Spicy bar is a kind of delicious food that many people dreamed of when they were young.
However, just like we were not the primary school students who shared a package of snacks at the school gate, spicy bar was not the spicy bar of that year.
Some time ago, Wei long, a big brother in the hot strip industry, announced that he would go to Hong Kong for IPO this year, raising $1 billion.
Weilong food plans to raise $1 billion in IPO
This fund-raising amount is the same as that of Nongfu mountain spring, which was listed a few months ago. The listing of Nongfu Shanquan directly made the founder Zhong Qiong the richest man in China, although it only took half a day.
There is no doubt that the listing of Weilong, with an annual output value of more than 50 billion, will certainly make the founder Liu Weiping rich.
This small town youth from Pingjiang, Hunan, has only high school culture, but is a marketing genius who can make Durex silent and make apple cry.
Liu Weiping, founder of Weilong food
Next, let’s take a look at how Liu Weiping took Weilong on the IPO road.
The porter of spicy noodles
In fact, the history of spicy noodles is only 20 years. Liu Weiping is not the inventor of spicy bar, but the porter of spicy bar.
The real inventor of spicy noodles is Fu, a teacher of sauce drying in Pingjiang, Hunan Province.
In 1998, they first used flour instead of soybeans to make a kind of cooked food similar to gluten. The taste of salty and spicy is similar to that of dry sauce, but the price is much cheaper.
In China, the food industry pays attention to the help and guidance of the villagers, just like the Barbie steamed bread on the market in Huaining County of Anqing; Shaxian County has occupied the users’ mind of the small steamed bread with noodles. After the birth of spicy bar, the whole Pingjiang county is full of spicy and sweet fragrance.
In 1999, many villagers were still opening factories in Pingjiang. At this time, Liu Weiping turned his eyes to Luohe, Henan Province.
Why Luohe? The answer is still the magic code: cheap.
“China’s big kitchen” — Luohe, Henan Province
Luohe is the “big kitchen of China”, with abundant grain production and complete industrial chain. Shuanghui, Lotte, COFCO and Wangwang have all built factories in Luohe. Panpan, Qinqin and Qiaoqiao from Fujian have also taken root in Luohe. Liu Weiping was just one of the thousands of foreigners who set up factories in Henan in the late 1990s.
Since then, spicy bar has been divided into Hunan and Henan schools. When establishing the national standard for spicy bar, they have fought hard, and no one can agree with anyone, but that’s what happened later.
Two schools of spicy noodles
In short, at the beginning of his business, Liu Weiping had no money, no contacts and no fame, but his marketing strategy was a blow to other small workshops at that time.
He hired farmers to do land pushing, with Weilong hot strip processing factory as the center, covering an area of 200 kilometers. Posters of Weilong hot strips can be seen everywhere from Carrefour and Wal Mart to schools and community canteens.
Weilong’s initial marketing strategy
In order to make it convenient for students to put spicy strips into their pockets directly, Liu Weiping also reduced the original 12 cm package by one size.
These tricks, with the current popular marketing words, is to accurately guess the user’s psychology. Internet companies engaged in wall brushing and ground pushing are even later than those engaged in spicy articles.
In 2003, Liu Weiping registered the trademark “Weilong Weilong”, just like there is no wife in wife cake, phoenix claw is not phoenix claw, and there is no dragon in Weilong spicy bar.
Weilong registered Weilong trademark in 2003
There is a saying about the origin of the name “Wei long”. At that time, Liu Weiping’s idol was Jackie Chan. Therefore, he combined his name with Jackie Chan’s name and named it “Wei long”.
Having a hard time with one’s idol, this is probably the “top two” Star chaser in the 21st century.
Just like Jackie Chan’s role as Chen Jiaju in the police story, Liu Weiping has fought several hard battles in the process of turning a spicy bar into an empire. It sounds like a story today. It was an accident back then.
Weilong break through
To be a leader in the hot strip industry
At the end of 2004, spicy bar ushered in its cliff like decline.
CCTV exposed the use of illegal additives in a food factory in Pingjiang county. Since then, the food safety accident and illegal addition scandal surrounding spicy strips have not been stopped. What’s more, it left behind the urban legend that “spicy strips with strange and delicious taste must be a group of aunts who don’t like to wash their feet and cheat children barefoot”.
The urban legend of spicy noodles
As far as Liu Weiping is concerned, this food safety storm has not had much impact in terms of policy. Because before that, he put all the money he earned into the transformation of the production workshop.
He bought an expensive production line from Europe, and changed the packaging machine from semi-automatic to full-automatic. He was no longer the peddler who used to produce in small workshops and sell snacks in the streets.
Weilong’s automatic production line
However, from the market side, Weilong is not very different from other spicy bars. They are all unhealthy food.
Consumers lose trust, leading to market shrinkage, and the oversupply of spicy bar is more serious. Only about 10% of the profitable enterprises want to survive, the only way is to transform and upgrade.
At a time when many spicy bar manufacturers across the country are striving to protect themselves and reduce costs, Liu Weiping is ready to fight back.
In the first mock exam, in 2010, Wei Lung jumped out of the single mode of spicy products and started a series of “kiss dried tofu”, which invested 50 million yuan and began to enter the bean products industry formally.
