Chapter 0895: The Way Out for Luxury Goods

Zhao Fusheng had reasons for being so confident that Future Advertising could secure the Mercedes-Benz account.

In his previous life, he had read a research report—or more precisely, a summary written many years later.

Among luxury brands worldwide, over ninety percent had engaged in brand extension or product line extension due to operational difficulties and the need to increase profits. Of these, ninety percent failed, stepping into minefields, and only ten percent survived the fierce competition.

Among the rare ten percent that did not extend, Bentley from Crewe, England, was a rare super luxury car brand that had survived for over a century with its brand image still fresh and pure. In fact, Bentley had no extraordinary qualities; its only commendable trait was its luck.

It had also faced operational difficulties. The first time was in 1931, when Bentley was on the verge of bankruptcy. At that critical moment, Rolls-Royce stepped in and bought Bentley for £130,000, officially incorporating Bentley into Rolls-Royce Motor Cars. After World War II, Bentley's production line moved to Crewe, England, where the two top luxury car brands joined forces to reach new heights. From then on, Bentley was transformed by Rolls-Royce into the "sports car version" of its luxury sedans.

The second time was in 1998. Due to Rolls-Royce's handcrafted production methods falling behind in competition with mass industrial production, Bentley, though still the most lavishly equipped and prestigious car brand, was technically surpassed by competitors. Rolls-Royce, in trouble, had to seek a buyer to survive. In June 1998, BMW lost the bid for Rolls-Royce to Volkswagen, and Bentley thus came under Volkswagen's ownership.

Bentley's two life-threatening crises were fortunately saved, and the saviors were "wise masters" who greatly appreciated Bentley's luxury brand positioning. They were willing to inject capital and run Bentley as a "business dream," not just for profit. They did not interfere excessively with Bentley's luxury path but allowed it to focus on luxury without worry.

Compared to Bentley, ninety percent of luxury brands facing difficulties were not so lucky. To survive, they had to rely on themselves and implement transformations, but the path was extremely difficult. Apart from a strong brand, their ledgers were empty. Helpless, operators had to make painful decisions, step down from the luxury altar, and cater to the masses, using the masses' purchasing power to save themselves, even though it greatly diluted their luxury brand value.

Thus, Ferrari lifted the mysterious veil of its "Red Lady," becoming a high-end sports car brand accessible to anyone with money, and no longer dared to hope for the super premium pricing of a luxury brand.

Also falling was Prada's high-end fashion. In 1993, it broke its brand promise of "understanding women best" and ventured into men's clothing and footwear, nearly ruining its reputation among women.

Nevertheless, there were still those who remained pure and chaste in the flood of luxury brand extension, such as the largest giant in the luxury industry, LVMH, whose brands spanned high-end apparel, jewelry, watches, beauty products, wineries, department stores, art auction houses, e-commerce sites, and duty-free shops, even boldly revamping its classic old brands.

Also, the Gucci Group, with major brands like Gucci, Yves Saint Laurent, and Alexander McQueen, covering apparel, accessories, leather goods, watches, cosmetics, perfumes, and more.

LVMH and Gucci Group's bold strides into the minefield of luxury brand extension surprised many executives troubled by luxury brand operations. Although running a luxury brand meant "profit and survival are like fish and bear's paw—you can't have both," being able to move freely through the jungle of brand extension without being hurt by the dense branches was a rare success miracle.

Mercedes-Benz, precisely, belonged to the ninety percent of luxury brands that failed in transformation.

Now, Mercedes-Benz faced only two paths: either maintain its luxury pride, continue to hold a lofty posture, and watch helplessly as rival BMW seized the Chinese market,

or let go of its burden, transition from luxury to high-end, and explore new markets.

This was what Zhao Fusheng was counting on.

He believed that as long as the person in charge of Mercedes-Benz was not an idiot, they would understand what choice they should make.

As for the advertising campaign, Zhao Fusheng had prepared two copy proposals, confident that they would satisfy the Mercedes-Benz people.

...

...

"I'm free now!"

When Zhao Fusheng returned home and was writing the proposal, Fan Baobao walked in and said to him with a smile.

