[Shisanxiang] is a type of compound spices. Products similar to it include [five-spice powder] and the like.
In this industry, the scale of enterprises is not large. Manufacturers with less than 500 employees account for 48%, manufacturers with more than 500 employees and less than 1,000 account for 27%, and large enterprises with more than 2,000 employees account for less than 20%.
10%!
Su Shixian and other senior executives found a spice manufacturer for Wu Siyuan, which was a small factory with less than 500 employees.
The name of this company is [Jiawei Condiment Co., Ltd.], located in Hongye Industrial Park, Lechuan City, Yu Province. It is a condiment company integrating R&D, production and sales. It mainly sells red oil bean paste, oil
Vinegar sauce, oily chili seeds, various small ingredients packets, chicken essence, spices and various marinade packets have a history of more than ten years in the local area. The founder Lin Yixin started from a small workshop, working from dawn to dusk, relying on integrity and taste.
Step by step, we slowly grow bigger and become a time-honored brand in Lechuan City, selling fairly well.
However, as he grew older, founder Lin Yixin became older and no longer had the energy to manage the company's affairs, so the family business was handed over to Lin Xiaofeng, the second generation of the Lin family.
Lin Xiaofeng was sent to study abroad since she was a child. After returning to China after studying, she has always been ambitious and wanted to show off her talents.
It's a pity that he has great ambition but few talents.
After taking over the company, he ignored the advice of Dong Huiming, the company's original marketing director, and became self-righteous and radical. He launched two policies in the company: cutting expenditures and increasing revenue.
In terms of cost reduction, Lin Xiaofeng lowered the purchase price of raw materials, which made suppliers unprofitable and used defective products or other types of raw materials. As a result, the flavor of many of the main condiments of [Jiawei Condiments Co., Ltd.] deteriorated, causing customers to
Dissatisfied.
After buying once, many old customers are unwilling to buy again and turn to other big brands of condiments, which ultimately leads to the loss of customers and a reduction in market share.
In terms of open source, he has launched a number of new products, hoping to take the road of all-in-one condiments and force dealers to sell goods.
As a result, the market response was not good, and the goods were all backlogged in the dealer's warehouse, and they were not helped to deal with them, causing the dealers to be full of resentment.
When the condiment market was still unstable, Lin Xiaofeng listened to the experts' "nonsense" about diversified operations and went to partner with others to develop real estate.
As a result, the developer took the money and ran away, and Lin Xiaofeng lost several million yuan again.
After struggling for a year or two, Lin Xiaofeng finally succeeded in bringing [Jiawei Condiments Co., Ltd.] to the edge of bankruptcy, owing a lot of debt, and a lot of bad debts from various dealers!
The gray-haired founder Lin Yixin had to come out to deal with the mess.
He agreed to sell the company to Wu Siyuan for one million, but there was a condition: Wu Siyuan must also take over the nine million debt of [Jiawei Condiments Co., Ltd.]!
In other words, Wu Siyuan actually spent 24 million to buy this company.
To be honest, the fixed assets of [Jiawei Condiments Co., Ltd.] will not exceed 5 million.
The price offered by Lin Yixin is a premium.
However, considering the time cost, and [Jiawei]’s brand and channels, Wu Siyuan finally accepted the offer.
The two quickly signed a contract.
With the successful transfer, Wu Siyuan became the new owner of [Jiawei Condiments Co., Ltd.
The first thing he did was to find Dong Huiming, the former marketing director of [Jiawei Condiments Co., Ltd.].
He is said to be the marketing director, but in fact, his previous job was that of the general manager.
Dong Huiming is a middle-aged man in his forties, with a Chinese character face, neatly combed and waxed hair, and a serious expression.
After graduating from high school, he joined [Jiawei Condiments Co., Ltd.]. He started as a salesman and grew up step by step. From supervisor, to manager, and then to marketing director, he was familiar with various situations in the condiment market.
, we also have a very good relationship with major condiment distributors in Yu Province.
In the past two years, [Jiawei Condiments Co., Ltd.] has not come to the point of confrontation with its distributors in court, and that is because of Huiming.
Of course, the issue of expired futures by these dealers still needs to be dealt with, but it has just been temporarily suppressed by Dong Huiming.
