---
title: "Jiangxiaobai CEO: A Good Product Is the Prerequisite for Good Marketing"
description: "Recently, some media claimed to have obtained Jiangxiaobai's internal PPT and said it was absolutely high-definition and uncensored. A group of marketing veterans heard about it and immediately mobilized their resources, vowing to get the material. It is said that this PPT was from a speech by Jiangxiaobai CEO Tao Shiquan at the 14th China Marketing Ceremony, themed 'Redefining a Good Product'. It was this essential methodology that led to a significant increase in Jiangxiaobai's online sales in 2016, and at the ceremony, the company was awarded the China Enterprise Marketing Innovation Award (Special Award) - Annual Industry Culture Marketing Innovation Award."
author: "New Distribution"
publisher: "New Distribution"
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published: "2017-01-16"
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# Jiangxiaobai CEO: A Good Product Is the Prerequisite for Good Marketing

> Recently, some media claimed to have obtained Jiangxiaobai's internal PPT and said it was absolutely high-definition and uncensored. A group of marketing veterans heard about it and immediately mobilized their resources, vowing to get the material. It is said that this PPT was from a speech by Jiangxiaobai CEO Tao Shiquan at the 14th China Marketing Ceremony, themed 'Redefining a Good Product'. It was this essential methodology that led to a significant increase in Jiangxiaobai's online sales in 2016, and at the ceremony, the company was awarded the China Enterprise Marketing Innovation Award (Special Award) - Annual Industry Culture Marketing Innovation Award.

Recently, some media claimed to have obtained Jiangxiaobai's internal PPT and said it was absolutely high-definition and uncensored. A group of marketing veterans heard about it and immediately mobilized their resources, vowing to get the material.
It is said that this PPT was from a speech by Jiangxiaobai CEO Tao Shiquan at the 14th China Marketing Ceremony, themed 'Redefining a Good Product'. It was this essential methodology that led to a significant increase in Jiangxiaobai's online sales in 2016, and at the ceremony, the company was awarded the China Enterprise Marketing Innovation Award (Special Award) - Annual Industry Culture Marketing Innovation Award.
>>>> High-energy ahead: This PPT is not only released in full HD, but also includes the transcript of Tao Shiquan's speech:
Everyone introduces me as the founder and chairman of Jiangxiaobai, but my own definition of myself is that I essentially play the role of a product manager.
Let me report my work time allocation for 2016: **40% of my time on consumer research; 30% on product development, as I am the head of our company's product department; 20% on brand management; and the remaining 10% on channel management.** In 2016, my focus was on upgrading the product, which is equivalent to redefining a good product.
Almost every industry faces competition for market share. Many innovative brands or companies shout about disrupting the industry or eliminating the traditional. My personal view is that in most industries, there is no need to disrupt or eliminate others, because there are already excellent products in many categories. **How to think about making a different good product? From this logic, achieving absolute leading advantage is quite challenging.**
I thank 'Sales and Market' for giving us an award. Up to now, we have received some awards in terms of products. Personally, I feel that **if the competitiveness of the product side can be more tenacious and prominent, it can actually reduce the pressure on marketing. A good product is the prerequisite for good marketing!**
Consumer research and insight may seem to involve a lot of data-driven research, but my personal feeling is more about whether we can do **emotional research and insight.**
A friend in Beijing invited me for a drink, and he said something that touched me. He said, 'I drink once a week.' I asked why, and he said, 'Every weekend, I want to become another version of myself.'
So **the consumption habit of drinking is triggered by the spiritual needs of the product's attributes.** You will find that a normally silent person may suddenly become talkative, while an extroverted person may become particularly quiet after drinking, going to the opposite of their personality. This is the work of consumer research, and also an emotional observation.
When consumer research and insight are deep enough, the product naturally emerges. When the product can satisfy consumers' emotional expression and provide a solution for a certain consumption scenario, the brand naturally forms.
There are many ways of self-media, but they are based on product solutions and the emotions triggered by the product, naturally generating brand communication content. Today, channel fragmentation is very serious, with traditional offline channels and e-commerce channels subdivided, and more and more channels. In this case, when we complete a competitive product and a good brand communication, consumers' active search and purchase will become more frequent.
