Chapter 980 - Staples
Chapter 980 – Staples
Feng Yu has an affection for athletes, especially the star athletes. Sometimes, star athletes are more influential than entertainment celebrities.
Feng Yu had hired some famous athletes to endorse his products and had better results than entertainment celebrities. Sports are broadcast all over the world, and there are different types of sports. Languages are not a barrier in sports.
In Feng Yu’s previous life, the NBA is very popular in China, and around the world. Some claim that the NBA has the best basketball players in the world.
There is a rumor in Feng Yu’s previous life about Houston Rockets. The wealth of the Rockets’ Boss increased tremendously after the team signed Yao Ming. He made lots of money from the live telecast and advertisements.
Houston Rockets played their home games in Toyota Center, and this had increases Toyota’s branding worldwide. Toyota held the most market share in China once, and its sales in the US also increases a lot.
Feng Yu is wondering if he can change the name of LA’s indoor arena to Wind and Rain Center. It will be a long-term advertisement for his company.
The indoor arena does not only hold NBA games. Concerts and other sports are held there too, and the media exposure is very high. As the TV stations telecast matches, the brand will also be telecasted to the TV viewers.
Feng Yu wants to make his Wind and Rain brand the most famous brand in the world. Naming a popular indoor arena is a good choice.
Feng Yu found out that LA is building a new modern indoor arena. The construction cost is almost 375 million USD, and the construction is over 18 months.
This new arena will be the Lakers and the Wind and Rain (Clippers) new home. It is also the only arena in the US to house two NBA teams. Of course, the arena will also cater to other sports and will host other commercial activities like concerts, etc.
Two companies had invested in this new arena. LA Arena Company and Anschutz Entertainment Group had set up a management company to manage the arena. Still, the company is split into sports and entertainment events.
Feng Yu wants to be the third shareholder, as he wants the naming rights of the arena.
The arena is supposed to be named STAPLES Center, as it was sponsored by Staples Inc.
Feng Yu felt this name is ridiculous. Why is an arena named after a stationary? It’s too weird.
Ralph suggested Feng Yu contact Staples Inc. to buy the naming rights from them, before speaking to the arena management company.
Feng Yu felt Ralph is right. He wants the naming rights first, followed by the advertisement spaces in the arena. After all, he can use his team for advertising his brand.
Currently, Stables Inc. had still not entered the Fortune top 500 companies. Still, they are top North America’s stationary suppliers and retailers. They have lots of stores and distribution channels. If not, they will also not sponsor the arena for the naming rights.
Feng Yu felt he might get Stables Inc. to give him the naming rights of the arena for free, and at the same time, make money from them.
……
“This is my Boss, Mr. Feng Yu. He is a shareholder of Microsoft and is a director there. His surname is Feng. Boss, Mr. Carlos Smith, is the President of Staples Inc.
Feng Yu smiled and shook hands with Smith. “Nice to meet you, Mr. Smith. I am impressed with Staples Inc. Many of the stationaries in Microsoft are from your company.”
“Hahaha…. Mr. Feng, Microsoft, is more impressive. Of course, you are more remarkable. I thought <Forbes> is using an old photograph, and didn’t expect you to be so young.”
When Smith knew Ralph is Feng Yu’s assistant, he was surprised. He does not know why Feng Yu is looking for him, and though it must be business-related. It will be good for Staples Inc. if he can do business with Feng Yu.
Staples Inc.’s development had slowed in recent years and need to open a new market. They had to pick either Europe or Asia, as they do not have the capabilities to develop both markets at the same time.
If Stables Inc. can work with Asia’s top billionaire, it will be easier for them to enter the Asian markets. Even if they can only enter the Chinese market, there will be high profits for the company.
“Smith, your company, is going to enter the Asian markets?” Feng Yu laughed and asked.
Smith was surprised. This young tycoon is going to cooperate with Staples Inc.!
“Of course. We have plans to enter the Asia markets, especially the Chinese market. May I know why Mr. Feng is asking?
Feng Yu looks at Ralph, and Ralph explains. “My Boss is thinking of investing in stationaries and office supplies. Staples Inc. will be a good partner.”
“Of course. Staples Inc. is the biggest office supplies supplier and distributor in North America. We have many stores and distribution channels. Mr. Feng, are you thinking of partnering with Staples Inc. to set up a new company in Asia?”
“That’s right. My boss is also the biggest retailer in China and one of the biggest in Asia. We are also working with many retailers. If Staples Inc. is willing to partner us, Staples can open up the Asian markets in a short time.”
Feng Yu does not think that Staples will do well if they enter the Chinese market now. Staples Inc. can do so well in North America is because they have lots of retail stores, and had worked with many supermarket chains. Also, North America’s economy is doing well in recent years, and many new companies are located there. The demand for stationaries is high.”
Although there are more companies in China, now, Chinese companies are not picky about their office supplies. Most Chinese companies are focusing on cost savings and will use office supplies from small local factories.
But if the local office supplies can merge under a brand, and get the exclusive distribution rights, it will be profitable.
“What cooperation is Mr. Feng interested in? we are in office supplies and had been in this industry for over a decade.” Smith replied.
“We can set up a joint venture and owns 50% of the shares each, and I will own the brand. You all will run the company, and I will provide the best distribution channels.”
“Mr. Feng, I think we should use Staples Inc. as the brand. After all, we are an established brand, and we want to be a major shareholder. At least 51% shares.”
Feng Yu purposely put on a puzzled look. “It will be hard to cooperate with your request.”
……
Translator’s notes: I am not sure who Carlos Smith is, as this name is not in the 1997 management team of Staples Inc. It should be a fictitious name.
Toyota Center