 Home > Biochemistry News > Biotechnology News > A bowl of noodles sold 15 billion a year, Jin Mai Lang’s blood and tears over the years

A bowl of noodles sold 15 billion a year, Jin Mai Lang’s blood and tears over the years

 Last Update: 2021-04-16
 Source: Internet
 Author: User

Tags

world lithium supply

bd auto sales

Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com

Old Fan has a new idea again.

Perhaps Nongfu Spring was sought after by the capital market after it went public, giving Fan Xianguo too much room for imagination, and Jinmailang restarted its listing.

10 years of dried into China's instant noodles third

Financing, going public, and 100 billion in revenue have become a new journey for the 61-year-old "old fan".
Looking back at Fan Xianguo who came from the countryside, it seemed that everything was possible.

Financing, going public, and 100 billion in revenue have become a new journey for the 61-year-old "old fan".

In 1960, Fan Xianguo was born in an ordinary peasant family in Longyao County, Hebei.
Catching up with three years of natural disasters, he had never eaten steamed buns when he was a child, and occasionally eating corn paste would improve his life.
Only 1.
3 meters away, he followed his father to burn the boiler all day long, and he was starving by the boiler.

After graduating from high school, Fan Xianguo drove a tractor at the agricultural technology station in the village, but he did not want to be a farmer all his life.
He was always looking for opportunities to stand out.

In 1984, 24-year-old Fan Xianguo became the "wage earner" of the old rock sugar workshop in Longyao County.
Three years later, he started to produce rock candy on his own, and once made the rock candy business the largest in the three surrounding counties.

In July 1992, Master Kong's first bowl of braised beef noodles was born in Tianjin.
Soon, Uni-President also entered the instant noodle market on the mainland.
Fan Xianguo, whose rock candy business has been hit, believes that instant noodles will be more promising, so he switched to another industry, opened two instant noodle production lines, and quickly earned back his principal.

The production threshold of instant noodles is not high.
Under the large number of advertisements from Master Kong and Tongyi, the entire market quickly became lively.
About 1,200 instant noodle companies were launched in a swarm across the country, but most of them had low production levels and poor quality.

High-quality and well-known companies such as Master Kong and Uni-President have targeted large cities as their target markets, while the vast rural market is flooded with low-level and poor-quality companies.
This allows Fan Xianguo to see an opportunity to win through differentiation and expand the results:

Improve product quality, expand production scale, and use high quality and low prices to target county-level rural areas where competition is relatively weak.

But Fan Xianguo's proposal was not unanimously approved by shareholders.

Most shareholders believe that Master Kong and Uni-President are behemoths, and being big is tantamount to touching two rocks with an egg.
In addition, there are too many companies producing instant noodles, the competition is fierce, and the investment is hard to recover.

The disagreement among the shareholders eventually rose to fierce quarrels.
Fan Xianguo lost the right to speak in a minority vote that obeyed the majority.
However, he believed in his own judgment, and in March 1994, he started anew and made joint capital contributions with seven other shareholders.
2.
18 million yuan to establish Hualong Group.

At that time, Fan Xianguo's calculation was: first rely on "rural surrounding the city" to quickly surpass the small and medium-sized enterprises in the melee, and then "capture the city" after accumulating strength, and then compete with big companies.
To this end, he also put forward the goal of "working hard for five years and striving to be the No.
1 in Hebei", and formulated a trilogy of low-price strategies: mass noodle market, mid-range noodles to create benefits, and high-end noodles to build an image.

At that time, the low-priced products of Master Kong and Uni-President were also sold for more than two yuan, and Fan Xianguo launched Hualong Xiaozi with a price of as low as 5 cents.
Behind the low prices, Hualong’s confidence is: being close to the origin of the raw materials saves 50% of the transportation costs, and the deep processing of seasonings can save more than 2 million yuan in processing fees a year.
The villagers greeted by the village greatly reduce labor costs.

Relying on this advantage, Hualong is invincible in the rural market.
In only two years, it had revenue of over 50 million in 1996, becoming the No.
1 sales in Hebei and Shanxi.

By 2001, Hualong had total assets of 3 billion, 20 production lines, revenue of over 1.
5 billion, and products covering 30 provinces and 1918 counties.
It has become a well-known regional brand with a competitive advantage and the largest explosive development in the mainland instant noodle market.

