---
title: "Annual Sales of 700 Million: How Did Jin Sang Zi Founder Jiang Peizhen Achieve This?"
description: "Jiang Peizhen, known as 'Jiang Laoniang', transformed a failing candy factory into a pharmaceutical company and created Jin Sang Zi Hou Bao, a throat lozenge that became the market leader with annual sales exceeding 700 million yuan. Her story is a testament to decisive leadership, innovative marketing, and gratitude."
author: "李文"
publisher: "New Distribution"
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published: "2017-03-03"
language: "en"
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# Annual Sales of 700 Million: How Did Jin Sang Zi Founder Jiang Peizhen Achieve This?

> Jiang Peizhen, known as 'Jiang Laoniang', transformed a failing candy factory into a pharmaceutical company and created Jin Sang Zi Hou Bao, a throat lozenge that became the market leader with annual sales exceeding 700 million yuan. Her story is a testament to decisive leadership, innovative marketing, and gratitude.

**Click image for details**
Not listing on the stock market, not taking loans, with annual sales of 4.5 billion, Laoganma has become a household entrepreneurial goddess. However, just over 500 kilometers away in Liuzhou, a similar legend of a goddess circulates.
Her name is Jiang Peizhen, known for her decisive and resolute character, and called 'Jiang Laoniang'. Due to her mother's early death and lack of funds for schooling, she became an apprentice at 13, deputy factory director at 18, and finally factory director at 33. She led the transformation of a candy factory into a pharmaceutical factory, producing the renowned Jin Sang Zi Hou Bao.
Jin Sang Zi Hou Bao broke the existing pattern of throat products, came from behind, and leaped to become the leading throat product, holding the top position for nearly 20 years with annual sales exceeding 700 million yuan.
It has been featured on CCTV for 19 consecutive years, even inviting international football stars Ronaldo and Kaká as brand ambassadors, repeatedly embedding the brand, ultimately becoming the representative of the throat category.
To outsiders, Jiang Peizhen's success seems incredible, but it also appears reasonable.
**The Apprentice's Reform**
Liuzhou Candy Factory No. 2 had been losing 40-50 million yuan and was nearly on its last legs. However, in 1998, it inexplicably revived, turning losses into profits with an output value of over 97 million yuan, ranking first in the national industry across 10 economic indicators.
At that time, it was steered by a woman named Jiang Peizhen. Decisive and resolute, she implemented three major reforms amid the company's decline:
First, she broke the dull 'big pot' distribution system. During the planned economy era, wage distribution was severely egalitarian, leading to lazy and idle employees. Jiang immediately decided to link employee salaries to production, greatly stimulating workers' enthusiasm, and output rose sharply.
Second, she broke the traditional supply and marketing system, selling products directly. In an era of material scarcity, supply and marketing cooperatives were the main channels for purchasing daily necessities like fruit candies, erasers, soy sauce, vinegar, and salt. But Jiang broke away from the thriving cooperative channels and gradually built her own sales team. This was undoubtedly ahead of its time; relying solely on the cooperative brand would lose market competitiveness as cooperatives declined.
Third, she led technical personnel to France, Germany, Italy, and Japan to learn advanced technology and introduced advanced production lines. Through active exploration and humble learning, Jiang's Candy Factory No. 2 produced China's first jam-filled candy and the first peanut chocolate, and conquered the highest technical variety in the world candy industry—whiskey-filled chocolate.
During that period, the factory added new varieties at a rate of over 30 per day, forming 10 major categories and 386 varieties. Marketing personnel from the factory were active in small and medium cities like Chuanxi, Xiang'e, and sales soared, with tax revenue alone exceeding 10 million yuan.
People praised Jiang Peizhen for her capability, calling her 'Jiang Laoniang'. But the capable Jiang Laoniang had a bitter birth: her mother died early, there was no money for schooling, and at 13 she became an apprentice at Candy Factory No. 2. Due to her diligence and quick hands, she climbed step by step from production pacesetter, youth squad leader, workshop director, union and women's committee member, to deputy factory director in charge of overall work at 18, and only became factory director at 33.
As she grew, Jiang Peizhen realized the importance of cultural knowledge. She completed all courses in primary, middle school, workers' night school, and correspondence university in her spare time, comprehensively improving her cultural and management qualities, and successfully joined the Communist Party of China.
**Benefactor Zhu Rongji**
God favors those who work hard. When competition in the candy industry intensified, raw material prices rose, and people's health awareness increased, sales at Candy Factory No. 2 suddenly declined. Jiang Peizhen was anxious, and at that time she met the most prominent benefactor in her life.
Zhu Rongji, then Vice Premier of the State Council, visited the factory. Upon learning of Wang Peizhen's difficulties, he pointed out the path of high-tech products, suggesting connecting with universities and research institutions to establish an integrated 'production, learning, and research' model.
