Surrounding Beijing and Tianjin, adjacent to the Bohai Sea, Hebei Province has a natural geographical advantage in addition to its extraordinary political significance. However, compared with other coastal provinces and cities, Hebei Province still lags behind in economic development. From an industrial structure point of view, Hebei's industrial structure is heavier and relies on Hebei Iron and Steel Group's “one steel giantâ€. In addition to the Hebei Iron and Steel Group, there are few companies that can be called out loud. In 2008, the Sanlu Group in Shijiazhuang, Hebei, was shocked by the melamine incident at home and abroad. Therefore, Hebei has also suffered a lot of criticism. In the first year of the "Twelfth Five-Year Plan", can Hebei be able to give it a go and overcome difficulties? We will look at Hebei from a microscopic perspective and reflect Hebei's business environment and development environment through enterprise development, county economic development, and local government political and economic development.
In this issue, Shijiazhuang Junlebao Dairy Co., Ltd., the largest dairy group in Shijiazhuang, Hebei Province, was selected as the target of reporting. After the Sanlu storm, whether or not Hebei's dairy industry can be reborn again can be seen through the development of Junlebao. .
After the melamine incident, during the new round of reshuffling of China's dairy industry, the market seats gradually became clearer. The three giants of Mengniu, Yili and Guangming controlled 60% of China's terminal market. At the same time, the Big Three intensified the competition for milk resources. How should the local dairy brands in the second and third camps break through and how to survive in the cracks?
Located in Shijiazhuang, Shijiazhuang Junlebao Dairy Co., Ltd. (hereafter referred to as “Jun Le Baoâ€) established a joint venture with Sanlu Group in 2000 and a strategic cooperation with Mengniu in September 2010. What is the value of the development of a cool tree? What is the demonstration significance of Jun Lebao's survival for local dairy companies?
The ironclay still needs its own hard, and Wei Lihua, general manager of Junlebao, believes that the future pattern of China's dairy industry is not entirely dominated by the giants of the dairy industry, and they are well-trained in the internal market. They can work hard in the market segmentation, and the local dairy brands can break through, and they can do the same. Bigger.
Releasing Capital to Attract Resources “China Business Newsâ€: In 2000, Junlebao had a joint venture with Sanlu Group. In September 2010, it also had a strategic cooperation with Mengniu. Mengniu held a 51% stake in Junlebao. Some market participants analyzed Jun Lebao's development and survival mode as a "back-leaning on the trees and enjoying the coolness". What is the real reason behind this kind of "foreign" survival thinking?
Wei Lihua: If a company is to be long-term and development is the first factor, I expect Junlebao to be able to build a century-old shop and be able to grow bigger and stronger. Jun Le Bao has always maintained the brand, the company independent business unchanged. Under this concept of development, we chose a cooperative approach that can bring value to Jun Lebao.
Prior to the cooperation with Mengniu, Junlebao faced two development strategies. The first was its own independent listing (capital market); the second was cooperation with long-term strategic investors. At the beginning, many financial investors such as investment banks found us and they promised to help Junlebao to obtain listing financing.
My consideration is that listing is not the ultimate goal of a company. It is fundamental to make a company stronger and bigger and make it a hundred-year-old shop. Although listing can solve the company's funding problems, it cannot solve the company's resources. After repeated considerations, we chose the second one, and cooperated with Mengniu, a strategic investor in the same industry.
In the course of the development of many large enterprises, they will all introduce resources through capital output. The so-called “financial dispersal people†will obtain more favorable resources through the dilution of capital to support the better development of enterprises. The same is true for Junlebao's cooperation with Mengniu, and we also want to exchange resources by releasing our own capital.
Cooperation with strategic investors such as Mengniu helps to share resources and create synergies between companies. For example, in research and development, Mengniu has the most advanced overseas research and development station (Paris), and we can share the results of new product research and development. Le Bao's enterprise innovation capabilities; We can also coordinate in milk source management, market channels, and corporate operations. By learning and drawing on Mengniu's advanced management experience, we can help reduce the operating costs and market competition costs of Jun Lebao. Helps to strengthen the construction of milk source bases and equipment upgrades and enhance the overall competitiveness of enterprises. These are valuable assets that financial investors cannot bring.
"China Business": Jun Le Bao repurchased the equity of Sanlu Control just two years, sales jumped from the bottom to 1.5 billion yuan, during this period, Jun Lebao is how to quickly recover?
