Who is killing the old godmother?

Mondo Gastronomy Updated on 2024-01-28

It seems that every once in a while, topics such as "the old godmother is abandoned by young people, the old godmother sells **, and the old godmother can't sell" will be brought out and discussed by the public.

Recently, the old godmother has been questioned again about "no".

The reason is that not long ago, it was revealed that Lao Gan Ma was abandoned at the bottom of the shelves by a well-known supermarket chain, and some netizens said that they couldn't see Lao Gan Ma after searching for hot sauce on online shopping apps today, and they couldn't see Lao Gan Ma after five or six pages. Many consumers joked:The old godmother refuses to embrace the Internet, and the Internet is also abandoning the old godmother.

However, as a national hot sauce brand, Lao Gan Ma seems to have long been surprised by such a voice, and recently, Lao Gan Ma once again proved her strength with performance data, and also blocked the mouth of Youyou.

Revenue in 2022 increased by 25% year-on-year

Back in the top 10

Recently, the Guizhou Provincial Federation of Industry and Commerce and the Guizhou Provincial Enterprise Confederation jointly issued the "".2023 Top 100 Private Enterprises in Guizhou".In the list, Guiyang Nanming Lao Gan Ma Flavor Food Co., Ltd. (hereinafter referred to as "Lao Gan Ma").to 52 in 2022 yearThe revenue of 600 million yuan ranked 7th.

The reason why this list is the strength of the old godmother to fight back against those doubts is becauseIn the list last year, Lao Gan Ma showed that the company's revenue in 2021 was 420.1 billion yuan,Compared to 54 in 20200.3 billion yuan fell by more than one billion yuan, returning to the level of 2018, andDirectly fell out of the top ten of the list of private enterprises in Guizhou.

You must know that Lao Gan Ma was once regarded as a benchmark for private enterprises in Guizhou, and her revenue, profits and taxes were very eye-catching. Since 2014, when Guizhou Province issued the top 100 list of private enterprises for the first time, Lao Gan Ma has never fallen out of the top 10.

But thankfully, nowadaysIn the 4th year of its founder Tao Huabi's re-emergence, Lao Gan Ma's performance once again turned against the wind. Moreover, the revenue in 2022 will increase by more than 1 billion yuan compared with 2021, a year-on-year increase of 25%.

According to public data from previous years, from 2016 to 2020, Lao Gan Ma's revenue was 45500 million yuan, 444.7 billion yuan, 432.8 billion yuan, 502.3 billion yuan and 5.4 billion yuan. In addition to the fact that the revenue of 4.2 billion yuan in 2021 is not very optimistic, the overall performance trend is still worth optimizing.

In addition, according to the Agriculture and Rural Bureau of Guiyang City, Guizhou Province, in the first half of 2023, the total sales revenue of leading agricultural enterprises above the provincial level in Guiyang City will be 205300 million yuan, 88.51 million yuan of foreign exchange earnings, and 7 taxes paid1.2 billion yuan, of which,Guiyang Nanming Lao Gan Ma Flavor Food Co., Ltd. achieved foreign exchange earnings of 83 million yuan and paid taxes of 2 in the first half of the year6.9 billion yuan, ranking first.

The sauce market is oversupplied

How long can the old godmother last

Since ancient times, China has had the eating Xi of "serving meals with sauce", and sauce as the soul of dish seasoning is the key to the successful implantation of dishes into the minds of diners. Lao Gan Ma became a "national goddess" on the basis of such a diet.

In addition, in recent years, the "spicy economy" has swept the country. According to relevant statistics, there are about 600 million spicy people in the country, and young people such as the post-80s and post-90s have become the main group of spicy people, promoting hot sauce products to seek differentiated advantages in terms of raw materials, packaging, flavor, concept, channels and other aspects, and new brands continue to emerge in the hot sauce market, and the scale of the industry continues to grow.

According to the data of QichachaIn 2010, the number of chili sauce-related enterprises was only 929, which increased to 3,245 in 2021, and by 2023, the number of chili sauce-related enterprises will be nearly 5,000The vast majority of them are new brands that have only been established in the last decade.

The innovation and counterattack of the old brand, the rebirth and rise of the new brand, and the hot sauce industry, which was once dominated by the old godmother, have quietly ushered in market changes.

For example, in the market segment, with the continuous upgrading of consumer demand, the sauce that was once only used for seasoning has gradually evolved into a "dish" suitable for rice. With the unique attributes of convenience and deliciousness, bibimbap sauce can easily fit into simple dry rice scenarios such as home, office breaks, and travel, which not only gave birth to the innovation of industry brands such as Haitian, but also attracted cross-border sharing from restaurant companies such as Haidilao and Frog Laida.

