In Hong Kong, we build a global business empire

"Okay, boss, I'll go tidy up first." Liu Xiaoli replied softly, getting up to organize Lin Haoran's desk.

"No need to tidy up, the table isn't messy." Lin Haoran called out to her, tore off a check from his checkbook, signed his name and the amount, and handed it to her.

"Take this check. When you have free time, you can go shopping and buy whatever you want."

Liu Xiaoli has a female bodyguard sent by Lin Haoran, so Lin Haoran is not worried about her getting into trouble when she goes out.

The number on the check surprised Liu Xiaoli slightly: HK$20.

This is a huge sum of money for an ordinary person.

She took the check, her fingers trembling slightly, a surge of indescribable warmth and gratitude welling up inside her.

In Hong Kong, she not only has a villa to live in, but also money to spend.

Even if we were lovers, what would it matter if we lived like that?
So many people long for it but can't have it!

"Thank you, boss!" She knew that this was not just about money, but also about recognition and dignity.

Lin Haoran waved his hand, indicating that she could leave.

After Liu Xiaoli left, the office became completely quiet.

Lin Haoran walked to the floor-to-ceiling window and looked down at the gradually surging crowds and traffic in Central during rush hour.

The afterglow of the setting sun bathed the round glass window in a golden-red hue, casting dappled light and shadow on his face, adding a touch of depth and mystery.

He wasn't admiring the scenery; he was sorting through the past year in his mind.

Lin Haoran was quite satisfied with the financial data of his various companies in 1981.

That year, his wealth expanded rapidly, and at the same time, his social status rose just as quickly as his wealth.

After several acquisition and consolidation battles that shook the entire city of Hong Kong last year, the title of Hong Kong's richest man has been unshakeable.

Beyond his wealth, his influence in both political and business circles is also growing daily.

The governor treated him with great respect, and there were more and more "insiders" in the Legislative Council who had interests in him.

The Chinese business community follows his lead, and Hengsheng Group has become a dominant force in Hong Kong's financial sector.

But this is far from the end.

Lin Haoran knew very well that the stage in Hong Kong was ultimately limited.

His gaze had already turned to a wider world: the mainland in the midst of the magnificent reform and opening-up process, the United States, the heart of science and technology and finance, Japan, which is rising and trying to challenge the United States' economic hegemony, and Southeast Asia, which has unlimited potential for the future.

"Knowledge from my past life is the greatest advantage, but how to transform this foresight into real control requires ingenious planning and strong execution," Lin Haoran murmured to himself.

He was grateful to have a core team of highly loyal and capable individuals, including Ma Shimin, Cui Zilong, Su Zhixue, Chen Shulin, He Shanheng, Burton, and others.

These people are the backbone of his vast business empire.

Just as I was pondering this, there was a knock on the door.

"Please come in."

The one who came in was Ma Shimin.

"Boss, I thought you had already gone back!" Ma Shimin said as he pulled up a chair and sat down.

"So, you've finished talking with the Samsung chairman?" Lin Haoran asked with a smile.

"The talks are over, but they weren't very harmonious, and no consensus has been reached yet," Ma Shimin said somewhat seriously.

"Oh? Tell me the details," Lin Haoran asked curiously as he sat back in his executive chair.

It seems that Samsung must have a very important purpose in coming to Hong Kong to see Simon Ma this time; otherwise, why would they not have reached an agreement?

Today, Samsung may not be considered a world-class company, but it is one of the top companies in South Korea and has gradually become the leader of the top ten chaebols in South Korea.

Moreover, barring any unforeseen circumstances, Samsung will begin its foray into the semiconductor industry this year, laying a solid foundation for its future status as a semiconductor giant.

"Boss, it's like this. Samsung Chairman Lee Byung-taek originally wanted to talk to you directly, but knowing that you're preparing for your wedding, he contacted me first."

