Tao Huabi Laoganma brand oil-based pepper is one of the traditional flavor foods of the Han people in Guizhou. Below I will explain to you how Lao Gan Ma operates, and I hope it can help you. Lao Gan Ma’s business strategy
In 1996, Tao Huabi founded Guizhou Guiyang Nanming Lao Gan Ma Flavor Food Co., Ltd. After nearly 20 years of development, this company has forged chili sauce for less than 10 yuan. It became an international brand listed on the US luxury goods sales website, and Tao Huabi also became the head of China's largest chili sauce company.
In 2013, Laoganma achieved annual sales revenue of 3.72 billion yuan and paid tax of 510 million yuan. What people are more keen to discuss than its performance is its business principles of no listing, no loans, no financing and cash on hand.
Under Lao Gan Ma’s tough style of “doing things overnight”, the company’s various systems have never been broken. Perhaps it is because of its "old-fashioned" approach of relying on word-of-mouth marketing, handing over money and delivering goods without cross-border investment that Laoganma has been able to dominate every step of the way.
?Insulation?Capital market
In 2013, Laoganma Company produced an average of 2 million bottles of oil pepper every day, achieving annual sales revenue of 3.72 billion yuan, directly driving the upstream and downstream industry chain 3.2 More than 10,000 people are employed.
On the official website of Laoganma Company, all output values ??from 1998 to 2006 are clearly listed. In 1998, the output value of Laogan 0 was only 50.14 million yuan. By 1999, the output value exceeded 100 million yuan, reaching 126 million yuan. In 2006, it reached 1.28 billion yuan. If calculated based on the output value of 3.72 billion yuan in 2013, Laoganma's output value has increased 74 times in 15 years.
Simultaneously with the company’s growth in output value, there is also Laoganma’s huge strides in tax payments. Lao Gan Ma's tax payment in 1998 was only 3.29 million yuan, but in 2006 it reached 160 million yuan. According to the latest data released by Lao Gan Ma, it paid 510 million yuan in tax in 2013. In 15 years, tax payments have increased 155 times.
It is such a large taxpayer, but various practices are incompatible with the usual business philosophy of modern enterprises. The three labels of no listing, no loans, and no financing make Laoganma seem a bit unique in the market environment where "capital is king".
Tao Huabi once raised the "theory of making money by going public", which attracted a lot of discussion. In her opinion, as soon as it goes public, it may go bankrupt. Listing is to deceive people's money. If you have money, you take it, trap the money, and ask them to buy shares. When the time comes, the money will be sucked away, and I will pay off the debt. I won't do it. ?
And Laoganma’s determination not to go public also shut down the local government. It is understood that Laoganma has repeatedly rejected listing proposals from local governments.
Zeng Zeng, from the Guiyang Municipal Government, said in an interview that it was more difficult to discuss financing with her than to introduce foreign capital. No one could tell her what she was unsure about. Mr. Lin, the deputy general manager of Huatie Trading Company who was in charge of Lao Gan Ma’s general agent in Guangdong and Hainan provinces, also said that Lao Gan Ma is a person who trusts his intuition very much. ?
And some institutions that were interested in investing in Laoganma also failed. According to the memories of Lao Ganma insiders, there are only two investment institutions that have been welcomed by Lao Ganma in recent years. Both of these institutions first went to the local area and were directly introduced by people from government departments, but Lao Ganma rejected their negotiations. requirements.
Strong confidence comes from sufficient cash flow
Laoganma’s confidence in not taking out loans or financing comes largely from the company’s billions of yuan in cash flow.
From the scattered purchases of tens of yuan from the glass bottle factory when it was difficult to start, to the daily sales of more than 10 million yuan, Lao Ganma adheres to the principle of cash and spot, even purchasing peppers from farmers. exception. Tao Huabi once said, "I never owe others a penny, and others cannot owe me a penny." Therefore, Laoganma’s company accounts are also extremely simple.
This also makes the threshold for becoming a provincial agent of Laoganma very high. ?You need to give the head office a deposit of 10 million to 20 million to prove that you have the strength to be an agent. Mr. Lin said that in Guangdong alone, annual sales can reach 300 million to 500 million. ?Even though they account for one-tenth of the country's sales, dealers still do not have the "privilege" of the payment period.
According to analysis by industry experts, this is because Laoganma has no competitors in the same industry. This was also confirmed by Mr. Lin. He said that he has been distributing Laoganma for more than ten years. Seeing the ups and downs of other brands, only Laoganma stands out. ?Even if it is in cash, it is difficult to get agency authorization. ?
Unlike many manufacturers of the same category, Laoganma does not accept returns from agents. This may be due to Laoganma’s control and confidence in product quality.