Jiang Peizhen, who had never set foot in a university, went to East China Normal University to 'seek treasure' and met another benefactor, Wang Yaofa. Wang gave her a formula for treating chronic pharyngitis, which Jiang named 'Jin Sang Zi Hou Bao'.
This name was later praised repeatedly by the advertising industry. 'Hou Bao' differentiated it from competitors like 'lozenges' and 'pharyngitis tablets' on the market, while using 'Jin Sang Zi' as the brand name had a direct and strong efficacy implication and reputation-enhancing effect, making it easy to remember. Jin Sang Zi Hou Bao almost represents throat products; when people have throat discomfort, the first thing that comes to mind is Jin Sang Zi Hou Bao.
Back at the factory, Jiang Peizhen smashed all the stoves and utensils of the candy factory and sent them to the scrap iron recycling station, resolutely deciding to transform. But a funding gap of over 7 million yuan stood in the way; she ran to 28 banks and was rejected by all. Helpless, Jiang Peizhen cried in her office. Interestingly, after crying, she sang the 'Internationale': 'There has never been a savior... We rely on ourselves...'
The employees' morale was ignited, and they raised 7.8 million yuan collectively. Jiang Peizhen contributed her savings of 15,800 yuan and also brought a black-and-white TV. Jin Sang Zi Hou Bao was thus put into production.
At that time, throat lozenges were all made from compressed medicinal powder, which dissolved immediately and couldn't maintain efficacy in the throat for long, while throat candies had no therapeutic effect. Jin Sang Zi Hou Bao combined sugar and medicine, filling a market gap and becoming quite popular.
Within a few years, Jin Sang Zi's market share in throat products leaped to first place. From 1998 to 2016, the company achieved cumulative output value of over 3.1 billion yuan and contributed 780 million yuan in taxes and profits to the state. The company was rated among Guangxi's top 50 enterprises and the national top 100 pharmaceutical companies.
**Brainwashing Marketing**
When Jin Sang Zi Hou Bao entered the throat product market, Caoshanhu, Xiguashuang, Jianmin Yánhóu Pian, etc., already held most of the market share. New products emerged endlessly, but it was difficult to break the existing pattern; most brands faded like meteors.
Unexpectedly, Jin Sang Zi Hou Bao's sales soared, becoming a household name among lozenges, surpassing Xiguashuang and Caoshanhu to become a rising star. In 2005, Jin Sang Zi Hou Bao was listed in Hong Kong, and Jiang Peizhen left a striking image of striking the gong, becoming a topic of gossip.
The rapid growth of Jin Sang Zi Hou Bao owes much to its marketing.
'Good throat, use Jin Sang Zi Hou Bao.'
With rough visuals and an excited middle-aged man, the advertisement for Jin Sang Zi Hou Bao seemed to have no merits, but like slogans such as 'Fear of getting angry, drink Wanglaoji' and 'Gifts still send Naobaijin', it was memorable, and both adults and children could recite it.
This type of marketing is called brainwashing marketing, characterized by assertion and repetition.
The slogan is simple and direct, indicating the product's efficacy and issuing a purchase invitation to consumers, helping reduce their thinking and decision-making costs, thereby promoting sales.
At the same time, such an advertisement was broadcast on CCTV for 8 consecutive years, forcibly seizing people's attention. In times when the commodity economy was not developed, people often only recognized advertised brands when shopping. Naobaijin, with its intense and continuous advertising, achieved annual sales of 1.3 billion.
Later, Jiang Peizhen learned a lesson, abandoned low-standard advertising, and took an international route, inviting two famous international stars, Ronaldo and Kaká, as 'spokespersons'.
Ronaldo's advertisement holding Jin Sang Zi Hou Bao with a silly smile was broadcast on CCTV for four years before Ronaldo discovered it and sued, claiming he had not signed an endorsement contract but was induced to take a photo holding the product during a meal. The two sides argued and engaged in a war of words.
There is even a joke:
If your child asks in the future: 'Dad, who is Ronaldo?'
How would you answer?
Some say: 'He helped Jin Sang Zi Hou Bao easily defeat Xiguashuang lozenges.'
In a crisis, Jiang Peizhen secured Kaká as a spokesperson, paying him approximately 14.3 million yuan in endorsement fees, thus salvaging her reputation. Of course, Jiang Peizhen's brainwashing marketing struck again, with Kaká holding Jin Sang Zi Hou Bao in an advertisement broadcast on CCTV for 7 consecutive years.
Sensing people's frenzy for sports stars and events, during the 2014 World Cup, Jiang Peizhen invested heavily in advertising during match intervals. Although this sports marketing was controversial for its low relevance, Jin Sang Zi gained extensive exposure through the globally focused sports event.