They wanted to become the exclusive distributor of 711-Eleven and Lawson convenience stores in South Korea. Mr. Lee Byung-taek had previously spoken with Mr. Toshifumi Suzuki, but Mr. Suzuki has now directly rejected him.

"So now he's personally flown to Hong Kong, trying to persuade you, Boss, by persuading me, because he knows that as long as you agree, then Mr. Suzuki Toshifumi's side will naturally be no problem," Ma Shimin said.

Upon hearing this, Lin Haoran asked curiously, "If Samsung wants the distribution rights, as long as the contract is the same as other distributors and has the necessary constraints, wouldn't that be a good thing?"

Samsung's position in South Korea is similar to Jardine Matheson's in Hong Kong. If Samsung were to act as the distributor, the two convenience store brands would undoubtedly expand much faster in South Korea.

As far as Lin Haoran knows, both Lawson and 711-Eleven are currently expanding in many markets around the world primarily through the licensing of agency rights.

After all, rapid expansion carries significant risks. Instead, delegating agency rights can not only accelerate the pace of expansion but also reduce risks, making it a more advantageous than disadvantageous proposition.

For example, in European countries, 711-Eleven and Lawson mainly operate through agency agreements, with less than one-third of their stores being directly operated.

Entrusting the distribution rights for the South Korean market to a deeply entrenched South Korean giant like Samsung seems like the optimal solution for a powerful alliance and rapid market dominance.

Toshifumi Suzuki, the actual operator of 711-Eleven's global business, is known for his shrewdness and pragmatism. Why would he refuse such a "good deal" that was offered to him?
"Regarding the situation of 711-Eleven and Lawson convenience stores in South Korea, I specifically called Mr. Toshifumi Suzuki at noon to ask him some questions."

Mr. Toshifumi Suzuki said that Nambang Company currently has as many as 1213 directly operated chain stores under its two major convenience store brands, Lawson and 711-Eleven, in South Korea.

These directly operated stores are mainly concentrated in several major cities such as Seoul, Busan, Incheon, and Daegu, and their profitability is very good, almost the same as that of the Japanese branch. Therefore, Suzuki Toshifumi is very optimistic about the Korean market.

"What Samsung Group wants is not just the distribution rights, but also to acquire those more than 1,000 direct-sale stores and then completely turn the Korean market into their exclusive territory," Ma Shimin explained solemnly.

He paused, then continued, "Their proposed solution is for Samsung to invest in and acquire all of Namyong Company's existing directly-operated convenience store assets in South Korea, while also obtaining exclusive brand agency and expansion rights in South Korea for the next thirty years."

The offer price was quite good, almost twice the store's net assets, but Mr. Toshifumi Suzuki strongly opposed it, believing that it would completely destroy our autonomy and future potential in the Korean market.

Once the assets are acquired and the brand agency rights are bound to be exclusively held for a long period of time, it is as if we have sold off the empire we have worked so hard to build and the future growth potential all at once.

In a promising market like South Korea, relying solely on annual licensing fees is not in our long-term interest.

Moreover, given Samsung's modus operandi, once it gains control of the channels and operations, it is highly likely that it will undermine the brand in the future, or even start anew.

Mr. Toshifumi Suzuki's attitude was very firm. He believed that the Korean market must be dominated by us. The agency model could be discussed, but it must be limited and controllable. Directly operated stores in core cities and prime locations must be retained.

After listening, Lin Haoran slowly nodded.

Suzuki Toshifumi's judgment coincided with his own inner thoughts.

Convenience store networks are not just retail stores, but also tentacles that reach deep into communities, and are the gateways to future big data, logistics, and even localized services.

Selling such a well-established and profitable network as a whole to an ambitious local giant would be tantamount to cutting off one's own arm.

He relies on these two convenience store brands to help his subsidiary, Langwei Group, a manufacturer of daily necessities, sell its products.

If Samsung completely controls the convenience store distribution channels in South Korea, the future entry of Langwei Group's products, and under what conditions, will be entirely dependent on Samsung.

