Hao Simin seemed to be in much better spirits this time, and she was much more capable in doing and talking than before. After several years of training, she finally got the hang of it.
You must know that the business complexity of Baiwei Food Company is comparable to that of Shangtong Trading Company, but there is still a big gap between the two sides in current operating income, but in terms of workload, there is basically not much difference.
Although Hao Simin had some management experience when he joined Zhao Yi, he had only worked in ordinary state-owned enterprises before and was not the top leader.
After joining Zhao Yi to manage Baiwei Food Company, her previous management experience was obviously unable to meet the rapidly expanding business of Baiwei Food Company. Management was quite difficult and made her feel very haggard.
After Zhao Yiyi carefully analyzed the business scope of Baiwei Food Company, he divided Baiwei Food Company into various subsidiaries according to major classifications for specialized operations, turning Baiwei Food Company into a true group enterprise.
The business of Baiwei Food Company is very complex, involving all 16 types of food categories. Although it does not cover all small categories, it is also actively expanding.
Most of the milk and dairy-related businesses are operated by Tianji Dairy Company. This company is actually a subsidiary of Baiwei Food Company, but because of its special status, it has the treatment of a first-class company.
Otherwise, Qin Xiangqin, the president of Tianji Dairy Company, would not attend this annual meeting. The reason why it is special is that Tianji Dairy Company’s dairy products contain special ingredients that are beneficial to the brain and human body.
If it is an ordinary second-level subsidiary, personnel management will be much more complicated, which can easily cause unnecessary problems. Moreover, Tianji Dairy Company is located in the northwest, and the geographical distance from Baiwei Food Company is too far, which is not conducive to direct management. .
However, Tianji Dairy Company is mainly engaged in the primary processing of dairy products and a small amount of finishing industry, mainly for the business of dairy products themselves, while Baiwei Food Company has a lot of dairy products processing business.
The 16 categories are divided into: milk and dairy products, fats, oils and emulsified fat products, frozen drinks, fruits, algae, nuts and seeds, cocoa products, chocolate and chocolate products and candies, grain products, baked goods, meat products, aquatic products, egg products, sweeteners, condiments, special nutritional foods, beverages, alcohol and others.
Among these 16 categories, the basic raw materials basically come from Tianji Agriculture and Animal Husbandry Company and Tianji Dairy Company. Baiwei Food Company is mainly involved in the reprocessing and deep processing industries.
Therefore, the relationship between Tianji Agriculture and Animal Husbandry Company and Baiwei Food Company is very deep. The cooperation between the two is almost all-weather. In addition to the agricultural products produced by Tianji Agriculture and Animal Husbandry Company, except for direct sales in the market, the rest are basically Used by Baiwei Food Company as a raw material in the processing industry.
At the same time, Baiwei Food Company has developed new products and will also communicate with Tianji Agriculture and Animal Husbandry Company to ask Tianji Agriculture and Animal Husbandry Company to start planting relevant agricultural products as soon as possible so that it can provide processing raw materials in a faster and sufficient amount.
In addition to having sufficient capital, the rapid growth of Baiwei Food Company also depends on the quality of the products they provide, and these excellent products are inseparable from the excellent raw materials supplied by Tianji Agriculture and Animal Husbandry Company.
The special sweeteners mentioned earlier are much better than sugar. Not only do they not cause harm to human health caused by sugar, but they are also beneficial to the body with long-term use.
Of course, the excellent raw materials of Tianji Agriculture and Animal Husbandry Company are also inseparable from the strong support of Qingnong Biological Laboratory in the research and development of new varieties. Otherwise, it will be difficult for a clever woman to make a meal without rice.
For example, everyone knows that camellia oil is currently the best edible oil in the world, but obtaining tea seeds through traditional methods is not only small in quantity, but also very difficult.
In response to this situation, the Qingnong Biological Laboratory needs to carry out research. Through biological breeding technology, related plants will be improved and special varieties specially used for tea oil production will be developed.
