Laoganma teased by geese: Sales of e-commerce have risen sharply, and they have gone out of the trough last year

category:Global
 Laoganma teased by geese: Sales of e-commerce have risen sharply, and they have gone out of the trough last year


First, Tencent asked the court to seal up and freeze the tens of millions of property in the name of Laoganma and its subsidiaries, on the ground of defaulting on advertising fees. Since then, the plot began to reverse, and the old Ganma said Tencent suffered fraud.

On June 30, Laoganma company issued a statement saying that it had never conducted any commercial cooperation with Tencent, and had reported the case to Guiyang police.

On July 1, Shuanglong branch of Guiyang Public Security Bureau reported that the suspects Cao, Liu and Zheng forged the seal of Laoganma company, pretending to be the manager of the companys marketing department, and signed a cooperation agreement with Tencent company in order to obtain the online game gift package code presented in the promotion activities, and then profited illegally through the Internet. Now three suspects have been taken compulsory measures.

On July 3, the peoples Procuratorate of Nanming District, Guiyang City, stated that the peoples Procuratorate attached great importance to it and immediately assigned prosecutors to intervene in advance to understand the case and guide the investigation.

Under the reversal of the plot, many e-commerce platforms have joined in to launch the promotion activities of Laoganma hot sauce.

According to data provided by Suning e-buy, as of 22:00 on July 1, the sales volume of Laoganma chili sauce on Suning e-buy platform increased by 228% month on month, the search volume increased by 407% month on month, and the order of home at any time increased by 152% month on month. Jingdong data shows that on July 1, Laoganmas search volume increased by 300% year-on-year, and the turnover increased by more than 100%; as of 15:15 on July 2, the search volume increased by 600% year-on-year, and the transaction volume increased by more than 200%.

Why does Laoganma, who has been keeping a low profile for more than 20 years, have such a strong appeal? How did the founder Tao Huabi build her chili sauce Empire? In recent years, how does Laoganma operate now?

A bottle of Douchi hot sauce, going to the whole country

In 2008, China food industry network reviewed the entrepreneurial process of Tao Huabi, the founder of Laoganma.

Tao Huabi was born in Guizhou in 1947. In the 1980s, Tao Huabi opened a snack bar in Longdongbao, Nanming District, Guiyang city. After several years of operation, Tao Huabi has accumulated a little money, and the snack bar has been upgraded to a hotel. Taojias restaurant is very popular with students near Longdongbao because of its good taste and low price. Due to the special amount of food for students, Tao Huabi was affectionately called Lao Ganma by the students.

The most attractive thing about Tao Huabis restaurant is the free appetizer dish with chili oil and lobster sauce. Because the taste is very good, many people specially come to the store to taste, and some people pack this special snack with plastic bags. Since then, chili oil has become more and more famous and its business is getting better and better.

Financial weekly also mentioned in 2012 that Lao Ganma is popular all over the country and has close ties with truck drivers. In 1994, the ring road was built in Guiyang, and the once remote Longdongbao became the main road of Guiyang South Ring Road, and more and more truck drivers passed by. Taking this opportunity, in addition to selling chili sauce to diners in the hotel, Tao Huabi also began to give drivers free snacks and condiments, such as lobster sauce and spicy dishes, which were very popular. It was the truck driver who made Lao Ganmas hot sauce go all over the country.

In 1996, Tao Huabi officially established Laoganma flavor food factory, which is the predecessor of todays Guiyang Nanming Laoganma Flavor Food Co., Ltd. In August 1997, Guiyang Nanming Laoganma Flavor Food Co., Ltd. was officially listed, and the number of workers increased to more than 200. By 2000, the company had expanded rapidly and had 1200 employees.

For more than 20 years, she only focused on Douchi chili sauce, and her business has grown from a small family workshop to a well-known Chinese brand step by step.

According to the official website of Laoganma, after more than 20 years of development, Laoganmas products have expanded from Douchi hot sauce to more than 20 categories, such as hot pot seasoning, bean curd milk and spicy dishes.

During this period, Tao Bihua always insisted on no listing, no loan and no financing. The companys equity was extremely simple, and the shareholders were always the mother and son.

According to tianyancha data, after Tao Huabi quit in 2014, Guiyang Nanming Laoganma Flavor Food Co., Ltd. behind the Laoganma brand, the eldest son Li Guishan accounted for 49% of the shares, and the youngest son Li Miaohang accounted for 51%. Tao Huabi is still the legal representative and chairman of the board.

