I often say that local specialty products are natural fertile land for the birth of big brands, and have natural genes to expand the market and expand the brand. However, Ningxia Yi has missed a historical opportunity to become bigger and stronger. Nowadays, with the advent of big agriculture and big health trends, brand agriculture is emerging. The Ningxia wolfberry industry is expected to seize this historical opportunity and strive to break through.

When Zhu Rongji Meets Ningxia

In fact, as early as 1999, Ningxia wolfberry industry once ushered in a development opportunity.

This year, the strategy for the large-scale development of the western region was put on the agenda of the Central Government. When Premier Zhu Rongji of the then State Council visited Gansu, Qinghai, and Ningxia, he proposed that the western region should use the different geographical and climatic conditions, different resources, and species characteristics to market. Based on guidance, based on the use of its own advantages, adjust and optimize the industrial structure, establish a characteristic economy and advantageous industries with development prospects; make great efforts to adjust the agricultural structure and focus on the development of characteristic agriculture.

Nowadays, as the saying goes, "As long as you stand in the air, pigs can fly," then the Western provinces of the time are undoubtedly the strongest industrial winds. Ningxia, with its obvious advantages in resources, is most likely to develop into a dominant industry. "Fly".

Zhongning County of Ningxia is the birthplace and authentic origin of the world, and it is also the main producing area of ​​China, the breeding of new varieties, the development of new science and technology research and development zones, and more than 600 years of planting history of alfalfa. It is the hometown of Chinese eaves named by the State Council. "It is known as "the Yellow River is rich in Ningxia in the world, and Zhongning is the best in the world". Zhongning is bright, thin, flesh-thick, with few seeds, sweet, and superior in quality. It is the only one that has been included in the New China Pharmacopoeia. The State Administration of Pharmacy has designated Ningxia as the only medicinal quail origin in China and has been introduced nationwide. One of the top ten pharmaceutical production bases.

“In the inspection of Premier Zhu in 1999, he proposed that alcoholism 'must continue to develop and expand production so as to promote the development of the industry'. As a result, Ningxia immediately placed the 'building industry chain' at the top priority. On the form.” Zhang Jinshan, chairman of Ningxia Hongkai Industry Group Co., Ltd. (hereinafter referred to as Ningxia Hong Group) recalls.

However, fifteen years of development shows that Ningxia Ji did not grasp this opportunity.

Four major industrial problems

“In recent years, crickets in Qinghai, Gansu and other provinces have flown into the Zhongning market, and the business in Zhongning has been difficult to do year after year.” A local trader in Ning said that he purchased from farmers. After undergoing rough processing, the company sold Sino-Ningbo to the outside world. Today, business has been strongly impacted by "outside the province."

This phenomenon reflects the unpredictable development of the industry in Ningxia:

Product weakness. On the one hand, wolfberry sales are mainly based on dried fruits, the overall level of standardization management is not high, product quality is not stable, and most of them are not packaged, or the so-called packaging still stays at the level of plastic bags; on the other hand, the relative development of processing industry Lag, after a long period of development, the number of processing enterprises in Ningxia is increasing and the scale is increasing. However, compared with other domestic agricultural product processing enterprises, the scale is still relatively small, the production areas are widely distributed, the business units are scattered, and the brands are numerous and miscellaneous. The processing potential needs to be tapped.

In addition, the pollution-free cultivation planted by the relevant departments for many years has not yet fully commenced. The content of harmful chemical substances in Suizhong is high, and the secondary pollution in the drying process is relatively common, failing to meet the standards of pollution-free and green standards. In general, most of the planting and processing of alfalfa in Ningxia are still in the primary stage, and traditional concepts and consciousness with heavy quantity and light weight are common.

Low-cost, single channel model. Ningxia wolfberry's sales channels are mainly led by the wholesale market, based on the farmers' market, supermarkets, direct sales of farmers, and online sales are just supplementary. Wholesale market, farmer's market this form of the channel will inevitably lead to the sale of "only price theory", operators can only rely on price war to win the market, earn meager profits, but also no way to establish market segmentation, brand barriers, Qinghai, Gansu and other provinces Once inflow, it naturally has a strong impact on the local baboons.

