Text | Chinese Business Strategies by Wu Su
In the Chinese food arena, Wang Shouyi’s thirteen incense and Lao Ganma are household names, and countless people have used them since childhood, and they can be called “national grandpa” and “national grandma” brands.
Both were once beautiful.
As early as 1998, the annual income of Wang Shouyi’s thirteen incense reached 400 million yuan, relying on “composite seasonings” to build a huge condiment business empire.
Laoganma is even more synonymous with hot sauce. There is no marketing, no financing, no loans, no listing, only with unique taste and low price, the market coverage rate in all parts of the country is as high as 90%, and even exported to foreign countries. Wherever there is, there is an old godmother.”
In 2019, Laoganma’s annual sales exceeded 5 billion yuan, a year-on-year increase of 14.43%, a record high.
It seems that these two national brands still have a huge consumer market, but in fact, due to domestic and foreign difficulties, their sense of existence is getting weaker and weaker.
First of all, the younger generations feel that it is too slow to make money from selling spices and hot sauces, and they can’t sit on the “cold bench”, trying to make quick money from the real estate market, but they are all killed.
Wang Taibai, the grandson of Wang Shouyi, who held tens of millions in cash at the age of 20, was the “successor” that the second-generation leader once deliberately cultivated. He hoarded dozens of properties in the UK, but he did not expect to encounter the financial crisis and almost lost everything. Property, only relying on the family to “assistance” can get through the difficulties.
Similarly, Lao Ganma Tao Huabi’s eldest son Li Guishan Nuggets Real Estate, also touched his nose.
The real estate company of which Li Guishan is the second shareholder develops a real estate, but it has been unable to accept it due to construction problems, project balance problems, etc., and is involved in a lawsuit. In addition, this company suffered serious losses. From 2013 to 2017, it had a total debt of 950 million yuan. It frequently appeared on the list of untrustworthy executors and was involved in nearly a hundred judicial cases.
In addition to the huge resource loss caused by cross-border, the hunting of copycat products has also reduced the influence of Wang Shouyi Shisanxiang and Lao Ganma.
In the field of compound seasonings, the “fifteen incense” and “eighteen incense” have sprung up like bamboo shoots after the rain, and they have fought guerrilla warfare with the “genuine products”. To this day, in some cities, these “li ghosts” sell more than the “genuine products” it is good.
Lao Gan Ma was also troubled by copycats and had to apply for registration of trademarks such as “Lao Gan Da”, “Lao Gan Da”, “Lao Qian Ma” and “Lao Shi Ma”.
Outside of the cottage, the “encirclement and suppression” of competitors made it even more difficult for them to resist.
Totole, Yihai International, which provides the base material for Haidilao, and Zhongjing Food, which uses mushroom sauce to beat the world, are all accelerating their attack on the city. Wang Shouyi’s thirteen incense is particularly silent.
Lao Gan Ma was chased by Lee Kum Kee and Spice Girls, and online marketing was relatively weak. At the beginning of the year, the media compared the hot sauce data with the highest monthly sales in each brand’s flagship store. The hot sauce brand “Fan Ye” founded by singer Lin Yilun had five times more than Lao Ganma.
Unfavorable factors are superimposed, Wang Shouyi Shisanxiang and Lao Ganma no longer have the style of the former leaders, but this also forces them to think about changes, and new growth points may be bred in them.
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