Wang Pingchuan, Chairman of Aohua: Seeking the next outbreak in differentiation

China Aquatic Products Channel reported that in the face of the excellent period of great changes in the industry pattern, as a young feed rookie, Aohua is breaking the deadlock in the competition of industry tycoons and regional giants, in the eyes of the outside world, they are "crazy" and "willful", but whisk away the appearance of "unusual", behind it is a steady and steady development path.

The first time I met Wang Pingchuan, he was at the headquarters of the Shenzhen Aohua Group, and the tall man walked out of the office quickly, and under the black-rimmed glasses were smiling eyes, not like the chairman of a so-called "crazy growth" company in the outside world, but like a polite and kind university professor.

Brushing away the "madness" and "willfulness" of the appearance, in the face of the excellent period of great changes in the industry pattern, as a young feed rookie, Aohua is focusing on breaking the deadlock in the competition of industry giants and regional giants. In order to explore the hidden meaning behind this kind of appearance and find the methodology of its "breakthrough", the reporter of China Fishery News No. 1 Aquatic Products interviewed Mr. Wang Pingchuan, chairman of the Aohua Group, at the headquarters of Shenzhen Aohua Group.

Time back to thirty years ago, college students are well-deserved "tianzi proud son", in that era, higher education is a rare resource in society, people who fully enjoy higher education are even rarer, known as elites, Wang Pingchuan is from that era of elite representatives.

Calm and calm, elegant and wise, is probably the character background that was imprinted on him by that era.

In 1988, as a master's student majoring in animal nutrition, Wang Pingchuan graduated from South China Agricultural University with a diploma like "cadre status", and he was assigned to the Wuxi Freshwater Fisheries Research Institute. Reform and opening up has just entered 10 years, the total agricultural output value of that year reached 561.8 billion yuan, a sow can earn a thousand yuan, but his salary is less than one hundred yuan.

Just after staying for three months, Wang Pingchuan jumped to the foreign-funded enterprise Chia Tai Kangdi Group, became the first batch of college students recruited by Chia Tai in the mainland, he was sent to the breeding farm from the production line, half a year later was transferred to the hatchery, three months later he was transferred to the general manager's office, and then he went to Yueyang, officially participated in the preparation of the Chia Tai premix Market Department, and the Chia Tai Yueyang premix base is the predecessor of Tianjin Chia Tai - a pioneer who first entered the premix market.

Wang Pingchuan, who likes to challenge, entered the state-owned enterprise from a foreign company a year later, but his five-year career in state-owned enterprises made him feel a lot of emotions. In 1995, he resigned resolutely and joined the Money Feed Group. At the beginning, he was only responsible for the technology of money feed in the Chinese market as a formulator, and in three years, he achieved excellent results in the production department, technology department, after-sales service department and purchasing department. Feed formula, after-sales service, bidding and price comparison, and even financial work, he is handy, and the control of large feed enterprises can be described as easy.

In ten years, Wang Pingchuan, who has been in state-owned enterprises and foreign enterprises, has not only seen the advantages and disadvantages of various systems, but also has a very in-depth and comprehensive understanding of the production and operation of feed enterprises, and has forged him into an "all-round player" of feed enterprises.

In 1998, after more than ten years of rapid development, the feed industry has entered an era of emphasizing product quality and cost control. It was also at this time that Wang Pingchuan and his brother Gu Chuipeng established the first company of Aohua in Sihui City, Guangdong Province, catching the last train of entrepreneurship in the feed industry.

In order to save money, Wang Pingchuan in the early stage of entrepreneurship had several jobs, raw material procurement, feed formula, market sales and other work shoulder to shoulder, "No way, at that time, you must do everything yourself, running a day of the market is a common thing, although the pain is tired, but the heart is solid." With this insistence, Aohua, which started with chicken feed, has been sold as far as Huidong and Shanwei in eastern Guangdong, Xinyi and Maoming in western Guangdong, and Wuzhou and CenXi in Guangxi.

After three or four years of rapid development, by about 2004, chicken feed began to be greatly compressed, pure feed enterprises are no longer easy to make money, after a difficult transformation "pain", Aohua will focus on suckling pig feed and aquatic feed. "Chia Tai can be described as the most complete modern feed enterprise, and Tongwei is the leading boss of aquatic feed, there are these large enterprises in the front, the first few years of transformation, the process is very painful, it is completely re-learning, starting again!" Wang Pingchuan said.