The new variety developed by Qingnong Biological Laboratory is not only suitable for large-scale planting, but also has a short plant growth period. At the same time, it has a very high seed yield and oil yield, and is more suitable for mechanical farming.
Even though it has so many advantages after being improved by Qingnong Biological Laboratory, the nutritional content has not been compromised at all, and some beneficial ingredients have even been enhanced.
Due to the many characteristics of the new tea oil tree, it has completely got rid of the production constraints caused by the original tea oil tree, resulting in many shortcomings of insufficient raw materials and high prices.
At present, most of the edible oil products of Baiwei Food Company are mainly camellia oil, and the number of other oil products is very small, just to meet individual needs.
More importantly, the output of raw materials is very considerable, resulting in the price of originally expensive camellia oil being comparable to that of ordinary oil products, and has gradually become a mainstream edible oil product in our country.
Of course, it is relatively cheap to buy domestically, but the price of exported camellia oil products is very expensive. It is a high-end oil product, and the profit margin is naturally very generous.
It is precisely because our country has been very successful in cultivating tea oil trees. Although our country's people have an increasingly strong demand for edible oil in their daily lives, they have not imported soybeans on a large scale to produce soybean oil.
This is just an example, but such cooperation is very frequent between Baiwei Food Company, Tianji Agriculture and Animal Husbandry Company and Qingnong Biological Laboratory.
Whenever Baiwei Food Company enters a certain field, it will investigate the best raw material varieties in that field in advance, and then cooperate with Tianji Agriculture and Animal Husbandry Company and Qingnong Biological Laboratory to improve and cultivate the best raw material varieties.
It is precisely because Baiwei Food Company has very high requirements for quality and at the same time cooperates closely with Qingnong Biological Laboratory and Tianji Agriculture and Animal Husbandry Company that the acquisition cost of raw materials is relatively low while the quality is guaranteed.
The final result is that the price of high-quality products of Baiwei Food Company is not much higher than the price of ordinary products. The natural market has opened up and gradually occupied the mainstream market share.
Last year, the total sales revenue of Baiwei Food Company in China reached 200 billion yuan. This is because it implements a relatively low-price strategy domestically, so that domestic people can afford high-quality products.
The price of products exported to foreign countries is often several times the domestic sales price. Although the sales volume cannot be compared with the domestic sales, the difference is not particularly huge in terms of sales, reaching a scale of 260 billion yuan.
In foreign countries, high-income people have gradually become loyal consumers of Baiwei Food Company's products. Even Shangtong Trading Company has opened special high-end boutique supermarkets abroad. The products inside are all high-end products to facilitate the consumption of high-income people.
According to Hao Simin's report, the current domestic market has basically reached its limit. If we want to further improve the market, we must first continue to improve food types and create consumer demand, and secondly, expect the income of domestic people to continue to increase.
Regardless of the domestic sales input of more than 200 billion yuan, the profit margin is extremely low, with a net profit margin of only about 10%. This means that the country can only earn more than 20 billion yuan in net profit for Baiwei Food Company every year.
This is because Baiwei Food Company implements a high-quality, low-price strategy in China. Even if Qingnong Biological Laboratory provides excellent varieties of raw materials, the costs of the planting and production links are still higher than those of ordinary quality products. .
But the price cannot be mentioned too high. It can only be a little higher than ordinary quality products, because it is too high and consumers generally cannot afford it.
This is why Hao Simin feels that if he wants to significantly increase sales revenue in the future, increasing people's income is a very important aspect. In this way, the same sales volume will naturally increase because of the increase in unit price.
Based on the domestic population of 1 billion, Baiwei Food Company's sales of 200 billion yuan have indeed reached the limit, accounting for about one-twentieth of the average annual income of domestic people.
You should know that Baiwei Food Company’s sales do not include staple grains, fresh vegetables and fresh meat. These categories will be sold independently by Tianji Agriculture and Animal Husbandry Company.
