Tao Huabi Lao Ganma brand oil-made chili pepper is one of the traditional Han flavor food in Guizhou region. Below I will unravel the business way of Lao Gan Ma, hope it can help you.
Lao Ganma's way of doing businessIn 1996, Tao Huabi founded Guizhou Guiyang Nanming Lao Ganma flavor food limited liability company, after nearly 20 years of development, this enterprise will be less than 10 yuan of chili sauce forging into the U.S. luxury goods sales site on the international brand, and Tao Huabi has become China's largest chili sauce enterprise in charge.
In 2013, Lao Ganma realized an annual sales revenue of 3.72 billion yuan and paid 510 million yuan in taxes. What is more keenly discussed than the performance is its operating principles of no listing, no loans, no financing and cash on delivery.
In Lao Ganma?
In the Lao Ganma? Under the tough style, the company's systems have never been broken. Perhaps it is also relying on its word-of-mouth marketing, one-handed payment, one-handed delivery, not cross-border investment? The old-fashioned? The path, Lao Gan Ma has been able to step by step, dominating the party.
? Insulation? Capital Markets
In 2013, Lao Gan Ma produced an average of 2 million bottles of oil peppers per day, realizing an annual sales revenue of 3.72 billion yuan, and directly driving the employment of more than 32,000 people in the upstream and downstream industrial chain.
On the official website of Lao Gan Ma, all the output values of the eight years from 1998 to 2006 are clearly listed. 1998, the output value of Lao Gan Ma was only 50.14 million yuan, and in 1999, the output value exceeded 100 million yuan, reaching 126 million yuan, and in 2006, it reached 1.28 billion yuan. If we take the output value of 3.72 billion yuan in 2013, the output value of Lao Ganma during the 15 years has increased by 74 times.
In tandem with the company's output value, Lao Ganma's tax payment has also taken a big leap forward. In 1998, Lao Gan Ma's tax payment was only 3.29 million yuan, and in 2006, it reached 160 million yuan, and according to the latest data released by Lao Gan Ma, its tax payment in 2013 was 510 million yuan. 15 years, the tax payment has increased by 155 times.
It is such a big taxpayer, but in all kinds of practices and the usual business philosophy of modern enterprises? The company's business philosophy is that it is not compatible with the modern business concepts. Not listed, not loans, not financing these three labels let Lao Ganma in? Capital is king.
These three labels make Lao Gan Ma in a market environment where capital is the king, appearing to be a bit of a maverick.
Tao Huabi once put forward the theory of "going public". In her view, it's a good idea to go public. A listing, you may lose all your money. The listing that is cheating people's money, money you take, the money circle, shouting him to the shares, by the time the money sucked away, I'll pay back the debt, I'm not doing it.
And Lao Ganma resolutely not listed attitude also let the local government ate a closed door.
These are the first time I've ever seen a company that has been in the market for a long time, and I've never seen one.
Guiyang municipal government's - had said in an interview, ? And she talked about financing things than the introduction of foreign capital is more difficult, her heart is not sure of the matter who can not speak. Mr. Lin, the deputy general manager of Hua Tie Trading Company, who was once responsible for the general agency of Lao Gan Ma in Guangdong and Hainan provinces, also said, ? Lao Ganma? This person, very much believe in their own intuition.
And some of the organizations interested in investing in Lao Ganma also failed to return. According to Lao Ganma insiders recalled that over the years by Lao Ganma received only two investment institutions, these two institutions are first to the local, and then directly by the government departments of the people introduced, but Lao Ganma are rejected its negotiation requirements.
Strong backbone from sufficient cash flow
The backbone of Lao Ganma's non-loan, non-financing, to a large extent from the company's billions of dollars of cash flow.
From the hardscrabble beginnings of piecemeal purchases of tens of dollars from glass bottle factories to today's daily sales of more than ten million dollars, Lao Ganma adheres to the principle of cash on delivery, even the purchase of farmers' chili peppers is no exception. Tao Huabi once said, ? I never owe anyone a penny, and no one can owe me a penny? As a result, Lao Ganma's company accounts are extraordinarily simple.
And that makes the threshold for becoming a provincial agent of Lao Ganma very high. To give the head office ten or twenty million dollars of deposit, prove that you have the strength to be an agent.? Mr. Lin said. In Guangdong alone, annual sales can reach 300-500 million dollars. Even though it accounts for more than 1/10th of the national sales, the agent distributors still have not fought for the account period? privilege?
And according to industry experts to the analysis, this is because Lao Ganma does not exist in the same industry competitors. This point is also affirmed by Mr. Lin. He said he has been distributing Lao Ganma for more than ten years, and has watched the rise and fall of other brands, only Lao Ganma stands alone. Even if it is a cash-and-carry, agency authorization is hard to come by.?
Unlike many manufacturers in the same category, Lao Gan Ma does not accept returns from agents, which may stem from Lao Gan Ma's control and confidence in product quality.
This firm confidence of Lao Ganma can be seen from the fact that it does not advertise. The company hardly ever invests in marketing and promotion. Tao Huabi once confessed in an interview, "I've never advertised. I've never advertised, I rely on consumer word of mouth to spread the word, and wherever there are Chinese people, there are products.