This is not just about the gains and losses of the convenience store business, but also about the layout of the entire consumer goods industry chain.

For regional giants like Samsung, monopoly is their goal, and they will never be content to be just a distributor.

Today, the South Korean market has become an important market for Langwei Group's shipments, contributing to Langwei Group's revenue every moment.

However, once they control the distribution channels, they will inevitably pressure Langwei to lower prices and may even support their own affiliated companies.

They even went so far as to completely monopolize the South Korean market, then stealthily changed the landscape, marginalizing or even forcing 711-Eleven and Lawson out of the market, and replacing them with their own brands.

In that case, all of Southern Company's previous investments and plans in South Korea would have been for nothing.

This is naturally inconsistent with the overall strategy of Toshifumi Suzuki and Hiroaki Hayashi.

Lin Haoran was not surprised that Samsung Group had suddenly set its sights on the convenience store sector.

Samsung is a diversified conglomerate, now involved in multiple sectors including electronics, trade, finance, machinery, chemicals, and food.

Now, seeing the booming development of the two convenience store brands under Southern Company in South Korea, the other party is naturally envious and wants to swallow this lucrative opportunity.

This aligns with the logic of conglomerates' expansion: they see potential and money in any sector, then use their vast capital and political and business connections to infiltrate, acquire, or squeeze it out until it is incorporated into their own system.

Convenience stores may seem like the end of the retail chain, but they have stable cash flow, a dense network of outlets, can collect massive amounts of consumer data, and can also serve as a natural sales channel for other products under Samsung, such as its own food, daily necessities, and small appliances. Their strategic value should not be underestimated.

Ma Shimin concluded: "Therefore, Mr. Toshifumi Suzuki believes that Samsung's real purpose is to use the guise of agency to carry out a takeover, and ultimately digest and absorb our brand and channels, turning them into part of their retail empire."

Losing control of the South Korean market would not only affect the convenience store business itself, but also impact the strategic layout of upstream industries such as the Langwei Group. Therefore, he resolutely resisted it.

"Mr. Suzuki made the right decision, and you were right not to compromise, so why did you say the talks were not harmonious?" Lin Haoran asked curiously.

Ma Shimin's tone was tinged with coldness: "When Mr. Lee Byung-taek spoke to me, there was a threatening tone in his words. He said that if you, boss, do not agree to this cooperation plan, Samsung Group may use all its resources in South Korea to reassess and 'adjust' the business environment for 711-Eleven and Lawson in the South Korean market."

He suggested that everything from property leasing to government approvals, tax audits, and even media opinion could become less friendly.

He added that given Samsung's influence in South Korea, if they decide to enter the convenience store sector, they will inevitably become the market leader regardless of whether they cooperate with us. At that time, our existing stores may face fierce and unfair competition.

His subtext was clear: either cooperate with them on their terms and sell them your assets and future.

Otherwise, they'll either have to wait to be squeezed out of the South Korean market by various means.

Lin Haoran's face darkened completely. His fingers tapped lightly on the smooth tabletop, producing a soft, clear sound that was particularly noticeable in the quiet office.

He never expected that Lee Byung-taek, as the chairman of Samsung, would make such a blatant threat.

This is not just a business negotiation tactic; it's more like a form of bullying based on a local monopoly.

Lin Haoran wasn't worried at all about Samsung's later statement about entering the convenience store sector.

Another South Korean conglomerate, Lotte Group, would launch its own convenience store brand, Lotte Seven, a year later in 1983.

However, due to their lack of price competitiveness, all of these shops closed down in 1984.

If Samsung wants to take this path, it will likely suffer a crushing defeat, just like Lotte.

Convenience stores may seem simple, but their operation is actually extremely sophisticated. From supply chain management, store location selection, product mix to staff training and information systems, each link is interconnected, and success cannot be achieved in the short term by relying on brute force with capital.