In 2015 and 2016, Tao Huabi ranked 487 and 473 on the Hurun 100 rich list with 7 billion yuan and 7.5 billion yuan respectively. In 2017 and 2018, Tao Huabi was no longer on the list, replaced by his two sons, Li Guishan and Li Miaohang. In 2019, Li Guishan and Li Miaohang were listed in the Hurun 100 rich list with 4.5 billion yuan of personal wealth, ranking 912.

According to the financial weekly, among the more than 2000 employees in Laoganma company, Tao Huabi was able to name 60% of the employees and remember the birthdays of many of them. She had to be the witness in person when each employee got married.

Domestic dealer network, overseas agent team

If the old Ganma who doesnt make advertisements wins the market recognition?

Huatai Securities once published the article Lao Ganmas brand building road: focusing on product quality and maintaining brand image in 2016, which introduced why Laoganma could successfully sell its products to the whole country and even overseas without marketing.

In terms of sales channels, Laoganma first established a large regional distributor, then established a regional secondary network through large regional distributors, and finally formed a nationwide sales channel, formed a moat of sales network, and actively used this advantage to export products and further strengthen its brand image; in terms of catering channels, Laoganma series products also have high quality Stable chili sauce has been favored by terminal catering enterprises and promoted the spread of enterprise brand.

In the overseas market, Lao Ganma has gradually formed the business strategy guiding ideology of relying on the domestic market and actively expanding the international market. First of all, the company is positioned at overseas Chinese, playing the emotional card, and has gained a stable consumer group in the overseas market; secondly, Laoganma has changed its business strategy and set up an authorized agent directly in the overseas market, forming a win-win situation with the authorized agent, and promoting the wide spread of enterprise brand influence in the overseas market.

The price of Laoganmas products in China is less than 15 yuan, but overseas, the price of Laoganmas products is not so close to the people. The price of a 210 gram bottle of Laoganma hot sauce on Amazons US website is as low as US $8.84, nearly RMB 50.

Tao Huabi himself has been asked why overseas prices are so high? Tao Bihua once domineering response to Xinhua, I am Chinese, I do not make Chinese money, I want to sell old Ganma to foreign countries, to earn foreign money.

Lao Ganmas fire also attracted the attention of a number of speculators. Around 2000, a variety of Shanzhai Laoganma brands appeared throughout the country.

In order to protect Lao Ganmas brand equity, Laoganma has built a brand moat. Many derivative words such as Laoganma, laoganda, laoaunt have been applied for trademarks by Laoganma company.

As of July 2, this year, Laoganma company and its foreign investment enterprises and branches have registered 192 trademarks. Among them, in 2008, the number of registered trademarks was the largest, reaching 66, basically covering all categories of trademarks, and the registration success rate was 97%.

New challenges of Laoganma

Although Laoganmas status as a national hot sauce brand is hard to shake, in recent years, the low-key Laoganma has also had negative news in terms of product quality and company management.

In 2014, at the age of 67, Tao Huabi transferred his only 1% equity to his second son, Li Miaohang, and retired from the management. Laoganmas ownership structure changed to 51% for her second son and 49% for her eldest son, Li Guishan.

Shortly after Tao Huabi gave up the management of the company, Lao Ganma was exposed as cutting corners. In 2015, business magazine reported that Lao Ganma gave up using Guizhou pepper and chose Henan pepper, which is cheaper. The price of hot pepper in Guizhou is about 12-13 yuan / Jin, while that in Henan is around 7 yuan / Jin, which is about 5 yuan cheaper than Guizhou pepper.

Costs are falling, but prices are rising. An old Ganma dealer disclosed to the we media e-commerce online that he had sold Laoganma for more than 10 years, but the price has been rising since the management changed in 2014, with an average increase of 10%. Last year, due to the rise of pork price, the price of dried pork shreds was more than two yuan higher. Now the price is 10-12 yuan.

According to the media reports, the performance of Tao Ganbi declined from 2014 to 2014. Guangzhou Daily pointed out that the sales revenue of Laoganma from 2014 to 2018 was 4 billion yuan, 4.549 billion yuan, 4.4447 billion yuan and 4.389 billion yuan respectively, which was not disclosed in 2015. According to the survey data of Ourui consulting company, only 3.6% of the seasoning retail market in 2018 is left, which is lower than that of Haitian and Li Jinji.

