Return to 1958 and build a century-old giant

Chapter 835 Progress of Italian Investment
“Yes.” Yang Wendong smiled and said, “I know that there were yachts over 100 meters long in the 1930s and 1950s. In addition, France is also building an 86-meter-long cruise ship. I think it shouldn’t be too difficult for your company to build a 100-meter cruise ship, right?”

Building longer ships wasn't particularly difficult yesterday; the question is whether it's even necessary.
Commercial ships are naturally better the bigger they are; some are even three or four hundred meters long. If it weren't for the limitations of materials, they might even be able to build ships a kilometer long.
In the past, due to the lack of advanced satellite technology and the high risks of entering the deep sea, private cruise ships were only used in coastal waters and therefore did not need to be very large. With the development of space technology, the demand for deep-sea ships has increased.

Therefore, the development of any industry may trigger changes in other fields. No one could have imagined that the space industry, which seemed to have little profit in its early stages, could indirectly drive countless other industries.

Markel laughed and said, “Building such a ship is of course no problem. Our group has already built more than a dozen large super commercial cruise ships, which are hundreds of meters long and even larger.”

However, this is indeed the first time we've encountered such a large private cruise ship, so everything may need to be redesigned.

“I understand,” Yang Wendong nodded.

Large luxury commercial cruise ships are no smaller than supertankers, and some are even larger, such as the "Royal Princess". They can accommodate tens of thousands of people and can be described as super five-star hotels that can move at sea, much larger than any private cruise ship.

Markel said, “Mr. Yang, the largest private cruise ship in our shipyard is currently only about 55 meters long. You can go and take a look first. You can also tell us what your requirements are, and we will design your new ship according to your needs.”

"Okay," Yang Wendong replied.
Unlike airplanes, these private cruise ships can be designed individually. Since they float on water, as long as they don't leak, they are very safe. Compared to airplanes, they have a lot more room for modification and are much larger in size.
In terms of comfort, a private yacht is definitely much more comfortable than an airplane.

The Yang family visited a yacht by the sea. This 55-meter-long private yacht had more than eight luxurious rooms, several large living rooms, a private helicopter landing pad, sports facilities, a cinema, a bar, and other entertainment facilities.

After looking at it for a while, Su Yiyi asked, "How many times larger is our 100-meter-long yacht than this ship?"

Markle said, "The length and width can be enlarged proportionally, but the height cannot, so the total will be about 5 to 6 times. The exact number will depend on your requirements, but it will be at least four or five times."

“This is too big.” Su Yiyi looked at Yang Wendong.

Yang Wendong said nonchalantly, "It has to be big. We don't need dozens of rooms, just a dozen or so will do. Each one can be the size of a hotel presidential suite, and all sorts of entertainment facilities can be added inside."

We'll probably be using this boat for a while, just like our house, so we need to take good care of it. A bigger boat now won't hurt; don't try to save money, just get it done right the first time.

A 100-meter-long cruise ship is indeed sufficient, and it will be adequate until the 21st century unless there is a revolutionary change in technology. Besides, advancements in entertainment are generally limited, and these can be addressed by modifying the interior decoration.

Although he has money and wants to enjoy it, he won't waste it excessively. For example, buying several boats would be meaningless. At most, he might buy a smaller one to play near Hong Kong or take a trip on the Yangtze River if he has the chance.

"Okay." Su Yiyi nodded. She understood what her husband meant; they should spend the money when necessary.

For the next half day, Yang Wendong and Markle discussed their needs and how to make changes to the existing ship. Similarly, the Fincantieri Group would provide options for Yang Wendong and his group to choose from.

Regarding the price, it hasn't been negotiated yet, but it's estimated to be tens of millions of dollars. Unlike Boeing, this deal doesn't have only one option.
Today, Yang Wendong is merely stating his own needs. Fincantieri Group still needs to create ship models, internal simulation environments, and so on, according to his requirements. After he confirms these requirements, they will discuss the next steps.
In addition, I will also go to shipyards in France, Germany and the United Kingdom, and make my own requests. They will make models and quotes for me to choose from.