Dividend sharer.

The success of Hualong allowed the giants to see the potential of the rural market.
In 2002, brands such as Master Kong and Uni-President began to sink their channels.
This top-down brand promotion has inherent advantages.

Although Hualong has established its leading position in the rural market, it still cannot resist.

Fan Xianguo then upgraded his strategy of attacking the city early to resist the risk of the giants sinking.
He overwhelmingly typed the slogan "See you every day in Hualong Noodles".
However, because the “low-end” impression left to consumers before was too deep, its urban strategy was also constrained.

After several setbacks, Fan Xianguo resolutely abandoned Hualong, which had been in business for many years, and re-founded the Jinmailang brand.
On the one hand, the technological transformation of the production line was increased to make the instant noodles more flexible and of better quality.
On the other hand, Hong Kong actor Zhang Weijian was invited to speak for Jinmailang, and he carried out intensive advertising bombing on CCTV, so that Jinmailang’s slogan "play well , The play is wonderful, and the taste is quack quack" deeply rooted in the hearts of the people.

Overnight, Jinmailang's "boiled, soaked, and tough" pure wheat noodles featuring "bomb" is almost a household name.
Even today, when talking about Jinmailang, the adjective that comes to mind is "bomb".
".

At that time, Jinmailang's sales exceeded 1 billion in one fell swoop, and it emerged as a new force in the urban market.

By 2005, Jinmailang stubbornly grabbed 30% of the market share from the two giants, with revenue exceeding 2 billion in one fell swoop.

Love and hate separation with foreign giants

While Jinmailang has gradually grown bigger, it has also attracted the attention of foreign investors.

In 2004, the international food giant Nissin Foods Co.
, Ltd.
, with a 33.
4% holding of RMB 1.
554 billion, and Hualong jointly established Hualong Nisshin Foods Co.
, Ltd.

Unexpectedly, the entry of Nissin also planted hidden dangers for the subsequent disputes between the two sides.

Initially, both Jinmailang and Nissin had high hopes for this cooperation, hoping that with the joint efforts of both parties, Jinmailang would become one of the best brands in China's instant noodle market.

The outside world is also generally optimistic about the prospects for cooperation between the two parties, believing that this will be a win-win situation.

Jinmailang can introduce advanced management experience and leading research and development technology, while Nissin can quickly integrate into the Chinese market and expand its brand influence by taking advantage of the production and sales advantages of Jinmailang's local enterprises.

However, Nissin's strong position in the Japanese market and high-end positioning in overseas markets are destined to not be a long-lasting "marriage.
"

Nissin’s share of the Japanese instant noodle market exceeds 50%, and its revenue, profit margin, and product pricing are far higher than the second place.
At the same time, it has a leading market share in many countries in Asia and the Americas, and has always insisted on high-end and differentiated products for overseas expansion.

In the Chinese market, naturally, it is no exception.

However, the two sides still spent a period of "honeymoon".
In this process, Nissin helped Jinmailang develop products with both international tastes and Chinese food characteristics, and Jinmailang lived up to expectations from a regional brand to a national brand.

In 2012, the two parties jointly established Jinmailang Nissin Food Co.
, Ltd.

But the good days are not long, Jinmailang has always been difficult to follow the high-end line, but Nissin insists on the high-end line, the gap between the two sides is getting bigger and bigger, and the differences are becoming more and more obvious.

At an exchange meeting, the staff of Nissin said frankly: In recent years, the cooperative operation with Jinmailang has always been at a loss.
Today, Mai Lang internal staff also told the media: As a national brand, there is still a bit of a domestic product complex, and they hope to develop independently.

The staff of Nissin said frankly: In recent years, the cooperative operation with Jinmailang has always been at a loss.
Today, Mai Lang internal staff also told the media: As a national brand, there is still a bit of a domestic product complex, and they hope to develop independently.

Especially after the failure of Jinmailang and Nissin to launch mid-to-high-end product small bowl noodles, the last point of confidence in the cooperation between the two parties was destroyed.

Nissin simply went to the south and built factories in Shanghai, Guangdong, Zhejiang, and Fu to create the small bowl of noodles brand "He Wei" on its own.

On November 26, 2015, after being bundled with Jinmailang in the instant noodle market for more than ten years, Nissin announced that it would withdraw from the Chinese joint venture business.
In the future, it will fight alone in the high-end instant noodle market.

