---
title: "Insights from Henan Provincial Subsidiary Food: The Development of 'Major Distributor + Hybrid Model'"
description: "In 2016, Henan Provincial Subsidiary Food Company (hereinafter referred to as 'Provincial Subsidiary Food') ranked among the top liquor trading companies in Henan Province with sales of approximately 1.2 billion yuan, ranking first in comprehensive sales. As a representative of major liquor distributors, its development model is highly representative, especially for the new era of 'Major Distributor +'. This article analyzes the three development stages of Provincial Subsidiary Food to provide insights for the transformation of major distributors."
author: "牛恩坤"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2017-08-07"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/insights-from-henan-provincial-subsidiary-food-the-development-of-major-047224ff/"
markdown: "https://xinjignxiao.com/en/articles/insights-from-henan-provincial-subsidiary-food-the-development-of-major-047224ff.md"
original_source: "https://mp.weixin.qq.com/s/-L2OpQZblR4tKBhmt0qk9Q"
translation: "https://xinjignxiao.com/zh/articles/%E4%BB%8E%E6%B2%B3%E5%8D%97%E7%9C%81%E5%89%AF%E9%A3%9F%E7%9C%8B-%E5%A4%A7%E5%95%86-%E6%B7%B7%E5%90%88%E6%A8%A1%E5%BC%8F-%E5%8F%91%E5%B1%95-047224ff.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/insights-from-henan-provincial-subsidiary-food-the-development-of-major-047224ff/"
usage_policy: "https://xinjignxiao.com/ai-policy.txt"
---

# Insights from Henan Provincial Subsidiary Food: The Development of 'Major Distributor + Hybrid Model'

> In 2016, Henan Provincial Subsidiary Food Company (hereinafter referred to as 'Provincial Subsidiary Food') ranked among the top liquor trading companies in Henan Province with sales of approximately 1.2 billion yuan, ranking first in comprehensive sales. As a representative of major liquor distributors, its development model is highly representative, especially for the new era of 'Major Distributor +'. This article analyzes the three development stages of Provincial Subsidiary Food to provide insights for the transformation of major distributors.

Click on the image for details
In 2016, Henan Provincial Subsidiary Food Company (hereinafter referred to as "Provincial Subsidiary Food") ranked among the top liquor trading companies in Henan Province with sales of approximately 1.2 billion yuan, ranking first in comprehensive sales. It can be said that Provincial Subsidiary Food, as a representative of major liquor distributors, and even super distributors, has a highly representative development model. Especially for the new era of "Major Distributor +", it has more guiding significance. In the current era where distributors are generally confused and major distributors are seeking transformation, the author believes that **the era value derived from the three development stages of Provincial Subsidiary Food has many reference implications for the development of major distributors in the entire liquor industry, and even for the new era of "Major Distributor +", and hopes to bring some forward-looking inspiration and thinking for the future "Major Distributor +".**

The Three Development Stages of Provincial Subsidiary Food
Since its establishment, the development of Provincial Subsidiary Food can be said to have gone through three stages, each of which is very important for the company. It not only affected the development of the entire company but also reflected the development status of the liquor industry at that time. Therefore, from a macro perspective, these three stages also have reference significance for traditional major liquor distributors in the industry.
From 1958 to the present, the development of Provincial Subsidiary Food has the following three time nodes: first, from 1958 to 2004, the famous liquor resources left behind; second, from 2005 to 2012, it seized the opportunity of famous liquor development; third, from 2013 to the present, it mainly built a consumer ecosystem.

01
Time Node 1: 1958-2004, the famous liquor resources left behind. The subsidiary food company was established in 1958. By the 1990s, it mainly undertook the allocation, supply, wholesale sales, and market management of cigarettes, salt, liquor, and sugar across Henan Province. By 1995, the liquor wholesale market was fully liberalized. However, the old state-owned enterprise left two major problems under the planned economy: the allocated goods left over from the planned economic system filled the warehouse, causing serious capital backlog, and dealing with inventory became the primary task at that time; the second task was to collect external debts, triangular debts, and other debts. According to Chairman Wang Qingyun's recollection, these were the two main operational tasks at that time, and it took five years just to deal with the inventory. During this period, Henan Provincial Subsidiary Food Company faced tremendous operational pressure, and it can be said that it reached a very difficult period. Finally, through incentive measures such as setting tasks and rewards, they mobilized all employees to collect debts, which fully stimulated the enthusiasm of employees, resolved the inventory pressure, and recovered most of the external debts.
After 2000, without the pressure of inventory and external debts, Henan Provincial Subsidiary Food Company began to seek transformation. During the transformation process, the first issue Henan Provincial Subsidiary Food Company faced was **adjusting the product line, and finally determined the famous liquor management strategy**. Wang Qingyun said. From the early interviews of Chairman Wang with the media, it is not difficult to see that before 2005, the subsidiary food company had a painful and unforgettable period, but the wealth left behind was the resources of famous liquor manufacturers.