However, he will not go immediately, because he also has his own business to attend to during this trip to Italy, in addition to watching the cruise ship.
The next day, Su Yiyi, Bai Yushan, and the children went to Venice, a famous canal city, while Yang Wendong went to Rome.

Ma Deming, the head of Changxing Group in Italy, personally went to Rome Airport to pick up Yang Wendong and took him to a hotel in the city center: "Mr. Yang, there aren't many tall buildings in Rome, and hotels are generally less than ten stories high."

"Hmm, that does have a certain style." Yang Wendong didn't seem to mind and asked, "Does our group's Italian branch headquarters need to be built in Rome?"

As his business expands, he plans to set up branches in various parts of the world, but whether to own the properties or lease them out depends on the circumstances.

Ma Deming replied, "It's not necessary for now. The group doesn't have much business in Italy, and leasing is enough. Besides, Italy also has property taxes. Even if we build it ourselves, it would be very complicated. It's better to lease and leave these things to the landlord."

"That's fine too." Yang Wendong nodded.
In the real estate industry, investing in properties in Asia is practically a guaranteed profit. While there might be some small gains in places like Europe, they won't be substantial. After all, Europe is a developed country, and these countries will gradually decline over the next few decades. Taking into account inflation and annual property taxes, it might not even be worthwhile.
He then asked, "How's the purchase of shares in some luxury goods companies that I told you to buy?"

Many of Italy's industries were not well-known in the previous life, and even those industries that are doing well now will be nothing to boast about in the future, except for a few like Fiat.

However, the luxury goods industry is doing exceptionally well. In my past life, there was a time when countless mainland Chinese traveled to Italy specifically to buy local luxury brands like Prada and Omega.
Ma Deming said, "I'm sorry, Mr. Yang, these companies are all unwilling to accept external investment. I even increased their valuation by 100%, but they still refused to agree."

"So many companies, not a single one will agree?" Yang Wendong asked.

“Yes, many businesses in Italy are family businesses, and they are happy to have one family control the entire company. Many of these companies have never even thought about financing or going public,” Ma Deming explained. “This is also related to the business environment in Italy. Companies here prefer to stay afloat and don’t have much ambition to grow bigger and stronger.”

"Perhaps the main reason is that we really don't have many resources to help them," Yang Wendong said after thinking for a moment.
While they have gradually gained control of terminal retail channels in multiple sectors, there is no way to do so with luxury goods, and there is hardly any capital in the world that can achieve this.
The retail outlets for luxury goods are located in prime locations in cities around the world. Who can monopolize these places? Even in his core territory of Hong Kong, he cannot control all the prime locations in Central.

“Perhaps, but there’s not much of an investment culture in Italy, though there are some acquisitions. How about we see if we can acquire one of them?” Ma Deming asked.

Yang Wendong shook his head and said, "That's unnecessary. It's pointless. If they can grow and become internationalized in the future, they will go public. We'll consider it then." Luxury goods are all about heritage. If we acquire them, we might not be able to continue making them.

These companies are currently small and still family-run, but as they expand globally, they will inevitably need to go public, and there will be opportunities for them in the future.

Ma Deming continued, "Mr. Yang, those luxury goods companies disagree with our investment, but Ferrero, which mainly makes chocolate, has indicated that their family is willing to consider cooperating with us, but not by taking a stake. Instead, they hope to cooperate with our trading group."

Yang Wendong said, "Are they trying to enter Asia through us?"

Ma Deming said, "Yes, Ferrero's chocolate has entered the US market and is doing well. I guess the next step is to enter the Asian market, but that will require a local Asian distributor."

“It’s quite suitable for us. Changxing Trading also has the capability to deliver chocolates to various parts of Asia,” Yang Wendong said with a smile. “Watsons can even manufacture them in Hong Kong.”

