Corporate culture produces centripetal force, concept determines the direction, the two will eventually form a synergy, boosting the breakthrough of Zhengbang Technology in the aquatic sector
Text/Figure Aquatic Frontier Tang Dongdong
Trends and variables make the aquatic feed market vibrant and contain a lot of opportunities. As a result, in addition to the inherent enterprises, livestock and poultry feed enterprises have also incorporated aquatic feed into their strategic development plans, among which there are many giants - 2019, also known as the first year of the large-scale entry of livestock and poultry feed enterprises into the aquatic market.
In this cross-border wave, Jiangxi Zhengbang Technology Co., Ltd. (hereinafter referred to as "Zhengbang Technology"), a pig industry giant with a market value of more than 40 billion yuan, took the lead in the professional operation of the aquatic feed business sector in early 2017, and then went back to the production and marketing of aquatic feed in 2004 and continued to invest. Therefore, Zhengbang Technology is now developing aquatic materials business, which can be described as a "new journey of veterans", due to the existence of the background, it is reported that its sales volume has nearly doubled after the establishment of the aquatic materials special line business sector has exceeded 200,000 tons, and it is one of the few livestock and poultry feed enterprises that can quickly increase the amount.
The reason behind this is from the exchange with Mao Jiang, general manager of the aquatic materials special line business sector of Zhengbang Technology (hereinafter referred to as "Zhengbang Aquatic Products"), Liang Haibing, deputy general manager and marketing director, and Yan Quangen, deputy general manager and general manager of Central China, that: First, culture. The core value of Zhengbang Technology is to make small companies into large companies, and large companies into everyone's companies, and the sharing mechanism established by this can attract and leave more outstanding talents; second, the concept. Zhengbang Technology believes that feed is a means of production, and it is necessary to highlight the cost performance in the breeding terminal, and carries out multi-dimensional refinement work such as "the relevant supporting of the aquaculture water body, the matching of products and models, the accurate feeding rate, the scientific feeding frequency, and the creation of terminal services" around the purpose. On the whole, the corporate culture produces a centripetal force, the concept determines the direction, and the two eventually form a synergy, which boosts the breakthrough of Zhengbang Technology in the aquatic sector.
<b>Mao Jiang (middle), general manager of the aquatic products special line business sector of Zhengbang Technology, Liang Haibing, deputy general manager and marketing director (left), and Yan Quangen, deputy general manager and general manager of central China (right).</b>
<b>Expanding production capacity is a top priority</b>
<b>Aquatic Frontier: At present, what is the development of Zhengbang aquatic products? </b>
<b>Zhengbang Aquatic Products:</b> Zhengbang Group was involved in aquatic products in 2004, but it was not until 2017 that it independently set up aquatic feed plates to carry out professional management from various lines such as technology, procurement, quality control, production and sales. Although there were already more than 100,000 tons of aquatic materials at that time, due to its relative dispersion, it did not form a strong brand awareness in the industry. In 2018, Zhengbang accelerated its investment in the aquatic business sector and built new aquatic material companies such as Gongqingcheng, Xuzhou, Taizhou, Jiangmen and Nanning. At present, our business unit has 10 production bases for professional operation and 4 sales companies.
Our layout in the domestic aquatic products market is generally like this, divided into four major areas of central China, east China, south China and southwest China, of which there are nanchang, Shayang, Qianjiang, Changde, Fujian and other aquatic material companies in central China, Taizhou and Xuzhou companies in east China, Maoming, Foshan and Jiangmen companies in south China, and Chongqing, Sichuan and Yunnan companies in southwest China.
<b>Aquatic Frontiers: What are Zhengbang's plans for the next few years in the aquatic sector? </b>
<b>Zhengbang Aquatic Products:</b> In 2018, we made a development plan for the next five years, requiring 10 new specialized aquatic production bases to be built by 2022 to create an annual production capacity of 3 million tons, and the sales volume of aquatic products should reach 1 million tons; then the sales of aquatic animal protection products exceeded 100 million, and a professional service marketing team of 1600 people was formed.
In terms of stage, in 2019, while strengthening freshwater puffed materials and special materials, it will enter Haite Materials and achieve annual sales of 300,000 tons. At the end of April this year, we invested more than 30 million yuan in the Fujian company to put into operation 2 new puffed material lines, so that the Fujian company has 3 puffed material lines and 1 fish and shrimp polyculture line, which will focus on the development of hai special materials from this base. At the same time, this year, Hubei Shayang Company also invested more than 20 million yuan to increase 2 puffed material lines to expand the production capacity of freshwater special materials.
After that, in 2020, we will lay out core factories, establish regional advantages, and achieve annual sales of 500,000 tons; in 2021, we will deeply develop the south China and East China markets, integrate the continuous development of resources, and achieve an annual sales volume of 700,000 tons; in 2022, we will go out of the domestic market and gradually lay out overseas to achieve an annual sales volume of 1 million tons.
<b>Aquatic frontier: Zhengbang is currently mostly in the livestock and poultry feed factory set up a professional aquatic material workshop, the future or will continue this comprehensive production base positioning? </b>
<b>Zhengbang Aquatic Products:</b> According to our ideas, in key aquaculture markets such as East China and South China, it is still necessary to lay out several specialized aquatic production bases. Mainly considering that with the advancement of environmental protection, the pig industry will definitely become more and more remote areas, which may be far away from the water. At this time, if the production of aquatic feed is still put together with pig feed, there may be no advantage in transportation costs. Therefore, we are also looking for suitable places to prepare new factories, and if there is a suitable enterprise, we can also consider cooperation.
