In Hong Kong, we build a global business empire

Bernard Arnault was completely stunned.

A homeless man, a man who couldn't even get enough to eat, shivering in the cold wind, whose wife had died of cancer, and who had fallen on hard times on the streets, didn't know who the French president was, but he knew Chanel, Louis Vuitton, Dior, and Hermès!

He once bought his wife a bottle of Chanel, which cost him a month's salary.

His wife, however, kept thinking about the LV bag until her death, and couldn't bear to finish the bottle of Chanel perfume.

This shows what?
This demonstrates that the brand influence of luxury goods has penetrated every corner of society, even transcending class boundaries and deeply resonating with people's hearts.

A homeless person may never be able to afford an LV bag, but he knows what a Louis Vuitton bag represents: high-end, expensive, quality, and taste!
He was willing to spend a month's salary on a bottle of perfume because it brought his wife joy and expressed his love.

His wife couldn't bear to finish the bottle of Chanel perfume that her husband had bought with a month's salary, even until her death.

This is the power of a brand. It is not just a product, but also a carrier of emotions, a symbol of value, and a common language that transcends wealth, social class, and national borders.

At that moment, Bernard Arnault felt as if he had been struck by lightning; all the worries he had about real estate, loans, and unsold projects were replaced by an unprecedented clarity.

He seemed to see a whole new world, a world driven by brands, culture, and emotions, a world completely different from bricks and cement!
“Mr. Lin, I understand.” Bernard Arnault took a deep breath, his voice tinged with a hint of shock. “You’re not showing me the market for luxury goods; you’re showing me the cultural influence of luxury goods.”

It has transcended the product itself, becoming a cultural symbol, a social identity, and an emotional anchor; this is the true value of luxury goods.

The owners of those French luxury brands, however, are sitting on a gold mine but don't know how to mine it; they possess a treasure mountain but don't know how to utilize it.

"Let's go back to the conference room and talk." Lin Haoran smiled and didn't say anything more.

It's not a good time to talk business on the street!
The two walked back to the Citibank headquarters building one after the other. When the employees in the lobby saw Lin Haoran return, they greeted him with a chorus of greetings.

Lin Haoran smiled and nodded in acknowledgment, then led Bernard Arnault into the elevator without stopping.

The elevator doors closed, shutting out the noise from outside.

Bernard Arnault leaned against the elevator wall, his mind still replaying the scene from earlier.

The story of that homeless man, that bottle of Chanel perfume, and that wife who couldn't bear to finish using it even on her deathbed.

These images were like a hammer, striking his preconceived notions again and again.

He had worked in real estate for over a decade and always believed that the value of a house lay in its location, size, and building materials. But now he suddenly realized that what truly transcends economic cycles, transcends social classes, and resonates with people is not bricks and cement, but a brand.

The elevator stopped at the conference room floor. Lin Haoran stepped out first, followed by Bernard Arnault, and the two returned to the conference room.

The waiter refilled their tea and coffee, then gently closed the door.

Lin Haoran picked up his teacup, took a slow sip, then put it down and looked at Bernard Arnault.

He didn't rush to speak, but gave the other person time to think and process the information.

He knew that Bernard Arnault was a smart man and would surely figure out the crux of the matter.

Some things are best left unsaid; saying too much can seem contrived.

Bernard Arnault sat there, holding his coffee cup in both hands, his gaze fixed on the liquid inside, seemingly organizing his thoughts.

After a moment, he raised his head, looked at Lin Haoran, took a deep breath, and said, "Mr. Lin, I finally understand why you came to me. You are not looking for a real estate developer, but someone who can understand brand value, integrate resources, and lead French luxury goods to the world. You think I have that potential."

Lin Haoran smiled, neither denying nor confirming, and said, "Mr. Arnault, what do you think is the biggest problem with French luxury brands?"

Bernard Arnault thought for a moment and said, "They are too proud and too fragmented. Each brand has its own history, its own heritage, and its own customer base, but they fight their own battles and do not have a unified strategy to expand into the global market."

Moreover, their operators are too conservative, afraid to innovate or expand, and content to live off their past achievements.

Louis Vuitton is excellent at making leather goods, but its perfumes and fashions have never taken off; Dior is excellent at making perfumes, but its leather goods and jewelry have lagged behind.

Each brand has its own strengths and weaknesses, but there is no synergy or integration between them.

Although Bernard Arnault had never been involved in the luxury goods industry, he was, after all, French, and France is the world's leading country in luxury goods. Having grown up in France, he had some understanding of the situation of these brands.

In addition, he himself was in business and had a keen insight into corporate management issues, so his analysis was very logical and made Lin Haoran nod in approval.

Lin Haoran picked up his teacup, took a slow sip, then put it down. Looking at Bernard Arnault, he said calmly, "Mr. Arnault, you are right, but not entirely."

The biggest problem with French luxury brands is not arrogance, fragmentation, or conservatism, but rather their lack of understanding of consumers.

