Why did Laoganma fall into the altar? Let's take a look with me.
Why is the dry rice artifact "Laoganma" not fragrant?
Recently, Laoganma's revenue has fallen by more than one billion, which has once again aroused social concern.
Speaking of Laoganma, there should be no stranger. As an artifact of dry rice, whether it is dipped in food or bibimbap directly, it is very delicious, especially for meals.
I still remember before, I didn't want to stir-fry. I cooked white rice every time and ate it with Laoganma. I enjoyed myself every time.
Since Tao Huabi's son came to the top, in order to innovate, the raw materials of pepper were modified, which led to the lack of previous fragrance and different taste of Laoganma.
The raw materials of pepper are different. Although it doesn't make Laoganma taste bad, it is not as delicious as before.
When Tao Huabi was here, he used chilies from Guizhou. Tao Huabi's son changed the peppers from Guizhou to those from Henan in order to innovate, or to reduce the cost, but the peppers from Henan lacked some aroma, which made the Laoganma taste worse than before.
The decline of Laoganma's taste, coupled with the impact of various online celebrity products, such as roasted pepper sauce, colored pepper sauce and so on.
This has led to a cliff-like decline in Laoganma's sales. If it continues and does not change, what will the future of Laoganma be like?
Why did Laoganma fall into the altar?
Laoganma, as the overlord of hot sauce in the past, once existed everywhere. It is a legend in the field of hot sauce as long as there are people in China!
However, under the famous reputation, Laoganma has also encountered unprecedented challenges. Laoganma, known as the light of domestic products and the first brand of the nation, is gradually falling into the altar.
Recently, the Guizhou Provincial Federation of Industry and Commerce and the Guizhou Provincial Federation of Enterprises jointly released the list of "Top Private Enterprises in Guizhou 100 in 2022". The data of this list shows that Laoganma fell out of the top ten in 202 1 year with a revenue of 42.0 1 100 million yuan, ranking1. The revenue is 5.403 billion yuan. In one year, the revenue of Laodopted Mother dropped1200 million by 22.25% to the level of six years ago. This is the third year that Tao Huabi, who had retired for five years, returned to the Jianghu. However, Laodopted Mother's decline did not regain her glory because of the return of the founder.
In this regard, we can't help but ask: What is the reason for Laoganma to fall off the altar, and the revenue has plummeted?
"Destroy the six countries, six countries also, not the qin dynasty. Qin clan, Qin also, non-world also ",for Laoganma, this sentence is a very appropriate proof, which makes Laoganma fall from the altar precisely because of herself. Mainly in the following aspects.
First, the product quality assurance is wanton
Speaking of Laoganma, this is the myth of China FMCG market. Without listing, financing, promotion and advertising, dealers will come to grab the goods at home, and one of the most important reasons for this situation is the product quality.
In the past, Laoganma always used Zunyi Guizhou pepper as the main producing area in order to maintain the taste. Because of the cash method, the requirements for raw materials are very high. The purchased raw materials should be sorted according to the requirements, and the pepper stalks should be cut off one by one. Good raw materials have made good quality products, which is difficult for competitors to reach, and also makes Laoganma stand out in terms of quality.
Now, with the retirement of Tao Huabi in 20 14, the company is handed over to the eldest son Li Guishan and the youngest son Li Miaoxing. The eldest son is in charge of sales and marketing, while the younger son is in charge of production. However, the youngest son in charge of production power, the first fire of the new official, burned to his home and began to dig his own grave.
First, replace the raw materials for producing Chili sauce. Because of the problem of raw material price, only Guizhou pepper was changed to Henan pepper, which is cheaper. Although Henan pepper is cheap, it is far less spicy and moisture content than the original Guizhou pepper. The second is to delete the original manual brewing process of sauce and replace it with a machine. The seemingly unremarkable changes that can make profits higher have affected Laoganma's taste and word-of-mouth accumulated over the years, and because of the changes in raw materials and brewing technology, consumers have always complained in the past two years that "the taste is not as good as before" and "Laoganma has really gone bad?" There are more and more bad reviews, such as "Laoganma's taste seems to be different now than it was many years ago", "It doesn't taste right" and "I always feel almost everything". Some Guizhou locals even said, "Laoganma's raw materials are shoddy and rely on a large number of monosodium glutamate to improve the taste."
This behavior runs counter to the principle that products are king in Tao Huabi era, which triggered the most serious word-of-mouth crisis in Laoganma's history. In today's increasingly picky consumer consumption, in the era when products are king, the quality of products is always the first, and it is only a matter of time before products lacking quality assurance are rejected by consumers. Although with the return of Tao Huabi, enterprises have made adjustments to curb the downward trend of company performance, but what has been missed is hard to come back after all.
Second, the diversified development of abandoning the original intention
The key reason why many well-known foreign luxury brands can keep their foundation evergreen in a hundred years is to stick to the development idea of deep cultivation in their main business, but Laoganma seems not to stick to it.