In 2016, the biggest change for the brand was **explosive growth in e-commerce sales.** How can an innovative brand established for five years compete with leading companies in the industry?
In terms of traditional brand awareness, we are not at an advantage. Conversely, **through case-based brand operations, some specific young consumers have stronger active search for the brand than traditional brands. E-commerce happens to be the after-sales channel; consumers actively search for the brand, enter our store, and make purchases.** Our performance on Double 11 and Tmall Wine Festival was among the top in the industry!
Today, many companies see who does best in the industry and follow them. Counterfeiting is common in the Chinese market, and almost every leading brand is troubled by many imitations. But following an originally excellent brand is unlikely to find a breakthrough, nor is it possible to redefine a good product or brand.
The breakthrough point is precisely at the **opposite side.** Our method is to **seek breakthrough opportunities from the other end, from greater contrast, from the opposite side.**
**First product: Expression Bottle.** After Jiangxiaobai came out, the entire industry suddenly paid great attention to the small bottle liquor market. We are also a small-cut company focused on small bottle liquor positioning. Originally, all the copy on the quotation bottles was expressed by the Jiangxiaobai brand character, and consumers felt it spoke to their hearts, but they were only recipients.
**The Expression Bottle is the second generation of the quotation bottle. Thousands of consumers have many interesting expressions of emotion and things they want to say in drinking scenarios. We screen and productize them, turning them into each consumer's own expression.**
**Expression is the number one desire.** Why are we willing to post on WeChat Moments? Why do girls like to take selfies? This is the biggest insight into today's post-80s and post-90s consumers: everyone has a strong desire to express themselves. Today, everyone is self-media. I turn the product into a carrier for expressing one's own attitudes and behaviors, just like Weibo or WeChat Moments. You can even post it to your Moments to show off to friends. My image becomes Jiangxiaobai's slogan, and I become its spokesperson.
We have a particularly large copy library, all from consumer creativity. **In a sense, it is C2B: from the consumer side, we derive how to make products, how to generate consumer interaction, how to create content, how to define and focus on consumption scenarios, satisfying private customization and making the product a super media.**
**Second product: Shirenyin.** This single bottle weighs four jin and is only 25 degrees light sorghum liquor, focusing on a very small market segment: **team building for units**, such as reading sessions, annual meetings, and department dinners.
There are many schools of enterprise management, some very rational and some very emotional. My personal management style is rational plus emotional: **I have to present data, make plans, and inspire with dreams, but also eat meat and drink, and maintain brotherhood with employees.**
**In the past two years, China's entrepreneurship and innovation have flourished. Some grassroots teams that others didn't think highly of have accomplished big things. Some of their down-to-earth management methods are worth thinking about. For example, for underperforming employees, lecturing them in the office or even scolding them may not work. Instead, find an opportunity to have a drink and talk sincerely with true feelings, and the problem may be solved.** Drinking is a particularly good communication scenario that can reduce team communication costs.**
Team drinking emphasizes boldness. High-proof liquor often brings a heavy burden, making people afraid to drink in large gulps. **Shirenyin, with its generous portion, low proof, and light taste, allows people to experience a more relaxed drinking experience.** For example, after the team works overtime, the leader stands up, invites everyone to a late-night snack, and while drinking Shirenyin, they talk heart-to-heart. The team atmosphere becomes more relaxed. When hearts are together, people can gather together. **'Sailing the sea depends on the helmsman, and emotional exchange depends on drinking.'**
We use a product to help the team get pumped up: **Summon, Victory, Unity!** Whether it's the farewell drink before a project starts or the celebration drink after achieving performance goals, Shirenyin unites the strength of the entire team.
**Shirenyin has now become the largest single product for Three Squirrels' team building.** Three Squirrels buys hundreds of such products from us every year, and this year on Double 11, they achieved over 500 million in sales. Three Squirrels' oath-taking conference is very bold; it's a drinking conference.
