in the late 1980s and early 1990s, the mainland consumer goods market was a big blue ocean, the demand was far greater than the supply, and the competition was far less intense than now.
but blue ocean also means that you need to educate consumers: you have to let consumers know what ham sausage is? How do you eat? There is no harm in eating this, and it is not made of “XX meat”.
the most direct way to educate consumers is to advertise. The name “ham sausage” itself is the best advertisement.
because many people know that ham is a kind of red meat pickled food, and that “sausage” is a kind of red meat pickled food, and ham is still the best meat. [ham] and [sausage] are old terms, traditional and exquisite. But the combination of [ham sausage] is a new term, high-end and foreign. Easy to remember and spread. In
, it was easier to advertise. Although the media is much less, it is also more concentrated. You don’t need to put it everywhere, just put it in one place: CCTV. As the head of a meat joint factory in a small city, Mr. Gao was very courageous, took out half of the annual profit of the whole factory and advertised on CCTV for three months.
with the endorsement of CCTV, Chundu goes out of the circle and ham sausage goes out of the circle. The spring capital became famous overnight, and Luoyang has been expensive since then. Consumer ecstasy.
but local meat factories are more ecstatic. They found the wealth code. The meat factory has inherent advantages in making ham sausage.
first, we have mastered the pig resources. As soon as the pigs here are killed, we immediately put the pork into the workshop to produce ham sausage, which saves logistics costs;
second, pork is a cyclical agricultural product with severe price fluctuations. The slaughtering right is in their own hands. They have a stable supply of the most important raw materials and have advantages in cost.
Zhengzhou meat joint factory and Linyi Lanshan Bancheng meat joint factory, which are in business difficulties, see the opportunity to turn over. The meat factories went to war one after another, bought ham sausage filling machine, and successively launched their own ham sausage brands, namely [Zheng Rong] and [Jinluo].
of course, not all meat factories are broken down. Luohe meat factory in Henan Province sold raw meat to the Soviet Union alone in 1991. There were 100 million flowing water, belonging to the rich households in the meat factory.
saw that the peers next door made so much money. Luohe meat joint factory took out all its 16 million, imported ten production lines, and launched its own ham sausage brand – Shuanghui in 1992. Shuanghui and Jinluo also chose to touch the spring capital to cross the river and advertise on CCTV. The war of ham sausage is the war of the meat factory. The first war of
meat complex, such as the powder keg in the Balkans, was imminent.
ham sausage reduces the threshold of eating meat outside. It may be expensive to eat dozens of grams of pork for one yuan, but it is not expensive to carry it at any time and put it for half a year. Instant noodles and ham sausage have long been CP, which together form a set meal. The better instant noodles sell, the better ham sausage sells. In the years of Master Kang and the reunification war, the two families sold together with ham and sausage, and bought barrels of noodles to send ham and sausage.
in the age of green cars, ham sausage even surpassed instant noodles and became one of the green train packages. “Peanuts, melon seeds, eight treasures porridge, beer drink, ham sausage”. This is the memory of many people. With the increasing penetration of ham sausage, ham sausage has also become one of the indispensable condiments for cheap civilian food. The appearance of
ham sausage changed Chinese food and local snacks. In the orthodox Yangzhou fried rice, ham (ham in the real sense) is a necessary material, but after the emergence of ham sausage, ham sausage Ding has become a necessary standard for many fried rice. The ham born “noble” has become a double. The original orthodox Tianjin pancake fruit did not have ham sausage. But after the emergence of ham sausage, many pancakes and fruits sold on the streets of cities contain ham sausage. The ham sausage in the barbecue stand and the lunch meat in the hot-pot/" 22375 rel="nofollow" target="_self">hot pot shop are still the food that everyone must order until now.
in the following three years, Chundu rode the dust, with annual sales of nearly one billion yuan. Due to the first mover advantage, even after Zheng Rong and Shuanghui ham sausage have been listed successively, the sales volume of Chundu brand ham sausage still accounts for 70% of the market.
as the pioneer of this category, the spring capital is at its peak. Until now, there is a road called “spring capital road” in the old urban area of Luoyang. As a fully competitive consumer goods with theout any signs of the monopoly, Chundu does not even establish its own channels and waits for dealers to pick up goods. Because they sell too well, sometimes the dealer doesn’t necessarily get the goods when he pays for them. This strategy, I call it Jiang Ziya strategy: those willing to pick up the goods.
spring capital was the real top stream at that time.