According to Japanese media, Nissin’s reason for dissolving the cooperation is that in the future, it will focus on large cities such as Hong Kong and Shanghai that have certain advantages, and use them as the center to further expand its market share by using its own sales network.

And Jinmailang also replied that: Both parties agreed to independently promote the brand development business.
After friendly negotiation, Jinmailang repurchased all the shares of the joint venture held by Nissin.

In fact, in the past ten years of cooperation with Nissin, apart from the glory of the first few years, Jinmailang's life has not been easy.

Under the squeeze of the industry leader Master Kong from top to bottom, the industry’s fourth old white elephant instant noodles are also closely following and catching up.
The blocking of the two ends makes Jinmailang not only failed to realize the original cooperation vision "the best brand in the instant noodle industry".
Instead, it lost its third position in the industry.

This loss is 5 years.

At that time, after Jinmailang and Nissin had a joint venture to improve product technology, he shouted the slogan of striving to be the first in the instant noodle industry, and invested heavily in sports marketing, strongly sponsored the Antarctic scientific expedition team, and cooperated with the World University Games.

Jinmailang, who was in the limelight for a while, began a head-on confrontation with Master Kong, and went all out to conquer the urban market, but ignored the original low-end rural market.

The low-key white elephant seized this opportunity, copied Jinmailang's back path, and robbed most of the rural market share.

In 2011, Baixiang already accounted for nearly 18% of the market share, surpassing Jinmailang, and Jinmailang was unable to shake Master Kong in the urban market, and his position was rather embarrassing.

This situation continued until 2015.

At that time, Jinmailang's brand value and market appeal have been greatly reduced, and it is not surprising that Nissin chose to break up.

After "breaking up" with Nissin, the entanglement between Jinmailang and capital continues.

In May 2016, 47.
83% of Jinmailang Beverage was liquidated for 1.
291 billion yuan.

According to public information, the "marriage" between Jinmailang and Tongyi began in February 2006, when Jinmailang defined this "marriage" as an important step in the "10-year plan.
"

The two competitors in the instant noodle industry have established a cooperative relationship in the beverage industry, which was called a "sensational handshake" by the media at the time.

But the market never believes in stories, and only looks at the value of the product.
This is especially true in the beverage market that has always been innovative.

In 1995, Master Kong, who had established a leading position in the instant noodle industry, successively expanded its business to the beverage industry, using its strong brand power to start beverage diversification.

By 2005, Master Kong's beverage performance reached 6.
6 billion, and in 2006 it exceeded 8 billion to reach a record high, becoming an indisputable Chinese beverage giant.

In 2009, Master Kong's tea beverages and packaged water ranked first in the industry with 51% and 23.
2% market share, and fruit juice beverages also ranked top three with 14.
7%.

This set a good example for Uni-President and Jinmailang.

As the leader of the food kingdom in Taiwan, China Uni-President Group, in order to compete with its old rival Master Kong for dominance in the mainland market, it has been adopting the strategy of “combined vertical and horizontal” and expanded its market share by cooperating with some local brands in mainland China and investing in equity.

The alliance with Jinmailang to impact the beverage market has become the top priority of its localization strategy.

At the press conference for the establishment of Jinmailang Beverage Co.
, Ltd.
, Jinmailang described the prospects of its "beverage empire" boldly: "We want to enter the mineral water and tea beverage industry.
Sales, and won a 20% market share of tea beverages within three years.
"

The two companies' ambition to build a huge beverage empire is undoubtedly evident.

At first, it went smoothly.
The beverage factory was selected on the banks of Miyun Reservoir with the best water quality in Beijing, covering an area of 203 acres, mainly engaged in beverage product research and development, production and sales.

At a time, a beverage giant with 7 branches, 11 subsidiaries, 11 production bases across the country and 39 international advanced production lines is beginning to take shape.

Jinmailang's investment in beverages can be described as dedicated, from mineral water, tea beverages, to rock sugar pear, fruit juice, and sour plum soup, basically covering most of the beverage market segments at that time.

In terms of marketing momentum, they are also doing their best to use the potential of marriage to enter the beverage market.
Category segmentation, big-name endorsements, and advertising bombing are not enough for marketing homework.
In 2015, Jinmailang Beverage launched a high-profile 1 yuan water, trying to get the key to break into the first-line market.