How to find a methodology and logic to define a good product? **I think the first thing is undoubtedly the leading quality.**
Compared to cost performance, my personal view is to prefer **products with higher quality-to-price ratio.** In a price-first market, you either sacrifice application or quality. We prefer to raise quality and correspondingly raise the selling price. If the quality is the same, we will have a certain price advantage compared to others. At the same time, we can still rely on brand premium; the existence of a brand must bring positive gross profit in operations. Internally, we say: **'To improve quality by 20%, we are willing to pay 200% of the cost.'** When we have a product with a high quality-to-price ratio, it proves that we have sufficient ability to provide high-quality products.
The lowest proof of Chinese liquor is around 35 degrees. Through extensive research by our scientific researchers, we **broke the bottom line and achieved 25 degrees.** Insiders may know that making low-proof liquor is much more difficult than high-proof liquor. Our company has **a professional distilled liquor technical team represented by 3 national liquor judges, 1 national fruit wine judge, 7 provincial liquor judges, and 4 nationally registered senior brewers**, creating a light-taste liquor that is easier to drink.
**> >>> The so-called 'big'**
**We believe that doing business in a large industry will not hit the ceiling.** Our company has been developing for five years, and to this day, we are still a small or medium-sized enterprise in the industry. Basically, we can also calculate that in the next ten or twenty years, we will not easily reach the ceiling, because the industry is large enough. The total market size of the liquor industry last year was 560 billion yuan.
**> >>> The so-called 'small'**
**Find a very small market gap.** All markets are very large, and categories are very large, but that doesn't mean we need to cut into every consumption scenario in all market categories. **The positioning of the two products is relatively clear: the Expression Bottle is for small gatherings, small drinks, and small moments, with two or three people eating and drinking a small bottle; the large bottle 'Shirenyin' is for big occasions with many people.**
**> >>> The so-called 'high'**
**In production supply chain, product development, brand communication, and channels, we study how to create higher efficiency, or find breakthrough points with relatively higher efficiency.** Today, it is easy to understand that traditional advertising platforms have become ineffective. People think that internet self-media marketing may be effective, but it is not easy to do well. If two traditional companies invest in advertising, the gap in their levels may be one or two times in traditional advertising, but in the internet era, the gap becomes larger. We will find that we need to explore the possibility of higher efficiency in every link.
**> >>> The so-called 'new'**
**New technologies.** QR code technology, H5 technology, and other new technologies are not only applicable to high-tech industries; consumer goods industries can also use them as tools.
**Do consumers need light bulbs? Consumers need light.** Take the example of a light bulb: before the e-commerce era, a light bulb was just a light bulb. When it broke, we checked the model and went out to buy a new one, even not knowing where to buy it, so there was a process of searching for information. After the e-commerce era, it became very convenient, at least solving product information. You can order a bulb through Taobao or JD.com, check the brand, interface, and wattage. The consumer's pain point is that they need to turn a broken bulb into a bright one. In the O2O era, this business will definitely be changed by a solution company: as long as your bulb breaks, you take a photo with your phone, and someone will immediately deliver a bulb and replace it for you. White-collar workers especially need such services. This is just an analogy.
**Liquor itself is not just liquor; in addition to its commodity attributes, it can provide consumers with social solutions in drinking occasions.**
**We make quotations to give the product better communication power with consumers.**
We turn the product into a super self-media. Previously, we thought product was product, marketing was marketing, advertising was advertising, and channel was channel. Later, we found that advertising can also be done through self-media methods, **making one-way advertising more interactive. The product should become the best self-media, and the product is what brings the largest traffic.**
An important aspect of consumption upgrade is that quality is higher than before. On the other hand, the most obvious feature is that **consumers have begun to shift from material display to emotional display.** Originally, the selling price of goods divided consumers into different classes. Today, many consumers place great importance on the spiritual classification given by the brand.
In the process of making products, as long as the function is satisfied, we can be romantic and do more cross-border things. **This year, we made a product called JOVOART - 'All Things Grow' commemorative edition, collaborating with contemporary artists to turn their works into wine labels. Although it is a niche product, it is very important for enhancing the brand.**
**In terms of organizational structure, we need to implement and execute more integratedly.**
**Productism is the origin.** All operations start from making competitive products. Once the product is out, the marketing system is out. **Consumer insight is the focus.** Business is not done for investors or channel distributors; all innovative operations should focus on users to avoid going astray. **Internet social networking is the fulcrum**, which can leverage the entire market.
Thank you all!
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