Shuanghui Yurun Golden Gong "Three Kingdoms Killing", who is the "king of kings" in the ham sausage world?

In the final analysis, the competition of enterprises is the competition of talents. Recently, it was reported that in a Yurun personnel appointment document, a number of Shuanghui employees were involved. In the years of "hand-to-hand combat", the competition between Shuanghui, Yurun and Jingong, which is located in the first camp of the ham sausage market, has not only never stopped, but also intensified. After vicious price wars, "clenbuterol" and "expired meat" and other events, Shuanghui, Yurun, and Jin Gong have formed a situation of three hegemonic hegemonies after sending away the ham sausages of the "Chundu" that once dominated for a while. However, for these head players, the three-legged stand is not the end of the competition, but the beginning of the next round of competition.

Rob the man

Recently, it is reported that in the Yurun Company Su YuRen Zhengzi (2020) No. 41 appointment document, a total of 9 Shuanghui employees are involved, all of whom are business personnel of the various offices of the Shuanghui Meat Products Division, due to the rapid spread of the appointment documents of Yurun Company on the Internet, 6 in-service employees are forced to resign from Shuanghui under pressure, and 3 employees clearly state that they will not leave Shuanghui and refuse to work in Yurun.

In this regard, the Beijing Business Daily reporter contacted and interviewed Shuanghui and Yurun, but as of press time, neither side has replied.

The industry generally believes that the "digging" of Yurun from Shuanghui is not unrelated to the former shuanghui president Nomad becoming the director and president of Yurun Meat Industry Group in early August this year.

The industry veteran who had been in Shuanghui for many years entered Shuanghui in 2001 and became the company's general manager in 2007. From 2010 to 2013, Nomad led the team to create a "golden growth period" in the history of Shuanghui, with revenue spanning the 30 billion yuan and 40 billion yuan mark. In December 2017, Shuanghui made personnel adjustments, and Nomad was demoted to vice president, and was replaced by Ma Xiangjie, who was the general manager of Shuanghui Development Fresh Products Division.

In August 2018, the Board of Directors of Shuanghui passed the resolution of the change of directors and was established by the new board of directors under the leadership of Bandung, which does not include nomadic herders. At the same time, the nomad left Shuanghui.

The nomadic departure laid the groundwork for Yurun to transfer people from Shuanghui. Judging from the positions and experiences that Nomad has held, he is not only familiar with the development of China's meat market, but also familiar with the growth path of competitors. Xu Xiongjun, a strategic positioning expert and founder of Jiude Positioning Consulting Company, said.

In fact, Yurun also urgently needs new executives to perform their duties. In 2015, Zhu Yicai, chairman of Yurun, suddenly disappeared, and it was subsequently exposed that the Nanjing procuratorate had imposed compulsory measures on Zhu Yicai to carry out residential surveillance in a designated place, and in the same year, Zhu Yicai resigned as chairman of Yurun. In 2019, Zhu Yicai returned, and in April of the same year, Zhu Yicai's daughter Zhu Yuan became the chairman of the board and chief executive officer of Yurun Food.

"Yurun's new CEO was dug up from Shuanghui, so in order to revitalize Yurun's business, it is also common for people to dig people from the Shuanghui system that they are familiar with, but as a friend and former owner, similar large-scale private digging behavior is still debatable." Shen Meng, director of Chanson Capital, told the Beijing Business Daily reporter.

In addition to the above adjustments, Shuanghui also carried out a "blood exchange" for the senior management. In February 2019, Shuanghui issued an announcement that according to the company's management needs, Du Junfu no longer serves as the vice president of the company, and the company has other arrangements, and the board of directors decided to hire He Jianmin, Sai Junxuan, Jiao Yongli and Zhou Xiao as vice presidents of the company.

Competition has intensified

In addition to the talent competition of Shuanghui and Yurun, in the market, coupled with the golden gong, the "ham sausage dispute" of the three has never stopped, and this has to be mentioned in the introduction of the first ham sausage production line in China's history of the "Spring Capital". In the 1990s, China's ham sausage market appeared in the situation of spring capital and shuanghui double male hegemony. In order to further seize the market, the two sides set off a price war for ham sausages.

At that time, while constantly reducing the pork composition in the ham sausage, the two sides also sharply reduced the cost of the product. When the ham sausage was reduced from 1 yuan to 5 cents, it has caused consumers to question the ham sausage: "Whether it is the pork ham sausage bought, or the starch ham sausage bought." ”

Just when Chundu and Shuanghui were still focusing on the price war, in 1996, Jinluo broke through with the positioning of high-quality and inexpensive products, and maintained a rapid growth rate of doubling year after year. Subsequently, in 1998, Shuanghui launched the "Shuanghui King of The King Ham Sausage" and also sprung up. Yurun, which was only established in 1994, followed the trend of Shuanghui and Jin Gong to launch ham sausage, but it was obviously not its opponent.