Changxing Trading has been established for nearly 20 years, and its main focus is to open up various consumer goods channels in Asia and even the world. Chocolate is also a consumer good, so it can naturally use similar channels.
Ma Deming also said, "Yes, I also think this cooperation would be very good. Ferrero's chocolate tastes quite good, and now that the Asian economy is developing, it will definitely have a large market."

“Okay, then you can communicate with them and have someone from Hong Kong Changxing Trading come over to negotiate with Ferrero.” Yang Wendong nodded and said.

If you can't invest, then this kind of cooperation is still pretty good.

Changxing Trading needs strong products to expand and grow, and Ferrero is a good choice.

“Okay.” Ma Deming smiled and said, “Mr. Yang, from what I’ve learned in Italy during this time, the culture here is suitable for family businesses, and family businesses also prefer to hold 100% of the company. They also prefer to raise funds from banks rather than sell equity.”
Unless a company is poorly managed, faces financial problems, or experiences infighting among its successors after several generations, it might be forced to seek financing and go public. It's said that Fiat's IPO process was incredibly lengthy.

“Yes, I understand that too. We can only give it a try. If it doesn’t work, there’s nothing we can do.” Yang Wendong then looked at Ma Deming and asked, “Judging from your expression, is there perhaps some other chance?”

Ma Deming said, "Yes, the company you chose, Gucci, was founded in the 1920s and is now controlled by the third generation of the family."

I previously contacted them, and they all said they disagreed with the financing. However, there's a lot of internal strife within their family. If you have authorization, I'd like to try contacting them further.

"Gucci?" Yang Wendong's heart skipped a beat. Gucci was arguably the most prestigious luxury goods company of the future, and he hadn't expected it to be embroiled in internal family feuds. But he still asked, "What kind of authorization do you want? Funding? Or something else?"

Ma Deming said, "The funding is not a big problem, it shouldn't be too outrageous. The main issue is that even if I acquire shares from a certain family member, I'm afraid it will be met with hostility from other families, which could trigger uncontrollable internal conflicts. If things get out of hand, I'm worried it might actually affect the company's normal development."

If serious internal strife occurs in the acquired company, resulting in losses, he cannot afford to bear that responsibility.

“Their families are already fighting amongst themselves, so one more of us won’t make a difference.” Yang Wendong smiled and said, “After I acquire the company, we just need to keep our shareholdings. We won’t interfere in anything else. Let them fight however they want.”

In his memory, Gucci seemed to have been eventually acquired by a French company, which meant that compared to other conservative Italian companies, he still had a chance with this company.

In the future, even if the French company makes another acquisition offer, I can choose to cash out or convert it into shares in the new company, etc. Even if the brand becomes successful in the future, I may be able to operate it myself.

Hong Kong will become a financial mecca in the future, and the manufacturing industry will basically be at a standstill. However, the luxury goods industry has the theoretical possibility of success. If it succeeds, it will be a great thing for Hong Kong. Moreover, it will not have much competition with the mainland, making it a perfect industry.

Of course, this is still a long way off, and it's just something we're thinking about right now.

Ma Deming laughed and said, "Okay, then I'll contact the Gucci family members right away and see if we can acquire some of their shares."

"Okay, we'll keep an eye on the other companies. If there's an opportunity, we'll take it; if not, we'll let it go," Yang Wendong continued.

"Understood." After agreeing, Ma Deming asked, "Mr. Yang, have you considered the Italian automotive industry?"

"The Italian automotive industry?" Yang Wendong countered. "You mean the brands under Fiat?"

In the late 70s, the combined impact of two oil crises and the global production of Japanese cars affected not only American automakers but also European automakers.
Fiat is naturally one of them.

Ma Deming said, "Yes, Fiat also owns many car brands, including luxury cars. I heard that Yang Shengyi is planning to acquire Mini. Actually, we could also consider the Italian side."

"There's no rush. Let's wait for the results from the UK," Yang Wendong said, shaking his head.

PS: Please give me a monthly ticket
(End of this chapter)