The challenger of Lao Ganma

In addition to equity and management structure adjustment, external competitors are also invading Lao Ganmas market share.

According to the data released by China condiment Association, as of 2018, the market scale of chili sauce has reached 32 billion yuan, which is expected to reach 40 billion yuan by the end of 2020. Such a large development prospect has attracted many competitors. Based on the industrial and commercial registration, in the first half of 2020, nearly 60000 condiment related enterprises (all enterprise status) were established in China, with a year-on-year increase of 29.1%.

According to the market analysis of Chinas condiment industry in 2020 released by the prospective industry research institute, the competition pattern of Chinas condiment industry is relatively scattered, the market share of major manufacturers is not high, and the industry concentration is low.

Although sporadic brands cant shake Lao Ganmas powerful offline dealer network, they are springing up on the e-commerce platform. In addition to Li Jinji, fansanguang, Limin and other old brands, new hot sauce brands have emerged in succession, including Lin Yiluns Fanye, Zhang Songs songer, Yue Yunpengs hi hi Pi Pi, Hubang chili sauce, and liziqis chili sauce. Chili sauce industry is no longer the only show of old Ganma. Fanye, a personal hot sauce brand founded by star Lin Yilun, has been financing for four rounds since 2015, and has been valued at 360 million yuan after round B financing.

Performance recovery of chaopai old Ganma

Laoganma also began to break her tradition of not advertising, and even caught up with the tide brand outlet.

In September 2018, the cross-border cooperation of Laoganma and openingceremony also appeared on the stage of New York Fashion Week in spring and summer of 2019. The 1288 yuan old Ganma hot sauce sweater was sold out instantly when it appeared in tmalls flagship store.

In September 2019, the magic bottle twisting dance food of Laoganma and jusuan was spread on various social platforms, and the image of Tao Huabi in the advertisement became a young woman. At the media interview meeting in September 2019, Laoganma company publicly stated that it would strengthen the construction and promotion of Laoganma brand culture.

(function(){( window.slotbydup=window .slotbydup||[]).push({id:u5811557,container:ssp_ 5811557, async:true }At the beginning of 2020, Laoganma and Taobao shopping cart launched Laoganma love talk bottle. According to guiyang.com, after the event, the sales of Laoganma tmall flagship store increased by 20%. Li junmata, head of Laoganma brand e-commerce, said: when tmall came to cooperate with us, we refused at first. You know, Laoganma is a very Buddhist brand. We never did any advertising, but we didnt expect to become popular again in this way. The brand was shocked. u201dThe late arrival of Internet marketing may also help Laoganma reverse the decline in performance in 2019. Interface reported that the sales revenue of 2019 elderly dry mothers exceeded 5 billion yuan, a year-on-year increase of 14.43%, a record high. However, there are also market rumors that the credit for the performance reversal in 2019 is that Tao Huabi, who retired behind the scenes, was forced to return to use the previous raw materials and formula, but the news has not been officially confirmed. Tao Huabi, who has his head painted on the bottle, is 73 years old. The outside worry is, if Tao Huabi fades out, how much will Lao Ganma be affected? Extended reading QQ flying car once presented co branded old Ganma? Winning netizens: its an ordinary gift box. Tencent cant explain it in a word. Who is the winner behind the Oolong case? Online store 1000 bottles of chili sauce and off the shelf. Laoganma said it has nothing to do with it. Source: surging news responsibility editor: Ma Wenjing_ NBJS9027

In early 2020, Laoganma and Taobao shopping cart launched Laoganma love talk bottle. According to guiyang.com, after the event, the sales of Laoganma tmall flagship store increased by 20%. Li junmata, head of Laoganma brand e-commerce, said: when tmall came to cooperate with us, we refused at first. You know, Laoganma is a very Buddhist brand. We never did any advertising, but we didnt expect to become popular again in this way. The brand was shocked.

The late arrival of Internet marketing may also help Laoganma reverse the decline in performance in 2019. Interface reported that the sales revenue of 2019 elderly dry mothers exceeded 5 billion yuan, a year-on-year increase of 14.43%, a record high.

However, there are also market rumors that the credit for the performance reversal in 2019 is that Tao Huabi, who retired behind the scenes, was forced to return to use the previous raw materials and formula, but the news has not been officially confirmed.

Tao Huabi, who has his head painted on the bottle, is 73 years old. The outside worry is, if Tao Huabi fades out, how much will Lao Ganma be affected?