Wei Lihua: After the milk powder incident, Jun Le Bao became an independent brand and everything started from scratch. At that time, the flight was indeed difficult. The bank withdrew its capital and the company's capital chain broke. However, none of our management and staff members left. All suppliers and distributors are standing by the company. We firmly believe that the company can emerge from its predicament and rejuvenate. At that time, we raised funds, supported by the government, and raised all parties. We managed to keep our business operations on track for a short period of time, and achieved profitability after six months. Before the 2008 incident, the market share of Junlebao's sour milk was the third highest in the country. By the second half of 2009, the market share of the sour milk named after the “Junlebao†brand had returned to the fourth place in the country. At the same time, we have made a series of adjustments from internal management and quality control, and the product quality and management level have reached a new level. In addition, under the support and guidance of the government, Hebei Milk Resources has regained regulatory rectification. It can be said with pride that the quality of the milk source in Hebei should now be at the forefront of the country. It is this persevering belief that has turned us from a crisis into an opportunity. From the zero realization to the second leap of 15 billion, the company has re-established the fourth national yogurt. This leap laid the foundation and prerequisite for our strategic cooperation with Mengniu, the first brand in China's dairy industry.
I have always believed that the development of a business depends on a culture that relies on a spirit. When the first factory of Jun Le Bao was completed, I established a slogan as a factory training: After the completion of the second factory, the same factory training was also held: If there is no difficulty in the world, as long as Ken Dengpeng; last year we put into production nationwide. After the construction of the largest sour milk production plant was completed, I decided to establish a new factory training based on self-improvement and dedication. We want companies to continue inheriting this spirit of continuous self-improvement. In the market competition, no opponent can defeat us. We can defeat only ourselves. If you admit defeat, you lose completely.
There is a need for self-hardening "China Business": After the development of China's dairy industry after the "Golden Decade" (1999-2009), the market structure has taken off. Mengniu, Yili and Guangming have controlled 60% of China's market. Local brands Dairy companies seem to be difficult to break through, and are struggling to survive in the cracks. But Jun Lebao still holds the second camp of China's dairy industry. What is Jun Lebao's survival? How do you think that the dairy companies of local brands can cope with the fierce market competition environment and how can they develop among the three giants?
Wei Lihua: The key to the survival of local dairy enterprises is to look at themselves. The first step is to improve internal strength and to be refined from management; second is to set a good position, such as occupying a place in the market segments, such as products targeting women and children, and targeting middle-aged and older products, etc. Market; Moreover, we must continue to innovate and preemptive. Relying on innovation, Jun Le Bao has developed the first red date sour milk, and has created a new daily product of low-temperature fermented lactic acid bacteria beverages, the first European-style yogurt cheeseyard, and other new products. It turns out that innovation makes these products become its The leader in the category. This is also the way for Jun Lebao to survive.
I don't agree with local brand names. No company does not want to become a national brand, but it is difficult for its own capabilities and resources to support the nationalization process. As long as there are opportunities and capabilities, these so-called local brands will surely go. National.
In fact, many SMEs have many advantages, such as fighting and surviving ability. After all, the small vessels make a good turn. As long as they find their respective advantages, the Chinese dairy market still has a lot of room for survival and development. The dairy enterprises in the second and third camps of the Chinese dairy market should first look for problems from their own, and first work hard to find a way to break through.
"China Business": We have seen that after the trihydroamine incident, Mengniu, Yili and Guangming have all aggravated the expansion of milk sources. According to analysis by industry experts, the Big Three's expansion basically lies in grabbing milk. Under such circumstances, what are the core competencies of the second and third camp dairy companies?
Wei Lihua: In the past two years, the beachhead milk source is different from the previous ones. Many dairy companies are building and stocking milk bases in a down-to-earth manner. Because the dairy industry finally fights for milk sources and has a high-quality milk source to make it. High-quality products are the foundation and guarantee for the healthy development of industries and enterprises.
The core competitiveness of an enterprise I think is ultimately business philosophy. The business philosophy determines the height and distance of business development. When the market environment is good, all enterprises may grow. When the market environment is poor, only companies with long-term development philosophy can move forward in accordance with established goals because they have ideals, visions, plans, and goals. How big the heart is, how big the stage is, and what people are doing.
On the local business environment "China Business": Do you hope Junlebao can be a century-old shop, do you think how to achieve the desire to achieve a century-old shop?
