How to make a small company into a big company-Chairman of Jiuyang Co., Ltd.: Wang April 30, 2009 1 1.47 How can a small rich man become a big rich man? How do small companies become big companies? Wang has the absolute right to speak.
He is the chairman of Jiuyang Company. Last week, the market value of the company he managed reached 65.438+038 billion, surpassing Qingdao Haier, which has been operated by Zhang Ruimin for 25 years.
In the paradise of Hangzhou in March, it was drizzling, and the West Lake was covered with a layer of water vapor. Peach blossoms were in full bloom on the lakeside, and tourists in twos and threes hurried by in the hazy fog with umbrellas.
It takes more than an hour to drive south from West Lake, which is the Xiasha production base of Jiuyang. Financial Weekly reporter met Huang Shuling, vice chairman of Jiuyang, who is the second person in Jiuyang.
Move the soybean milk workshop to the kitchen.
Want to drink a cup of soybean milk for breakfast, do you want to go out an hour early to buy it, or do it yourself?
In the past, it was a "huge" project to make soybean milk by yourself: first soak soybeans for 5 hours and break them with a blender; Boil the ground soybeans with medium heat while stirring; In order to remove the astringency of soybean, it is best to cook soybean milk for 2-3 times; Finally, filter out the bean dregs.
It takes about 8 hours to make a cup of soybean milk, and almost no one can make it except the soybean milk workshop.
Wang, the chairman of Jiuyang Co., Ltd., loves to drink soy milk, but the above cumbersome steps make him unbearable, and the entrepreneurial impulse arises: all the processing processes are concentrated in one soymilk machine, so that people can drink fresh soy milk in the shortest time.
Now, the 8-hour soybean milk production process has been shortened to 10 minute, and the soybean milk workshop has also entered the kitchen, becoming a family soybean milk machine the size of a heat preservation barrel.
This success has created Jiuyang shares and a brand-new small household appliance industry. By the end of 2008, the annual operating income of Jiuyang Co., Ltd. exceeded 4.3 billion, and the three-year compound growth rate exceeded 1.36%, of which the income of soymilk machine exceeded 3 billion.
In 2008, Jiuyang shares occupied 86% of the soymilk market. Compared with fierce white power enterprises, Jiuyang, as an absolute monopolist in the soymilk industry, enjoys high income during the period of rapid market expansion. Last year, the gross profit margin of Jiuyang Soymilk Machine was as high as 45%, which was nearly 40 percentage points higher than the 5-6% gross profit margin of the white electricity industry.
28 patents set technical barriers
Despite the weekend, the soymilk production line and logistics park in Jiuyang are still very busy, and the workers on the production line are skillfully packaging soymilk machines. At the beginning of this year, due to the relocation of the production line, the production of Jiuyang was postponed. In order to double the production capacity this year, Jiuyang's production line is running at full capacity.
1994, Wang, a major in electrical engineering, made the first electric soymilk machine. Two years later, Shandong Jiuyang Electric Appliance Company was established.
1999, Jiuyang introduced intelligent non-stick technology, which can make the cleaning of soybean milk filter more convenient. Wang also won the national patent for the first time with this technology and tasted the sweetness of the invention patent. Since then, the pace of technology research and development in Jiuyang has never stopped.
Since 15, Jiuyang Soymilk Machine has undergone 9 technological innovations. Among them, the most important thing is the slow fire cooking technology introduced in 2002, which changed the traditional process of grinding and cooking, and people can directly drink the ground cooked soybean milk. In 2006, Jiuyang developed "Netless Soymilk Machine", which saved the time for lazy people to wash the filter screen.
On the same day, at the briefing of Jiuyang's annual report in 2008, Gu, the company's spokesperson, told the reporter that Jiuyang shares currently have 28 patents on soymilk technology, with more than 300 employees, accounting for more than 13% of the total number of the company.
Originally, the crushing, grinding, beating and boiling of soybean milk were all concentrated in a small soybean milk machine, and the core technology mastered by Jiuyang became a barrier that the latecomers could not break through.
"At present, in addition to those in the market, big companies like Midea are forced to bypass our technical barriers if they want to make soymilk machines." Gu said.
Soybean milk life house sells "deep charge"
"At that time, people didn't know about Jiuyang, and the market couldn't be opened. Inspired by our friends, we began to publicize the health of soybean milk, and then how to make soybean milk? Come and buy Jiuyang! " Huang Shuling, vice chairman of Jiuyang Co., Ltd. and one of Jiuyang F4 entrepreneurial teams, recalled to the reporter of Financial Weekly. According to public information, Huang Shuling indirectly holds nearly 3% of the shares of Jiuyang, worth about 300 million yuan. The head of the company, Wang, is worth more than 4 billion yuan, while the other two members and Zhu Zechun are worth more than 65.438+06 billion yuan and 600 million yuan respectively.
