Self rescue of LMZ Yangzhou factory: TOC to tob, expanding online channels

category:Finance
 Self rescue of LMZ Yangzhou factory: TOC to tob, expanding online channels


But the problem is coming again. Is it easy to find a way out?

Transformation is imminent

LAN Jin, as the president of the industry association, is more relaxed about self rescue and transformation than others. According to his understanding, even if there is no epidemic situation, the transformation of these Hotel commodity enterprises is imminent, as well as the two needles of the industry leader.

The Hangji town where LMZ Yangzhou factory is located is a peninsula. The craftsmen here have made toothbrush handles from cattle bones and produced toothbrushes from bristles since Daoguang period of Qing Dynasty, which are used by royal families and dignitaries. After the reform and opening up, the natural conditions of more people and less land made local farmers unable to support themselves through cultivated land. The local people went back to the old business to produce toothbrush. At that time, it was basically family economy. A simple equipment could produce toothbrush. During the peak period, there were nearly 10000 toothbrush workshops in the local area. With the economic development, some brand toothbrushes have been made, and foreign capital has come into the market. Many toothbrush factories have begun to convert to hotel toothbrushes, and the hotel commodity industry has evolved from the toothbrush industry.

At that time, LanJin was working as a dealer of LMZ. He introduced LMZs small toothpaste into the hotel. When the high-level asked LanJin about the future development prospect of LMZs small toothpaste, he replied that there was a bottleneck if it was just a small toothpaste, but if it was a hotel commodity industry, the Hotel needed a small toothpaste, it must be matched with toothbrush, shampoo, bath solution, etc., expanding at the rate of 1:1:1 Big business.

One of the projects listed in 2004 is Yangzhou factory. At present, one third of the revenue of this factory comes from the small toothpaste in the hotel.

After the establishment of Yangzhou factory, from 2005 to 2010, the annual growth rate was no less than 40%. Later, it also maintained a growth rate of more than 10%. The factory is also expanding, and the good days have lasted for many years. The customers of LMZ are basically the top ten hotels in the global chain. With the rapid development of the hotel industry, the customers are becoming larger and more concentrated. LMZ will re sign the cooperation with the hotel every year, and the hotel will also put forward higher requirements. The profit of Yangzhou factory is getting lower and lower. In LanJins words, almost to the point of moving workers, the sales volume is getting larger and larger There is no profit.

LanJin realized that he couldnt do this all the time, and his anxiety became stronger and stronger. He found that the discourse power of Yangzhou factory was declining. Restricted by the factors of production factors, the efficiency of the factory had almost reached the limit. LAN Jin introduced that in 2009, the revenue of Yangzhou factory was 200 million. At that time, there were more than 1000 employees. Last year, the revenue of 600 million employees was only 600. The factory has been making information investment to achieve the effect of reducing employees and increasing efficiency, but the profit is still increasing Thin.

Until this years outbreak. In February and March, LanJin didnt expect to have such a long impact on the factory. At that time, LanJin thought, the worst situation is that the traditional off-season of this year is longer.

At that time, some employees suggested to make wash free hand sanitizer. Yangzhou factory was qualified, and the government also organized the killing products to go on the market. Liangliangzhen factory soon received the resumption approval. On February 12, it officially produced wash free hand sanitizer. At first, hand sanitizer was mainly sold in domestic market, and later, it was also sold abroad, which brought a lot of benefits to Yangzhou factory.

By April and may, LanJin found that the hotel industry still hasnt recovered, orders have been decreasing, and the factory needs to change again! He focused on the TOC market.

How to transform

In Yangzhou factory, the reporter saw that there were only two employees on the production line of a large automatic toothpaste, one was responsible for looking after the equipment and the other was responsible for packing the toothpaste made on the assembly line.

LanJin said that LMZ has accumulated a lot of market reputation in the market, and the launch of new brands is based on the accumulation of consumer cognition. Consumers think LMZ is herbal and healthy, so the new brand toothpaste launched also focuses on herbal whitening effect.

This toothpaste is mainly for family consumers, not for hotels, realizing the leap from tob to TOC.

With the product, how to promote it? LanJin has come into contact with Jingxi, a social e-commerce platform. LAN Jin said that he didnt know much about Jingxi before. This cooperation is the result of Jingxis active exploration of Hangji oral daily chemical industry belt.

At the end of May, Wang Jin learned that Yangzhou LMZ began to seek the transformation line, and changed from the production of hotel daily necessities to the production of civilian washing and care. That night, he found LMZ with the preliminarily negotiated cooperation plan, and both sides agreed at once, and LMZ decided to immediately prepare to settle in Beijing Xi.

