Scan the QR code in the image to register "Where are you from?" "Xiaolan, Zhongshan" "Then you must be rich?" Xiaolan Town in Zhongshan, Guangdong, is a magical place. It has given birth to many nationally renowned enterprises such as Vatti Gas Appliances and Robust, and is known as the "Century-Old Chrysanthemum City." The protagonist of our discussion today, "Lanju," also originated here. In 1982, Lanju's predecessor, Zhongshan Tomorrow Group, was established in Zhongshan. Starting with the production of China's first electric mosquito repellent device, it has grown over nearly 40 years to become a leading enterprise in China's household hygiene insecticide industry. According to statistics from the China Daily Necessities Industry Association, in recent years, Lanju's mosquito coil products have maintained the top market share for consecutive years, with an expected 26.5% in 2020. In 2020, Lanju's mosquito product sales increased by nearly 20% year-on-year, with the electric mosquito liquid category growing by 60%. Throughout its journey, Lanju's ability to become a leading brand in the disinfection and insecticide market essentially stems from innovation battles waged on three fronts: product, brand, and channel. -01- Continuous Product Innovation, Adhering to Craftsmanship Quality Over the past nearly 40 years, what kind of product innovation battle has Lanju fought? From the very beginning, the company launched electric mosquito repellent mats, which required no open flame, were safe and smokeless, creating a brand-new category and achieving an immediate success. Soon, by 1995, Lanju had become the industry leader in electric mosquito repellent products and received the "Best in China" certificate from the Development Research Center of the State Council. However, due to market imitation, a flood of counterfeit and shoddy products entered the market, worsening the competitive environment. Coupled with issues like Lanju's single product structure, sales declined, and the company's operations fell into difficulty. In 1997, 29-year-old Luo Jianhua took over the responsibility of Lanju's development, demonstrating extraordinary boldness and foresight. When Lanju's total assets were only 10 million yuan and it was not profitable, he dared to override objections and invest 500,000 yuan to build a research and development center to improve product quality, with R&D investment accounting for 5% of the company's total assets. It's worth noting that even Tesla, which now leads the global electric vehicle trend, had an R&D expense ratio of only 4.9% in 2018. This R&D investment ratio is quite astonishing. At the time, Lanju's R&D center was also the first technical R&D center in China's national hygiene insecticide industry. Soon, Lanju achieved a breakthrough in the development of black mosquito coils. At that time, black mosquito coils on the Chinese market had a common problem: they emitted thick black smoke and had a messy smell. Lanju's black mosquito coils were smokeless, odorless, and highly effective, making Lanju an instant hit. From 2000 onward, the company entered a period of rapid development with an average annual growth rate of 40%. By 2007, sales finally reached 1.6 billion yuan, making it the largest professional manufacturer of household hygiene insecticide products in China. Since 2008, as an industry leader, Lanju has participated in the formulation of almost all national (and industry) standards for household hygiene insecticide products. With the development of the times, consumers have put forward higher requirements for products. Lanju has not only persisted in R&D investment in professional disinfection and insecticide technology but also kept up with industry changes. It has precise insight into consumer needs and captures market pain points. Some consumers worry about the chemical components of mosquito repellent products, so Lanju developed many physical and natural plant-based mosquito repellent products. From killing mosquitoes to repelling them, they innovated at the product logic level, dispelling fears about the chemicals that can kill mosquitoes. Moreover, over the years, Lanju's product categories have expanded from mosquito repellents to cockroach killing, rat killing, fly killing, mite removal, disinfection and sterilization, and many other sub-categories centered around pest control, forming a systematic "home care" product matrix. In 2020, Lanju's cockroach-killing and rat-killing products both grew by over 50%, with cockroach-killing product sales showing a straight upward trend in the past three years. Other products are also well received by consumers. Relying on its dominant position in each sub-category, Lanju is far ahead in the field of pest control. According to data from the China Daily Necessities Association, in the past three years, Lanju's market share in the domestic disinfection and insecticide market has grown steadily, with an expected 14% market share in 2020. All this is thanks to Lanju spending nearly one million yuan annually to collect mosquitoes from all over the country to establish "mosquito observation rooms," and setting up insect rearing rooms with dedicated personnel to carefully raise and breed them, in order to research more effective methods of preventing and killing mosquitoes. To obtain mosquito specimens, Lanju even goes to Japan, Australia, and other foreign regions to collect samples. As of 2020, Lanju holds 107 authorized patents, including 15 invention patents and 35 utility model patents. Of course, it's not just continuous product innovation; packaging design is also constantly changing to adapt to the market. For example, when a product promoter once pointed out that there were too many product types, overly flashy packaging, causing consumer choice difficulty and making products hard to sell, Lanju quickly upgraded its product specifications and appearance design, even though Lanju's VI had not changed for over 20 years. -02- Multidimensional Brand Innovation, Activating Consumer Demand In addition to solid product fundamentals, an enterprise that has developed for nearly 40 years also faces the dilemma of brand aging. This requires brand innovation to rejuvenate the brand. In fact, Lanju has never been a conservative company and has always attached great importance to brand development. As early as the black mosquito coil period, it made the