The hot sauce itself has a variety of subcategoriesIn addition to bibimbap sauce, it also includes bean paste, beef sauce, pickle sauce, shiitake mushroom sauce, etcMoreover, there are obvious regional differences in China, and for Chinese sauce, consumers in different regions have different preferences for Chinese sauce.

For example, diners in Sichuan, Hunan, and Chongqing like spicy flavorsThe three eastern provinces are more inclined to choose hot sauces such as "dipping pickles";Some northern areas are suitable for soybean cultivation, so most buyers of soybean paste and noodle sauce are also from the north. The food Xi habits of these different regions have also made the hot sauce market more and more inclined to the development direction of "regional personalization".That is, according to the widely popular dishes and taste needs of a certain region, the "flavor chili sauce" is developed in a targeted manner.

At the level of innovation, as people's attention to health continues to grow, many consumers will be more inclined to buy hot sauceChoose a 0-fat, sugar-free or sugar-substituted, low-calorie chili sauce. After searching on the e-commerce app, Nashi found that the sales of many hot sauces with low fat and low calories are quite optimistic, such as:The sales volume of a 0-fat garlic chili sauce under Jiao Daren is as high as 100,000, and the sales of 0-fat hot sauce under Muscle Unicorn, Bicui Garden, Hubang and other companies have also exceeded 10,000.

In comparison, Lao Gan Ma seems to be slightly inferior in this regard, and it does not focus on low-fat chili sauce, and almost all of its products are heavy hot sauce soaked in thick red oil.

For Lao Gan Ma, if she wants to regain consumers, or expand more consumer groups, she is bound to continue to iterate on products, and she needs to constantly cater to different ages, different scenarios and different consumption hotspots in the introduction of new products.

In fact, in recent years, many new brands that have come to the fore in a short period of time have done just that.

Although Lao Gan Ma is still proud in the field of hot sauce, she is still proudBut even if it is as strong as Lao Gan Ma, if it can't keep up with the torrent of the market, it is difficult to rely solely on the national image of the brand to support it to continue to be the king in the hot sauce market where supply exceeds demand.

Old godmother

Controversial"Big dealer" channel model

In addition to making people question "whether it will work" in terms of product innovation,Another topic around Lao Gan Ma is its channel model.

A few years ago, the vast majority of enterprises like Wang Zhihe, sitting at the door of the house and waiting for dealers of all sizes to come to purchase, there was no logistics and transportation and other services, there was no batch, two batches, and no distribution network. The enterprise is a wholesaler, and the dealers around the country only need to come to get the goods, and how to sell them back, and the company does not care. At this stage, due to road problems, southern dealers rarely came to Beijing to purchase, and it was too late for Wang Zhihe to consciously lay out the southern market.

Lao Gan Ma chose a different path at that time, only choosing large regional dealers and being responsible for logistics and transportation;In order to achieve the purpose of sales, regional dealers must carry out the development of the second batch of layout, and gradually formed a distribution network all over the region, convenience stores, supermarkets, and even vegetable markets.

That is to say,Lao Gan Ma mainly adopts the "big dealer system", that is, only a few or one dealer in several prefecture-level cities or even a province, and then distributes through this dealer. Although this channel model makes Lao Gan Ma very popular in all regions, such a layout also has extremely high requirements for the control of profit margins between various levels of the channelOnce the dynamic sales level is sluggish, this trick will be a little difficult

There are also industry analysts said that in the old godmother's big dealer model, the manufacturer has no maintenance of the market, the market depends on the dealers themselves to operate, if the old products are tired of the market, then only by adjusting the product structure to improve, push the new and pull the new, with new products to cover the old products, in order to improve operating profits. ButJudging from the feedback of Lao Gan Ma's dealers, there are often dealers who complain that Lao Gan Ma has serious regional goods in recent years, and after the interests of dealers are damaged, they naturally have no energy and money to invest in maintaining the market, which also directly leads to the decline of Lao Gan Ma's performance.

The channel model that Lao Gan Ma was once proud of seems to be at risk of "failure".

Source: Tmall Lao Gan Ma***

But no matter what, now, the old godmother acts".A Chinese business card on the tip of the tongueFrom the must-have of the Chinese table to the products that go abroad, they are all over the world and the country, which is not only a "must-have for international students" abroad, but also loved by many foreign consumers.

Moreover, the old godmother who costs a bottle of ** yuan in China is said to be sold for more than ten dollars abroad and is still sought after, which can be called a luxury in the condiment industry. Although there are endless doubts about "the old godmother can't do without Tao Huabi, the old godmother can last for a few years, the era of the old godmother is about to pass, and the channel model of the old godmother needs to be changed", but at least from the current point of view, the status of the old godmother is still difficult to shakeWhether the channel model of Lao Gan Ma's "big dealer" needs to be changed still needs to be verified by the market.

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