Abandoned the Immortal Cultivator, returned to his hometown to farm and sing

Chapter 1299. Rules
"What exactly do you want?" Arnaud asked the question for the third time.

Luo Yihang finally gave a direct answer: "What I want is fairness, fair competition, and free trade."

"Do you think you can win if there is fair competition?" Arnaud asked rhetorically.

Luo Yihang nodded and solemnly replied, "Yes."

No reason was given, no cause was explained, just two words, and yet he was so certain.

This left Arnault speechless.

The reason was actually stated long ago.

It is the rise of the East and the fall of the West, an inevitable trend.

The LVMH Group and other luxury goods giants are no longer able to produce anything.

From raw materials to processes to industrial workers, and even design, everything is outsourced to contract manufacturers.

Why should a contract manufacturer continue to manufacture for you?

In the past, if you created your own brand and made your own products, you wouldn't have to worry about the market not recognizing them or not being able to sell them.

Some people have tried this before, but they were suppressed as soon as they started to make a name for themselves and never managed to break through.

But now there's a drunkard who went head-to-head with the LVMH Group and won three times in a row, carving out his own niche.

They made a fortune.

Who wouldn't be envious? Who wouldn't be eager to try?

Just as Arnaud's mind was racing.

Luo Yihang began his devilish whispers again.

"Mr. Arnault, why don't you think about what you can gain?"

Upon hearing this, Arnaud gave a helpless, bitter smile. "What can I possibly gain?"

"You heartless shareholders, those who only know how to betray your peers, and those 'old friends' who forced you to sit in front of me—don't you want to take revenge on them?"

“I…” Arno’s anger was instantly ignited, and he instinctively wanted to say something.

But he had barely uttered a word when he suddenly realized what he was talking about and forcefully suppressed his anger, saying, "I don't know what you're talking about."

Luo Yihang shrugged and said to himself, "It's not hard to guess. What's the point of denying it? If you stay silent here, will they stop putting pressure on you? Don't you want to lead the LVMH Group back to its peak, or even higher than its highest point?"

It's unclear which of Luo Yihang's whispers touched Arno's heartstrings, or perhaps it was everything.

Arno hugged his shoulders and huddled on the sofa, his eyes lowered so that Luo Yihang wouldn't see the change in his gaze.

But his slightly trembling shoulders betrayed the turmoil in his heart...
-

a long time.

Arno suddenly looked up, stared at Luo Yihang, and said in a deep voice, "What are you going to do? Be specific."

He was thoroughly fed up with Luo Yihang's rambling and incoherent way of speaking.

Seeing his expression, Luo Yihang knew it was a success and got straight to the point.

"You and I will form a luxury goods industry alliance, with each of us as a founder, to set the standards."

"New members are subject to an admission system; they can only join after the founder has reviewed and approved their application."

"The alliance shares channels, markets, and coordinates production and sales."

"Like Star Alliance in the aviation industry."

Having spent half his life in the business world, Arnault understood what it was as soon as Luo Yihang explained it.

Arnault agrees that founders and founders have the right to set standards, and he believes this is rightfully his.

With an entry-level system, only brands from contract manufacturers will be allowed in.

However, I agree that it can filter out those who try to profit from others' misleading practices, those of poor quality, and those who cling to the idea of ​​being "knock-offs."

But he also has the channels and markets that Luo Yihang has.

As for the alliance?

That means using LVMH Group's century-old reputation to endorse those new Eastern brands, and also sharing the distribution channels and markets.

It must be said that Arnault's guess was spot on.

LVMH Group's distribution channels are really useful; everyone who has used them raves about them.

Furthermore, the discourse on luxury goods is still monopolized by old Europe, and having their endorsement can save a lot of trouble. "What benefits would I get?" Arnaud shook his head, indicating his dissatisfaction.

“First of all, there’s orderly competition within the alliance, and it’s okay to love and hate each other.” Luo Yihang explained further to Arno, counting on his fingers.

Arnault remained noncommittal.

Although Luo Yihang's earlier words were flowery and indeed an inevitable trend, this trend will last for a long time.

Currently, all the brands in the East are just newcomers, and Arnault is not afraid of competition at all.

Even if they are drunk.

The drunkard said that he only owns perfume.

“Secondly, alliance members have an obligation to assist in the face of external competition, but there are conditions.” Luo Yihang bent his second finger.

Upon hearing this, Arno's eyes lit up; he was currently fighting against Keyun's gang.

Putting aside the rest of the alliance, with the help of the Drunkard... their fighting strength should not be underestimated.

His LVMH Group's market value plummeted from 400 billion euros to 250 billion euros, which is proof of this.

This wasn't just about helping Arnault fight.

Or it's to deal with other emerging competitors.

Alas, the dragon-slaying hero has become the dragon himself.

It seems Arnault is interested in this.

Luo Yihang added another paragraph.

“OEM manufacturers will definitely shift towards their own brands. But this will not happen overnight. The normal choice is to do both OEM manufacturing and own branding, and use two brands.”

"Kering, Richemont, Hermès... all of their manufacturing plants are in China."

"Anyway, it's all OEM manufacturing. Is it OEM manufacturing for friends who support their own brand to enter the market, or OEM manufacturing for 'competitors' who resist and suppress it, and only let it earn a meager hard-earned profit?"

"It's a very simple multiple-choice question."

Upon hearing this, Arnaud nodded in satisfaction.

It's definitely impossible for him to produce it himself; old Europe no longer has the capability. There are hardly any craftsmen left, let alone factories.

We have to outsource the manufacturing.

Meanwhile, the OEM manufacturers in the East all seem to want to create their own brands and obtain more profits.

Therefore, the OEM production capacity will inevitably decline.

Kaiyun, Lifeng... those are all bastards who betrayed him. Cut off their roots directly. Even if we can't completely cut off their supply, cutting off a portion of it would be good.

Oh right, there's also the admission requirement; those guys definitely won't be able to get in.

“The existing market is quite large. If they take less, we can take more,” Luo Yihang uttered the devil’s whisper once more.

Of course, Arnault knew.

He also knew that the "Drunken Guest" product was just a single item, and that the growth of other products in the East would take time. His LVMH group could capture the majority of the market share that would be vacated.

Arnaud knew it.

The so-called alliance is merely a slow, insidious process, gradually dismantling the hegemony of Western luxury goods under the guise of cooperation, while simultaneously using LVMH's compromises to instigate a split within the European camp.

However, for the LVMH Group, exchanging some profits for continued participation in the Eastern market and avoiding being excluded from the supply chain is a relatively acceptable option.

They can also use the alliance system to marginalize luxury brands that have not joined, seize market share, and expand their own influence.

Accumulate as many chips as possible, and when the great opportunity arrives, try to survive and wait for the right moment.

The longer you live, the greater your hope; to live is to win.

This is the essence of a century-old enterprise.

Besides, with Luo Yihang, that unruly kid, backing him up, who would dare to mess with him anymore, whether he's a shareholder or an "old friend"?

Arnault has made his choice.

"I've switched sides to the Communists!"

As for Luo Yihang, now that he's created the "Drunken Guest" and entered this industry, he should do it well.

Designing industry standards and setting rules is much more interesting than simply selling products...

(End of this chapter)