**Don't Forget the Well Digger When Drinking Water**
For the past 21 years, the packaging of Jin Sang Zi Hou Bao has featured an elderly gentleman, Professor Wang Yaofa, the inventor of Jin Sang Zi Hou Bao.
Professor Wang generously gave the formula back then, and Jiang Peizhen kept it in mind, wanting to give him shares and cash to express gratitude. But Professor Wang Yaofa took nothing and assured Jiang Peizhen that his descendants would not make intellectual property claims. In the end, Jiang Peizhen donated 200,000 yuan to East China Normal University and had his portrait printed on the packaging so everyone would know Wang Yaofa was the inventor of Jin Sang Zi Hou Bao.
'We printed Professor Wang's portrait on the packaging to let everyone know him, remember him as our benefactor, and also show our respect for knowledge and our attitude of not forgetting the well digger when drinking water.'
It wasn't until 2015, to consolidate market position and image and avoid potential interest disputes, that all packaging portraits were changed to Jiang Peizhen, with all promotional materials featuring Jiang Peizhen as the main subject.
When Jin Sang Zi Hou Bao was founded, it was funded by employee fundraising, but as a state-owned enterprise, distribution was not transparent. To protect employees' rights, Jiang Peizhen applied to the government to transform the enterprise from state-owned to a cooperative private enterprise. The government eventually sold 65% of the company's assets to employees for over 2,000 yuan.
Employees held shares and shared in company profits, greatly stimulating work enthusiasm, and corporate efficiency improved significantly. On October 9, 1995, CCTV's 'Focus Report' program, titled 'Reform and Rectification, Creating Momentum for Breakthroughs', fully affirmed the reform achievements of Guangxi Jin Sang Zi Co., Ltd.
At that time, of the 800 state-owned enterprises in Liuzhou, many collapsed under the impact of the market economy. As the first successfully restructured enterprise in Liuzhou, Jin Sang Zi Hou Bao survived fortunately.
It is worth mentioning that Jiang Peizhen could have taken 10%-15% of the shares, but she ultimately took only 3.1%. Jiang Peizhen's charm deeply impressed employees, and her grateful personality was integrated into the corporate culture.
A touching detail: every time Wang Yaofa attended the factory anniversary, all employees stood up and bowed three times to him. This is because Jiang Peizhen said that Professor Wang is our benefactor, and we must not forget the well digger when drinking water.
**Reluctant Diversification**
The throat medication market has a small capacity, slow growth, high saturation, and a stable competitive landscape.
Market leader Jin Sang Zi Hou Bao holds about 30%, second-place Xiguashuang (including lozenges and sprays) cuts 13%, and third-place Jiangzhong Caoshanhu takes 6%. Other products like Huasu Pian, Huangshi Xiangsheng Wan, Jianmin Yánhóu Pian, and Yanlishuang Dīwán each sell 40-80 million yuan annually, collectively occupying over half the market.
The market cake is small, the pattern is hard to break, and Jin Sang Zi Hou Bao has a single product category, with throat lozenges consistently accounting for over 90% of total revenue. Once hit by market fluctuations, its risk resistance is poor. Like many brands with a single category, Jin Sang Zi also attempted diversification to find new profit points.
In April 2016, Jin Sang Zi Hou Bao launched a crowdfunding campaign on JD.com, announcing the launch of Jin Sang Zi botanical beverage, promoting the concept of 'moistening the throat and lungs, refreshing breath'.
After crowdfunding, Jin Sang Zi Hou Bao sponsored two music programs, 'Heroes of the World' and 'Masked Singer Guess Guess', truly making its presence known before the product was seen.
Many pharmaceutical companies share similar ideas: Shijiazhuang Pharmaceutical Group launched Vitamin C, and Jiangzhong Hougu launched hougu beverage. These beverages leverage original raw materials and brand advantages to launch herbal beverages with similar effects.
In fact, the botanical beverage market is already a chaotic battlefield. Despite different effects, JDB and Wanglaoji basically squeeze the market space of other botanical beverages, and other segmented beverages have essentially not formed influence.
In 2015, bold claims were made; in 2016, crowdfunding and advertising occurred, but Jin Sang Zi botanical beverage was not extensively deployed at the retail level. For pharmaceutical companies, there are shortcomings in market promotion and channel development, making it difficult to seize the beverage market.
Single-category enterprises face issues of single profit source, weak development, and poor risk resistance. In the future, the difficulties of Jin Sang Zi Hou Bao will become more prominent. The tough and shrewd Jiang Peizhen cannot resist the ruthlessness of time. The future of Jin Sang Zi is unknown, but Jiang Peizhen's entrepreneurial legend should be remembered and not fade with time!
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