Lao Gan Ma’s firm self-confidence can be seen from the fact that she does not advertise. Laoganma invests almost no money in marketing and promotion. Tao Huabi once said frankly in an interview, "I have never advertised. I rely on word of mouth from consumers to spread the word. Our products are found wherever there are Chinese people." ?
?How much can you do? This is a principle that Tao Huabi mentioned many times in public interviews. Lao Gan Ma has not been involved in other industries so far. In Tao's view, "I am in my own profession, and I will not cross other professions, but I will make it bigger, bigger, more specialized and better." No matter how fast money comes, don’t be greedy for too much. ?
Spending 30 million yuan every year to fight counterfeiting
As the influence of Lao Gan Ma’s brand becomes more and more important, consumers have closely linked Lao Gan Ma’s brand and category recognition. Together, at this time, more and more companies are getting into trademark disputes with Lao Ganma.
The most sensational example is "Liu Xiangqiu Laoganma" of Hunan Huayue Company. Huayue Company applied for the trademark "Liu Xiangqiu Laoganma and Pictures" almost at the same time as "Laoganma" Company applied for the trademark "Tao Huabi Laoganma and Pictures" from the State Trademark Office, and both parties were recognized by the State Trademark Office. All of a sudden, two "laoganma" with red bottle stickers with yellow characters and wearing white aprons appeared on the shelves in many places at the same time.
Later, after a protracted tug of war, the lawsuit ended in Lao Gan Ma’s victory, and the company received the trademark registration certificate of “Tao Huabi Lao Gan Ma and Picture” from the Trademark Office of the State Administration for Industry and Commerce.
During this year’s Two Sessions, Tao Huabi’s secretary Liu Tao introduced that Laoganma Company has allocated 20 to 30 million in special funds every year in recent years to fight counterfeiting.
In addition, Laoganma Company has also strengthened measures to protect trademarks. At present, the company has 114 registered trademarks, including "Lao Yu Ma", "Mama Gan Lao" and other trademarks. This is to prevent some companies from taking sidesteps and affecting the Lao Gan Ma brand.
Mr. Lin, the dealer, said that the company has always been very active in cracking down on counterfeit goods and responds very quickly to complaints or reports about fake products. ?Once we found counterfeit goods in the market and called the head office. The other party immediately asked us to call the industrial and commercial and public security authorities to request a seizure. Four hours later, Li Guishan (General Manager of Laoganma Flavor Food Co., Ltd.) got off the plane and came to us. ?
If you pay attention, you can find that the suggestions submitted by Tao Huabi to the Two Sessions in recent years are all related to "fighting counterfeiting", and in the few interviews with her, she is also willing to emphasize the importance of food safety. . ?If you see a fake product, tell me and I will pay you a thank you fee. ?Tao Huabi said many times in public. Laoganma's business philosophy
Quality 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, people and nature, and nature grow together.
Company philosophy
"Create a national brand and establish a great cause for the future", "Manage with integrity, quality first"
There are differences between inside and outside
"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 are Lao Gan Ma." Tao Huabi replied proudly.
"It is said on the Internet that the price of Lao Ganma abroad is several times that of China. Is it true?"
"It is indeed much cheaper in China." Lao Ganma said, But she was unwilling to respond to the exact price difference. "I am Chinese. I don't make money from Chinese people. I want to sell Lao Ganma to foreign countries to make money from foreigners." Tao Huabi, Lao Ganma, waved her right hand and calmed down.
Laoganma's corporate production
Guiyang Nanming Laoganma Flavor Food Co., Ltd. is located at No. 138 Jianlongdong Road, Longdongbao, Nanming District, Guiyang City. It was established in 1996. The company now owns a four-story building. It has a 2-story multi-functional office building and four production bases, covering an area of ??more than 20,000 square meters, and has more than 2,000 employees, including a total of 246 management and technical personnel.
Since the establishment of Guiyang Nanming Laoganma Flavor Food Co., Ltd., with the support and help of party committees and governments at all levels in Guizhou Province, municipality and district, and under the leadership of the founder of the company, Ms. Tao Huabi, all All employees of Laoganma Enterprise adhere to the enterprise spirit of "integrity-based, pragmatic and enterprising". After nine years of hard work, the enterprise has developed into a nationally renowned enterprise and a national-level key leading enterprise in agricultural industrialization operations. Laoganma Company has a daily production capacity of 1.2 million bottles of chili products. It mainly produces more than 20 series of products such as flavored tempeh, oil chili, fresh minced beef, water tempeh, and flavored fermented bean curd. It is currently the largest manufacturer and seller in China. Chili products manufacturing company.