However, Jinmailang’s performance in the beverage market was mediocre from beginning to end, and because of lack of innovation, he was accused of copycats.

In the fiercely competitive first-tier beverage market, Jinmailang has always been difficult to find, and Jinmailang can only survive in the second and third-tier markets.

It is worth mentioning that its sour plum soup product was also detected as a "quality problem" by the Jiangsu Provincial Quality Supervision Department in 2009, and in 2010 it was marked as "unqualified" because of the "transparent liquid with sediment" of the sour plum soup.

Uni-President has always played the role of an investor in this cooperation.
Apart from OEM production, it has not been involved in the management of Jinmailang too much.
The production, R&D, and sales of Jinmailang Beverages are all undertaken by its self-built team.

By 2015, Jinmailang’s performance in various regions across the country was bleak, and the goal of occupying 20% of the market share was to release satellites.
The two parties agreed to achieve “10 billion revenue” in 2015, which has become an illusion.

According to the unified disclosure of performance data: in 2015, the sales of Jinmailang beverages were only 2.
582 billion yuan, and the net profit after tax was 181 million yuan, both of which were down by more than 11% over the same period of the previous year.

The beverage empire dream was fruitless, and Uni-President's own beverage business was also very "frustrated".

Data show that in 2016, the revenue of Uni-President's beverage business was 12.
18 billion yuan, a year-on-year decrease of 13.
3% compared with 2015.

In 2016, the beverage industry increased by 1.
90% year-on-year, which obviously dragged down the growth rate of the entire industry.
At the same time, Jinmailang's continued poor performance also dragged down the company.

Uni-President stated in the announcement of the break-up: In order to improve the utilization rate of the company's assets, it will sell its equity in Jinmailang.
The disappointment of Jinmailang is beyond words.

At the same time, when the overall strategy of the unity is gradually shifting to the mid-to-high-end market, Jinmailang's advantage in the rural market has not given much help to the unity brand.

After being abandoned by capital twice, Jinmailang's low-end "stubborn illness" seems to have taken hold.

The most important thing is that the marriage with two foreign companies has reaped the result of Jinmailang's defeat in the instant noodle and beverage market.
After the "lost ten years", Jinmailang's development prospects are confusing.

Contrary to the trend of innovation and return to growth

After Nissin and Uni-President left, Jinmailang faced market competition alone.
How to achieve a rise against the market under the predicament became a life and death disaster for Jinmailang.

In fact, since 2014, instant noodle companies have generally been unsatisfactory, and the entire instant noodle industry is on a downward trajectory: in the domestic market, the sales volume in 2013 was 46.
22 billion packs, and the sales volume in 2014 fell to 44.
4 billion copies.

By 2016, the sales volume dropped to 38.
52 billion copies, setting the lowest sales record in China in the past 15 years, and the instant noodle industry has entered a period of overall decline.

Under this background, the shares being cleared by Nissin and Uni-President, the huge impact on Jinmailang can be imagined.

But for real entrepreneurs, most of them have the spirit of "reverse quotient".

The so-called "reverse quotient" is the ability to stand up from difficulties no matter what difficulties are encountered during the advancement.

This ability is particularly evident in Fan Xianguo: calmly accept the reality of failure, and then firmly believe in himself, believing that no matter how difficult the road is, the future must be bright.

In 2014, in the face of the market share being eroded by the white elephant, Fan Xianguo listened extensively and rationally analyzed that Jinmailang’s most competitive low-end instant noodles at that time should be restored to the market’s number one position.
, This is the basic disk.

After Jinmailang once again established an advantage in the low-line market, he will look for other directions.

So Jinmailang returned to the most familiar market and focused his efforts on retailing at 1.
5 yuan.
Okino increased the previous "Konano" noodles to 100 grams, and the main focus is on large quantities and benefits.

From the end of 2014, Okino began to explode against the trend, thus stabilizing the low-line market that was steadily routing at Jinmailang.

Faced with such a declining industry and the withdrawal of two joint ventures this time, Fan Xianguo, who has always been determined, believes that “the current decline in the convenience food industry is mainly caused by insufficient product innovation of the company”, and “thinking is better than resources.
important".