He looked at her helplessly, his face full of affection: "As if you weren't free there."

"Haha, I'll call Sister Chenxi right now and ask if she wants to sign me." Fan Baobao giggled, winking at Zhao Fusheng.

Zhao Fusheng nodded: "Go ahead, go ahead. I've already spoken with President Zheng."

Since this matter involved signing an artist, Zhao Fusheng felt it was more appropriate for Zheng Yao to handle it. After all, with Zheng Yao's status, her personal order would show how much they valued Fan Baobao.

Fan Baobao turned and went out to make the call. Zhao Fusheng shook his head and continued writing the proposal at his desk.

The two stories he had prepared were actually not complicated.

The first story: An elderly person faints by the roadside, and everyone is helpless. At that moment, a Mercedes-Benz stops, the driver leans out and asks to put the patient in the car, then races to the hospital. After a long time, the operating room light goes out, a doctor walks out with a smile, and everyone beams with warmth.

The second story: A college student teaching in a mountain area misses his family as Spring Festival approaches but cannot meet them. On New Year's Eve, a Mercedes-Benz stops at the school gate, and the student's parents step out, reuniting the family.

Additionally, Zhao Fusheng had prepared two slogans: one was "Where there is a road, there is a Mercedes-Benz," and the other was "Beyond Limits."

The former was for Mercedes-Benz SUVs, and the latter for business sedans.

Of course, the latter indeed came from Mercedes-Benz, while the former was copied by Zhao Fusheng from a Toyota car advertisement.

There was no help for it; Zhao Fusheng didn't like the Japanese anyway, and since Toyota's advertisement didn't have that slogan yet, Zhao Fusheng unceremoniously took it.

"What are you writing?"

After a while, Fan Baobao finished her call and came in to ask Zhao Fusheng.

Judging by her expression, she must have had a good talk with Dong Chenxi; otherwise, she wouldn't look like this.

Zhao Fusheng smiled and closed his notebook: "Nothing much, a proposal about cars."

"Oh, I've arranged with Sister Chenxi. I'll go sign the contract tomorrow." Fan Baobao beamed, snuggled up to Zhao Fusheng, and took his arm, saying, "First, let's agree: you're not allowed to reveal our relationship in the company."

"Why?" Zhao Fusheng looked puzzled, wondering if there was a "mole" in the company.

Fan Baobao glared at him and said irritably, "President Bai, President Zheng, and Sister Chenxi definitely know, but others at Future Film don't. I'm a newcomer. If people find out I'm your girlfriend, what do you think they'll think of me?"

Zhao Fusheng was taken aback, then laughed. He really hadn't thought that far; he had only done it to prevent Fan Baobao from being targeted by others, but now it seemed to have caused her some trouble.

But on second thought, Zhao Fusheng felt Fan Baobao was right. After all, she was still a newcomer. If it were suddenly exposed that she was his girlfriend, not to mention the impact on her development, the incident itself would put too much pressure on her.

With that in mind, Zhao Fusheng nodded: "Alright, I'll listen to you."

Fan Baobao was delighted and gave Zhao Fusheng a smack on the cheek: "I knew you were the best."

Zhao Fusheng smiled, ruffled her hair, and said nothing more.

That's how relationships work. It's not that having no secrets between each other is bad, but everyone craves freedom. If there's no space at all, it's easy to create emotional tension.

A small misunderstanding can hurt each other.

So, sometimes learning to communicate and understand each other is the most important thing for two people in love.

For Zhao Fusheng, Fan Baobao was the woman he was willing to cherish for life, and for Fan Baobao, Zhao Fusheng was the man she was willing to give everything to entrust her life to. They trusted each other and naturally considered each other's interests.

When people get along, the more they consider the other's needs, the better the relationship often becomes, because both know what the other wants without having to guess wildly.

Of course, there has to be a balance. You can't happily give someone your favorite pear when they like apples—that would be good intentions leading to bad results.

The night passed without incident. Early the next morning, Zhao Fusheng accompanied Fan Baobao to Future Film. In the presence of Dong Chenxi and Bai Jie, Fan Baobao officially became Future Film's first signed artist.

This meant that Future Film had finally gotten on the right track.