Small-scale individual plantation is difficult to sustain. In Zhongning, the planting of wolfberry is mainly planted in each household, and the per capita arable land is more than one acre. The planting area of ​​each family is not large. However, the wages of picking workers are constantly rising. In the previous year, a pound of picking money was paid to 1.2 yuan per person, and in the following year, it rose to 1.5 yuan but still could not find anyone. Sometimes it rose to 1.8 yuan; the amount of chemical fertilizer needed is also relatively large. The increase in fertilizer prices has also increased costs; it has been unable to withstand natural disasters, and there has been more than one year of rain, and the output has fallen seriously. Therefore, every year, a group of tenant farmers give up planting because they cannot make ends meet, and they directly pull out the banyan tree. This is tantamount to "exhausting water and fishing" and will fundamentally affect the sustainable development of the industry.

The overall lack of brand awareness. In recent years, in order to promote the development of the Fujian industry, Zhongning County government has spent 20 million yuan each year to support the development of the industry. The specific direction of support is “to promote the breeding of good breeds, technology research and development, quality testing, market transactions, and personnel training”; Experts from the Planning and Design Institute of the Ministry of Agriculture and the Xi’an Branch of the Chinese Academy of Sciences are investigating and demonstrating the two aspects of industrial planning and technical guidance for Zhong Ning’s “Treatment of Pulses”.

It is not difficult to see from the government’s “tangible hand” to the macro-control of the industry. The Ningxia wolfberry industry represented by CNG has not established marketization and branding thinking, and still focuses its development on basic products and technologies. At the level, you can't jump out of agriculture to see agriculture. The "market-oriented" and "building a new industrial chain" put forward during the year almost became empty words.

Therefore, “Hometown of China” is a blockbuster sign for Ningxia, but in the past ten years, Ningxia has not developed several marketable brands and does not speak of national brands, even regional brands. Very few.

"Ningxia Red": Breakout of a Brand

In the silence of the entire industry, "Ningxia Hong" is considered "heterogeneous."

In 2000, Zhangshan Jinshan's Fragrant Hill Wine Company (predecessor of Ningxia Hong Group) acquired Ningxia Zhongning Loquat Products Factory and shouldered the “political task” of building the Ningxia loquat industry chain. The factory had stopped production for four years at that time, and the weeds in the plant area were all one person high. They used to make only simple products such as canned drinks and canned goods, which meant that Zhang Jinshan had taken over almost from scratch.

Zhongning's “Hometown of the Whole Country” is a block-type signboard, but it must not take the old road. In the end, how to position the development of the enterprise? In the view of Zhang Jinshan, who has already achieved the No. 1 market in Ningxia Baijiu Liquor, how can wine be brewed with food and wine should be brewed with grapes? As a result, the research and development of loquat wine began. The intoxication and instability of the wines caused the test to fail several times, and tons of unqualified wine were dumped.

At the same time, because of the low economic benefits, large quantities of eucalyptus were cut down by farmers in the region. In order to ensure the enthusiasm of farmers for planting glutinous rice, Zhang Jinshan would not hesitate to buy wolfberry fruit at a price three times higher than the market price. He also stipulated that the annual purchase price should be at least 10% higher than the previous year.

After some hard work, in August 2001, the technology of low temperature fermentation was successfully developed. In 2002, the “Ningxia Red” series of alcoholic beverages was launched at the national sugar and wine festival and became the “dark horse” of the wine industry. Ningxia Hong Group was It was awarded the “Key Leading Enterprise of Agricultural Industrialization in the Autonomous Region”; in 2003, Ningxia Red not only occupied the markets of 28 provinces, municipalities, and autonomous regions in China, but also entered the markets of Japan and South Korea; in 2005, Ningxia Hong was selected as the first “China’s most influential The 20 liquor brands "; in September 2007, Ningxia Hong won the "China Top Brand" product title.

