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can Fuling mustard, which makes money by raising prices, work?
In the eyes of foreigners, there are two mysterious cuisines from the East:
One is the national goddess Lao Ganma hot sauce, which is called “the godother” by foreigners
Another is Fuling pickled mustard, the national God, which was translated into eternal mustard sticks and came to the table of foreigners.
In 2021, Wujiang mustard has been exported to more than 50 countries and regions in the world, such as Europe, the United States and Japan, and sold 15 billion bags globally.
In 2021, the revenue of Fuling mustard has reached 2.5 billion, and in the first half of 2022, the revenue has exceeded 1.42 billion.
However, compared with the old godmother who has not raised the price for more than ten years, Fuling pickled mustard can be called an ordinary price rising genius.
According to statistics, from 2008 to now, the price of Fuling pickled mustard has risen 13 times in the past 14 years, which is far higher than that of Maotai and has been criticized by Chinese netizens.
Fuling mustard, how does it become more and more expensive?
From “national diaosi” to “national male god”,
It all depends on this man
Fuling can become the first brother of mustard. It belongs to God to chase and feed.
First of all, let me show you that Chongqing, Zhejiang, Sichuan, Hunan and Guizhou are the only provinces in China that are most suitable for the growth of green vegetables.
Among the five provinces, Fuling area has the most crisp and tender green vegetable heads, and the local green vegetable heads account for nearly half of the national output.
Fuling people rely on the pickle skills to earn money to support their families, and at the same time, it also drives the rural economy. Everyone in Fuling has the unique skills of pickles, and sometimes comes to a pickle battle competition.
In 1988, Fuling mustard plants were integrated into Chongqing Fuling mustard group, and the mustard launched was Wujiang mustard.
But people who can pickle mustard may not be able to make brands.
By 2000, Fuling pickle company had a debt of 175 million yuan. More than 20 factories were all backward old workshops and had to support more than 4000 workers.
The annual loss is more than 5 million yuan, and the employee’s salary is almost unavailable.
At this time, the man who changed the fate of Fuling mustard appeared.
Zhou Binquan, who was 37 years old at that time, was still a state-owned enterprise executive of a listed company. However, he was transferred to serve as the general manager of Fuling pickle group.
There is no way out of heaven. Due to the impoundment of the Three Gorges, the company unexpectedly obtained a demolition fund of 140 million yuan.
At that time, Zhou Binquan led all the senior executives of the company to discuss how the money was spent on the blade?
He saw two “stubborn people” who made Fuling pickles lose more and more
Compared with Fuling mustard, the factory price of Maotai in 2008 was 438 yuan, and today’s retail guide price of 1499 yuan, an increase of about 240% in 10 years.
Just talking about the increase, Fuling mustard directly crushed Maotai, known as “Mustard Maotai”.
Is the Chinese people really so tolerant of the price rise of mustard?
In fact, it is not because of the 13 price increases, only 5 were direct price increases, and the rest were indirect price increases.
In order to reduce the negative emotions of consumers, Fuling mustard prices are often raised secretly.
Or “short weight”. In 2020, Fuling mustard directly reduced its main products from 80 grams per bag to 70 grams, realizing a disguised price increase.
Or “slightly” increase the quantity while raising the price, from 1 yuan 60g to 1.5 yuan 88g;
Fuling pickles have become more and more powerful in making money by increasing prices.
For example, from 2016 to 2018, Fuling pickled mustard once relied on price increase, with revenue growth exceeding 20% and net profit growth exceeding 50% for three consecutive years.
This seems to make Fuling mustard taste sweet. In 2020, it reduced the cost by reducing the grams of some products to achieve the purpose of increasing profits.
It even launched a mustard gift box with an official price as high as 888 yuan and a “five-year Chenxiang gift box” mustard, but the price was as high as 1521 yuan.
In the past ten years, Fuling pickled mustard has relied on this set of price increase methods to increase its net profit from 30 million yuan in 2008 to 600 million yuan in 2018.
In addition to entering the high-end market, Fuling pickled mustard also wants to stand on one side, that is, health.
This year’s CCTV “315 party” opened the dark curtain of tukeng pickles. On the same day, Zhujiang economic station and consumer report magazine also published a list of “top ten products not recommended in 2021”. Among them, Wujiang pickles, the main product of Fuling pickles, was listed because of its high sodium content.
This incident attracted great attention from Fuling mustard, and specifically responded that mustard complies with national standards.
However, this incident did hit the soft spot of Fuling mustard, because the direction of Fuling mustard in recent years is to “vigorously grasp the three growth points of mustard price adjustment, health and new development”.
But the problem is that pickled pickled mustard is hardly linked to health.
For example, the sodium content of Maotai flavor, Qingxiang flavor, sour and spicy flavor of Wujiang mustard is 2165 mg / 100g, and that of spicy flavor is 2558 mg / 100g;
Generally speaking, the food with sodium in solid food exceeding 600 mg / 100 g and the food with sodium in liquid food exceeding 300 mg / 100 g belong to high sodium food.
That is to say, no matter how much salt is reduced, Wujiang mustard still belongs to the category of high sodium.
Many marathon runners will choose more professional salt pills when they supplement salt. The sodium content of pickled mustard is more than 2.5G per 100g, and the sodium content of salt pills per 100g is generally more than 20g, which is 10 times that of the former.
It is hard to justify the fact that salt is replenished and salt is reduced.
Fuling mustard is a listed company, different from the old godmother who insists on not going public.
Tao Huabi, the leader of Lao Gan Ma, has a famous saying: Lao Gan Ma will not be listed, and listing is a fraud.
This may be a bit extreme, but it is not as easy as expected for Fuling mustard to support its profits by raising prices.
Rather than being high-end, it is better to stick to national level explosive products. Mustard is mustard after all. Don’t lose the life of Maotai, but fall into the pit of rising prices.
If time-honored brands and national products want to continue to be popular, we must remember:
Come from the masses and go back to the masses.
Reprint authorization and media cooperation: Jennifer (wechat: 15151447934);
The annual income is 2.5 billion yuan, and the price rise is even worse than Maotai! The nation is not old, and the male god is gone too?
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