If all these are included, the proportion of the annual income of the people will be higher. If the consumption cost of food is too high, it will inevitably crowd out the desire for other consumption and cause a greater blow to other industries.
It stands to reason that the products of Baiwei Food Company cannot account for such a high proportion of people's annual income. The reason for this result is mainly because of their excellent quality.
This excellent quality not only refers to food safety, but also includes taste, appearance, etc., which makes consumers have a strong desire to buy, especially if they have not tried it before. Once they try it once, they will often think about it.
In addition, another reason is that the domestic economy has developed rapidly in recent years, and people have more and more money in their pockets. In addition, the previous experience of food shortage is still vivid, which has resulted in a certain amount of retaliatory consumption.
In this case, adults are very willing to spend more on food after making money, hoping to provide more food supplies for children and families.
Therefore, the products of Baiwei Food Company have a very high purchase rate among domestic users. They have become common consumer products for domestic people and occupy an important position in their daily lives.
To give a simple example, the domestic price of canned carbonated drinks from Baiwei Food Company is generally around 0.5 yuan. Even if you drink one bottle a day, most families can afford it.
The same product sells for US$0.5 abroad, which is double the price in China. Even so, the price of carbonated drinks is not much higher than that of Coca-Cola and Pepsi.
Adopting a high-quality and low-price strategy in the country is not only the strategy of Baiwei Food Company, but also the sales strategy of Tianji Agriculture and Animal Husbandry Company. The purpose is to make consumption affordable for the people, and it is also the need for its own brand to take root in the domestic market.
As a result, it has become very difficult for foreign food products to come in. Imported products with low quality and low price are not necessarily cheap.
In order to change the view that the quality of foreign imported products is good, Baiwei Food Company and Tianji Agriculture and Animal Husbandry Company have spent a lot of money on this, and the official media is also actively guiding them.
At the same time, as the largest commodity sales channel in the country, Shangtong Trading Company is not particularly active in imported food. Even if it is imported, the price will be kept very low, and at the same time, the price will be raised very high when selling.
There is a very good reason for foreign suppliers to lower their prices. That is to compare the products of Baiwei Food Company. If the quality is low, the price will naturally be lower, otherwise why should we import your products
The reasons for raising prices on the sales side are equally valid, that is, the sales volume is small. In order to dilute the costs of each link, the unit price must be increased. More importantly, they are placed on inconspicuous shelf locations.
Coca-Cola and Sinograin previously cooperated to produce cola products in China, but now they have basically disappeared, and have all been replaced by cola products from Baiwei Food Company.
"How are you talking about acquisitions with Pepsi-Cola and Coca-Cola?" Zhao Yi asked.
Hao Simin did not expect that Zhao Yi would pay attention to this trivial matter. Although the acquisition of these two beverage giants is a very important matter in the industry, it is not a big deal in Baiwei Food Company, let alone the boss.
As the domestic market gradually becomes saturated, foreign products occupy the high-end market. In order to further expand operating income, Baiwei Food Company adopts an acquisition strategy.
In other words, for a long time in the future, Baiwei Food Company's expansion abroad will be to acquire local food companies to quickly occupy the local mid-to-low-end market.
Therefore, the acquisition of Coca-Cola and Pepsi-Cola was naturally included in their acquisition plan. However, the individual amounts of these two acquisitions are not small, but compared with the overall acquisition scale, the proportion is not very large.
Now Coca-Cola and Pepsi-Cola, under the impact of high-quality products from Barway Food Company, continue to decline in sales revenue and continue to lose market share. Now these two companies are in a period of anxiety.
“We are currently in secret negotiations with these two companies, and the progress is very smooth, because if we cannot sell them off, the market share will be further reduced, and the operating income will be reduced accordingly.
Their stock price has dropped by nearly 70% compared to its peak. If it takes a few years, the stock price will fall further. This is a very big blow to investors, and it is natural to be eager to take action. "Hao Simin said.