The development of a company affects the entire industry at the same time: the planting of loquat in Zhongning has grown from the initial 50,000 mu to 600,000 mu, and the fruits and peasants are rich; this has led hundreds of companies from surrounding counties and cities to intervene in the deep processing field.

After ten years of sharpening the sword, the creation of Ningxia Red brand awareness should be said to be successful. However, after the initial short-lived glory of market sales, it has been shrinking. The reason is mainly that the brand marketing strategy is not clear, it is not systematic, Did not do well:

The strategic positioning is blurred. It is reasonable to say that by virtue of the natural understanding of the Chinese people, Ningxia Hong is healthy and nutritious. It should be suitable for all ages. It can cover almost all consumer groups, but if companies really want to do so, they must fully The net, the requirements for funds and resources will be relatively high. On the contrary, in the early stages of product and brand launch, it is more likely to succeed in locking up and fixing groups.

Judging from the market feedback, Ningxia Hong did not fully understand this point, from the old consumer groups, to the white-collar consumer groups, to the female consumer groups, all within the scope of their product sales.

Improper product strategy. For many years engaged in agricultural planning, Fuk to see a lot of companies there is a misunderstanding: the more products, the better, the East is not bright in the West. The product range of these companies is often in the range of as few as several dozen, and as many as hundreds, seemingly dazzling, in fact there is no star product, there is no strategic product of the company, a product sells for only a few hundred thousand, millions in a year, basically talk about Not on the market, do brand.

Ningxia Red's items are as many as 20 kinds, and they are simply divided according to the sales channels, the degree of liquor, etc. The difference in packaging is also very small, and ordinary consumers can hardly distinguish the grades. In fact, unclear positioning can easily lead to product strategy deviations.

Brand value hollow. A brand is not just a trademark, a name, or a slogan. A truly successful brand delivers core values ​​at the same time. Nongfu Springs “harbors of nature” is the first to capture the social and ecological changes, and to seize the mental value of escalating consumer demand. The sunflower “sunny rice for you” will effectively relieve the consumers of “identity” Select the biggest hidden worry, so as to achieve value seizure.

In contrast, Ningxia Hong has established a certain degree of popularity through a series of CCTV advertisements. However, in the past few years, the core language of communication has always been “Drinking a little bit a day and being a little healthier”. Brand communication has not achieved a quantum leap from qualitative change to qualitative change. The development of the times enhances the brand value.

Channel sales are weak. Although Ningxia Red’s advertising investment is very high and its popularity is high, its channels have not reached the requirements of intensive cultivation in the past. Judging from the selection of dealers and the display of terminals, it has not reached the level corresponding to its advertisements; the construction of roads, the rate of shop-laying, and the maintenance of terminals have been unsatisfactory; the front-line sales staff have been confused and cannot establish long-term and stable cooperation with distributors. As a result, it is not surprising that Ningxia Red’s sales have shrunk.

Even if these are only the author's analysis, even Zhang Jinshan himself agrees: "Before (10 years after 2002) is absolutely immature, the product is immature, immature and immature." But he also said that What we need to do is to create a global first-generation industrial chain. This road is long enough. We need patience and stress-resistant "marathon" entrepreneurs.

Subsequently, in 2014, Ningxia Hong Group focused on the launch of the new product “Chuan Xi”, and the “Chuan Xi” commercial featured by Jackie Chan was broadcast on CCTV. "2014 is the new outbreak of Ningxia Red, and the point of explosion is the Chuanqigan Red Series." Zhang Jinshan is full of confidence.

Ningxia Red is not only a “different” in the Ningxia wolfberry industry, but also a microcosm of the industry.

Three principles of industrial transformation

From the history, it is no exaggeration to say that the Ningxia wolfberry industry has reached a critical period of transformation and upgrading. Only by facing the market, can we locate the location, choose the right path, establish a brand, and achieve accurate marketing, can we achieve a historic leap. In a word, “market-oriented adjustment and optimization of industrial structure” is a systematic project.

First of all, break the industry "big pot" and let leading companies lead the industry.

