Black Label [EN]: Chapter 277

Black Label Episode 28

The LVMH Group, founded by Ardo, who hadn’t just rejected real estate investments but had gone on to acquire ‘premium brands’ from around the world, was truly enormous.

“If you add up the number of brands under the group, it’s equivalent to half of the luxury market worldwide.”

“I see….”

“If we launch a collaborative product that combines all the strengths of those brands, it will definitely generate a huge response.”

In theory, it was perfect.

However….

It was a problematic plan.

“It will lead to a drop in sales, you know?”

President Song clicked his tongue, a habit of his, and began to express his opinion.

“For example, let’s say we release a product that incorporates Christian Dior’s unique classicism with Lonneville, a brand within the same group.”

“Yes.”

“Then wouldn’t that blur the lines and diminish the unique identity of the Christian Dior brand?”

If you can experience the unique sensibility that you can only get from a specific brand in other brands as well….

It was clear that it would lead to a drop in sales for the brand that was the original source of that sensibility.

“I think that’s a valid point.”

“Yeah, there’s something wrong with this.”

“However, it’s a problem we can overcome.”

Jaeseung added after speaking.

“All brands under the group will independently showcase new products for the new season, as usual.”

President Song retorted.

“Didn’t you just say that you would release a collaborative product that blends the strengths of all the brands within the group?”

Jaeseung answered, “That’s right,” and took a shot of soju [Korean distilled rice liquor] before slowly continuing.

“All existing premium brands within the group are planning to prepare for the new season as originally planned.”

“Then….”

“However, we need to launch a completely new brand to handle products that combine identities.”

At those words, President Song muttered.

“Wait a minute, then….”

Jaeseung immediately added.

“We will create a higher-level brand that encompasses all brands within the group.”

“I didn’t think of that….”

“Of course, we are planning to adjust the production volume of products to maintain scarcity value….”

Jaeseung added again.

“I think it would be a good idea to release it not every year, but every few years, according to a set cycle.”

Soon, President Song replied in a low voice.

“What should I say, this is like….”

He vaguely trailed off for a moment.

“It’s like the All-Star Game in sports?”

The LVMH Group had as many as sixty premium brands under its umbrella.

It would not be an exaggeration to say that most of them were brands that had been acquired by Ardo after experiencing difficulties in management due to poor financial situations.

After the acquisition, all of them turned to surplus with the capital, advanced management system, and distribution network built by the LVMH Group.

Some designers’ goal is to sell the brand they launched to the LVMH Group, and they have created countless success stories.

In the end, all sixty brands under its umbrella were well-established and were engaged in a friendly sales competition every year.

“Yes, it’s similar to the All-Star Game in sports.”

So, as President Song said, it wouldn’t be much different to compare it to the All-Star Game in sports.

“It will be a large-scale project, so as soon as I finish this vacation and return to France, I plan to summon all the designers under my command.”

“It seems like those who think the success of the brand they are leading is more important will strongly resist.”

“Unfortunately, if there is a designer who resists, there will be no other way but to pay a penalty and terminate the contract.”

President Song frowned.

“Isn’t that too coercive?”

On the other hand, Jaeseung was firm.

“This season, I have to prove my value not as a designer Lee Jaeseung, but as a manager who will lead the group, right?”

“Still….”

“Of course, we will pay reasonable compensation to some designers who will demand contract termination in order not to create an unfair situation.”

President Song shook his head.

“If you spend a lot of money in the name of penalties and compensation before the project even starts, the designers may be satisfied, but the board of directors will object….”

At those words, Jaeseung asked back.

“What right does the board of directors have?”

At those words, President Song widened his eyes and asked back.

“Are you out of your mind?”

Based on the industry’s standard contract, if you approach it that way, you would have to compensate three times the contract fee paid to the designer at the time of the contract as a penalty for termination.

Assuming that the average contract fee is 1 billion won [approximately $750,000 USD], and even if you set the number of designers who have to pay the termination penalty to only ten….

‘30 billion….’

Since they would have to compensate as much as 30 billion won or more in the name of penalties, there was no way that the board of directors would not object.

Even the amount of 30 billion won that President Song had guessed was only a minimum amount, so there would be even greater expenses.

The contract fee may have been set at more than 1 billion won, and there may not be only ten people, so it was possible that it would cost several times more.

“No.”

On the other hand, Jaeseung was calm.

“I will pay for it with my own money.”

“What?”

“Then there’s no problem, right?”

After speaking, Jaeseung added.

“Ah, the tax on cash gifts will be ridiculously charged, but that’s also a problem I have to solve, so the board of directors will have no right to interfere, right?”

“Wait a minute, if you really spend that astronomical amount of money out of your own pocket and have to pay the gift tax on it, what is the total amount….”

Soon, Jaeseung replied briefly.

“I don’t care how much it costs.”