? There is a lot of ability to do a lot of things? is a principle that Tao Huabi has mentioned many times in public interviews. Lao Ganma has not been involved in other industries so far. In Tao's view, ? I do this line, do not cross the line, it is really good to do it bigger and bigger, do specialize and do fine. The money is coming in fast, but you can't be greedy for more.
Spending $30 million a year on counterfeiting
With the growing influence of the Lao Gan Ma brand, consumers have been taking the ?
With the growing influence of the Lao Ganma brand, consumers have become more and more aware of the brand and the category, and it is at this time that more and more companies are involved in trademark disputes with Lao Ganma.
The most sensational example is Hunan Huayue's? Liu Xiangqiu Lao Ganma? The most sensational example is Hunan Huayue's application for the trademark Liu Xiangqiu Lao Gan Ma? Liu Xiangqiu Lao Ganma and the picture? The trademark is almost in the same category as that of "Liao Gan Ma", which is the most famous trademark in China. The trademark of Liu Xiangqiu Lao Gan Ma was applied for by Huayue Company almost immediately after the application was filed. The company filed an application with the State Trademark Office for the trademark Liu Xiangqiu Liao Gan Ma. The trademark of Tao Huabi Liao Gan Ma and Tu was recognized by the State Trademark Office at almost the same time as the trademark of Liu Xiangqiu. At the same time, both parties were recognized by the State Trademark Office. At one time, two bottles with yellow characters on a red background and white aprons appeared on the shelves in many places. The first one is the "Lao Gan Ma", which is the name of the brand in the world.
Afterwards, after a protracted tug-of-war, the lawsuit ended in favor of Liao Ganma, and the company received a license from the Trademark Office of the State Administration for Industry and Commerce (SAIC) to use the name Liao Ganma. The company received a certificate of trademark registration from the Trademark Office of the State Administration for Industry and Commerce (SATIC). The trademark registration certificate.
And during the two sessions of this year, Tao Huabi's secretary Liu Tao introduced, Lao Ganma company in recent years, each year to arrange two to three million to be used to? The company's annual budget in recent years has been two to three million dollars for the purpose of fighting counterfeiting. The special funds.
In addition, Lao Ganma has also strengthened measures to protect its trademarks. Currently, the company has 114 registered trademarks, including the "Old Yu Ma" trademark, which is a trademark of the company. The company has registered 114 trademarks, including the trademarks of ? etc. This is to prevent some companies to play the ball, the Lao Gan Ma brand has an impact.
Mr. Lin, the dealer, said the company? Counterfeiting? has been very active and responds very quickly to complaints or reports of counterfeiting.? Once we found cottage goods in the market and called the head office, the other side of the first time for us to call the industry and commerce and public security to request the seizure. Four hours later, Li Guishan (general manager of Lao Ganma Flavored Foods LLC) got off the plane and came to us.?
If you pay attention, you can find that Tao Huabi's proposals submitted to the two sessions in the past few years are all related to ?
If you pay attention, you can find that Tao Huabi has submitted proposals to the two sessions in the past few years. related, and in one of her few interviews, she was happy to emphasize the importance of food safety.? If you see a fake product, just tell me and I will pay you a thank you fee. Tao Huabi has said many times in public.
Lao Ganma's Business PhilosophyQuality and Food Safety Policy
Quality First, Safety First, Customer First, Continuous Improvement.
Environmental Policy
Energy saving and consumption reduction, pollution prevention, green enterprise, clean production, compliance with laws and regulations, continuous improvement, and growth of man and nature, **** together.
Company Philosophy
"Create a national brand, establish a thousand years of work", "Integrity management, quality first"
Inside and outside the difference
"How many countries do you think Lao Gan Ma has been sold to? I don't know how many countries it has been sold to, I can only tell you that wherever there are Chinese people in the world, there is Lao Gan Ma." Tao Huabi replied with bravado.
"The Internet rumor is that the price of Lao Ganma abroad is several times higher than at home, is it true?"
"It is indeed much cheaper at home." Lao Ganma said, but she was reluctant to respond to how much difference there really is in price." I am Chinese, I don't make Chinese people's money, I want to sell Lao Ganma to foreign countries and make foreigners' money." Lao Ganma Tao Huabi waved her right hand and was calm.
Lao Ganma's enterprise production
Guiyang Nanming Lao Ganma flavor food limited liability company is located in Guiyang City, Nanming District, Longdong Fort see Longdong Road 138, was established in 1996, the enterprise now has a four-story multi-functional office building and four production bases, occupying an area of more than 20,000 square meters, with more than 2,000 employees, which is in the management, technicians, a total of **** there are 246 people.
Since the establishment of Guiyang Nanming Lao Ganma Flavor Food Co., Ltd, with the support and help of the party committees and governments at all levels in Guizhou province, city and district, and under the leadership of the founder of the enterprise, Ms. Tao Huabi, all the staffs of the Lao Ganma enterprise have been adhering to the entrepreneurial spirit of "honesty and integrity, pragmatism and enterprising spirit", and through nine years of hard work, the enterprise has been developed into a well-known enterprise in the country, The company has developed into a national famous enterprise and a key leading enterprise in agricultural industrialization at the national level through nine years of hard work. Lao Gan Ma has formed a production capacity of 1.2 million bottles of chili products per day, mainly producing more than 20 series of products, such as flavored black bean, oil chili, fresh minced beef, water black bean, flavored curd, etc., which is the largest chili products manufacturer in China in terms of production and sales volume at present.