At the end of May, after the store of LMZ was opened, Wang Jin and LMZ discussed what products are suitable for users of Jingxi platform. LMZ has many brand lines with different positioning, while Jingxi is facing a sunken emerging market user buying group that pays attention to cost performance. Finally, both parties selected the combination set of LMZ qinzhiyuan toothpaste and toothbrush with the best cost performance. The price of 11 sets is only 1 4.9 yuan, and 17000 sets will be sold in one week.

After that, according to big data analysis, according to different data dimensions such as functional requirements, taste selection, nursing effect and price segment, Jingxi sinking users analyzed the demand trend of sinking users for commodities, and jointly created c2m commodities dedicated to the platform.

From hotel to online, LMZ is not only expanding new channels, they are also considering the further upgrading of hotel toothbrush, how to meet the personal hygiene habits of consumers, and how to minimize the waste of resources of hotel toothbrush.

LanJin pointed out: in the future, the hotel toothbrush should be like an electric toothbrush, just change a toothbrush head. After the guests check out, the cleaning personnel will separate the toothbrush, treat the toothbrush head as dry garbage, and turn the toothbrush handle as recyclable garbage into treasure...

For LMZ Yangzhou factory, it was seldom involved in 618 promotion only offline before. This time, we started to pay attention to 618 by turning to online. This years sales have been affected by the epidemic, and LMZ also wants to increase sales through 618. In addition to the toothpaste and toothbrush set of the sub brand launched at present, the washing liquid products of LMZ brand were also launched during 618, hoping to gradually change the current situation of the mixed market of washing liquid e-commerce.

LanJin introduced that next shower gel, shampoo and other products are ready to go online, and it is expected that the technical transformation of the factory will be completed in the second half of the year.

Embrace new models

This year, the new crown epidemic is raging all over the world, affecting more than one factory of LMZ. According to LanJin, there are more than 20 enterprises in the whole town of Hangji who have changed their production and transformation. It is estimated that in the first half of the year, the output value will reach 500 million yuan, and the annual output value will exceed 1 billion yuan.

In Hangji, some enterprises used to make hotel slippers. Slippers were made of non-woven cloth. During the epidemic, the production line of masks was opened up in an emergency. There are also several factories that do hand sanitizer like LMZ, as well as enterprises that transfer foreign trade to domestic sales.

Wang Jin has seen more traditional enterprises like LMZ extend olive branches to new channels and models. Yichuang space is an enterprise mainly selling toys to domestic and foreign enterprises, and nearly half of its business is export-oriented business. The outbreak of order panic hit, many foreign customers directly cancel orders, resulting in more and more inventory of Yichuang space. When I received the chargeback notice, I was completely blinded. The long-term shutdown is to suffer from the old costs. It was intended to be relieved after receiving the final payment of the order. Its all gone. Recalling the most difficult time, Chen Zhuoyue, founder of Yichuang space, is still haunted.

In order to help himself, Chen Zhuoyue decided to increase efforts to expand the domestic market, and he also found the Jingxi platform. Through the characteristic mode of Jingxi c2m, matching the market heat, he specially customized the toys that users like, and created an 80 particle track building block toy explosion. In addition, Yichuang space also participated in marketing activities such as nuclear power, chunshangxin, low-cost innovation, CPS, and other support activities launched by Jingxi for businesses affected by the epidemic. From April 1 to April 15, the order volume of the toy company in Jingxi platform exceeded 30000, and the average daily order of Yichuang space in the period of 618 increased by 200% in the first half of the activity. LanJin believes that the traditional sales channels, models and effects are far from meeting the current needs around transformation and upgrading. The factory has advanced daily chemical manufacturing capacity, but it still needs to increase R & D and marketing efforts. Win-win cooperation is a good development path. Source: Yang Qian, editor in charge of Economic Observer_ NF4425

In order to help himself, Chen Zhuoyue decided to increase efforts to expand the domestic market, and he also found the Jingxi platform. Through the characteristic mode of Jingxi c2m, matching the market heat, he specially customized the toys that users like, and created an 80 particle track building block toy explosion. In addition, Yichuang space also participated in marketing activities such as nuclear power, chunshangxin, low-cost innovation, CPS, and other support activities launched by Jingxi for businesses affected by the epidemic. From April 1 to April 15, the order volume of the toy company in Jingxi platform exceeded 30000, and the average daily order of Yichuang space in the period of 618 increased by 200% in the first half of the activity.

LanJin believes that the traditional sales channels, models and effects are far from meeting the current needs around transformation and upgrading. The factory has advanced daily chemical manufacturing capacity, but it still needs to increase R & D and marketing efforts. Win-win cooperation is a good development path.