Silence flowed for a moment.

“I’ve made a lot of money.”

At those words, President Song unknowingly let out a hollow laugh and began to nod.

“Yeah, that’s right….”

Then he added again.

“You’ve made a lot….”

Although he didn’t know exactly about Jaeseung’s assets, it was clear that the total amount would exceed trillions of won [hundreds of millions of US dollars].

Even the net profit that he would earn this season alone would surely exceed hundreds of billions of won.

No, no….

Vehicles, yachts, private planes, houses around the world, uninhabited islands near the Greek Mediterranean, etc. that Jaeseung owns but rarely uses.

It was only expected that even if he disposed of items with tangible value, he could solve this expense without even making a dent.

“Furthermore, this expense that I will endure this time is a sign of sincerity to the board of directors.”

“What does that mean again?”

“It’s a good opportunity to show enthusiasm for the project, right?”

At those words, President Song unknowingly let out a low groan, “Ah.”

“Well, if you push forward with this project even by solving the astronomical expenses with your own money, the board of directors will have no justification to oppose or stop it.”

Jaeseung added again.

“Anyway, the fashion industry is no exaggeration to say that it is an image industry, right?”

“That’s right….”

“If it’s a collaboration brand made by linking all the brands in LVMH….”

Jaeseung added again.

“Image building will be easy.”

“Yeah, that’s definitely right….”

If it is a brand that contains the advantages and unique identities of sixty premium brands, as well as the differentiation in fabrics, materials, and processes….

It was only a matter of time before it would attract the attention of cash cow-level consumers who are focused on ‘consumption’ and searching for things to buy, and make them open their wallets.

“Then what about Wallflower?”

At those words, Jaeseung replied.

“What about Wallflower?”

“You have to make them participate!”

“I have no intention of doing that.”

“What’s the reason?”

President Song frowned.

“Just putting their name on the new brand would have a huge trickle-down effect, so why….”

Jaeseung shrugged his shoulders.

“If I did that, it would give the group’s board of directors a reason to object. They would probably dismiss it as a strategy to take advantage of the image that LVMH has created over a long period of time.”

“Then….”

“Since the atmosphere is already loose because there are no competing brands, I think it’s a good thing.”

Now, Wallflower, which has become the one and only premium brand, was often praised by the world as having no rivals.

Jaeseung, who was very disappointed with that point, smiled as if he had come up with something very interesting and continued to speak.

“Aren’t you curious who will win?”

Then, he tapped the table lightly with his finger for a moment.

“The fashion empire LVMH, which has created sixty brands, and the new premium brand Wallflower, which stands alone against it….”

At those words, President Song muttered.

“You’re crazy….”

Then he asked again.

“It only sounds like you’re going to create a competitor yourself and fight because there are no suitable competitors.”

Jaeseung replied briefly.

“That’s right.”

And added.

“It’s too boring to protect a throne that no one can threaten.”

Jaeseung got up from his seat first.

“Shall we get up now?”

“What? Already?”

“I have to go home.”

“That’s a shame.”

Soon, Jaeseung glanced down at his wristwatch and said in a low voice.

“My mother told me not to go home too late.”

“Are you blaming your parents?”

“It’s not an excuse, it’s the truth? And please take care of the bill.”

At those words, President Song groaned, “Huh,” and asked back.

“Are you serious?”

“Yes?”

“You’re squeezing blood from a flea.”

Jaeseung added again.

“It’s too big to be a flea.”

Soon, President Song opened his wallet and growled in a low voice.

“You’re ready to spend hundreds of billions of won on termination penalties and gift taxes, but you’re not ready to buy me a few bottles of soju and chicken kalguksu [Korean noodle soup]?”

Jaeseung replied briefly.

“No.”

Then, he picked up a toothpick from the counter and immediately went outside, continuing to speak.

“Anyway, thank you for the meal.”

Soon, President Song muttered in a low voice.

“That guy is really….”

He asked the store owner.

“How much is it?”

“60,000 won [approximately $45 USD].”

“Let’s see….”

President Song quickly finished the calculation and followed Jaeseung, shouting.

“Hey, at least call a driver for me!”

On the other hand, Jaeseung pretended not to hear and continued to walk.

“Hey! Hey! CEO! Call a driver!”

President Song, who quickly caught up with Jaeseung, was panting.

“So what’s the brand name?”

He asked again.

“Well….”

Jaeseung muttered briefly and added.

“Calrdough.”

Then he continued to speak again in a confident voice.

“Calrdough would be good.”

Soon, President Song asked back.

“What does it mean?”

Silence flowed for a moment.

“Karl Lagerfeld and Chairman Ardo.”

Jaeseung added with a smile.

“I mixed the names of the people I respect the most, and the sound isn’t bad, is it okay?”

That’s how Jaeseung’s next plan was perfectly established.