In the past, adhering to the principle of "eat as much as you can", Laoganma always adhered to the "four noes" in business-"no loans, no shares, no financing and no listing." In order to ensure the quality of products, Laoganma once insisted on using authentic Guizhou peppers. In order to ensure the characteristics of products, the factory was only opened in Guizhou, and she insisted on the development idea of not building a branch in other places, because she was worried that the quality and taste of Laoganma would be affected when the factory was opened to other places. These original intentions in the early stage of development meant the persistence and ingenuity in the development direction of Laoganma's main business, not rushing forward, and doing a good job in a down-to-earth manner. Laoganma finally became the hearts of people all over the world.
With the change of family management right, the development idea has been deviated again. Like many short-sighted enterprises, faced with the temptation of industries with higher profit margins, it was difficult to control them. In the end, Tao Huabi's eldest son was addicted to capital, and he participated in 14 enterprises before and after, with a subscription amount of over 200 million yuan. His investment footprint moved from Yunnan-Guizhou Plateau to East China, among which the real estate projects he invested in borrowed the name of Laoganma to invest in unfinished buildings in Kunming. Finally, several real estate projects such as "Yun Run Tianyang" were invested.
Imagine how much energy and thought a company obsessed with capital, a person in charge obsessed with making quick money, and especially the person in charge of enterprise sales, will put into products?
Third, it is difficult to get rid of the shackles of the brand in the development of new products
The so-called Chengye brand, defeated the brand.
Laoganma, as a well-known brand, has accumulated a deep-rooted brand for 20 years, and its brand image is Chili sauce in the minds of consumers. When Laoganma is mentioned, the first thing consumers think of is Chili sauce, and nothing else.
Facing the ever-changing market, Laoganma has tried to launch a series of new products, expand the product line of the enterprise, and demand new growth points of the enterprise, such as the new products developed, such as tomato Chili sauce, spicy dishes, hot pot bottom materials, bean curd, etc., but these so-called new products did not bring the expected benefits to Laoganma. The reasons are as follows:
First, these new products still lack core competitiveness and selling points compared with Laoganma's traditional product Douchi Chili sauce. There is no innovation in the new product, but it is just a follow-up product in the market. Compared with the old brands in the field of pickled mustard tuber and spicy vegetables, as well as Wang Zhihe in the field of bean curd, Haidilao, Xiabu Xiabu and Grassland Red Sun in the field of hot pot, there are huge brand differences. The new product launched by Laoganma does not occupy the consumer's mind. When it comes to Laoganma, the first reaction of consumers is still spicy sauce.
Second, it is difficult to get rid of the shackles of the brand in the packaging design style of new products. The packaging of the whole new product still continues the consistent packaging style of Laoganma's products. Although it can highlight Laoganma's brand image, it can't make the new product stand out in the market. It is difficult for the new product to get rid of the influence of the great aura of Laoganma's brand, which means it is difficult to survive in the market.
Third, there is no soul without innovative products. In the era of consumption upgrading, in the era of personalized consumption, consumers always like "new" and hate "old", especially those who are fond of "color" and negative "heart". What they want to see is different and fresh, rather than simply "copying" or "copying". If a new product has no innovation, it means no soul. It is not surprising that such a new product has overturned.
Laoganma has a long way to go in the development of new products, how to meet the diverse needs of consumers and how to get rid of brand dependence and new product development and innovation.
Fourth, wolves are around, and new players are constantly entering the market.
"Laoganma is definitely the dominant position in the field of hot sauce, and the leading position in market share and profit is beyond doubt." Professionals analyze this. However, Laoganma's dominance in the industry is also being threatened, and the hot sauce market is further eroded by new and old brands.
According to the data in the Blue Book of Hot Sauce Products compiled by Prospective Industry Research Institute, the output of hot sauce in China increased by 80% from 20 10 to 20 19, and the annual output reached about 5.76 million tons in 20 19, and the consumption was about 5.28 million tons. According to the data of the Ministry of Industry and Information Technology, the market size of seasoning sauce reached 40 billion in 20 18, of which hot sauce accounted for 80%; And the growth rate of the whole hot sauce industry market scale remained above 7%. By the end of 2020, the hot sauce market in China will reach 40 billion yuan, with great potential for future development. The huge cake has also attracted new and old brands and cross-border people to flock to the next competition.
Among them, the old brands Lee Kum Kee and the hot girls followed Laoganma closely, threatening Laoganma's market position, while Haitian hot sauce rose rapidly with its own channels, and at the same time new players began to enter the market.
In 20 14, Sichuan Fansaoguang Food Group Co., Ltd. (hereinafter referred to as "Fansaoguang") won the A round of financing.