02
Time Node 2: 2005-2012, the opportunity for famous liquor development. In 2005, Henan Provincial Subsidiary Food Co., Ltd. completed the restructuring from state-owned to private, which coincided with the rapid development period of China's liquor industry, especially famous liquor.
**During this period, the biggest transformation of Provincial Subsidiary Food was from industry wholesale to consumer terminal, and it put forward the core proposition of "genuine liquor at fair prices".** "Adhering to genuine liquor at fair prices is responsible to society, the industry, and consumers; otherwise, we will pay a price. Genuine liquor at fair prices is the golden signboard of Henan Provincial Subsidiary Food Co., Ltd. Whether in business or in life, genuine liquor at fair prices is a lifelong treasure for me." Wang Qingyun said. Now, all employees of Henan Provincial Subsidiary Food Co., Ltd. are interpreting the four characters "genuine liquor at fair prices" with their actions.
During the rapid development period of famous liquor, various speculators took advantage of the golden time of white liquor to make a fortune. **Provincial Subsidiary Food, on the contrary, established its credibility, appeal, and recognition of white liquor in the minds of Henan consumers during this period.** It was this persistence that made the majority of consumers in Henan Province, including administrative institutions and well-known enterprise groups, develop the habit of obtaining famous liquor from Provincial Subsidiary Food. "Provincial Subsidiary Food, genuine liquor at fair prices" has taken root in people's hearts, and it has developed tens of thousands of member units, creating favorable conditions for future growth. After years of accumulation and precipitation, the company has long become an important distributor of old famous liquors and traditional famous liquors such as Moutai, Wuliangye, Luzhou Laojiao, Jiannanchun, Langjiu, and Fenjiu; it is also the general agent, general distributor, and important partner of many local famous liquors such as Songhe, Yangshao, Dukang, Baofeng, Quanxing, Shede, and Niulanshan Erguotou; **at the same time, it also has rich products such as fine yellow wine, wine, famous cigarettes, and famous tea.** This friendship ensures that Provincial Subsidiary Food's "genuine liquor at fair prices" is sourced directly from manufacturers, reducing intermediate links and ensuring the safety of liquor products at the source.

03
Time Node 3: 2013 to the present, building a consumer ecosystem. After the rapid development period, the liquor industry entered an adjustment period in 2013, and market sales continued to be sluggish. However, Henan Provincial Subsidiary Food Co., Ltd. was not affected by this; instead, it showed an upward trend year after year. According to Wang Qingyun, in terms of sales revenue, Henan Provincial Subsidiary Food Co., Ltd. increased by 25% in 2013 compared to 2012, and by 41% in 2014 compared to 2013. In 2014, the sales of Moutai Prince Wine ranked first in the country, and the sales of Wuliangye, Jiannanchun, Luzhou Laojiao, and Fenjiu also ranked among the top in the country. Especially in 2016, the company became the most powerful liquor merchant in Henan with sales of 1.2 billion yuan. Especially in the past two years, the white liquor industry has shown a trend of high concentration and strong differentiation, and this is also true in the liquor merchant business.
**It was also from 2013 that Henan Provincial Subsidiary Food Co., Ltd. actively adjusted its development ideas and started the pace of brand chain stores.** Its subsidiary Henan Yujiu Liquor Source Trading Co., Ltd.'s "Yufu Liquor Source" famous liquor chain has begun to blossom and bear fruit in the province. At the same time, Henan Yufu Tea Edge Industrial Co., Ltd.'s "Yufu Tea Edge" is also doing well, and "Yufu Food Garden" has also begun to be planned.
Wang Qingyun frankly said that Henan Provincial Subsidiary Food Co., Ltd. is just a company name and does not have the function of a trade name or brand. The "Yufu" series of names will be the sub-company brands that Henan Provincial Subsidiary Food Co., Ltd. will focus on building according to different industries, fields, and projects in the future, and through this series of brands, it will bid farewell to the era of no trade name for Henan Provincial Subsidiary Food Co., Ltd. "Haste makes waste. What Henan Provincial Subsidiary Food Co., Ltd. needs to do now is to strive to cultivate the market, not blindly, and not make mistakes." Wang Qingyun said that after cultivating the companies under the "Yufu" series of names to a certain scale, Henan Provincial Subsidiary Food Co., Ltd. will eventually present itself in the form of a group.