bold move of spending several times its corporate profits on advertising to build the brand. In that era when advertising was equivalent to branding, daring to invest several times more than corporate profits in advertising was unimaginable for many companies. In recent years, after rapid national economic development and rapid changes in consumer demand, Lanju has actively sought dialogue with younger user groups and carried out brand innovation for different consumer segments. For example, originally only the core brand Lanju targeted the mass consumer group. But upon learning that many mothers in the market were paying increasing attention to infant and child products, Lanju decided to restructure its brand architecture and implement a new dual-brand, dual-product, dual-line strategy: apart from the Lanju brand, it established an independent professional infant and child care brand "Erbaojian." This strategy extends not only to mosquito repellent products but also to a comprehensive layout of infant and child health products. To understand mothers' psychology and product preferences, Lanju spent a lot of manpower and funds on special research, launched targeted products, and with quality that far exceeds national standards and is safe and effective, won the favor of many mothers. Moreover, the "Erbaojian" brand's promotional strategy is completely different from the Lanju brand. It no longer uses authoritative media like CCTV as the primary promotional platform, but precisely targets places where mothers gather, such as children's channels like Jin Ying Ka Tong, and maternal and infant vertical platforms like MAMA.cn and BabyTree. For the new consumer force, the younger generation, Lanju has also adopted a series of brand strategies to penetrate the minds of young consumers. For example, amid the recurring pandemic this year, people's health awareness has awakened. Lanju recently launched a national hand-washing relay challenge on Douyin to promote the correct posture of hand washing and sterilization, and even set a small goal of challenging the Guinness World Record! By the end of the event, Lanju's #AntibacterialHandWashingChallengeGuinness# activity had gained over 120 million exposures on Douyin, greatly expanding brand influence. By partnering with the China College Students' Advertising Art Festival Academy Awards, Lanju's brand goes deep into young consumer groups, producing quality content from a student perspective and gaining insight into young consumers' true perception of the Lanju brand. In terms of communication methods, it actively uses fresh and humorous promotional approaches and conducts widespread dissemination on platforms where young users gather. This includes cooperating with authoritative platforms like Dr. Dingxiang, which has both popularity and authority. Through multidimensional youth-oriented branding, Lanju has effectively enhanced its influence and appeal among young people. Additionally, Lanju will simultaneously develop home and away-from-home businesses, expand both domestic and foreign markets, and jointly develop online and offline businesses. -03- Proactive Channel Innovation, Embracing Scenario Changes In terms of channels, there have been too many changes in recent years, causing headaches for many established companies. Especially with the continuous rise of emerging channels, they need to constantly research and follow up, but they also fear affecting the existing channel system, and even impacting overall sales and pricing systems. Lanju's channel innovation has always followed a principle: any channel must first develop in a coordinated manner, with symbiosis, co-creation, and win-win outcomes. Therefore, regardless of the channel, the first priority is to ensure customer interests and ensure healthy brand development. On this basis, Lanju adopts a proactive embrace strategy for emerging channels. Facing new environmental changes and new track development, Lanju also proposed a multi-track development strategy in 2020. Whether it's content live streaming, social e-commerce, community e-commerce, or entertainment e-commerce, Lanju is quickly capturing channel changes and embracing them. However, the most common problem with proactively embracing new channels is conflicts of interest with existing distributor customers. Yet while embracing new channels, Lanju's customers generally have no major objections. How do they do it? The most important point is to make customers profitable. When the industry as a whole gradually entered a decline phase, Lanju quickly found new growth points. With room for corporate growth, distributors also gained sales. To solve the problem of distributors not making money, Lanju chose to support the main business by giving up margins on products like detergents to distributors, allowing them to earn money, and naturally they are willing to follow the company. Another aspect is expenses. Because channel development differs, offline channels are driven by profit at each level, while online channels are consumer-centric. Therefore, Lanju combines brands, categories, and SKUs to coordinate development across different channels, avoiding situations where new channels cause loss or reduction of old channel interests, thus preventing channel imbalance. This is why, even with the emergence of new channels and some diversion of sales, Lanju's customers still maintain sufficient stickiness. In addition to continuous innovation in various fields, Lanju also has its own persistence. For example, during the pandemic, Lanju Group immediately donated 5 million yuan in cash and materials to support the front lines in Wuhan and other areas. While supporting the epidemic area, and under the premise of ensuring employee safety, Lanju promoted the resumption of work and production at the earliest opportunity, achieving full resumption on February 12, accelerating the production of disinfection and sterilization products to support national sanitation and disinfection efforts. Moreover, under the pressure of the pandemic, it did not lay off employees, cut salaries, or reduce staffing, becoming a "counter-current" in the pandemic. Through multifaceted innovation, continuous quality building, and adherence to corporate social responsibility, Lanju Group has become the leading enterprise in China's household hygiene insecticide industry after nearly 40 years of development.