Chundu has made the same mistake as many big enterprises that became famous overnight: diversification.
as it is a large local enterprise, banks are asking for loans from it. The cash flow of ham sausage business is very good. There is no need for loans, so they borrow money to do other things, so they charge a lot of companies that have nothing to do with their main business. Then, the slaughtering process was given to suppliers in Chundu.
meat factory lost slaughter, just like instant noodles without fork and no soul. When Chundu was listed, Chundu introduced its products in this way: our company has many fist products, including Chundu cola, IC card meter and Banlangen buccal tablets. Consumer stocks, technology stocks and pharmaceutical stocks have both. Accountant Jia scratched his head when he saw it, and Kun Kun wept when he saw it. I don’t want any crotch.
if we put it now, several listed companies can be supported by this pile of stories alone. But at that time, there were not many investors and there were too few leeks. You couldn’t cheat money by telling stories.
diversification is not impossible, but it is suitable only after you have done your main business thoroughly, have no rivals and have a real moat in your main business. Otherwise, there will be two problems.
first, the resources are scattered. Taking a cash cow to provide many businesses that still lose money in the short term, the cash flow is prone to problems. When there is a problem with cash flow, you will be in a hurry and go to hospital.
second, limited energy, it is easy to be stolen. For example, the “human flesh gate event” in Chundu.
in the winter of 1993, the cold storage of raw meat in Chundu caught fire and lost 2600 tons of raw meat. The management of Chundu thinks that some of the burned raw meat can still be used. Yes, it is, but it hasn’t been completely burned yet. Therefore, Chundu ham sausage produced at that time had a strange smell. This matter was used by competitors to make an article.
“according to my third uncle’s aunt, there is human meat in Chundu ham sausage!” consumers panic and dealers panic. Chundu was originally the industry leader in short supply of products. After this incident, the sales volume was directly wilted.
says it has a small pattern. It is the founder of ham sausage. At the same time, it is a Chundu empire that wants to be a “big” all the time. There are more than a dozen different track industries. It says it has a big pattern, but it thinks 2600 tons of raw pork is more important than its own brand. It can be called Schrodinger’s pattern.
although meat factories around the world can do this business, not all meat factories have this ambition. This also led to the ham sausage Market being a seller’s market for several years. You just need to let others know that you are selling. If you have this product, the dealers will keep coming to you.
however, as long as it is a profitable business, over time, competitors will continue to join, which is a derivative of the law of supply and demand. With the continuous rise of ham sausage brands all over the country and the continuous increase of production lines, the seller’s market also began to become a buyer’s market. Different from the various instant noodles at that time, although there are many ham sausage brands around, there is no distinction at this time.
we all came from a meat factory with similar technology and upstream and downstream supply chain management, so that the homogenization of products is very serious. The ham sausage in the hands of consumers is packaged in red. The content of pork is almost the same, only the logo is different. Even the controversial “Shaolin brand ham sausage” at that time was no different from Chundu and Shuanghui in appearance. When
products are homogenized, channel capability needs to be brought into play. At that time, the channel management was relatively simple. As long as “yes”, you won more than half.
