The conflicts in the Lauder family are mainly concentrated on Leonard and his younger brother Ronald's son William.

As early as the beginning of Estee Lauder's listing, his younger brother Ronald owed more than 200 million US dollars in debt because he was keen on investing in political art.

Later, Ronald sold more than 100 million US dollars in stock at the critical moment when Estee Lauder replaced Ceyi in 2011, which aroused suspicion from the outside world.

Not only is it a financial issue, but Ronald also has many differences with Leonard in company decision-making.

At a meeting discussing the acquisition of the Ales Group in 2007, Ronald expressed support for the acquisition of Ales for $500 million to help the company enter the mass market. Leonard said there was no need. Estee Lauder only made high-end products and never made cheap products.

William, who was already ceyi at that time, could only deal with it back and forth. This also exposed that William did not have much say or decision-making power on the board of directors.

As the third-generation heir of the family, William believes that the company relies too much on department stores and needs to expand chain stores and other channels, while his father Leonard still believes that maintaining a good cooperative relationship with department stores is the most important thing.

In 2011, the company's performance declined for the first time, and the Lauder family had to make changes.

During this year, William, who was deeply constrained, turned his attention to the outside world, hoping to find a manager who could be recognized by the Lauder family.

In the end, Fu Yide, who had worked at Procter & Gamble for 23 years, became William's successor and held the position of Estee Lauder Ceyi.

But William's decision also caused great dissatisfaction among his father and uncle. They felt that it was incredible to hand over their company to an outsider to manage.

During this period, the company's board of directors was even more messy, and every meeting was a battle, and everyone was not satisfied with the performance of others.

On the board of directors, those who have the right to speak are basically members of the Lauder family, and everyone holds a lot of shares. The current chairman William has no ability to make a final decision.

Because, his father Leonard and uncle Ronald have more shares than him!

In addition, Estee Lauder's market performance has not been very good in the past two years, and its market value has also dropped from more than 50 billion US dollars at its peak in the past few years to more than 30 billion now.

The once solid Lauder family is already facing a situation of falling apart.

So Wang Ye believes that now is the best time to acquire Estee Lauder!

If you miss this time period and wait until the company recovers, then you will be too expensive to buy it.

But Estee Lauder's market value is now more than 30 billion US dollars, so our fund cannot afford it. Frederick said worriedly.

We do not need to fully control or privatize and delist. We just need to get enough shares and have a say on the board of directors. Wang Ye explained with a smile.

Some companies must have absolute controlling shares or have few shares but have a great say, such as Huayou Group, Fuhua Cosmetics Company, and Meigou

But some companies only need to hold certain shares and have the right to speak on the board of directors. For example, Shiseido and AmorePacific.

You should know the equity structure of Estee Lauder. Their family holds the voting rights of 87. It would be too difficult to have a voice on the board. Frederick shook his head and smiled bitterly. It is really not easy to start a company with the same shares and different rights.

That's not a big problem. Isn't it better to start from within them? Not everyone wants to live with the little equity of Estee Lauder. In addition, since this equity structure can be built, it can also be dismantled.

Wang Ye didn't think there would be too much difficulty.

The two discussed the details again and decided to go online first, find out the ideas of some members of the Lauder family, and then take action.

On January 2, Wang Ye boarded the plane and returned to Pengcheng.

I didn’t have much rest, and the day after I got home, I was working again. Now it’s a new year, 2013.

Every January of each year, we need to make a summary of last year and then look forward to the coming year.

Of course, every branch executive has to report to the board of directors. It would be much easier for those with good performance last year. If the performance last year is not ideal, you have to consider how to pass this level.

January 5th is the day of the board of directors of Meijiao. Ceyi Xu Jing gave a work report to all directors at the board of directors.

In 2012, the US bought too many big moves.

It went public in the United States, went online with mobile clients, opened a clothing area, acquired Watsons' personal care chain, successively acquired shares of Shiseido and AmorePacific, etc.

Oh, it has to be mentioned that with the help of Watsons' existing channels, Meigo has successfully entered the domestic market and has launched business in more than a dozen countries and regions in the Asia-Pacific region.

Although it is just starting out, its market share and revenue are not very high, it is a good start after all, right?

In 2012, smartphones began to become popular, and users began to switch from computers to mobile phones. Many companies still saw this trend and developed their own clients.

In the e-commerce field, if you calculate the current top three, Taobao     Tmall is naturally the first, followed by MG’s third, JD.com.

But at present, only Taobao and Meizhuang have bought mobile clients, and JD.com has not kept up.

Although the number of Taobao users is smaller than that of Meigou, if you only count the number of mobile client users, it is Meigou.

