I collect gold fingers in the heavens

Chapter 131 Condiment Rivers and Lakes
[Thirteen Fragrances] is a kind of compound spices, and there are products similar to it, such as [five-spice powder].

In this industry, the scale of enterprises is not large. Manufacturers with less than 500 employees accounted for 48%, manufacturers with more than 500 employees and less than 1000 employees accounted for 27%, and large enterprises with more than 2000 employees accounted for less than 10%!

Su Shixian and other executives found a spice manufacturer for Wu Siyuan, which belongs to a small factory with less than 500 employees.

The name of this company is [Jiawei Condiment Co., Ltd.], which is located in Hongye Industrial Park, Lechuan City, Yu Province. It is a condiment enterprise integrating R&D, production and sales. Vinegar sauce, spicy oil, all kinds of small ingredients, chicken essence, spices and all kinds of marinated ingredients have a history of more than ten years in the local area. The founder Lin Yixin started from a small workshop, from morning to night, relying on integrity and taste, Step by step, gradually grow bigger, counted as a time-honored brand in Lechuan City, selling well.

However, with the growth of age, the founder Lin Yixin became older and had no energy to manage the company's affairs, so this family business was handed over to Lin Xiaofeng, the second generation of the Lin family.

Lin Xiaofeng was sent abroad to study since he was a child, and after returning to China, he has always been ambitious and wants to show his strength.

It's a pity that the ambition is great and the talent is sparse.

After taking over the company, despite the persuasion of Dong Huiming, the company's original marketing director, he was self-righteous and aggressive, and started two policies of reducing expenditure and increasing open source in the company.

In terms of cost reduction, Lin Xiaofeng lowered the purchase price of raw materials, and the suppliers were unprofitable, so they used defective products or other types of raw materials, resulting in the deterioration of the flavor of various main condiments of [Jiawei Seasoning Co., Ltd.], causing customers dissatisfied.

After many regular customers bought it once, they were unwilling to buy it again and turned to other big brands of condiments, which eventually led to the loss of customers and a decrease in market share.

In terms of open source, he has launched a variety of new products in an attempt to take the road of a full range of condiments and suppress dealers' goods.

As a result, the market response was not good, and all the goods were backlogged in the dealer's warehouse, and they never helped them deal with it, which caused the dealer to be full of resentment.

With the condiment market still unstable, Lin Xiaofeng listened to the [nonsense] of the experts again, saying that he was talking about diversification, and went to develop real estate in partnership with others.

As a result, the developer ran away with the money, and Lin Xiaofeng lost several million yuan.

After struggling for a year or two, finally, Lin Xiaofeng managed to bring [Jiawei Condiment Co., Ltd.] to the brink of bankruptcy, owed a pile of debts, and a lot of bad debts from various distributors!

The gray-haired founder Lin Yixin had to come out to deal with the mess.

He agreed to sell the company to Wu Siyuan for one million, but there was a condition that Wu Siyuan had to take over [Jiawei Seasoning Co., Ltd.]'s nine million debt at the same time!

In other words, Wu Siyuan actually wanted to spend [-] million to buy this company.

To be honest, [Jiawei Seasoning Co., Ltd.]'s fixed assets will not exceed 500 million.

The price Lin Yixin offered was a premium.

However, considering the time cost, as well as [Jiawei]'s brand and channels, Wu Siyuan finally accepted the offer.

The two quickly signed a contract.

With the successful transfer, Wu Siyuan became the new owner of [Jiawei Seasoning Co., Ltd.].

The first thing he did was to find Dong Huiming, the original marketing director of [Jiawei Seasoning Co., Ltd.].

He said he was the marketing director, but in fact, he had always been the general manager's job before.

Dong Huiming is a middle-aged man in his forties, with a square face, neatly combed hair, waxed, and a serious expression.

After graduating from high school, he joined [Jiawei Condiment Co., Ltd.], starting from a small business soldier, growing up step by step, from supervisor, to manager, and then to marketing director. He is familiar with all kinds of situations in the condiment market. , and the relationship with major condiment distributors in Yu Province is also very good.

In the past two years, [Jiawei Condiment Co., Ltd.] has not yet come to the point of confrontation with its distributors, which is the reason for Huiming.

Of course, the problem of these dealers' expired futures still has to be dealt with, but Dong Huiming temporarily suppressed it.