Shuanghui has established offices in major cities all over the country for a long time. During this period, the mainstream business form in the country was the wholesale industry. Each provincial capital had one or several large wholesalers who controlled the market through wholesalers at all levels and terminal retailers. The task of the salesperson in
office is very simple, “protecting large households”, looking for large wholesalers, and then maintaining the relationship with large wholesalers. The buyer in the buyer’s market is a large wholesaler and a large household. They decided whether to let Chundu or Shuanghui occupy the shelves if it is the same profit.
only by establishing a stable channel relationship can we fight a price war. A very simple truth is that if you cut prices several times in a row in half a year, which Dealer dares to purchase. However, if a stable and sticky channel network is established, your wholesalers believe in you. Even if you fight a price war, he believes you will let him make up for the loss in other ways. The large wholesaler’s money is returned in full, and the canteen’s money is divided into three or seven. Fighting a price war is essentially a channel war. The channel is not only the front-line main force, but also the rear food and grass.
in 1997, the price war began. The price war first changed from product specifications. A ham sausage was reduced from 100g to 80g, then to 78g and 70g. Of course, as the weight decreases, the price also decreases. After all, consumers are not fools. When there is no way to reduce the specification, the content of meat has become the focus of the price war.
Jinluo ham sausage from Linyi, Shandong was the first to launch the attack. At that time, Jinluo first lowered the pork content of ham sausage to 70% and the price. In that era when consumers’ income was not high, this move worked very well. Only by reducing the meat content so much, consumers could not tell the difference, but the price difference of a few cents was very perceptible.
brand value will take a long time to highlight. For example, many European and American brands need at least two generations to have the so-called brand value and extremely loyal consumer groups.
even if Chundu is the creator of this category, it is only a few years. It can’t cultivate very deep loyalty in such a short time. So others’ low prices beat their brand value.
so Shuanghui also began to reduce prices. The pork content of 100g ham sausage increased from 85% to 70%, and the price decreased from 1.1 yuan to 0.9 yuan. Chundu, whose reputation was seriously damaged, followed suit. Shuanghui continued to play cards, the content of pork decreased to 60%, and the price also decreased. Spring follows. Shuanghui continued to play cards and the content of pork decreased to 50%. Spring follows. Until the price hit 50 cents, the pork content was only 15%.
Shuanghui hid a hand in this card game. Every time Shuanghui lowers the price, the output of ham sausage after adjusting the price will be reduced by 10%. In the end, the output at the lowest price of Shuanghui was only 10%.
that is to say, during the period of price war, Chundu is full of such starch intestines, but Shuanghui is only in the mouth. Only a small number of starch intestines are available, and most of what consumers see on the shelves are original meat intestines. But Chun doesn’t know it’s fishy. It’s all in every time.
at the end of the price war, Chundu brand ham sausage has become an out and out starch sausage. It can hardly taste meat. If you bite it down, it is all starch. Many people’s childhood taste is actually the taste of seasoned starch. The key to
is that other small brands have little impact on reputation, because the whole market is full of starch intestines, but for Chundu, it is fatal. Because they are top stream. Since then, Chundu ham sausage is no longer a ham sausage in the eyes of consumers, but a “noodle stick”, ranking among the top four staple foods in the Central Plains side by side with steamed stuffed bun, steamed bread and stewed noodles. The main consumers of
ham sausage are urban users, which are sensitive to price, but not so sensitive. The reason for buying ham sausage itself is to eat meat. When Chundu has become synonymous with starch sausage, there is no need to buy it.
and Shuanghui have become synonymous with high-grade ham sausage. No, it has become synonymous with ham sausage. Because at this time, the ham intestines of other families are close to starch intestines. This move is a real cow X. it takes drastic measures, hides the situation, kills people with a knife, and dares to hit the cost. This price war was not launched by Shuanghui at all, but it was used to the extreme by Shuanghui. In the second year of
, the market share of Chundu fell to 14.7%, while that of Shuanghui City exceeded 40%.
when the market is not so voluminous, the moat has not been built in spring. When the market is voluminous, there is no way to deal with picky consumers and new volume kings killed at any time. After that, Chundu almost withdrew from the market.