Dong Huiming was not surprised that the first thing Wu Siyuan did after he took over was to find him.
As the saying goes [generals choose soldiers], [soldiers also choose generals], Dong Huiming also wanted to meet and chat with this new club.
If he is the same as Lin Xiaofeng, then I will forgive him for not accompanying me.
He doesn’t have much time to spend with others here!
[Haitian Seasoning Co., Ltd.] has been poaching him, but he was thinking about his old relationship with his old employer, so he was unmoved.
The new owner has no such scruples!
Wu Siyuan didn't know that the marketing director had such thoughts.
After meeting Dong Huiming, he asked directly, "Mr. Dong, as the marketing director of the company, what do you think of the future development of the condiment industry and the company?"
Marketing Director Dong Huiming was shocked when he heard this. He knew that this was a test for him from the new owner.
He thought for a moment and then said, "In recent years, my country's condiment industry has developed rapidly and has maintained a market growth rate of more than 20%. At present, the total output of the condiment industry has exceeded 15 million tons, becoming a new economic growth in the food industry. Point. It can be seen that the condiment industry is still a blue ocean!"
"This industry has several main characteristics!"
"First, the market potential is huge. According to statistics, the annual global condiment turnover is as high as 218 billion US dollars, accounting for about 10% of the food industry. It is a typical [small product, big market]. At present, the condiment industry in my country is The total output value is about 130 billion (about 20 billion US dollars), accounting for less than 10% of the total world condiment market, and the average annual growth rate of the industry remains at about 10%."
"Compared with the total scale of the world's condiment industry, the development gap of my country's condiment industry is obvious. It can be seen that there is huge development potential in my country's condiment market."
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Wu Siyuan nodded after hearing this, Dong Huiming still has some clues!
Dong Huiming continued, what he said now is his usual thinking about the industry, "Second, the regional characteristics are obvious. Condiments are an industry derived from my country's traditional food culture, and its biggest difference from other industries is The characteristic is that it is subject to different food cultures in different places and has obvious regional characteristics."
"For example, the size of my country's soy sauce market is 5 million tons. As the largest soy sauce condiment company, Haitian's output only accounts for 8% of the country's total soy sauce production. The main reason is that the concentration of soy sauce companies is not high, showing the [Princes] "Separate regimes, region is king" business format. The famous "Four Famous Vinegars" are also mainly consumed in the mainstream in their respective base areas, and they also have obvious regional characteristics."
"At present, the integration within the condiment industry is only focused on the first-tier brands' competition for the mid-to-high-end market share, and the impact on the mid-to-low-end market is still very limited, which means that the business opportunities in the condiment industry are unlimited."
"So condiment companies should seize this development opportunity in time, break through regional cultural differences and traditional craftsmanship, replace original handcrafts with modern large-scale production systems, and more importantly, vigorously improve products, taste and production
Technological innovation, such as injecting fashionable elements into traditional industries, will be the driving force for the rapid development of the condiment industry."
"Third, foreign brands dominate. Most of the traditional domestic condiment companies were transformed from state-owned enterprises. Due to the influence of corporate mechanisms, most of them have formed a rigid and solidified business style, so the corporate competitiveness is not strong." p>
“In the past ten years, as a large number of foreign-funded companies have entered China, my country’s condiment market is undergoing major industry reshuffles. After several years of industry consolidation, some of my country’s condiment companies have been controlled or acquired by foreign capital. In various industries, In the subdivided categories, the market layout has basically formed with foreign brands as the leader!
"Although these foreign brands have occupied a certain market share, most of their products are positioned in the high-end market and have not yet had a significant impact on my country's condiment industry. If domestic condiment companies can seize this favorable opportunity, they will surely be able to successfully occupy Part of the market share of the condiment industry."
"So I think there are still unlimited business opportunities in the condiment industry, and the company can make a difference!" Dong Huiming concluded.
"Then how do you think our company will develop? In the face of large companies and foreign capital, we are very weak?" Wu Siyuan asked again.
"It is undeniable that in the face of large enterprises and international condiment giants, small and medium-sized enterprises do not have advantages in terms of economic strength, technical resources and other aspects. They are easily squeezed out and squeezed by well-known brands, and their living environment is getting increasingly worse." p>