They thought luxury goods were just a game for the rich, but they didn't realize that the middle class was the biggest market.

They think luxury goods are just products, but they don't realize that luxury goods are emotions, dreams, and identity.

For example, that homeless man couldn't afford Louis Vuitton, but he knew what Louis Vuitton represented.

His wife couldn't bear to finish the perfume until her death, because it carried her husband's love and their longing for a better life.

This is the essence of luxury; it's not something to be used, but something to dream about.

Bernard Arnault listened quietly without interrupting.

Lin Haoran continued, "The middle class can't afford Hermès bags, but they can buy Hermès scarves, Hermès perfumes, and Hermès ties."

They can't afford the whole set, but they can buy a starter kit or a small accessory.

This is the pyramid structure of luxury goods: the top is the super-rich, the middle class is the middle class, and the base is the ordinary consumers.

Each floor has its own products, and each floor has its own market.

French luxury brands are currently focusing only on the top, neglecting the body and base of the tower—a huge market gap.

Bernard Arnault's eyes grew brighter and brighter.

Lin Haoran's words were like a key, unlocking a door in his mind that had never been opened before.

He had never thought about the problem from this perspective.

He always thought that luxury goods were expensive and were toys for rich people.

But now he understands that the true value of luxury goods lies in their ability to bring people dreams and hope.

In the final moments of her life, the wife of a homeless man was not thinking about her house, her car, or her savings, but about a bottle of Chanel perfume.

That bottle of perfume was the only bright spot in her bleak life.

That's the magic of luxury goods—they can bring a touch of extraordinary joy to ordinary life.

Before Bernard Arnault could speak, Lin Haoran continued, “We just asked this question to an ordinary female bank employee and a homeless man. But in reality, if you ask taxi drivers, assembly line operators, construction workers, security guards, restaurant servers, and so on, you will find that most of them may not know who the French president is, nor do they care who the French president is, but almost everyone knows Chanel, Louis Vuitton, Dior, and Hermès.”

This is not because they are consumers of luxury goods, but because luxury goods have become a cultural symbol and a social consensus.

A person may never buy luxury goods in their entire life, but they will certainly know what luxury goods represent.

This is the power of a brand; it's not built through advertising, but through the cultural accumulation and emotional resonance of generations.

Bernard Arnault fell completely silent.

He picked up his coffee cup, took a slow sip, and his mind was filled with every word Lin Haoran had said.

These ideas were so new and so shocking to him.

He always thought that luxury goods were only for rich people and had nothing to do with him, a real estate developer.

But now he realizes that the influence of luxury goods far exceeds his imagination.

A homeless person, a bank employee, a taxi driver, an assembly line worker—they may never step into a Louis Vuitton store, but they know what Louis Vuitton is. They may never be able to afford a Hermès bag, but they know what Hermès represents.

This is the magic of luxury goods; they can transcend social classes, national borders, and cultures, becoming a common language for all humankind.

“Mr. Lin, I understand.” Bernard Arnault’s voice was a little hoarse. “You’re right, I don’t understand luxury goods, but I understand business.”

My success in the French real estate industry is not because I understand bricks and cement better than others, but because I understand the needs of my clients better than others.

The same logic can be applied to the luxury goods industry. What customers need is not a house, but a home. Similarly, what customers need is not a bag, but a status, a taste, and a dream.

My failure in the US stemmed from my initial failure to understand the needs of American clients. I blindly copied my successful experiences from France, resulting in a mismatch between the two cultures—a lesson I've learned the hard way.

Lin Haoran nodded, a hint of approval flashing in his eyes.

This future godfather of luxury goods is indeed quick to grasp things.

He didn't need to teach Bernard Arnault how to do it; he only needed to point him in the right direction, and Arnault would explore, develop, and conquer on his own.

That's why Lin Haoran chose him, instead of those seasoned veterans who had been working in the luxury goods industry for decades.

Those seasoned veterans have been bound by the industry's rules and regulations; they have lost their edge, their drive, and their courage to break with convention.

Bernard Arnault, on the other hand, is a success story in the real estate industry and a newcomer to the luxury goods industry. He has both successful experience and the courage to break through, as well as a heart that refuses to give up.

Bernard Arnault continued, "Mr. Lin, thank you so much for your guidance. You have shown me a whole new world, just like a teacher to me."

However, let's get back to the main point. What exactly is this collaboration you're talking about? Bernard Arnault finally asked the most crucial question.

All the groundwork, all the inspiration, all the shock—it was all for this moment.

He knew that Lin Haoran was not the kind of person who would waste time. Since he had put so much effort into him, he must have a complete plan.

Lin Haoran smiled and looked at Bernard Arnault, saying, "Mr. Arnault, I want you to be the godfather of global luxury goods!"

"What? You want me to be the godfather of luxury goods?" Bernard Arnault almost thought he had misheard.

I could hardly believe my ears.

He's a real estate developer who doesn't even know which way the door to the luxury goods industry is open, yet Lin Haoran actually made him the godfather of luxury goods.