It took Southern Company decades to refine the 711-Eleven model and replicate it globally.

Samsung's attempt to easily replicate this model simply because of its financial strength is a gross underestimation of the industry.

However, the other party's threat to use political and business resources to suppress them is indeed a problem.

South Korean conglomerates have intricate relationships with the government and media. If they were to disregard all decorum and resort to non-market means, it could indeed create many obstacles for Namyong Company's business in South Korea, increasing operating costs and uncertainty.

"It seems that Samsung is taking advantage of the fact that our foundation in South Korea is not as deep as theirs, and is trying to force us to submit through such underhanded means."

Lin Haoran's voice was calm, but beneath that calm lay a chill.

"Does he think we're some small company that can be easily manipulated and would be intimidated by such threats?"

As a time traveler, he had no good feelings towards South Korea and would not be intimidated by the threats from its chaebols.

He was well aware of the true nature of these conglomerates: they grew wildly with the support and protection of the government, and were accustomed to solving problems with monopolies and power. However, they were not invincible in the face of international rules and real capital strength.

Moreover, the Samsung Group today is far from the global giant it will become in the future, and it is far inferior to Lin Haoran's strength.

"Boss, how should we deal with this? They are clearly still not giving up. We have never cooperated with Samsung before, so we are not familiar with their way of doing things."

However, now that the other side is being so aggressive, we naturally cannot sit idly by and wait to be killed. A fierce look also appeared on Ma Shimin's face.

As a core general under Lin Haoran, he was no longer just a simple professional manager, but had gradually developed the charisma of a shrewd and ruthless leader.

"He left after talking to you?" Lin Haoran asked.

"Yes, since the two sides parted on bad terms, there's naturally nothing more to discuss. He hopes we'll think it over carefully. He's giving us one night, and he'll personally visit you again tomorrow morning."

Ma Shimin replied, with a hint of sarcasm, "He also said that he hopes to hear a 'wise' decision by then."

"One night? And you'll come back in person?"

Lin Haoran sneered, "He really thinks too highly of himself. It seems that your firm refusal did not bring him to his senses. Instead, it made him think that we are ungrateful."

"Boss, then we..."

"I already have ideas about this matter, so you don't need to worry too much. Focus on the Galaxy Strategic Committee and the Land Group's affairs first," Lin Haoran said with a smile.

Southern Company is not under the management of any group under Lin Haoran, but operates independently. Its headquarters are temporarily located in Tokyo, Japan, with Toshifumi Suzuki serving as CEO, and it reports directly to its boss, Lin Haoran.

Therefore, this is not part of Ma Shimin's work.

“Okay, boss.” Ma Shimin nodded, knowing that his boss would make the decision, so he didn’t ask any more questions.

He then reported on the latest investment progress of the Renaissance Fund, as well as the preliminary results of the Galaxy Strategic Development Committee's discussions on the allocation of resources and strategic direction of each group next year.

Lin Haoran listened attentively, occasionally asking key questions or giving instructions.

Although his energy has recently been diverted to matters such as weddings and Forbes, he has never relaxed his control over his core businesses.

Ma Shimin's report was well-organized, demonstrating a high level of professionalism and a precise understanding of the boss's intentions.

About half an hour later, Ma Shimin finished his report and got up to take his leave.

The office returned to quiet.

Lin Haoran did not deal with Samsung's matter immediately, but instead picked up the phone and dialed an overseas number to Tokyo.

The call was answered shortly afterward.

“Mr. Suzuki, it’s me,” Lin Haoran said, taking the initiative to speak.

"Boss, you're calling because of the Samsung chairman, right?"

On the other end of the phone, Suzuki Toshifumi's voice carried a hint of apology and seriousness, "I'm very sorry to have bothered you because of the Korean business, and even made Chairman Lee Byung-taek personally go to Hong Kong."