“And when we were negotiating, we clearly told them that if the acquisition fails to succeed, in order to occupy the mid-to-low-end market, we will launch related products later, and then it will really be a bayonet stage.
You must know that the profits of Coke products are actually not very high. If it really reaches the stage of real combat, then they will definitely fail, because apart from beverage products, they have no profits in other fields to support continued operations.
But we are different. We are much larger than them. At the same time, our high-end products are safe and sound for the time being and can continue to replenish our capital and support our continued operations. Hao Simin then said calmly.
When Zhao heard Hao Simin say such explosive words so calmly, he glanced at her in surprise. This was really like holding a gun to the heads of the two companies to negotiate.
At the same time, this also fully demonstrates the nature of the weak in the capital world. With its huge size and high-quality product technology, Baiwei Food Company can be said to be invincible.
Hao Simin can say such murderous words in a calm manner, which shows that he really has the characteristics of a leader who is decisive and decisive in attacking a huge industrial group. Especially when facing fierce international competition, this style is particularly important.
Regardless of the tenderness of domestic industrial development, it is because Zhao Yi has a huge influence in the country, and his smooth development is due to the huge influence of his brother industries.
But it’s not that simple abroad. In addition to relying on some of the influence of brother companies, the rest must be developed entirely by themselves. In the face of a more competitive capitalist market, they must kill decisively and be inhumane. It's the way to survive.
Just like negotiating acquisitions with these two companies, it would be very difficult to complete the negotiations in a short time without putting a gun to their heads. After all, they were unable to let go of their pride.
Even if they want to sell themselves, their first choice is not to sell to their enemy, and this enemy is a Chinese company that they looked down on before, which is even more difficult for them to accept.
Even if there is no one else to take over, and you have no choice but to sell yourself to your enemy, you still have to hold your own, pay a high price, and drag your feet for a long time.
“And these are not entirely threatening words. We are actually already making relevant arrangements. Regardless of whether these two companies will be acquired in the short term, we will enter their fields and compete with them.
The worst case scenario is that after the acquisition, we can sell our mid- to low-end carbonated drinks under their trademark, which will make it easier to expand in the market. "Hao Simin said.
Since Hao Simin has his own strategy in international acquisitions, Zhao Yi does not plan to interfere more in this. Anyway, their basic market is basically stable, and these business expansions will not affect their normal business no matter what. business.
"Your Baiwei fruit wine should be launched on a large scale within this year. How are you doing related work?" Zhao Yi asked.
After intensive seedling cultivation and planting arrangements, as well as the use of auxins, by this year, almost all fruit trees will enter the harvest season, and the Baiwei fruit wine he has longed for has also met the conditions for sale.
“Although we have done a lot of planting work in the past, it is basically impossible to maximize production and meet the needs of the entire market at once.
Therefore, we will not fully supply the market in the first year, but adopt a small-batch supply model to test the market's reaction, and decide what to do next based on the market's consumption of various varieties of Baiwei fruit wine. "Hao Simin said.
Baiwei fruit wine is a mixed-flavor fruit wine brewed from 100 fruits through special secondary fermentation technology. This means that different combinations bring different tastes.
It is this ever-changing taste change that makes Baiwei Food Company not sure how the market will react to each flavor. To be cautious, the first step is to test the market reaction, which is a safe move.
In addition to testing the market's consumer demand for various flavors of fruit wine, another important task is to test the market's acceptable prices for various grades of Baiwei fruit wine, so as to facilitate the pricing of Baiwei Food Company.
Zhao Yi agreed with Hao Simin's arrangement, although he was eager to expand the sales of Baiwei Food Company's alcoholic products to provide himself with greater profit support.
However, the first choice for business operations is to be safe. If large-scale supply is rushed without a clear understanding of the market, it will easily cause confusion in market positioning and pricing, which will be detrimental to subsequent operations.
And although the planting area of new varieties of fruit trees is not small in the first year, it is insignificant compared to the huge market. At the same time, not all of these fruits can be used to make wine, and most of the fresh fruits need to be supplied to the market.
