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** 007 of the brand world
Author 007 of the brand world
If that hot sauce is deeply rooted in the memory of every Chinese person, it must be the old godmother.
Before, who didn't have a bottle of old godmother in their kitchen?
Looking back at the old godmother's journey, from making a fortune in Guizhou to selling overseas, the old godmother's business is in full swing.
But why is the 27-year-old godmother suddenly unpopular with young people?
Open the online shopping app, enter the hot sauce, you can't see the figure of Lao Gan Ma on the first few pages, and the offline supermarket shelves also put it at the bottom.
Sales decline, taste controversy, why the old godmother, who focuses on making hot sauce, has reached this point.
There is no shortage of legends in the business world, and people just don't know when that moment will come.
Some time ago, it was rumored in the market that Lao Gan Ma's sales had been cut in half, and then the employees of Lao Gan Ma's factory confirmed this information. It is understood that this year's shipments of Lao Gan Ma's hot sauce are less than half compared with the past, "The original one can send forty or fifty vehicles a day, but now there are only twenty or thirty." ”
But in fact, the decline in sales is not a new thing for Lao Gan Ma. Previously, Lao Gan Ma was on the hot search because she fell out of the top ten private enterprises in Guizhou.
It is said that business is everywhere in life. Tao Huabi, the founder of Lao Gan Ma, married a farmer when she was young, but she was good at using local resources to make a chili sauce with a unique taste, which was sought after and liked by the villagers.
As word of mouth spread farther and farther, Lao Gan Ma's chili sauce gradually opened up the situation. With the support of her family, Tao Huabi opened a small workshop, which was the prototype of the original old godmother.
With the increase in market demand and the gradual commercialization of Lao Gan Ma, Tao Huabi established a chili sauce factory and introduced modern production equipment. Since then, it has become bigger and stronger step by step, and has even become the favorite of overseas consumers, becoming an excellent private brand of 15 billion yuan.
But the good times ended with Tao Huabi's retirement.
In 2014, Tao Huabi was 67 years old, and it was time to retire. So, she retired naturally and handed over the company to her two sons, Li Guishan and Li Miaoxing.
The two sons are not idle, Li Guishan is bent on expansion, real estate, hotels frequently test the water, and the return is not much, but there is a lot of investment. The second son, Li Miaoxing, also focused on the chili sauce itself, but in order to reduce costs and increase efficiency, Li Miaoxing replaced the chili pepper that Lao Gan Ma originally used for about 12 yuan a catty with a better taste and a heavier fragrance to 7 yuan a catty of Henan chili pepper.
Li Miaoxing also finally paid the price for his actions - the old godmother who lost her original flavor lost a certain number of customers.
It can be said that during the three years that the two sons took the helm of the company, the company's turnover has been declining. It wasn't until 2019 that Tao Huabi was forced to announce her return to the company's operation, and the old godmother returned to her original path.
But it's a pity that Tao Huabi's return still failed to bring the old godmother back to the peak. And the reason why the old godmother is outdated can also be traced.
Guizhou has always been one of the most edible chili provinces in China, and of course it is also the most creative area for eating spicy peppers.
As a veteran chili sauce in Guizhou, Tao Huabi has always insisted on no financing, no loans, cash spot, and no listing.
Her thoughts are actually quite understandable. She grew up with hardships and hard work all the way, she doesn't believe in pies in the sky, and believes that the pencil set is the safest thing to hold in her hand.
Relying on such stubbornness, Lao Gan Ma has indeed made unexpected achievements, and the output value has increased by 77 times in 15 years.
However, the times are changing, and such persistence has also laid the groundwork for the plight of today's old godmother.
Seeing the advent of short**, e-commerce live broadcasts, pre-made dishes, etc., most brands are aware of keeping up with the trend of the times and cooperating with more online and offline channels. For example, Hubang hot sauce has achieved the first sales volume of hot sauce on all online platforms in 2021 through the takeaway platform.
There is only the old godmother, "the years are quiet".
Peers have all started to play new tricks one after another, and the old godmother still doesn't know what online shopping is. It wasn't until 2018 that Lao Gan Ma had Tmall Official *** In 2021, the live broadcast has been fully matured, and Lao Gan Ma is belatedly trying to live broadcast, but because of the lack of novelty in live broadcasting, it is difficult to retain consumers.
Later, he even claimed in the publicity that Tao Huabi would appear in the live broadcast, but in fact, he only used Tao Huabi's ** interview to fill up, which disappointed many lovers of the old godmother.
In the end, in the past three months, in addition to the income of 200,000 yuan on the opening day, the other shows are thousands to tens of thousands of yuan per show, far lower than the industry average. In the end, the live broadcast business had to be shut down.
The slowness of the old godmother used to be her advantage, but now it has become a drag on her.
Overlooking the current chili sauce territory, the market size of chili sauce in China has increased from 40.2 billion yuan to 45.5 billion, and the China Business Industry Research Institute predicts that the data will grow to 481 in 2023700 million yuan.
Looking back on the past ten years, Lao Gan Ma has indeed sat firmly in the top spot, but the epidemic has accelerated the development of the e-commerce economy.
At the end of 2021, Chuan Wazi has completed nearly 300 million Series A financing. Its founding team publicly stated in an interview that it plans to strive for a larger market share than Lao Gan Ma and "aim at the 40 billion chili sauce market".
Chuan Wazi's enthusiasm also stimulated Lee Kum Kee and Hot Girls, and the two sides stepped up their layout, striving to seize a certain share in the remaining 60% of the market.
Not to mention Hubang, today's takeaway platform can see Hubang hot sauce everywhere. In addition, "pepper novices" such as Haidilao and Quanjude are also trying new growth curves.
There are wolves in front and tigers in the back, although at the moment, Lao Gan Ma still occupies 20% of the market, but it is obviously ambushed on all sides.
In addition to the pressure from competitors, Lao Gan Ma herself is also undertaking new tests.
In March 2022, Lao Gan Ma issued a price adjustment letter to all dealers, announcing that the ** would be raised to 118 yuan, or even higher. In fact, of course, the price increase is understandable, because the original talent of each year, labor and freight are all year by year. However, considering that there are many types of chili sauce in the range of 8-13 yuan**, from soybean hot sauce, garlic hot sauce, beef hot sauce to 0-fat hot sauce....It occupies almost half of the area of the supermarket seasoning area.
If Lao Gan Ma still refuses to open her arms and welcome the Internet, the market visibility of Lao Gan Ma in the future is in jeopardy.
List of high-quality authors Whether the olfactory symbols in our memory stay or move forward depends on the strategic direction of the old godmother!Ladies and gentlemen, what do you think?Everyone is welcome to discuss and exchange in the message area