Wei Lihua: Some good companies in foreign countries are formulating corporate strategies based on scientific research, studying macroeconomic trends, studying trends in the industry, researching trends in consumer demand, and researching corporate positioning and advantages. For the formulation of the corporate strategy, it must be decomposed into reasonable phased objectives, matched with reasonable resources, broken down into different tasks, and create a heavy burden for everyone, and everyone has indicators on their heads. In order to achieve strategic planning and guidance of business, strategic goals can be decomposed, enforceable and measurable. However, some domestic enterprises lack the scientific and rigorous research base when formulating their strategies, and they are blindly strong. After the formulation of the strategy, it is not entirely in accordance with the strategy. The strategy is implemented in two layers. The boss personally has the final say, the goal is modified arbitrarily, and the final strategy does not play the role of overall planning. Various developments will occur during the development of the enterprise. Such problems eventually became overworked and went bankrupt. Therefore, to be a century-old shop, we must have a hundred years of vision, long-term planning, clear thinking on every step and every day of business development, and our strategic goals remain unchanged.
The development of an enterprise is divided into four phases: the start-up phase, the growth phase, the maturity phase, and the recession phase. During the start-up period, everyone is very difficult, relying on concerted efforts and hard work. Growth period is a crucial period for the development of an enterprise. During the growth period, enterprises must do five things: strategic planning, cultural construction, fine management, system improvement, and corporate innovation. Doing these five things properly will lengthen the growth and maturity of the company and eliminate the resistance of the development process.
In addition, the dominance of a single company in business operations is terribly terrible. When repurchasing stocks in 2008, I was very worried. I feared that there would be problems after the dominance of a single company. The development of a company cannot rely solely on the decision of a leader. It is very risky. Even if the person in charge of the company is competent and has great vision, it has always been a smooth move. However, when there is always a hundred secrets, perhaps a small thing may cause the whole enterprise to face the catastrophe. Entrepreneurs and enterprises must accept the constraints. Only when they are bound, can they be objectively understood and have a clearer understanding of their positioning.
Therefore, several more shareholders of the company are favorable to the development of the enterprise. Perhaps the process of decision-making will be slower, but it will be more stable. The development of a company is like a domino. It starts very quickly, but as you move backwards, the slower you will become, the more cautious it will be. If you make a mistake, it will affect the entire situation.
"China Business News": To date, few brand enterprises have been able to clamor loudly in Hebei Province, especially private enterprises. What kind of business environment do you hope local governments should create to be more conducive to corporate development, especially for private enterprises? ?
Wei Lihua: Local government's service awareness and attitude towards the company are very important. Local governments in Jiangsu and Zhejiang have a strong sense of service. They all take the initiative to serve the enterprise and regard the company as a customer. The Hebei provincial government has a very good sense of service to the company during these years. Hebei Dairy’s attention and support policies are particularly prominent. This is reflected in the changes in our dairy industry in Hebei. All are trying to find ways to engage in services for enterprises, engage in financing, solve problems in capital and technology, and the business environment is getting better and better.
In this issue, Shijiazhuang Junlebao Dairy Co., Ltd., the largest dairy group in Shijiazhuang, Hebei Province, was selected as the target of reporting. After the Sanlu storm, whether or not Hebei's dairy industry can be reborn again can be seen through the development of Junlebao. .
After the melamine incident, during the new round of reshuffling of China's dairy industry, the market seats gradually became clearer. The three giants of Mengniu, Yili and Guangming controlled 60% of China's terminal market. At the same time, the Big Three intensified the competition for milk resources. How should the local dairy brands in the second and third camps break through and how to survive in the cracks?
Located in Shijiazhuang, Shijiazhuang Junlebao Dairy Co., Ltd. (hereafter referred to as “Jun Le Baoâ€) established a joint venture with Sanlu Group in 2000 and a strategic cooperation with Mengniu in September 2010. What is the value of the development of a cool tree? What is the demonstration significance of Jun Lebao's survival for local dairy companies?
The ironclay still needs its own hard, and Wei Lihua, general manager of Junlebao, believes that the future pattern of China's dairy industry is not entirely dominated by the giants of the dairy industry, and they are well-trained in the internal market. They can work hard in the market segmentation, and the local dairy brands can break through, and they can do the same. Bigger.
Releasing Capital to Attract Resources “China Business Newsâ€: In 2000, Junlebao had a joint venture with Sanlu Group. In September 2010, it also had a strategic cooperation with Mengniu. Mengniu held a 51% stake in Junlebao. Some market participants analyzed Jun Lebao's development and survival mode as a "back-leaning on the trees and enjoying the coolness". What is the real reason behind this kind of "foreign" survival thinking?
Wei Lihua: If a company is to be long-term and development is the first factor, I expect Junlebao to be able to build a century-old shop and be able to grow bigger and stronger. Jun Le Bao has always maintained the brand, the company independent business unchanged. Under this concept of development, we chose a cooperative approach that can bring value to Jun Lebao.