The progress and development of any industry cannot be separated from the promotion and guidance of leading enterprises and entrepreneurs.

As early as 2012, the State Council issued the Opinions on Supporting the Development of Leading Enterprises in Agricultural Industrialization, clearly stating that leading enterprises integrated the use of capital, technology, talents, and other production factors to drive the development of professionalization, standardization, and scale of farmers. Intensive production is an important part of building a modern agricultural industrial system and is the key to advancing agricultural industrialization. Supporting the development of leading enterprises has a very important role in improving the degree of agricultural organization, accelerating the transformation of agricultural development methods, promoting the construction of modern agriculture, and increasing the employment of peasants.

For the Ningxia wolfberry industry, the government and industry organizations can no longer hold industrial support and supporting services with the concept of “everybody is really good”. They should be better oriented and scaled from policies, resources, and funds. Large and market-conscious enterprises are inclined to take the lead in training several leading enterprises. The integration and utilization of industrial resources will gradually create the industrial cluster effect of division of labor and cooperation, which will drive the specialization, standardization, and scale of the industry. Intensive production promotes industrial upgrading.

Second, the corporate path determines the destiny of the company and seizes the great health trends of today's big agriculture.

There are no short cuts for agriculture. The biggest shortcut is to choose the right path. The path is the lifeblood of the company, one step wrong, and one step wrong!

According to Fulai’s strategic insights, the consumer reversal brought about by the economic increase has already become apparent. The consumers as a whole have changed from eating, eating to eating well and eating healthily. The industrial law that will profoundly affect China’s future industrial development pattern will be "1x1x1 compound industry law", that is, the big agriculture x big food x big health industry law: the industry's development path from bottom to top will be "base - trade - table - food - health", the corresponding product type Followed by "rent-seeking products - primary products - intermediate products - deep products - upgrade products."

More and more companies are beginning to extend their reach to the big agricultural big health industry. COFCO Tunhe and other agricultural industrialization leading enterprises, from the most advanced planting base, seasoning ketchup, tomato juice and other primary products, extend to the top of the health value is also the industry's most end of the natural health products lycopene and other categories; East Ejiao, Zhongjing Pharmaceutical, Jiangzhong Pharmaceutical, and other pharmaceutical companies have made efforts in food products, dailyizing and digesting health products, and introducing more and more products such as Tao Huaji that integrates Chinese medicine health and food concepts. Qinghai Spring has transformed the original ecological Cordyceps into a unique “polar grass” loin by technological innovation. The lowest price of the product starts at RMB 3,000 and the highest selling price reaches RMB 29,888.

Under the trend of big agriculture and great health, relying on deep processing of products and technological innovation, the transition to a food-oriented and healthy industry has become an inevitable choice for the industry in Ningxia.

Finally, pay attention to brand marketing and introduce hybrid thinking.

In the "1x1x1 composite industry law", from the base to health, from the rent-seeking products, primary products to upgrade products, the biggest change is to require the company's brand marketing capabilities must keep up, Taohua Ji, polar grass and other products selling It is the best evidence.

New Zealand converts Chinese kiwi into Jiapei kiwi fruit, sells it by itself and doubles its value. France brewed grapes into a lifestyle and a bottle can sell tens of thousands of tens of thousands; Taiwan's Meizi Dream Factory makes agriculture a creative industry. The benefits are huge; the orange makes the orange a symbol of “inspirational” spirit; Lipton transforms the Chinese slow tea culture into the world fast tea fashion.

At present, the biggest obstacle to brand marketing for agricultural companies is too agriculture and too professional. Therefore, the most needed in the development process of the Ningxia wolfberry industry is the hybrid thinking, which is to jump out of the industry to see the industry and jump out of the product to see the product! With hybridization, it is possible!

In 2014, Zhang Jinshan set a strategic goal for Ningxia Hong to reach 10 billion in the next five years. Looking at the overall situation of Ningxia's industry and forming a number of “joint fleets” with annual sales exceeding RMB 100 million and even exceeding RMB 1 billion and RMB 5 billion is only a matter of time. However, the premise is that the strategy is correct.