For many years, Jinmailang has been pursuing the tenet of "either create a category or become the first in category".
In addition to product innovation, it can also "create a heart.
"

Fan Xianguo said: "Jinmailang's rapid development is inseparable from innovation.
On the one hand, it is product innovation; on the other hand, it is'creativity', which means that it will occupy the minds of consumers.
"

"Everyone is talking about innovation.
There are hundreds of ways to innovate, but there are only one or two correct possibilities.
What drives consumers to purchase behavior is actually the result of their minds and cognition.
Win the world.
"

In 2015, Jinmailang launched a new product featuring large portions of "a bucket and a half" and "a bag and a half", which solved the shortcomings of "not enough to eat in one bucket and not enough to eat in two buckets", and accurately positioned and solved the needs of consumers.
.

In 2016, "a bucket and a half" and "a bag and a half" products took the lead in opening up the market in the affordable northeast market, and then went south to regain many markets already occupied by rivals and returned to the top three in the industry.

In 2018, Jinmailang’s “a bucket and a half” and “a bag and a half” increased by 70% over 2017.
In 2019, the annual sales volume of the “one and a half barrel” and “one and a half bag” series reached 1.
6 billion packs.

In August 2020, Jinmailang announced its "One and a half barrel" and "One and a half bag" series of products, with cumulative sales of more than 5 billion copies.

But Jinmailang has been looking for a breakthrough innovation.

In 2018, Fan Xianguo opened a new era of non-fried cooking noodles and launched the second generation of cooking noodles "Lao Fanjia Instant Noodle Restaurant".
As an important step to enter the high-end market, and hope to jump out of the dimension of low-price competition.

It is inspired by traditional Chinese food culture.
The Lao Fanjia instant noodle restaurant launched with Chinese steamed noodle technology.
The body sinks to the bottom of the soup after brewing, which contrasts well with the consumption of traditional fried instant noodles floating in the soup after brewing.
The scene completely subverted the eating experience of fried instant noodles.

Fan Xianguo believes that the high-end noodles that carry the yearning for a better life must not be fried noodles, but non-fried steamed noodles.
Rather than frying and cooking technology is the foundation of the real high-end noodles.

▲From Jinmailang official website

In May 2016, Jinmailang used the unique concept of "cooked water" (referring to water after boiling) as a selling point to cut into the drinking water market, and launched a bottled water called "Cool Baikai".

As a product creator, Jinmailang has also created a new track: the bottled cooked water market.

In the year when Cool Baikai was launched, it sold 5 million boxes.
In the second year, sales reached 250 million yuan, and in 2019 it exceeded 2 billion yuan.

▲The big country brand Jinmailangliang opens "Simple Wisdom"

In October 2020, Jinmailang Beverage announced that the sales volume of Cool Baikai products has exceeded 2.
4 billion bottles.

The data shows that the revenue scale of Uni-President and Jinmailang is very close.
In 2019, Uni-President achieved a revenue of 22.
197 billion yuan, which is less than 200 million yuan higher than Jinmailang's revenue of 21.
848 billion yuan.

Calculated on the basis of instant noodle sales share, from 2018 to 2019, Master Kong's market share dropped from 48.
2% to 46.
6%, and unified from 17% to 16.
3%.
Jinmailang rose from 14.
1% to 15.
8%.

，2019150，84.
25，（239，）。

2020，139。

，

。

2017，200。，：，，，。

，2019，。

“1000”，：。

2020，：，2020。

，，。

20201020，，，。

20201231，，1223IPO，。

，“、、”，“”。

，“、”，。

20“”，。

，，，

2017，，，2019，600。

、，。，。

：、、、、，Express。

，、、、，、。20181，，。

。

2018606.
86，2.
94%，24.
63，35.
42%。

，（2）201633%201940%，12.
65%。

，2018“”30%，19，20192018，。

2020。，47.
8%；，2020，30%。

，“”，，，。

，。

▲

，。

、70%，14.
50%，90%。

，，。

，，，，，。

“”“”，。

，，，，。

，。

、，，。

20203，：。

，，。

、，20204812，。

、，、，、。

，、。

，——，。

、、、、80%，，，。

，，，，。

、，、。

2016，，12。，20197。

，。，2020，69016006。

，，。

，，、、、，，，，1000。

：，，，。

，，，。

，，20，。

202012，。

，“，，，。”

：

：，！

xianjichina.
com">，

This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.