right now, I checked the sales volume of Chundu ham sausage on e-commerce, which is not the same order of magnitude as other competitors. Shopping malls are like battlefields. New people kill old ones.
the reason why Shuanghui can be the king is still the channel. The channel should sink. Originally, the province was the marketing unit, and the sales volume in the provincial capital city was large. But as ham sausage has become a synonym for cheap food, it needs to sink to the county, villages and towns.
channels should be decentralized. Instead of “protecting large households”, they began to “kill large households”. In the past, wholesalers distributed layer by layer, and now brands directly connect with all small and medium-sized dealers and retailers.
channels have to end themselves. As early as 1999, Shuanghui began to build its own sales terminals in many places and set up chain stores, no longer relying on large supermarkets and facing real consumers. You know, at this time, the era of e-commerce has not come yet. Facing consumers directly, there will be real data feedback and can really understand what consumers want.
the golden gong, Yurun, Jiangquan, Meihao and the God of the Tang Dynasty still exist for a long time, but they have never launched a decent charge again. In the sales ranking of all high-temperature meat products, Shuanghui is followed by Jinluo, Meilin and new hope. The fourth ranked new hope Meihao ham sausage is a regional brand located in the southwest corner, with only 3% market share in 2016. They are more famous for breeding. The third place Merlin, although already the first in the field of lunch meat, has only a revenue of 1.5 billion in 2020, with a year-on-year increase of only 4%. In Yurun, which is more famous in the southern market, the revenue of ham sausage is only more than 300 million yuan (data in 2013, not even published in 2016), more famous is real estate.
Shuanghui has won, but it has to face a problem: whether it is ham sausage or lunch meat, it will not disappear, but it will decline. The main reason for the birth and explosion of
ham sausage is the lack of consumption power of residents. This small package of high-temperature meat products mixed with starch and pork was just a helpless [flat replacement] when it was born. “Flat replacement” means that when there is better food, it will be easily replaced. In fact, in everyone’s mind, ham sausage is “junk food”.
in 2001, the revenue of Shuanghui ham sausage was 2.68 billion yuan, while 18 years later, the revenue of Shuanghui ham sausage was 16.17 billion yuan, an increase of six times, very fierce, but the average compound annual growth rate was only 3.4%.
this growth is still the growth after grabbing the share in the stock plate. Many small brands have slowly withdrawn from the market, such as Deda in Jilin. This growth rate is not sexy for a head company.
Shuanghui, which started with ham sausage, tried every means to get rid of its image as a “ham sausage company”. In 2001, the sales revenue of ham sausage accounted for 79.7% of its revenue, while in 2019, this proportion has fallen to 26.81%. Its next goal is low-temperature meat products.
ham sausage makes the word “ham” no longer belong to “Jinhua ham” and “Xuanwei ham”, but become the representative of a kind of food. They are also derivatives of the word “ham”, but they are neither “ham” nor “ham sausage”.
in 2001, Shuanghui’s revenue of low-temperature meat products was 376 million yuan, and in 2019, the revenue of low-temperature meat products was 9 billion yuan, an increase of 24 times. The growth curve is obviously more sexy, and there is a future.
in our country, the vast majority of pork consumed is fresh meat sold in bulk, but most of the meat eaten in developed countries is low-temperature meat products. As mentioned earlier, low-temperature meat products have extremely strict requirements on processing technology and storage mode. While ensuring the nutritional taste of meat products to the greatest extent in the whole process, they are also safer and hygienic. However, because of the cumbersome processes in processing, storage and transportation, the overall price is more expensive.
the demand growth of low-temperature meat products is directly proportional to the income of residents. It is not just because the production cost of low-temperature meat products is higher. Moreover, because the shelf life is shorter, more frequent consumption is required to ensure that the inventory is consumed quickly. This is a relatively luxurious demand. Upgrading from high-temperature meat products and cold fresh meat products to low-temperature meat products is an inevitable trend of mass consumption.