Prior to the cooperation with Mengniu, Junlebao faced two development strategies. The first was its own independent listing (capital market); the second was cooperation with long-term strategic investors. At the beginning, many financial investors such as investment banks found us and they promised to help Junlebao to obtain listing financing.
My consideration is that listing is not the ultimate goal of a company. It is fundamental to make a company stronger and bigger and make it a hundred-year-old shop. Although listing can solve the company's funding problems, it cannot solve the company's resources. After repeated considerations, we chose the second one, and cooperated with Mengniu, a strategic investor in the same industry.
In the course of the development of many large enterprises, they will all introduce resources through capital output. The so-called “financial dispersal people†will obtain more favorable resources through the dilution of capital to support the better development of enterprises. The same is true for Junlebao's cooperation with Mengniu, and we also want to exchange resources by releasing our own capital.
Cooperation with strategic investors such as Mengniu helps to share resources and create synergies between companies. For example, in research and development, Mengniu has the most advanced overseas research and development station (Paris), and we can share the results of new product research and development. Le Bao's enterprise innovation capabilities; We can also coordinate in milk source management, market channels, and corporate operations. By learning and drawing on Mengniu's advanced management experience, we can help reduce the operating costs and market competition costs of Jun Lebao. Helps to strengthen the construction of milk source bases and equipment upgrades and enhance the overall competitiveness of enterprises. These are valuable assets that financial investors cannot bring.
"China Business": Jun Le Bao repurchased the equity of Sanlu Control just two years, sales jumped from the bottom to 1.5 billion yuan, during this period, Jun Lebao is how to quickly recover?
Wei Lihua: After the milk powder incident, Jun Le Bao became an independent brand and everything started from scratch. At that time, the flight was indeed difficult. The bank withdrew its capital and the company's capital chain broke. However, none of our management and staff members left. All suppliers and distributors are standing by the company. We firmly believe that the company can emerge from its predicament and rejuvenate. At that time, we raised funds, supported by the government, and raised all parties. We managed to keep our business operations on track for a short period of time, and achieved profitability after six months. Before the 2008 incident, the market share of Junlebao's sour milk was the third highest in the country. By the second half of 2009, the market share of the sour milk named after the “Junlebao†brand had returned to the fourth place in the country. At the same time, we have made a series of adjustments from internal management and quality control, and the product quality and management level have reached a new level. In addition, under the support and guidance of the government, Hebei Milk Resources has regained regulatory rectification. It can be said with pride that the quality of the milk source in Hebei should now be at the forefront of the country. It is this persevering belief that has turned us from a crisis into an opportunity. From the zero realization to the second leap of 15 billion, the company has re-established the fourth national yogurt. This leap laid the foundation and prerequisite for our strategic cooperation with Mengniu, the first brand in China's dairy industry.
I have always believed that the development of a business depends on a culture that relies on a spirit. When the first factory of Jun Le Bao was completed, I established a slogan as a factory training: After the completion of the second factory, the same factory training was also held: If there is no difficulty in the world, as long as Ken Dengpeng; last year we put into production nationwide. After the construction of the largest sour milk production plant was completed, I decided to establish a new factory training based on self-improvement and dedication. We want companies to continue inheriting this spirit of continuous self-improvement. In the market competition, no opponent can defeat us. We can defeat only ourselves. If you admit defeat, you lose completely.
There is a need for self-hardening "China Business": After the development of China's dairy industry after the "Golden Decade" (1999-2009), the market structure has taken off. Mengniu, Yili and Guangming have controlled 60% of China's market. Local brands Dairy companies seem to be difficult to break through, and are struggling to survive in the cracks. But Jun Lebao still holds the second camp of China's dairy industry. What is Jun Lebao's survival? How do you think that the dairy companies of local brands can cope with the fierce market competition environment and how can they develop among the three giants?
Wei Lihua: The key to the survival of local dairy enterprises is to look at themselves. The first step is to improve internal strength and to be refined from management; second is to set a good position, such as occupying a place in the market segments, such as products targeting women and children, and targeting middle-aged and older products, etc. Market; Moreover, we must continue to innovate and preemptive. Relying on innovation, Jun Le Bao has developed the first red date sour milk, and has created a new daily product of low-temperature fermented lactic acid bacteria beverages, the first European-style yogurt cheeseyard, and other new products. It turns out that innovation makes these products become its The leader in the category. This is also the way for Jun Lebao to survive.