Yurun, who planted his heels, began to lay out low-temperature meat products. In 2011, Shuanghui fell into the "Clenbuterol" incident, and in just half a month, sales plummeted by 1.5 billion yuan. At that time, there was also news that Yurun took the opportunity to poach a large number of Shuanghui dealers. In 2012, Yurun was exposed as suspected of mixing "expired meat". After several tosses, both sides are not happy.

According to the data, after Shuanghui's revenue and net profit increased by more than 20% year-on-year in 2010, in 2011, revenue fell by 1.32% year-on-year, and non-net profit fell sharply by 55%. Yurun' net profit in 2010 increased by more than 50% year-on-year, and in 2011, profit attributable to shareholders fell by more than 30% year-on-year. In 2012, revenue and net profit both fell sharply.

After experiencing the "clenbuterol" storm, Shuanghui successively acquired Smithfield and participated in the bidding for the equity of Spanish meat giant Campofrio, which further distanced itself from Yurun and Jin gong in scale. In addition, Shuanghui also sued the golden gong in court. In May 2017, Shuanghui launched a lawsuit against Jingong's "King of Kings" and other products, demanding that the other party stop the infringement and compensate for economic losses. In 2020, Jin Gong was sentenced to pay 1.2 million yuan to Shuanghui.

"Competition in the same industry is a normal phenomenon in China, and Shuanghui has a clear leading edge over the other two in all aspects. Shuanghui's strength in the whole market area and the whole industrial chain is stronger, and the regionality of Yurun and Jingong is more obvious and the scale is smaller. Shen Meng said that Shuanghui's position in the market is difficult to shake, even if Yurun and Jingong take some abnormal competitive means will not change the market pattern, so in the long run, vicious competition will not continue, and the current "mercenary" culture formed by Yurun's digging may be able to solve the urgent need, but it cannot be used as the basis for long-term development.

Each finds a way out

After vicious competition, the three giants have also carried out transformation and upgrading.

Shuanghui's performance is the best, but the product is aging and it is urgent to transform to younger. It is understood that Shuanghui has formulated a product strategy of "stable high temperature, upper and low temperature, and industrialization of Chinese products". In the field of high-temperature meat products, Shuanghui has strengthened the development of high-temperature ingredients and products that combine "meat, eggs, milk and vegetables", and transformed into a product structure of "entering the family and going to the table". In the development of Chinese-style cooked food products, with the help of deep processing advantages and raw material resource advantages, we cultivate fist products.

Under this strategy, in 2020, Shuanghui launched Babao Sausage Instant Porridge, announcing its entry into the catering industry and the fiery plant protein field. In April, Shuanghui launched the phyto-based meat product "Pac-Man" online and acquired a number of enterprises with plant protein production capacity. On the brand side, at the beginning of 2020, Shuanghui accelerated its social media layout in a young age, cooperating with Douyin to launch Shuanghui Internet celebrity products for students and young white-collar workers.

Shuanghui needs to be rejuvenated and upgraded, and the most important thing for Yurun is to recover. At the market level, on August 15, Yurun's first street store opened in Shanghai, and on the same day, Yurun Wholesale and Retail Center also opened in Wuxi. Yurun began to integrate online and offline channel resources in a targeted manner, gradually realized the deep integration of online services, offline experience and modern logistics, built a multi-party mutually beneficial platform, and promoted the innovation and upgrading of Yurun's retail format. However, Yurun still needs to continue to work hard. In the first half of 2020, Yurun's revenue was HK$7.536 billion, up 1.95% year-on-year, but it still lost HK$405 million, narrowing by 9.3% year-on-year.

As the third brand, Jin Gong has now surpassed Yurun and aimed at the field of health. In 2018, Golden Gong launched a low-fat sausage with a fat reduction of 60%, and in the field of plant meat, launched a new plant meat product "vegetarian meat pie" series. In this regard, Jin gong said that the development of the meat products sector has opened up new growth points, which can help Jin Gong impact the highland of the plant meat market. For the future development, the Beijing Business Daily reporter interviewed the Golden Gong, but as of press time, the other party did not reply.

In Xu Xiongjun's view, due to the different stages of their own development, the three corporate strategies are also different. Even if the paths chosen are different, in the final analysis, companies are pursuing high profits. Who can occupy a place in the ham sausage market still needs to be tested.

For future development, Shen Meng suggested that the three parties need to seriously do a good job in products, pass the quality pass, improve the response to consumer demand, and ultimately still be the competition of product king, quality king, and consumer king. Beijing Business Daily reporter Li Zhenxing Bai Yang