Looking at "Major Distributor +" from the Three Development Stages of Provincial Subsidiary Food
Whether in the past or the present, or even in the new era of industry development, as a major distributor in the industry, every step and decision made by Provincial Subsidiary Food has its background and significance; every adjustment it makes has reference significance for the development of other major distributors. Especially after experiencing the adjustment period of industry downturn, it is also very enlightening for the new era of "Major Distributor +" and the development and transformation of major distributors. The author believes that from the three development stages of Provincial Subsidiary Food, we can have seven thoughts.

**First, industry persistence.** The liquor industry is a career-oriented industry, and career-oriented industries belong to lifelong struggle. When the industry is developing rapidly, we must have a clear understanding of ourselves and pave the way for future development; when the industry is in a downturn, we must still persevere and actively seek ways out. We must embrace the glory of this industry and endure its silence. The liquor industry will not quickly create millionaires like the technology industry, nor will it become famous overnight like the fashion industry. Luzhou Laojiao originally had an advertising slogan - "Excellent quality comes from persistence", which is quite appropriate. Looking at the current liquor industry, no one can become a major distributor, or even a super distributor, by accident. Their persistence and adherence to the industry are admirable. No matter the overall size of any industry, as long as you go deep and thorough, you can make the company bigger and stronger. At present, every distributor still struggling in the liquor industry has gone through the most terrible deep adjustment period of the industry, which is also persistence. **In the new era, under the new normal of the industry, the foundation of "Major Distributor +" should also be the support and adherence to the industry.**

**Second, the value of the trade name.** The value of a trade name is actually brand value, just like the significance of Tongrentang in the pharmaceutical industry. The trade name itself has value; the more famous it is, the higher the value. There are companies similar to Provincial Subsidiary Food in almost every province and city across the country, but those that have persisted for 60 years like Henan Provincial Subsidiary Food are probably rare. The value of a trade name lies in the persistent practice of the core concept. Its "genuine liquor at fair prices" is not just a slogan or an advertising phrase; it is a value that guides actions and a manifestation of the conscience of a commercial enterprise. Trade name brands are difficult to build and greatly affected by the environment. The concept of "genuine liquor at fair prices" of Provincial Subsidiary Food has become the criterion for the company's operations. **In the new era, "Major Distributor + Trade Name" is also the foundation for maintaining the sustainable development of major distributors and the cornerstone for takeoff.**

**Third, the soul figure.** Every enterprise has its own soul figure, which is not only the cultural source of the entire enterprise but also the style of conduct of an enterprise. Every step of enterprise development is a manifestation of the soul figure. Sometimes the pattern of the soul figure determines the pattern of enterprise development. Chairman Wang Qingyun of Provincial Subsidiary Food usually speaks little. In the author's eyes, he is a relatively introverted and elegant person. But from his work style before the restructuring and several persistences after the restructuring, the industry has been impressed. First, the persistence in building the brand of Provincial Subsidiary Food; second, the persistence in team building; third, the persistence in cooperation with famous liquor manufacturers; fourth, the persistence in the industry. These all show his way of handling affairs. If it was the trade name that made Wang Qingyun, it can also be said that Provincial Subsidiary Food has continued to grow and develop because of Mr. Wang Qingyun's philosophy. Similarly, for other major distributors, the boss should also improve his own cultivation and strive to become the soul figure of the company's development. Although some large distributor trading companies started from scratch and the boss's personal quality was not very high, **with the development of the company, the boss's personal vision, pattern, moral quality, and code of conduct must be improved accordingly. This is the internal guarantee for the company's future development.** Therefore, in the new era, "Major Distributor + Soul Figure" is also very important.