"If mixed-flavored fruit wines are launched on a large scale, what are you going to do with the single-flavored fruit wines you currently sell?" Zhao Yi asked.
“Although our single-flavor fruit wine tastes excellent compared to foreign wines, the taste is quite different from mixed fruit wine.
Moreover, every ten mixed flavors of our fruit wine will be counted as one grade. In this case, there will be 10 grades of mixed fruit wine, which is enough layering.
In addition, the cost of mixed-flavored fruit wine has not increased much, it is just a secondary fermentation, so we plan to wait until the mixed-flavored fruit wine is launched and gradually withdraw our single-flavored fruit wine from the market. "Hao Simin replied.
Zhao Yiyi was a little surprised by their arrangement. He originally thought that the single-flavor fruit wine would be cheaper and would be the lowest-grade product in their fruit wine series.
What he didn't expect was that Baiwei Food Company would directly delist the single-flavor fruit wine. Zhao Yi asked in confusion: "Why do you want to do this? You can sell the single-flavor fruit wine as the lowest-grade fruit wine on the market."
“We do this because we feel there is no need to design too many levels of Baiwei fruit wine. This not only increases the difficulty of consumer choice, but also increases the complexity of our sales end.
Of course, the more important reason for doing this is that the cost of mixed-flavor fruit wine has not significantly increased. In this case, 10 mixed-flavor fruit wines are suitable as the lowest-grade fruit wine.
And this will also allow our lowest-grade mixed fruit wine to have an overwhelming competitive advantage over other fruit wine brands around the world, completely bringing the entire global fruit wine market into our arms. Hao Simin replied with a smile.
According to Hao Simin, this does not leave any way for others to survive. Although single-flavor fruit wine has certain advantages, it does not have an overwhelming competitive advantage. This allows some foreign high-end fruit wine brands to have a certain degree of success based on their years of reputation. market.
If Hao Simin's intention is followed, then their lowest-grade mixed fruit wine products will have a crushing competitive advantage over those high-end fruit wine brands.
If even these high-end fruit wine brands cannot survive by then, then the current low-end fruit wine brands will not be able to survive. In this way, as Hao Simin said, Baiwei Food Company will dominate the global fruit wine market.
After seeing that Zhao Yi recognized their strategy, Hao Simin continued: "Our research on special secondary fermentation bacteria has found that this special fermentation bacteria can also perform a good primary fermentation of grain, and the quality ratio of liquor and beer produced is It is much better than ordinary fermentation strains.”
Zhao Yi was a little surprised to hear what Hao Simin said. He had never conducted experiments in this area. When he developed this special fermentation bacteria, the main purpose was to make mixed-flavor fruit wine, and he didn't think of many other aspects.
Now that Hao Simin said that this special strain of bacteria, originally used for the secondary fermentation of fruit wine, had special effects when used in the primary fermentation of grain, he was a little surprised.
However, if you think about it carefully, it makes sense. After all, this special fermentation strain also has the functions of ordinary fermentation strains, and there is no problem in using it to ferment grains.
"Are you planning to enter the liquor industry and beer industry?" Zhao Yi asked.
“We have this plan, and with the powerful tool of special fermentation bacteria in hand, it would be a pity not to enter these two wine varieties.
Moreover, the liquor category and the beer category are also important categories in the world. If we can occupy an absolute market share in these two categories, it will have a very positive effect on the development of our alcohol industry. "Hao Simin said.
"Then how do you manage liquor and beer?" Zhao Yi asked.
This is different from Baiwei fruit wine. The grade can be determined based on the number of mixed flavors, forming a combination of high, medium and low. That's why he asked this question.
“We plan to only engage in mid-to-high-end liquor products, mainly because there are a large number of liquor brands in China. If our price is too low, they will basically be driven out of the market.
As for beer, we plan to adopt a common business model, which is to make it affordable for ordinary consumers, thereby integrating the entire beer market into our operations. "Hao Simin said.