I don't agree with local brand names. No company does not want to become a national brand, but it is difficult for its own capabilities and resources to support the nationalization process. As long as there are opportunities and capabilities, these so-called local brands will surely go. National.
In fact, many SMEs have many advantages, such as fighting and surviving ability. After all, the small vessels make a good turn. As long as they find their respective advantages, the Chinese dairy market still has a lot of room for survival and development. The dairy enterprises in the second and third camps of the Chinese dairy market should first look for problems from their own, and first work hard to find a way to break through.
"China Business": We have seen that after the trihydroamine incident, Mengniu, Yili and Guangming have all aggravated the expansion of milk sources. According to analysis by industry experts, the Big Three's expansion basically lies in grabbing milk. Under such circumstances, what are the core competencies of the second and third camp dairy companies?
Wei Lihua: In the past two years, the beachhead milk source is different from the previous ones. Many dairy companies are building and stocking milk bases in a down-to-earth manner. Because the dairy industry finally fights for milk sources and has a high-quality milk source to make it. High-quality products are the foundation and guarantee for the healthy development of industries and enterprises.
The core competitiveness of an enterprise I think is ultimately business philosophy. The business philosophy determines the height and distance of business development. When the market environment is good, all enterprises may grow. When the market environment is poor, only companies with long-term development philosophy can move forward in accordance with established goals because they have ideals, visions, plans, and goals. How big the heart is, how big the stage is, and what people are doing.
On the local business environment "China Business": Do you hope Junlebao can be a century-old shop, do you think how to achieve the desire to achieve a century-old shop?
Wei Lihua: Some good companies in foreign countries are formulating corporate strategies based on scientific research, studying macroeconomic trends, studying trends in the industry, researching trends in consumer demand, and researching corporate positioning and advantages. For the formulation of the corporate strategy, it must be decomposed into reasonable phased objectives, matched with reasonable resources, broken down into different tasks, and create a heavy burden for everyone, and everyone has indicators on their heads. In order to achieve strategic planning and guidance of business, strategic goals can be decomposed, enforceable and measurable. However, some domestic enterprises lack the scientific and rigorous research base when formulating their strategies, and they are blindly strong. After the formulation of the strategy, it is not entirely in accordance with the strategy. The strategy is implemented in two layers. The boss personally has the final say, the goal is modified arbitrarily, and the final strategy does not play the role of overall planning. Various developments will occur during the development of the enterprise. Such problems eventually became overworked and went bankrupt. Therefore, to be a century-old shop, we must have a hundred years of vision, long-term planning, clear thinking on every step and every day of business development, and our strategic goals remain unchanged.
The development of an enterprise is divided into four phases: the start-up phase, the growth phase, the maturity phase, and the recession phase. During the start-up period, everyone is very difficult, relying on concerted efforts and hard work. Growth period is a crucial period for the development of an enterprise. During the growth period, enterprises must do five things: strategic planning, cultural construction, fine management, system improvement, and corporate innovation. Doing these five things properly will lengthen the growth and maturity of the company and eliminate the resistance of the development process.
In addition, the dominance of a single company in business operations is terribly terrible. When repurchasing stocks in 2008, I was very worried. I feared that there would be problems after the dominance of a single company. The development of a company cannot rely solely on the decision of a leader. It is very risky. Even if the person in charge of the company is competent and has great vision, it has always been a smooth move. However, when there is always a hundred secrets, perhaps a small thing may cause the whole enterprise to face the catastrophe. Entrepreneurs and enterprises must accept the constraints. Only when they are bound, can they be objectively understood and have a clearer understanding of their positioning.
Therefore, several more shareholders of the company are favorable to the development of the enterprise. Perhaps the process of decision-making will be slower, but it will be more stable. The development of a company is like a domino. It starts very quickly, but as you move backwards, the slower you will become, the more cautious it will be. If you make a mistake, it will affect the entire situation.
"China Business News": To date, few brand enterprises have been able to clamor loudly in Hebei Province, especially private enterprises. What kind of business environment do you hope local governments should create to be more conducive to corporate development, especially for private enterprises? ?
Wei Lihua: Local government's service awareness and attitude towards the company are very important. Local governments in Jiangsu and Zhejiang have a strong sense of service. They all take the initiative to serve the enterprise and regard the company as a customer. The Hebei provincial government has a very good sense of service to the company during these years. Hebei Dairy’s attention and support policies are particularly prominent. This is reflected in the changes in our dairy industry in Hebei. All are trying to find ways to engage in services for enterprises, engage in financing, solve problems in capital and technology, and the business environment is getting better and better.
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