as early as when the meat joint factory in the North was still fighting in the battlefield of high-temperature meat products, Yurun in Nanjing had quietly attacked the city on the track of low-temperature meat products. If it were not for their various psychedelic operations, they would have great prospects.
in the early 1990s, high-temperature meat products were to C commodities, because they were relatively cheap and in greater demand; Low temperature meat products are relatively expensive meat products. The demand is mainly concentrated in restaurants and restaurants, which are to B commodities. When Yurun started to make low-temperature meat products in 1993, the sales volume was only 6.02 million yuan. Even after annexing Nanjing Cannery, the total sales volume was only 160 million yuan. Whether Chundu or Shuanghui, in the first few years of making ham sausage, the sales can easily reach the order of one billion.
is not because the rain suck but not because it is positively related to the income of residents. This is a business that will break out in the future, but the problem is that I don’t know when it will break out.
you can only pray that you will not die before this day.
high temperature meat products are easy to reach market saturation. The battle has ended before low temperature meat products have formed a scale.
Shuanghui and Jinluo quickly cleaned up the battlefield of high-temperature meat products and turned around to start the business of low-temperature meat products. After all, they have also established a national sales network, and they are the players who survived the ham sausage war and know more about to C business. Shuanghui’s compound annual growth rate of low-temperature meat products from 2005 to 2008 reached 42.89%.
Henan where Shuanghui is located and Shandong where Jinluo is located are both large pig raising and slaughtering provinces, and the upstream slaughtering capacity and breeding capacity are not weak. Ox X in the downstream is not weak in the upstream. In the face of such an opponent, this is a Zhenlong chess game. It’s a dead chess game.
Yurun’s method and strategy are: buy and capital operation.
Yurun has successively acquired 25 state-owned enterprises at low prices. These enterprises were originally located in the suburbs and generally had large industrial land and factories. In the rapid urbanization construction, they suddenly became the urban center, and the land suddenly became valuable. Land is valuable, which corresponds to the value of these acquired enterprises. The difference between the purchase price and the market price (called “negative goodwill” in Accounting) can be included in the profit.
like the spring capital of that year, Yurun also takes a diversified route and engages in food, logistics, commerce, tourism, real estate and finance. Only in this way can we break through the ceiling of revenue and become the world’s top 500. Of course, diversification does not forget to expand to the upstream of food.
due to the establishment of pig breeding bases in various places, Yurun also received a lot of government subsidies and tax relief. In 2012 alone, Yurun received HK $887 million in government subsidies.
but some media exposed that after these breeding bases were built, they did not see pigs and heard pigs barking. This may be a new breed. Although you can’t see or hear, you can’t say no. The emperor’s new pig for short. Because the subsidy has been taken, I advise you not to mind your own business.
of course, diversification alone is not enough, subsidies alone are not enough, and accounting alone is not enough. It has to be combined with the capital market.
in 2004, the balance of Yurun’s negative goodwill account was even more than its operating profit, and the valuation of the secondary market was based on the P / E ratio. Double the net profit and double the market value. Double the market value, and you can finance more money when you set an increase. With more money, you can buy more companies, build more production bases and get more subsidies. The perpetual motion machine was invented.
Chundu, who is also engaged in buying strategy, is jealous of Yurun: why can you show so well.
in 2015, the performance of the central shopping mall of Yurun’s listed company was thunderous, and Yurun also fell down like a domino, and the low-temperature meat products business started by Yurun was also implicated. Yurun and Chundu are the same, because diversification has scattered too much energy.
in 2011, Shuanghui published the “Clenbuterol incident”. This would have been an excellent opportunity for Yurun to counter attack, but because he focused on real estate and other businesses, Shuanghui blood tank soon recovered. Because after Shuanghui, Yurun and Jingong have been exposed to quality problems.
the market is not afraid of better than good, but afraid of worse than bad. In the meat products market share in 2019, Shuanghui became the first with 18.1%, being the king in the two tracks of high-temperature meat products and low-temperature meat products. It can be called the real king of kings.