Indeed, as Hao Simin said, the high-end liquor business is mainly for other domestic liquor brands, because even liquor produced using special fermentation bacteria can still determine the grade of liquor through different fermentation methods and blending methods.
As for the beer industry, our country is currently not large, so there is no pressure to bring beer into our own arms, and we can also control the global beer market.
"We plan to start implementing these plans within this year. After the mainstream alcohol market is stabilized, we also plan to enter the special alcohol market and the alcohol alternative market." Hao Simin said.
After hearing this, Zhao said: "Can you tell me in detail?"
"The special alcohol market is a product developed specifically for the drinking habits of individual countries. The most typical one is Japanese sake, which is only popular in Japan and not very popular abroad.
In order to further expand our market share in the future, it is inevitable to enter the field of this special alcoholic beverage. Similar to sake, there are vodka and so on.
Alcohol substitute products refer to some non-alcoholic special drinks that have a certain taste and effect of alcohol, but do not contain alcohol. The main purpose is to meet the market demand of some foreign countries. "Hao Simin said.
When Zhao heard Hao Simin's explanation, he touched his forehead helplessly. He had never noticed before that Hao Simin was so strong. This was a rhythm that wanted to wipe out all the markets.
Even local specialty alcohol products are not spared, and even people who do not drink alcohol are targeted by them. Since they do not drink products containing alcohol, they will develop products that meet the requirements.
You must know that the size of the global *** community is not small. If Baiwei Food Company is really allowed to develop such alternative products, the market size will not be small, and there will even be retaliatory growth.
Finally, according to Hao Simin's prediction, in the sales plan for the next year, Baiwei Food Company's sales revenue from various alcoholic products is conservatively estimated to reach more than 100 billion yuan, and under optimistic conditions, it will reach about 200 billion yuan.
Zhao Yi agrees with this estimate. There is no doubt about the quality of Baiwei fruit wine. It is only a matter of time before it replaces the current fruit wine market. The market share depends on the marketing methods.
Coupled with high-end liquor operations and high-quality beer products, a conservative estimate of total sales of 100 billion yuan is basically not a big problem.
As for the optimistic estimate of 200 billion yuan, it does not mean that the market's maximum acceptance is only this much, but because this year's output is destined to not be available in unlimited quantities. Even if the market responds enthusiastically, supply will exceed demand.
The joint meeting has basically ended here. Finally, Zhao Yi once again emphasized the importance of cooperation. Through cooperation, Qingnong Biological Laboratory can understand more demand-side needs and be able to provide more valuable research and development results.
Through cooperation, Tianji Agriculture and Animal Husbandry Company and Baiwei Food Company not only solve the problem of high-quality varieties of crops, but also solve the problem of supply of high-quality raw materials and sales outlets. It is a win-win situation.
Finally, Zhao Yiyi asked Tianji Agriculture and Animal Husbandry Company and Qingnong Biological Laboratory to arrange large-scale seed cultivation and planting of Shuangshencao. According to his request, the first crop must be harvested within this year so that traditional tobacco can be grown as soon as possible. substitute.
This requires Tianji Agriculture and Animal Husbandry Company to build large-scale farm shed facilities that meet the requirements at the beginning of the year. If planting is done in the open air, it will be greatly affected by the weather environment, and pests may also occur.
According to the consistently high requirements of Tianji Agriculture and Animal Husbandry Company, chemical reagents such as pesticides will not be used to increase production if pesticides can be avoided. This is why Tianji Agriculture and Animal Husbandry Company dares to claim that its products are organic agricultural products.
Moreover, if Shuangshencao wants to grow various flavors, it requires different environments. Only high-standard farm sheds can fine-tune all aspects, and the environment can be changed at any time.
Qingnong Biological Laboratory needs to fully cooperate with the seed cultivation work. Fortunately, with the powerful tool of auxin, I believe they can provide sufficient seed products in a short period of time. (End of chapter)