"Mr. Suzuki, there is no need to apologize. You handled it correctly. Sticking to principles and protecting our core assets and future potential in South Korea was the right decision."

I just want to know if, besides their proposed acquisition and subsequent threats, Samsung has tried any other means at the technical or operational level?

For example, poaching our core employees?

711-Eleven's leading position among global convenience store brands stems not only from its pioneering role but also from its core competencies in supply chain management, meticulous operations, and cost control.

These core competencies have ultimately been embodied in a group of experienced and loyal core employees, ranging from regional managers and purchasing experts to senior store managers.

If Samsung can successfully poach these people, it will be equivalent to obtaining a "living map" and "operation manual" of the 711-Eleven operating system.

Although it is impossible to completely imitate the complex techniques, mastering more than 50% of them would be enough to save them years of detours and might even pose a threat to the Southern Company in certain markets.

Lee Byung-taek's move was indeed ruthless and hit the nail on the head; he truly deserves to be called the godfather of South Korean businessmen.

Suzuki Toshifumi clearly knew this as well, and replied in a serious tone, "Boss, you are incredibly insightful."

According to an urgent report from the general manager of the Korean branch, while Chairman Lee Byung-taek was meeting with Mr. Ma Shimin in the afternoon, Samsung did indeed contact at least five core employees of our Korean branch through multiple headhunting firms.

This includes the vice president in charge of operations in the Seoul area, the director of supply chain management, and three top-performing star store managers.

The offer was incredibly generous, almost three to five times the current salary, and included a promise of a higher position in Samsung's new convenience store business in the future.

It seems they're doing this to put pressure on us!

Lin Haoran nodded.

When Ma Shimin said that the other party would visit him in person the next morning, he knew that the other party must have a backup plan to threaten him.

So he specifically called Toshifumi Suzuki to inquire about it.

As expected, Samsung had already taken action.

Lin Haoran was no stranger to this high-pressure negotiation tactic; it was simply about creating enough tension before the meeting to force him to make concessions under pressure.

What they really wanted was to finalize this deal so that Samsung could monopolize the convenience store industry in South Korea, thereby reaping greater profits and even, in turn, controlling upstream suppliers like Langwei Group.

Lin Haoran saw this clearly.

Although he has not been in business for long, only a few years.

Over the years, he has experienced countless major negotiations and has long since developed a keen eye for understanding people's hearts and seeing through the situation.

From acquiring Ying Ni in Qingzhou and Hong Kong Electric, to integrating Kowloon Motor Bus, Hong Kong and China Gas, and Hong Kong Telephone.

Then came the dealings with established British companies like HSBC and Jardine Matheson, and even the acquisitions of Hongkong Land, Hang Seng, and Huifeng...

Every single time was fraught with undercurrents and fraught with danger.
In Lin Haoran's view, Samsung's seemingly fierce threats and poaching are nothing more than the usual three tricks used by conglomerates, attempting to crush their opponents with their local advantages and capital power.

The reason he is not worried about Samsung building its own convenience store brand is not only because he knows that the industry has extremely high operational barriers, but also because he has a deeper information advantage.

He understands the evolution of the global retail industry over the next few decades, and knows that convenience stores are not just about selling goods, but also about data entry points, logistics nodes, and community service centers.

Even if Samsung can poach some people and imitate some models now, it will never be able to build an ecosystem like Southern Company, which has been honed over decades and is still evolving, in a short period of time.

Most importantly, given his current status and strength in the global business world, he is not afraid of any threat from Samsung, a regional conglomerate that has not yet expanded beyond South Korea.

His business empire has long since spread across the globe, with roots in Hong Kong, influence in Southeast Asia, reach in Japan, and a presence in the United States and Europe.

Samsung may wield considerable influence in South Korea, but its impact diminishes significantly outside of South Korea.

Lin Haoran's capital and resource network, however, is global.

Since the other party wanted to play along, he didn't mind letting Samsung experience the true taste of global competition. (End of Chapter)