Text: Bapro's monologue
Bapro's monologue
Nowadays, it is almost inevitable that every household will have "Haitian" products. Haitian soy sauce can be said to be the leading sheep in the condiment industry.
But Haitian soy sauce exploded! Haitian's market value evaporated by 500 billion in one fell swoop!
As for the reason, it is because of the difference in the ingredients of products at home and abroad. And Pang Kang, the helmsman of Haitian, did not panic in the face of this.
What is going on, and can we continue to trust Haitian Soy Sauce?
The source of this article is from the official media [Rule of Law Ping An Xichuan], released on November 24, 2023. However, in order to improve the readability of the article, there may be polishing of the details, please read sensibly, for reference only!
How to become a business legend?
Pang Kang, a native of Foshan, Guangdong, chose to major in food machinery when he was in college, but this was not an eye-catching beginning.
In 1982, the young Pang Kang entered the Zhujiang Soy Sauce Factory in Foshan City and became an ordinary technician.
At this stage, he has no aura and doesn't understand anything.
But Pang Kang doesn't eat rice.
He worked hard in the business, starting from the grassroots level bit by bit. In just three years, he was promoted to deputy factory director.
Don't think this is the end, in 1988, the reform of state-owned enterprises came, and Pang Kang suddenly became the chairman and general manager.
At this time, Pang Kang held great power, and it can be said that he was full of power, but he still had a big job in his hands that required responsibility.
In 1992, Pang Kang made a bold decision.
Transferred 70% of the state-owned holding of the soy sauce factory to employees and turned it into a state-owned shareholding enterprise.
And this transformation is not simple, it is like frying a bowl of soy sauce, and the flavor becomes stronger.
Pang Kang began to show his strength, spending huge sums of money to introduce foreign production lines, wanting to become bigger and stronger.
With the change of the times, Pang Kang took advantage of the opportunity to withdraw the shares in the hands of employees.
He reformed the soy sauce factory into a privately held Foshan Haitian Condiment Food Co., Ltd.
After Pang Kang let go of his hands and feet, Haitian developed rapidly and became a leader in the industry.
In 2001, Haitian's revenue was 1 billion yuan, and in 2009, it actually increased fivefold, exceeding 5 billion!
As recently as 2014, Haitian was successfully listed.
In 2022, Haitian's annual revenue and net profit are increasing at a rate of 15%.
It's simply a commercial version of "Jedi Strikes Back"!
So, why can Haitian Flavor take the lead in the condiment market and lead other brands all the way?
The secret to conquering the market
First of all, Haitian did not wait for consumers to come to them, but took the initiative and adopted an ingenious strategy of "rural areas surrounding cities".
They have laid a huge net on the commercial arena and set their sights on every corner.
Recruit sales personnel from major colleges and universities, and set up a professional sales team of more than 1,000 people.
In terms of the laying of sales channels, Haitian can also be said to be racking its brains.
They are well versed in the essence of "carpet strafing" and have set up a sales network throughout the country.
Haitian can be seen in supermarkets in more than 300 cities and more than 1,000 counties, and even farmers' markets and retail stores in towns and villages.
Such a sales team and channel laying is like a commercial version of "whole network marketing", allowing consumers to feel the presence of Haitian everywhere.
Remember the big net you just talked about?
That's right, it was this huge net that helped Haitian successfully conquer the market.
From 2014 to 2022, Haitian's market coverage soared from 50% to 90%!
It's not just luck, it's a series of smart decisions behind it.
Their management of dealers can be said to be quite fine.
Multiple dealers are arranged in each region to form an involution effect. It's like a commercial version of "strategic layout", in one step!
Haitian even incorporated dealers into its own enterprise management system, directly controlled the terminals, and firmly grasped the final pricing power.
And in 2022, Haitian can be regarded as eating a "reputation bomb",
Don't look at soy sauce as a condiment, in fact, it also has its own "heirloom" - exclusive recipe.
"Double Standard Event"
However, a storm of formula differences at home and abroad gave Haitian a headache, all because of the "double standard incident".
There are no conspiracy theories here, just because Haitian soy sauce is a little different in terms of recipes at home and abroad, which has caused a storm of public opinion.
At that time, a piece of information about the difference between the recipes of Haitian soy sauce at home and abroad began to spread on social media, causing a great sensation:
Haitian has added some ingredients that are internationally considered harmful to its domestic soy sauce, which is "zero added" in the international version.
When it comes to ingredients, the international version of soy sauce uses a traditional and pure soy sauce making process, and the ingredients are simple and straightforward, including soybeans, wheat, salt and water.
However, in the domestic version of the formulation, in addition to the traditional raw materials, it actually contains some additives that people don't like to hear.
Such as preservatives, flavorings, etc.
This comparison made netizens explode, accusing Haitian of "double standards".
Internationally, it sells a green, healthy, additive-free image, but in China it uses additives.
This is the life of food safety and brand reputation!
What's even more astonishing is that Haitian's "double standard" actually involves the use of additives. The issue of additives has always been controversial, and consumers are particularly concerned about food safety.
This exposure has made consumers question Haitian's soy sauce, and everyone has begun to worry about whether it is really safe to eat.
Not only that, but the turmoil also affected Haitian's reputation and share price.
Haitian is a well-known company, and the sudden negative news has caused serious consequences.
The stock price plummeted, and in less than 3 years, the market value evaporated by a full 500 billion!
The impact of the rise of e-commerce on Haitian
Don't look at the fact that everyone is posting orders and goods on e-commerce platforms now, but less than three years ago, e-commerce was not as hot as it is today.
E-commerce, live streaming, and community group buying have gradually become hot words in our lives.
In 2022, this wave of craze has swept in, not only to change the way we shop, but also to set off huge waves in the business field.
With the rise of live streaming, Haitian Soy Sauce is facing unprecedented challenges.
Have you noticed that in October 2022, Haitian's online sales fell by a full 32%?
This is the impact of the rise of e-commerce, which suddenly makes the traditional sales model lose its former luster.
The big cake of e-commerce, Pang Kang can see it clearly.
He quickly adjusted his strategy.
Haitian began to invest in e-commerce and embarked on a new adventure in the online market.
In this process, Pang Kang took great pains to open an online store on the e-commerce platform through live broadcasts, community group buying, etc.
often interact with netizens through live broadcasts to answer everyone's questions about soy sauce.
After this round of adjustments, Pang Kang has successfully made Haitian still invincible in the e-commerce trend.
At this time, Pang Kang suddenly proposed a plan that made everyone a little confused.
Self-help in the face of adversity
He's going to buy back the company's shares!
Why?
It turned out that Pang Kang saw that the market's evaluation of Haitian was too low, and he felt that this was completely inconsistent with Haitian's true value.
He just wants to pull the undervalued shares back into his arms and let Haitian's market value return to its own highlight moment.
He cleverly knows that if you want to counterattack in adversity, you must first make the market believe in you, and then strike a fatal blow to achieve a real counterattack.
Pang Kang also revealed a big move.
In the future, there will be an equity incentive plan! It is to let everyone share the fruits of success.