At the beginning of 20 16, Lin Yilun, the star, founded the hot sauce brand "Fanye" and launched it on platforms such as JD.COM, Tmall and Taobao. At the same time, crosstalk performer Yun-peng Yue and online celebrity Li Ziqi both started making hot sauce.
Hubang Chili sauce began to occupy the takeaway highland by bundling with Hungry and Meituan.
Zhongjing Food, which featured mushroom sauce in August 2020, also made efforts in the field of spicy sauce, and launched the "Spicy Team" fresh spicy sauce.
In September, 2020, Xi 'an Sun Food Co., Ltd., which is famous for its "Axiangpo" hot sauce, newly introduced its shareholder Yuanqi Forest.
More and more new brands of online celebrities are crossing the border, relying on the Internet and self-media. New brands have found a new way, exerted their strength through online channels, and have found breakthroughs in succession, and captured the stomachs and hearts of young people through novel marketing methods.
These new brands came into being, posing a great threat to Laoganma with a single taste. These brands all want to be the second Laoganma and become the second Tao Huabi, which makes Laoganma struggle in the market competition and the market space is constantly being eroded.
Under the encirclement and suppression of many brands, Laoganma is not as "fragrant" as before.
Fifth, touching the Internet is hard to hide the fatigue of development.
How fast can the times abandon a person? The blink of an eye is the same for an enterprise.
In the traditional channel era, stores, supermarket chains and retail channels occupy a dominant position. Laoganma's rapid rise is due to the intensive cultivation of these channels. With its channel advantages and product reputation, Laoganma has been firmly in the leading position in the hot sauce industry. However, with the rise of the Internet and the development of e-commerce, the offline sales era belonging to Laoganma has long passed, online sales have become a new sales channel, and young people have become emerging and not to be underestimated.
In order to cater to the internet wave and new consumption patterns and please young people's new tastes, Laoganma has also started a series of "touching the net" actions.
In the channel expansion, the strategy of online and offline quick march has been realized. In 20 18, Laoganma Tmall flagship store officially opened, taking the first step online.
In the same year, the fashion sweater printed with Laoganma's logo appeared at New York Fashion Week, and Laoganma ushered in the first attempt to rejuvenate the brand. Immediately, Laoganma played a cross-border role with Men's Wear, and launched fashion items such as "customized gift box" and "customized handbag".
In 20 19, ghost animal videos were on the rise. Laoganma, who had been silent for a long time in front of the screen, attracted the attention of netizens with an advertisement of "unscrewing dopted mother", and was also on the hot topic list in Weibo.
On Valentine's Day in 20 18, Laoganma's official flagship store launched a "shopping cart blind date" activity with Taobao, and launched a limited edition of "13 14 bottles". Each bottle cap of these limited editions was printed with a "golden sentence of love".
Recently, Tao Huabi appeared in the live studio of Tik Tok.
Although these efforts have made Laoganma gain a short-term popularity, nowadays, this is no longer the era of "it's not too late to mend". The so-called slow step by step, traditional brands will fill in as long as they take a nap, especially for these new brands who know more about new marketing.
The final result is that even if Laoganma comes again, it will be difficult to turn the tide and hide the fatigue of Laoganma's development.
Sixth, the endless stream of negative news drags down the brand.
The bigger the brand, the greater the responsibility.
In addition to the negative news that the original raw material for producing hot sauce 12 yuan in the product was replaced by a kilo of Henan pepper in 7 yuan, and the negative news of investing in real estate such as "one room and two sales" damaged Laoganma's brand image.
At one time, Laoganma, who was like a goddess in the eyes of the dry rice people, had frequent complaints about quality problems. Some are still sold after expiration, some have eaten iron rings, some have eaten small pieces of wood, some have eaten pebbles, some have eaten glass slag and even some have eaten cockroaches ...;
At the same time, in addition to the complaints about food quality, Laoganma has been complained for more than 20 times in recent years because of the pollution of lampblack wastewater from pepper factory, and was named and punished by the third batch of environmental protection inspectors of the central government.
In 20 18, netizens hotly discussed the Oolong case of Tencent's advertisement. Although it was "teasing the goose", it undoubtedly added negative news to Laoganma.
In May of 20 19, Laoganma broke the story of formula leakage.
In September of 20 19, Laoganma caught fire again, which damaged the production capacity of13. The two fire accidents lost nearly 100 million yuan to Laoganma.
The disclosure of a series of negative news and hot search are all a blow to the brand of Laoganma, which is known as the national hot sauce. It is not only a blow to the brand of the enterprise, but also a blow to the confidence of consumers.
finally
From the current development situation of Laoganma, it actually reflects the helplessness that the old brand has encountered in its development. Facing the challenges of the new era and the aging of products, brands and channels, how to rejuvenate as an old brand in the new market environment and how to be reborn in the new form are problems that need to be considered and solved urgently. For Laoganma, facing many problems, Laoganma needs to ensure product quality and innovate marketing.