However, after ten years of exploration and development, Aohua has now found a direction of development, in 2011, Aohua Group proposed the "five plus two" project: focus on doing a good job of pig feed and aquatic feed, to create shrimp Ankang, tilapia 26, grass carp 28, 8140 suckling pig concentrate, suckling pig full price, raw fish yellow jaw (puffed material) and other types of fist products. Nowadays, the road of differentiated competition of high-end feeds, they have gone up and down.

In recent years, as the industry's largest dark horse, Aohua has continuously taken the road of differentiation through product innovation, gradually killing a blood road from the "red sea" of the feed price war, and occupying a place in the "blue ocean" of differentiated development.

From Tilapia 26 to Grass Carp 28, from Shrimp Ankang, Pig Ankang to the latest winter material, Aohua's product innovation has always adhered to the route of high-end feed, in the face of many questions, Wang Pingchuan responded with beautiful performance: in 2015, Aohua's overall growth was good, aquatic puffed materials grew faster, and the total output of star products Tilapia 26 and grass carp 28 was as high as 160,000 tons; In terms of shrimp feed, the introduction of shrimp ankang has greatly improved the survival rate of shrimp, although the feed price is expensive, but after the survival rate is improved, the cost of breeding is reduced. In 2015, the sales volume of shrimp and crab feed reached 110,000 tons, an increase of 60% compared with 2014, which is an extremely beautiful report card.

"Product differentiation is really about classifying customers!" When talking about the process of relying on differentiation to counterattack the market, Chairman Wang Pingchuan lamented to reporters, "Homogenization is the source of price competition, only by seeking differentiation, can we open up the grade, can we achieve the first market segment, so that we have pricing power, so as to become bigger and stronger!".

In Wang Pingchuan's layout, Aohua's differentiated competition not only includes feed, but also a series of cooperation measures such as breeding mode and breeding density, because products alone cannot solve all problems, and all-round cooperation can allow farmers to win the competition at the starting line.

"The essence of Aohua differentiation is actually to return to the product itself, really starting from nutritional needs, rather than blindly improving the nutritional content of feed!" We have very standardized farming models and standardized processes, completely based on animal health!" Wang Pingchuan explained, "Differentiation is not propaganda, it is really done!"

For example, in Australia and China, the demand for protein in tilapia is not as high as possible, and whether it is suitable for its growth is the measure. The protein content of "tilapia 26" is 26%, in fact, 29%, 31% is not impossible, but too high protein is not the growth needs of tilapia, animals can not better absorb and utilize, but will increase the burden of fish and water, and the higher the protein, the more unable to guarantee the use of high-quality protein, will affect the quality of the product. Therefore, returning to the feed quality itself, meeting the needs of aquatic products is the original intention of Aohua, not blindly pursuing high protein data, but pursuing a reasonable protein content, and controlling the protein in a range that can promote the absorption and utilization of animals.

At the same time, Aohua also pays great attention to the selection of feed raw materials, which are conducive to nutrient digestion and absorption, reduce animal stress, and enhance animal immunity. In addition, some live bacteria preparations will be added to help improve the intestinal environment of animals, and some substances that improve immunity and liver protection and choleretic are added to maximize the improvement of animal physique and enhance resistance.

In fact, not only Tilapia 26, shrimp feed, grass carp feed, pig feed and other products have also integrated this concept. There is no shortage of products in the industry, in the face of many competitors, if there is no differentiated product, it will lose its pricing power and become a "lamb" to be slaughtered in the market competition. The high-end positioning of Aohua products is its value, but also the direct performance of the market differentiation competition strategy, only by letting the product, service, production chain virtuous circle, can we make profits in products, improve in services, upgrade products, and truly achieve the improvement of production scale, thereby creating more value for farmers and dealers.

Although Aohua has more than ten years of development, its efforts in high-end puffed materials and high-end shrimp materials have been in recent years. When it comes to puffed feed, Wang Pingchuan is a staunch advocate of it, even asserting: "In the next decade, puffed feed will replace pellet feed." ”

With the aggravation of environmental pollution and the wider implementation of national environmental protection policies, the situation of pollution forcing feed reform has begun to appear. There is an essential difference between one pound of three pounds of feed and one pound of fish and two pounds of feed, which is also the biggest difference between puffed feed and pellet feed: puffed feed waste is smaller and more efficient. At the same time, the country's governance of food safety has also accelerated the reform, the improvement of the growth rate of aquatic products is directly related to the efficiency, to some extent, the specification is more important than the output, so this is a benign development trend of the market forcing production reform.