Is this a joke?
Seeing Bernard Arnault's shocked expression, Lin Haoran smiled, picked up his teacup, took a slow sip, and said unhurriedly, "Mr. Arnault, you heard me right. I said I want you to be the godfather of global luxury goods."

In the next 10 years, luxury goods will transform from European family businesses into global capital empires. Right now, brands are cheap, short of money, and lack integration.

I'll provide the capital, and you'll contribute your vision, management, and brand operation capabilities. Together, we'll acquire, control, and integrate the entire European luxury goods industry.

It's not just French luxury brands; it also includes Italian, German, Swiss, and other luxury brands. As long as they are well-known and have a long history, they can be included in the list.

You'll be in charge of managing and controlling all brand decisions, while I'll only act as a financial investor and won't interfere in any operations!

Bernard Arnault became increasingly shocked as he listened.

In the luxury goods industry, besides France, Italy, Germany, and Switzerland are also major luxury goods countries, boasting countless top brands with long histories.

Italian jewelry, German leather goods, and Swiss watches are all things that consumers around the world dream of.

If all the luxury brands from France, Italy, Germany, and Switzerland could be integrated, it would create an unprecedented business empire.

Lin Haoran continued, "What we want to do is not to open a few stores, but to build the world's number one luxury goods group."

I'll give you a large equity stake, absolute control, and a global capital platform. You can buy up all the brands like Dior, LV, and Givenchy and build a brand empire that will never end.

You will be the emperor of the luxury goods world, and I will be your strongest supporter.

Once this partnership is established, you will no longer be an ordinary real estate businessman, but a leader in the global luxury goods industry, someone who can stand shoulder to shoulder with the heads of century-old families.

Bernard Arnault's breathing quickened.

Lin Haoran's vision was so grand that he had to pinch his thigh repeatedly to make sure he wasn't dreaming.

How could someone who works in real estate and has suffered setbacks in the United States have the opportunity to become the godfather of the global luxury goods industry?
This is even more bizarre than a novel.

“Mr. Lin, your idea is too crazy.” Bernard Arnault’s voice trembled slightly, but his eyes were full of excitement.

He wasn't afraid, but excited.

This excitement was just like when he was 22 and persuaded his father to give up the construction business and switch to real estate; it was filled with a desire for the unknown and a yearning for success.

No, it was even stronger than that time.

That time, he just wanted to jump from one industry to another, but this time, he wants to integrate the entire European luxury goods industry and create an unprecedented business empire.

Although Bernard Arnault controls tens of millions of dollars in assets, he is just a nobody in the eyes of the bigwigs.

With his ambition, how could being an ordinary businessman satisfy him?

But now, there is an opportunity for him to soar to the top and join the ranks of global business leaders. How could he not be excited?
Everyone wants to be emperor, but not everyone is qualified to be emperor.

Now, Lin Haoran has given him the chance to rise to the top in one step.

Lin Haoran looked at the burning fire in Bernard Arnault's eyes and nodded in satisfaction.

This is exactly the effect he wanted.

You can tell if a person has ambition just by looking into their eyes.

Bernard Arnault's eyes held fire, light, and a yearning for something extraordinary.

That's the kind of person who's worth investing in.

If it were anyone else, upon hearing such a suggestion, they would either think Lin Haoran was joking with them, or feel that they were not capable enough to handle it.

Bernard Arnault clearly wanted to seize this opportunity.

After all, such a good thing is like a pie falling from the sky.

A French businessman who had suffered heavy losses in the American real estate market was suddenly approached by a world-class billionaire who offered to fund his efforts to integrate the entire European luxury goods industry. No one would believe such a thing if it were told to others.

But Bernard Arnault believed him because he saw sincerity in Lin Haoran's eyes, heard professionalism in Lin Haoran's words, and sensed foresight in Lin Haoran's plans.

Even though the two sides haven't discussed in depth how to cooperate, how much to invest, or how to divide the shares, Bernard Arnault has already sensed Lin Haoran's sincerity from his attitude.

This was not a casual suggestion, but a well-thought-out plan.

Lin Haoran's understanding of the luxury goods industry, his insight into consumer psychology, and his global market strategy far exceeded his expectations.

Such a person wouldn't joke about something like this.

"Mr. Lin, why did you choose me?" Bernard Arnault asked the final question. "There are so many people in Europe who work in luxury goods, so many people who understand this industry, why did you choose someone who works in real estate?"

Lin Haoran laughed and said, "Mr. Arnault, it's because those people who make luxury goods have become accustomed to the rules of that industry. They are too comfortable and too conservative. They don't have your kind of drive and courage."

But you are different. I have read your information and investigated your life experience. Your success in the French real estate industry has proven your ability, while your failure in the United States has made you realize your shortcomings.

You are capable, ambitious, and driven by a sense of dissatisfaction. This is the kind of collaborator I'm looking for.

To be honest, I'm pretty good at judging people, and I believe I haven't misjudged this time. (End of Chapter)