there is spring capital before and rain after. They all started to diversify before their main business stood firm. They also expand everywhere and engage in industries that have nothing to do with the food industry.
diversification is actually a metaphysics. For example, Chundu is a butcher, and pigs and cattle not only have meat, but also other commercially available things, such as pepsin, which can treat gastritis. Do you want to be a pharmaceutical factory at this time? For example, ham sausage can appear because PVDC, when the domestic supply chain was not so mature and perfect in the early stage, do you want to set up a factory to produce it.
some diversification is for the industrial chain, and some diversification is to circle money and tell stories. Focusing on one field is not only easy to live, but also a very top enterprise. For example, Haitian, Maotai and Fuling mustard, although they also have some non main business companies, they have made little progress.
but diversified, the outcome is not very good. For example, X flight, such as x large, such as X vision. Because of its addiction to diversified competitors, Shuanghui didn’t even fight much and basically won the war. This may also be the real reason why wanjialaozi and eldest childe are in the mood to fight. After all, only with the enemy can we unite with the outside world. There is no enemy, so we have to fight our own way.
as early as 2008, low-temperature meat products had exceeded 5.8 billion yuan and only increased to 8.9 billion yuan in 2019. High temperature meat products increased from 8.8 billion yuan in 2008 to 16.2 billion yuan in 2019. In terms of absolute value and growth rate, Shuanghui’s focus on meat products is still on ham sausage. Although it is unwilling to admit so.
the reason is simple. If you really get low-temperature meat products, what about ham sausage. Similarly, why didn’t master Kang vigorously promote fresh noodles like “Ramen theory”? Is it because Master Kang has no R & D ability, channel ability or marketing ability?
why are traditional car companies always slow in launching new energy vehicles? Why didn’t Nokia embrace Android for the first time? It’s not that they don’t understand, but that they understand and do too well, so they bind themselves. Because the original cash cow and the future cash cow are substitutes for each other. This seems to be an unsolved problem. Because you are too strong, you can’t beat yourself. Can only be defeated by others. Another problem with
is the confusion of brands. Even unified instant noodles will be subdivided into fine molecular brands such as Yipai, Qiaomian restaurant and Tangda people according to different characteristics of products. However, Shuanghui ham sausage, Shuanghui low-temperature meat products and Shuanghui cold fresh meat have always shared a signboard. For a long time, I have always thought that Shuanghui corn hot dog sausage is a kind of ham sausage, but it is actually a classic version of Shuanghui low-temperature meat products. Sometimes the role of
brand is to distinguish. In 2011, when some Shuanghui cold fresh meat was detected to have clenbuterol, Shuanghui ham sausage and low-temperature meat were impacted. Sales of low-temperature meat products are slow, and high-temperature meat products are at the top again.
looking at the 2019 annual report of Shuanghui, the slaughtering industry has accounted for 64.83% of the revenue. Then simply say you are a pig killing company. Nearly 30 years have passed since the birth of the first ham sausage in Shuanghui. The ham sausage factory has changed back to the meat factory of that year. It’s like a cycle.
this classification is derived from the price war. Many consumers were afraid of the category of ham sausage at once, because it was completely Schrodinger’s ham sausage. The ham sausage we ate today is not the same as the ham sausage we ate yesterday.
in 2007, the General Administration of quality supervision, inspection and quarantine and the National Standardization Administration jointly issued the national standard of ham sausage. The national standard divides ham sausage into four grades: super grade, excellent grade, ordinary grade and starch free products. The starch content is less than 6%, 8%, 10% and 1% respectively. The minimum protein content ratio is also specified. Whether in Chundu or Shuanghui, the starch content of the earliest ham sausage was more than 15%.
that is, even the ordinary ham sausage with the most starch content has higher meat content than most ham sausage in the 1990s. But！ The national standard does not stipulate that all the meat must be pork.
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