For example, in the same growth time, 7 kg of grass carp compared to 5 kg of grass carp has a qualitative difference in weight gain cost, single kg of fish benefits and many other aspects, which is also a direct performance of puffed feed over pellet feed. In Wang Pingchuan's view, the development trend of pellet feed expansion material is very obvious, and Aohua's puffed material has occupied a certain opportunity, tilapia 26 and grass carp 28 and other products have maintained a leading position in the market, such differentiated measures have been accepted by customers.

According to Wang Pingchuan, in the puffed feed production line, fist products tilapia 26, grass carp 28 and raw fish Ankang series of products special line mass production, product quality is more stable, production efficiency increased by more than 20%. The production line has a strong ultra-fine crushing capacity, with a pass rate of more than 95% for 80 mesh sieves, and an hourly output of more than 15 tons; At the same time, the extrusion degree is high, the puffing is uniform and stable, the particle size is 4.0 and 5.0, the expansion coefficient is more than 1.85, the particles are uniform and stable, and the appearance is smooth.

He believes that every industry has its own life cycle, and at present, it has reached the inflection point of the change of puffed feed to replace pellet feed, and in this revolution, Aohua is full of confidence in achieving great victory!

At the end of 2015, a news about Aohua Group's recruitment for the whole country attracted the attention of the industry: in 2016, Aohua will set up 10 branches and subsidiaries in Guizhou, Yunnan, Anhui, Shandong, Liaoning, Shanxi and other places, and recruit marketing general managers with high salaries.

It is understood that Aohua developed rapidly in 2014, established 6 branches, and in 2015, it made great efforts again, and added 6 branches in Changde, Sichuan, Jiangsu Taizhou, Hunan Changsha, Jiangxi Ganzhou, and Hubei Jingzhou, which enhanced the competitiveness of Aohua in the central China market and the southwest market. The scale of this recruitment plan, the rapid expansion speed, and the far-reaching influence have amazed the industry!

According to Wang Pingchuan, now Aohua is taking the "light fixed asset route": first set up a sales company, lay the foundation for recruitment, wait for a certain foundation and then lease, and finally build a factory. Such a path, on the one hand, can make the capital chain get sufficient guarantees, on the other hand, it has a good effect on cost savings and capacity improvement, and exchanges time for space, which greatly reduces the risk of investment.

Talking about the "tuition fees" paid for the expansion that year, Wang Pingchuan sighed: When factories were set up in Zhejiang and Wuhan, due to the lack of sufficient understanding of the market and the lack of sufficient control over personnel, it had caused the consequences of unclear customer positioning, chaotic product pricing, and serious personnel fluctuations, and lost tens of millions of dollars to return to today's "light fixed asset route" expansion model.

In Wang Pingchuan's view, feed companies go out, first of all, product positioning is the key, enterprises generally extract local market elements to make products, not only time-consuming, but also follow others behind. Now, Aohua's "going out" is the first product, tilapia 26, grass carp 28 and shrimp ankang, pig ankang and other products have been recognized by the market; The second is that people must not only identify with the product, the product quality, and the price, but also the value created by Aohua.

In 2016, 10 new companies are about to launch, which means that each one needs a matching general manager and vice president, a large number of talents, in addition to the industry of insight to join, the internal training is enough to support the normal operation of the new company. Jiangmen Aohua is known as the "Whampoa Military Academy" of Aohua Group, and the talents it sends will bring Aohua's model, philosophy, culture, etc. to every corner of the enterprise, making the group continue to develop rapidly.

When talking about the talent mechanism that matches the speed of development, Wang Pingchuan introduced that Aohua's rewards for employees are generous in the industry, and they have great courage in the use of talents. In 2014, the news that Aohua rewarded Xu Yuanbin, the outstanding general manager of Jiangmen Aohua at that time, became a good story in the industry. Nowadays, the general manager of the branch at that time has grown into the vice president of the Aohua Group, the industry media called him a "legend in the feed industry", he spent three years from salesman to general manager, and then from general manager to vice president in three years, has become the most eye-catching "promotion case" within Aohua, encouraging the growth of more young people.

In Wang Pingchuan's view, the development of Aohua is inseparable from a good team atmosphere, a relatively perfect talent training system, and the driving force of benchmarking figures. In recent years, it can be called the "Spring and Autumn Warring States Period" of the feed industry, but it is precisely for the above reasons that the team of Aohua has shown super execution!

Talking about the future development of Aohua, Wang Pingchuan said that he will also actively accept the changes brought about by the "Internet" thinking, and Aohua is also willing to make some attempts in the Internet era to make greater changes in reducing costs, reducing channel costs, information symmetry, and accurate investment.