed proposal. At that time, I guess Mr. Rubinstein will also meet with you directly to discuss these matters."

"There must be a rough offer, right? From James Gebbia?" Han Yi asked, "If Carlyle Group has given these investment options, it means they have made preliminary contact."

"The initial offer from Supreme is $6 million in exchange for a 40% share, which is equivalent to an overall valuation of $15 billion for the brand."

"Then there is still room for discussion." Han Yi knew immediately that the negotiations had not yet entered the deep waters. This was just a trial process before the formal contact. "Then what is the current situation of the Kate Spade and Jimmy Choo projects?"

"For Kate Spade, Coach Group approached several large investment companies including Carlyle Group, Blackstone Group and TPG Capital, hoping to raise funds from them so as to obtain the funds needed for the acquisition. The total investment amount is expected to be between US$24 billion and US$26 billion."

"Jimmy Choo... the acquirer is Michael Kors, and it's the same situation. They don't have enough money, so they have to ask Carlyle Group for help to raise money. The two sides have almost reached an agreement on this. The total funds required for the acquisition are US$13.5 billion, and the gap is about US$4 million."

24 million, 26 million, 13.5 million, 4 million...

Madison Beal was stunned by what he heard.

She had never imagined that such a large number would appear in her real life.

Among the Hollywood stars you know, is there anyone with a total net worth of $400 million?

Barbra Streisand? With that $100 million mansion that just sold, maybe $400 million.

But he was also a living legend in the entertainment industry who spanned several eras. His relationship with Madison was limited to saying hello at Han Yi's UTA ​​party.

How much money does Yita have?
I have done so much and invested in so many projects, but why can’t I spend all the money?
Madison's brain was working at a high speed, trying to use normal logic to sort out the ins and outs of the matter, but the next sentence from the man next to her made her go into a state of shutdown.

“Jimmy Choo is short of 4 million, Kate Spade is worth 8 million, and Supreme is valued at 15 billion…”

After reciting each piece of data, Han Yi's fingertips danced leisurely on his knees.

"No wonder Carlyle was so eager to push so many investment projects to me after just a simple inquiry."

"They...are after my $12 billion investment portfolio."

(End of this chapter)