From looking for the "old man with soy milk", holding a prize essay on "soy milk diet and health" to launching "soy milk diet culture week", the small advertisements in these newspapers let people gradually understand the soy milk culture and gradually try to use Jiuyang. Today, Jiuyang still insists on its own unique experiential marketing, the most representative of which is Jiuyang Soybean Milk Life Museum.
At present, Jiuyang has more than 65,438+0,000 soybean milk life houses in China, which are evenly distributed in the national primary and secondary markets. Last year, its sales accounted for 65,438+07% of the company's total.
Recently, the reporter of Financial Weekly visited a Jiuyang Soymilk Life Museum in Jinshan District, Shanghai. The person in charge of the museum told the reporter that the museum, as a standardized image store in Jiuyang, is responsible for sales and after-sales tasks. "Customers can learn to use soya-bean milk machine, taste soya-bean milk, attend lectures on soya-bean milk culture and various interactive activities in the museum."
The person in charge told the reporter: "At present, the passenger flow of the living museum is not very large, but the transaction rate is quite high. There are fewer customers today, only a dozen people, but seven or eight soymilk machines have been sold. "
In addition to the Life Museum, Jiuyang's current marketing network is mainly composed of first-class dealers and sales terminals, and there are no more heavy dealers by region.
Yuan Haoran, an analyst at CIC Securities, pointed out that this flat channel left enough profit space for the company and dealers, and through the unified management of dealers, the sales efficiency was improved.
According to public data, as of last year, there were 450 dealers in Jiuyang * *, covering more than 270 prefecture-level cities and more than 2,000 county-level cities nationwide. Meanwhile, Jiuyang has about 20,000 sales terminals, more than 1000 soybean milk life houses and 2,000 after-sales service outlets.
In addition, Jiuyang shares also actively explore the upstream profit space.
"Sunshine Bean Workshop" bean material project is an important step for it to seize the upstream industry of soybean milk machine. According to Jiuyang, the bean material project takes the form of order agriculture, and the direct sales income last year was130,000 yuan. Huang Shuling, vice chairman of Jiuyang Co., Ltd. said that soybean material will at least reach the same growth rate as soymilk machine in the future, and the future profit is quite imaginative.
Bright prospects and fierce competition.
From 65438 to 2005, Jiuyang discovered and cultivated the soymilk machine market. However, how big can the market be for a small soymilk machine?
Bi Yan, an analyst at China Merchants Securities, analyzed that the largest number of soymilk machines on the market at present is 1 1.62 million, which is still huge compared with 2.4 domestic consumer families. Even if the demand for upgrading small household appliances is 3-5 years, the soymilk machine market will still be in a period of rapid growth.
Under the background that the soymilk machine market continues to improve, competitors who smell high profits are gearing up for this new gold mine of small household appliances.
It is understood that Midea spent 300 million yuan last year to expand the soybean milk machine production line with a production capacity of 30 million units. It is estimated that it will gain 65,438+00% market share this year, and after 2065,438+00, it is estimated that the sales will exceed 2 billion yuan, accounting for 35% market share.
Facing the challenge from the giants of home appliance industry, Gu publicly stated at the briefing of the 2008 annual report: "Midea entered the soymilk machine market in 2000 and withdrew in 2002. We are no strangers to competition and are not afraid. "
Although the defenders have tried their best, more and more people will still threaten the high gross profit margin of the soymilk industry.
The 2008 annual report of Jiuyang Co., Ltd. shows that the sales expense ratio of Jiuyang last year was 650 million yuan, which dragged down the profit rate. The company's profit margin in the fourth quarter fell to the lowest point in a single quarter, only 8.7%. Among them, advertising expenses are about 370 million yuan, accounting for more than half of the total sales expenses; The cost of channel construction has increased by more than 300%.
In this regard, Gu Dong Jun, a spokesperson for Jiuyang, told reporters that the channel cost of Jiuyang doubled and the sales scale increased at the same speed. "At the end of last year, the soymilk machine sold very well. At this time, decisively increasing investment can play the role of a reservoir. "
Although the cost pressure of Jiuyang in 2009 is relatively small, with the haze of melamine incident and the challenge of new entrants, changjiang securities analyst He Zhiyuan predicted in his report that the company's gross profit margin will be 33.5% in 2009, down about 5 percentage points year-on-year, and will further drop to 30.8% in 20 10.