Dong Huiming was not surprised that after Wu Siyuan took over, the first thing he did was to find him.

The so-called [generals choose soldiers], [soldiers also choose generals], for this new owner, Dong Huiming also wants to meet and chat.

If it's the same as Lin Xiaofeng, then forgive him for not accompanying him.

He doesn't have much time to spend here with others!

[Haitian Flavoring Co., Ltd.] has always seemed to be poaching him, but he was thinking of the old relationship with his old company, so he was unmoved.

The new owner has no such scruples!

Wu Siyuan didn't know that the marketing director had such thoughts.

After meeting Dong Huiming, he asked directly, "Mr. Dong, as the company's marketing director, what do you think of the condiment industry and the company's future development?"

Dong Huiming, the marketing director, was shocked when he heard the words, he knew that this was a test for him by the new owner.

He thought for a while and then said, "In recent years, my country's condiment industry has developed rapidly and has maintained a market growth rate of more than 20%. At present, the total output of the condiment industry has exceeded 1500 million tons, becoming a new economic growth in the food industry. Point. It can be seen that the condiment industry is still a blue ocean!"

"There are several characteristics of this industry!"

"First, the market potential is huge. According to statistics, the global annual turnover of condiments is as high as 2180 billion US dollars, accounting for about 10% of the food industry. It is a typical [small product, big market]. At present, the condiment industry in my country The total output value is about 1300 billion (about 200 billion U.S. dollars), accounting for less than 10% of the world's total condiment market, and the average annual growth rate of the industry has remained at about 10%."

"Compared with the total scale of the world's condiment industry, the development gap of my country's condiment industry is obvious. It can be seen that my country's condiment market has huge development potential."

Wu Siyuan nodded after listening, this Dong Huiming still has a little bit of information!
Dong Huiming continued. What he is talking about now is his usual thinking about the industry, "Second, the regional characteristics are obvious. Condiment is an industry derived from the traditional food culture of our country. It is the biggest difference from other industries. The characteristic is that it is subject to different food cultures in various places and has obvious regional characteristics."

"For example, the scale of my country's soy sauce market is 500 million tons. As the largest soy sauce condiment company, Haitian's output only accounts for 8% of the country's total soy sauce production. The main reason is that the concentration of soy sauce companies is not high. Separate regimes, region is king]. And the famous [Four Famous Vinegars] are also mainly consumed in their respective bases, which also has obvious regional characteristics."

"Currently, the integration in the condiment industry is only focused on the first-tier brands' competition for the mid-to-high-end market share, and their impact on the mid-to-low-end market is still very limited, which means that the condiment industry has unlimited business opportunities."

"So condiment companies should seize this development opportunity in a timely manner, break through the differences in regional cultures and the limitations of traditional craftsmanship, replace the original handcrafts with a modern large-scale production system, and more importantly, vigorously promote products, tastes and production. Technological innovation, such as injecting fashionable elements into traditional industries, will be the driving force behind the rapid development of the condiment industry."

"Third, foreign brands dominate. Most of the traditional domestic condiment companies have been converted from state-owned enterprises. Due to the influence of the corporate mechanism, most of them have formed a rigid and solidified business style, so the competitiveness of enterprises is not strong."

"In the past ten years, with a large number of foreign-funded enterprises entering China, my country's condiment market is undergoing a round of industry reshuffle. After several years of industry integration, some condiment enterprises in my country have been controlled or acquired by foreign capital. In subdivided categories, a market layout with foreign brands as the leader has basically been formed!

"Although these foreign-funded brands have occupied a certain market share, most of their products are positioned as high-end markets and have not yet had a significant impact on my country's condiment industry. If domestic condiment companies can seize this favorable opportunity, they will surely be able to successfully occupy the Part of the market share of the condiment industry.”

"So I think that the condiment industry still has unlimited business opportunities, and the company can make a difference!" Dong Huiming concluded.

"Then how do you think our company will develop? In front of big companies and foreign capital, we are weak and weak?" Wu Siyuan tested again.

"It is undeniable that in the face of large enterprises and international condiment giants, small and medium-sized enterprises do not have advantages in economic strength, technical resources, etc., and are easily squeezed out and squeezed by well-known brands, and the living environment is getting worse."

(End of this chapter)