**Fourth, team building.** The senior management of Provincial Subsidiary Food is mostly composed of the executives before the restructuring. The advantage is the continuation of relationships with famous liquor manufacturers and familiarity with customer resources, which played a stabilizing role for the newly restructured Provincial Subsidiary Food. In addition, in recent years, consumers increasingly recognize brands, and with famous liquor and strong customer relationships, this team is relatively stable, providing guarantee for the development after the restructuring. **No matter when, a stable, energetic, and capable high-quality team plays a huge role in the development of the company, and in some cases even a decisive role.** The development of Provincial Subsidiary Food cannot be separated from this strong team, and the development of other major distributors is the same. The new era of "Major Distributor +" must include "+ team building".

**Fifth, cooperation with famous liquor.** From the sales data of Provincial Subsidiary Food in 2016, it can be seen that the main sales came from Moutai, Wuliangye, Jiannanchun, and Luzhou Laojiao. The multi-year cooperative relationship between Provincial Subsidiary Food and many famous liquor manufacturers has laid a deep foundation. Especially during the deep adjustment period, Moutai's sales determined the profitability of distributors, and famous liquor resources determined consumers' recognition of the trade name. Cooperation with famous liquor is an important part of Provincial Subsidiary Food's business strategy. In the past, famous liquor was the wings that helped major distributors take off, and it still is today. **In the past, there were not many distributors with famous liquor resources, but since the industry adjustment period, some famous liquor companies have opened up some resources, such as Moutai, which is also an opportunity for many major distributors.** In the new era, "Major Distributor + Famous Liquor" is also one of the development directions.

**Sixth, continuous evolution.** In 2005, the newly restructured Provincial Subsidiary Food Company was mainly a commercial company focusing on wholesale and also engaged in retail. The continuous adjustment to "doing consumer work" since 2005 laid the foundation for the company's later development, breaking the excessive transition from industry to consumer awareness. In Henan Province, not only people who sell liquor know Provincial Subsidiary Food, but also people who buy liquor know it. **The transition from an industry company to a consumer company is the ultimate manifestation of the value of a commercial company.** At the 2013 Famous Liquor Major Distributor Forum, the author pointed out that major distributors are distributors who have a large number of consumer resources. At that time, Provincial Subsidiary Food had developed tens of thousands of member units, already at the forefront of liquor commercial development. The development of any major distributor is not achieved overnight. They are constantly exploring. After experiencing the "cold winter" of the past few years, they have now ushered in a new development period. Major distributors must still be unswerving and continuously improve their models for rapid development.

**Seventh, unique model.** Perhaps it was not deliberate development by Provincial Subsidiary Food, but perhaps it followed the trend of the times. Provincial Subsidiary Food began to embrace the internet in 2012. At that time, the internet was still relatively primitive, but the effect began to show in the 2016 operating data. The website registered with "Provincial Subsidiary Food Genuine Liquor at Fair Prices" began to play a role, and its online dissemination also promoted the rapid growth of offline sales. In recent years, Provincial Subsidiary Food has begun to build a consumer ecosystem centered on famous liquor resources. Currently, based on Provincial Subsidiary Food, it has upgraded the enterprise ecosystem construction of the "Yufu" trade name, using liquor as the consumer entry point, and has begun to enter fields such as chain stores, the tea industry, and ecological agriculture, creating a closed-loop consumer ecosystem. **From the current several commercial formats of liquor, building a regional closed loop of consumer ecosystem is increasingly favored by the industry.**

It can be seen that every enterprise has its own development model, and major distributors are even more so. Only by finding the right model and persisting in it can they develop better.

Introduction: Niu Enkun, founder and chairman of Liangjian Marketing Consulting Company, founder of the liquor industry base model, and expert in internet community marketing. With 16 years of frontline market practice experience, he founded Liangjian Marketing Consulting Company in 2008 and has provided long-term consulting services for brands such as Site, Yaohuachun, Yanghe Laohao, Luzhou Laojiao Liuniantou, and Langpai Tequ. Since 2013, he has provided internet community marketing services for the liquor industry, and in recent years has formed a set of internet community marketing models for the liquor industry.


---

## Copyright and AI use

This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL.

Contact: zhaobo258@gmail.com · +86 158 5481 7671