This is because when the Meigou client was invested a lot of money to promote it, so the rate of users transferring from the computer to the mobile phone is also the highest, up to more than 90!

When Taobao first launched a mobile client, it did not pay much attention to it. The prices of products purchased on the computer and mobile client are the same.

In addition, mobile client has much less functions than computers, so customers are not used to it, and the conversion rate is relatively low.

At present, the number of registered users of the Meigou version has reached 280 million, and the number of registered users of the mobile client is 260 million. Of course, some of the customers are overlapping. In the e-commerce industry, our number of users is currently second only to Taobao 60 million, and is ahead of JD.com’s 170 million.

In terms of mobile clients, we are ranked first in the e-commerce industry, with 260 million users and 300 million Taobao. JD.com’s client is reported to be launched around the Chinese New Year, and there is no such client for the time being.

Xu Jing stood in the conference room and spoke loudly to all shareholders.

The number of registered users is the data that Internet values ​​the most, and it is even above revenue, so Xu Jing also puts this item first to report.

American buyers are still mainly women, so they compare with Taobao in terms of number of users.

But this is also the positioning determined by Wang Ye when he founded Meigou, focusing on providing high-quality products to the majority of female consumers.

This not only has a clear positioning, but also avoids competition with Taobao.

Next, the importance of the work reported by Xu Jing is still above annual revenue, because its strategic significance is not comparable to the annual revenue.

That is the integration of Watsons’ personal care chain stores channels and the expansion of the Meigou District.

This offline channel has nearly 2,000 stores in the Asia-Pacific region.

After being purchased by Meitu, it also began to slowly de-Watsons. In the mainland market, all stores were renamed Meitu personal care chain stores.

In the Asia-Pacific region, because the reputation of U.S. Shopping is not that high, it has not completely changed its name, but has transitioned to adopt the name Watsons & U.S. Shopping.

Because Luo Jun, a person who is very familiar with Watsons, was used, and the store sales were not messed up during the transition period after the acquisition.

Luo Jun and his old subordinates quickly took over the entire channel and calmly completed the overwork, and the store's sales were not affected.

Moreover, with Watsons' offline channels, Meizhuang has successfully entered more than a dozen countries and regions.

Although the newly developed Asia-Pacific market has not made much contribution to revenue, its impact is completely different.

In the past, when it comes to Meigou, it was just the leading platform for cosmetics e-commerce in mainland China, but now it is different. It can be boasted as the first platform for cosmetics e-commerce in the Asia-Pacific region!

Don’t underestimate this, because it represents potential. A single country and market potential has a limit and revenue has a ceiling.

But what about a continent?

That is to increase the order of magnitude!

It can even be inferred that if U.S. Shopping has gained a solid foothold in the Asia-Pacific region and performs well.

So in the future, will we go to the world? That is another different concept.

Therefore, although US purchase prices have not risen sharply in the stock market, they have been growing steadily.

The market value has never been less than $100 billion.

The third part is the total revenue this year.

This is also the part that Xu Jing feels proud of. Many Internet connections, especially e-commerce platforms, not to mention profitability, even if you lose less, it feels like you have made a big profit.

But US Shopping, from the date of its establishment, US stocks have suffered losses!

Especially now, profitability is increasing.

In 2012, the U.S. Purchase part, in addition to the offline channel of Watsons, and the profits contributed by two shareholders, AmorePacific and Shiseido.

The annual revenue reached 82 billion yuan!

The annual revenue growth rate is as high as 106!

This is due to the significant increase in brands sold by Meigou this year.

Last year, there were only Magic City Home Furnishing and Flower Story, and there were some brands of Estee Lauder, the agent.

But this year, dozens of brands have settled in Shiseido District.

Amorepacific Zone, dozens of brands have settled in!

Clothing area, Huashang brand and preferred products are included!

This is all the highlight.

Shiseido was originally a very well-known brand. In the past, perhaps due to the channel, sales were lukewarm.

However, after setting up a special zone in U.S. Shopping, sales immediately increased like an explosion.

Because many times, people may want to buy a certain product or a certain brand, but because they don’t know where to sell it or it’s more troublesome to buy it, they are too lazy to buy it.

This is the case with Shiseido. Years of business and advertising have made this company very well-known in the eyes of domestic consumers.

But the embarrassing thing is that the channels are poor, and many people only hear about it, but don’t know where to buy it.

Now that the special zone is set up in the US shopping area, it is the most concentrated female consumers in the country. It can be said that all Shiseido's potential customers are here!

This is the power of the leader of e-commerce platforms!

Just start a brand zone and your products can be seen by all potential consumers across the country. Will you still worry about sales?

And AmorePacific and Shiseido are different.
To be continued...