<b>Aquatic Frontiers: What kind of companies will you prefer to cooperate with? </b>
<b>Mao Jiang:</b> At present, we mainly look at equipment and geographical location to supplement production capacity. If there is a ready-made amount of ownership, it is better, but the corresponding cost will be higher. Let's see how the two sides talk.
<b>The characteristics of Zhengbang aquatic products</b>
<b>Aquatic Frontier: What do you think is the characteristics of Zhengbang's aquatic ingredients? </b>
<b>Zhengbang Aquatic Products:</b> First, our boss's concept is that the feed must be cost-effective, so that others can cooperate with you for a long time. For example, the cost of our pursuit of puffed fish should be comparable to that of pellet materials, of course, not only relying on feed, but also having breeding models, animal protection products and other supporting facilities. Because our aquatic products are not sold at a high price in the market, some people may feel that it is not like a high-end brand, in fact, our quality is not bad, but in the process of profit distribution in the product value chain, we plan more reasonably, such as maintaining a relatively low distribution difference, focusing on reflecting the cost performance of the product.
Second, we design products with the improvement of farmers' benefits as the center, and solve the breeding pain points at each stage by meeting the nutritional needs of fish and shrimp at different stages. On this basis, we have formed the Zhengbang 361 product package model to guide farmers to carry out reasonable breeding and accurate feeding, thereby reducing the cost of feed for catfish. Through the feedback of customers, the whole process of using the package model can increase the survival rate of 10-20%, so that the comprehensive cost of jin fish can be reduced by 0.1-0.2 yuan / kg, and the breeding efficiency is increased by 30%.
Although we have a late time to force the aquatic feed market, but the current development is still relatively fast, the layout of several points can basically achieve geometric multiple growth, like the Jiangsu market last year less than 10,000 tons, this year is estimated to have 30,000 tons, and South China will also have 30,000 tons. This shows that customers are more recognized by our products and business ideas.
<b>Aquatic frontier: to enhance the efficiency of farmers, which involves the creation of a profit model, but also needs product support, technical services and some local push work, can the current personnel in Zhengbang match? </b>
<b>Zhengbang Aquatic Products:</b> At present, we still grasp the key points, guide farmers who raise conventional freshwater fish to raise special aquatic products that can increase the efficiency, and the mu benefits of these two types of farmed species will have obvious differences in themselves. Moreover, driven by the demonstration of benchmark households, customers are also easier to accept, as long as they take customers to visit and understand the latter comparison is clear.
Second, we promote "transparent consumption" in the process of cooperation. The basis of the cooperation is to build trust first, we will let the target customers visit the factory, and then listen to the feedback of our users, distributors, and see how we operate in the market. Be real, open-minded to let customers know us, and then reach cooperation on the basis of trust, I believe that the relationship between the two sides will be closer.
<b>Aquatic frontier: At present, the basic amount of Zhengbang is not large, there are amortization of plant investment, equipment depreciation, etc., and to do the early market promotion, which means that the overall operating costs will be high. If you keep the distribution difference low, how do you make money? </b>
<b>Zhengbang Aquatic Products:</b> First, most of us are building aquatic material workshops in livestock and poultry feed factories, which only need 10 million or 20 million, and the overall investment will be lower than that of new plants. And if only in the livestock and poultry feed factory to add 1-2 aquatic production lines, the boss does not calculate the depreciation cost of the equipment to us, we only need to pay the change fee and a small amount of management costs, so the pressure is not so big; secondly, the first year of our each sales team staffing within 10 people, and last year's per capita sales of aquatic materials reached 1000-1300 tons, the feeding team basically has no problem. After gaining a firm foothold in the market, we will consider increasing the number of team members; moreover, last year, the proportion of our ordinary puffed materials and special aquatic materials in the total aquatic materials went to 49%, and the product structure was relatively reasonable. This year, we will increase our efforts to develop special aquatic products.
Overall, our baggage is not heavy. Under the premise of not vigorously laying out East China and South China, the Aquatic Products Division can achieve sales growth of almost double in two years, indicating that the development is still relatively benign.
<b>Aquatic frontier: Zhengbang is a well-known brand in the Jiangxi market, so it can also play a certain role in promoting the development of aquatic products business, but for the aquatic products market in other provinces, how to develop Zhengbang, which lacks popularity? </b>
<b>Zhengbang Aquatic Products:</b> The core value of Zhengbang is to make small companies into large companies, and large companies into everyone's companies, so through equity incentives, profit dividends and other sharing mechanisms, we recruit some people who are familiar with the market and have certain resources to operate, and this person's behavior is recognized in the local area, and it will not be said that it is a person who sells fake goods.
Then we take the strategy of focusing on the market, the sales team needs to find its own core market and build it into a benchmark market, on the one hand, let the products stand out at the terminal and get the recognition of the farmers; on the other hand, let the dealers recognize our business philosophy, the dealers generally do acquaintance business, in addition to making money, they also have to consider the reputation, the embodiment of the reputation is the guarantee of product quality, and the second is that through our supporting services, farmers can make more money.