Weilong march into bean products industry
Fu, a teacher in Pingjiang County, turned from soy sauce to flour products in those years, which made his way to spicy noodles. But more than ten years later, dried beans gave Weilong spicy bar a second spring.
It has to be said that the trend is a circle, so is the history. By constantly pushing new products and expanding factories, Weilong survived.
From 2008 to 2014, the number of spicy bar enterprises in China dropped sharply from 2000 to more than 500. With the survival of the fittest, the advantage of Weilong’s early layout has been highlighted.
Total number of spicy bar enterprises in China from 2008 to 2014
But if you just stay here, Weilong no matter how powerful it is, it’s just a popular snack in supermarkets and grocery stores, and can’t become a real online celebrity.
How did the name of Weilong hot bar and wanghong top come from?
In 2014, Weilong moved into the newly built factory, and Liu Weiping invited a group of professional photography teams to shoot promotional films. The fully automated production line is totally different from the spicy bar workshop in the public impression.
When the photos were posted on Weibo, they received millions of reading in just 18 hours, which made Liu Weiping realize the power of online marketing.
So while the iron was hot, Zhang quandan was invited to the production workshop to broadcast “how spicy strips are made”. At that time, Weiya just became the anchor, and Li Jiaqi just signed a contract with meione.
Cooperation between Weilong and wanghong Zhang quandan
This series of operations are actually the prelude to Weilong’s e-commerce.
There’s no other reason. When the post-80s and 90s, who were seduced by snacks in their childhood, finally grew into rich adults who could buy whatever they wanted, they began to indulge in online shopping and writing jokes, and they also began to pay attention to health and health preservation. It’s obviously not enough to keep the offline channels for snacks.
In 2015, weilongdapu e-commerce channels entered tmall, Jingdong and No.1 stores, which is about three years later than the three squirrels, liangpinpu and other snack brands.
In 2015, three squirrels sold 250 million yuan a day, and liangpin store also sold 123 million yuan. The first wave of online dividends has been firmly occupied by Youshang.
If Weilong wants to break through, he must find another way to let others remember it.
“Heavy taste” of Weilong
How far can we go in the future?
Different from liangpin shop and three squirrels, which are good for both young and old, spicy strips are high in oil and salt, and the consumers who can eat them freely are mostly young people. Young people are good at deconstructing things, like fun, personality, mischief, hate tradition and invariability.
Liu Weiping recognized what the target consumers like, so he cooperated with runaway comics to launch a series of expression packs, such as “come to pack spicy strips and be quiet” and “eat spicy strips to suppress surprise”.
Cooperation between Wei long and runaway comics
They can satisfy almost any kind of life emotion of young people. Maybe you still have several such pictures in your mobile phone.
After a wave of jokes, Liu Weiping seems to have forgotten the reality that Weilong is just a “hot bar”. He dares to think of anything in terms of two dimensions and technology.
In 2016, while hundreds of millions of Apple fans are looking forward to the release of iPhone 7, the tmall flagship store of Weilong spicy bar has updated its visual design, changing the previous image of “made in front of the school store”, full of “Apple style”.
The company even launched a new product “hotstrip 7” and “kiss roast”, which is famous for burn kiss. “It has a large capacity of 250g and is chewy and chewy, with a limit of 500 copies.”.
Weilong launches hotstrip 7
It makes people feel as if they are sitting in an open-air restaurant on the Bund overlooking the Huangpu River, taking a sip of zero Coca Cola, which was made in Bordeaux, France, and enjoying the city’s lights. At this time, they are accompanied by a package of elegant hotstrip.
Perhaps, the pursuit of life, but so.
For young people and children who are extremely rich in materials, they can buy snacks as much as they want. But why do we always think that snacks are not as delicious as they were when we were children?
It is no longer money that prevents us from eating snacks, but the mood of eating and the concept of health.
It is estimated that the total output value of the snack industry will be close to 3 trillion yuan in 2020. In the field of snacks, there is no shortage of listed companies. The three squirrels who make nuts and youyou who make pickled peppers and chicken feet have been listed successfully for a long time. Spicy bar is a small branch in the field of snacks.
In 2019, the market scale will reach 65.1 billion yuan, with a compound annual growth rate of 8.59%. It is estimated that the market scale will reach 94.9 billion yuan by 2026.
Market scale of spicy strip industry
Relying on a good marketing strategy, Weilong’s sales reached 4.909 billion yuan in 2019, with a growth rate of nearly 43%, embarking on the road of IPO.
However, it should be noted that this is not the first time that Weilong has heard IPO news. There was similar news in 2018, but there was no news in the end of that IPO.
There is speculation in the industry that this is because under the new trend of healthy food, the growth space of spicy bar with heavy taste may not be so optimistic.
What’s more, the gross profit of spicy bar is as high as 50%. Three popular online snack brands, such as squirrel, liangpinpu, baicaowei and yanjinpu, have entered the spicy bar industry.
The Maori of spicy strips is as high as 50%
Weilong is no longer trying to solve the problem of popularity. Just like coca cola, it has to constantly introduce 0-calorie-0-sugar healthy drinks.
Sometimes, the danger does not come from competitors in the same field, but from a big change in consumer philosophy.
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