Please read this article with the following thought-provoking questions in mind. Since 2000, the new liquor brands that have successfully achieved national expansion include Shui Jing Fang, Shede, Guo Jiao 1573, and Yanghe Blue Classic, each with its own characteristics and strengths, all worthy of study. However, in the 15 years since 2003, only Jiangxiaobai has managed to successfully go national and establish a firm foothold as a strong player. Why? Growth and success are designed. Amid predictions that it wouldn't last a year, Jiangxiaobai has become a mainstream Chinese liquor enterprise, building a full industry chain, large farms, and large distilleries, already a powerhouse in the industry. As early as 2012, Jiangxiaobai had already predetermined today's results; everything now is on the path preset by founder Tao Shiquan. On the surface, he appears to be an emotional entrepreneur, but like Jiangxiaobai itself, he possesses a terrifying rationality at his core. In his view, the young should avoid detours and wasted effort, not read chicken soup, not obsess over immediate gains, eliminate pretentiousness and vanity... On the surface, he talks about personal growth paths, but in reality, he is also talking about Jiangxiaobai's growth logic. Build the brand with high profile, build the industry chain with low profile, step by step, openly advancing on one path while secretly moving on another. On November 27, 2018, at the Yabuli China Entrepreneurs Forum, "Entrepreneurs Return to Campus" was held at Southwest University. Tao Shiquan, who rarely appears in public, gave a speech. The following is the main text: Hello everyone, I am Tao Shiquan from Jiangxiaobai. I am resistant to trying to be a mentor to others, guiding or educating them. Everyone is an independent individual, and this "independent spirit" is most precious when young. So today I am not a mentor; I only want to share a bit of "Xiaobai spirit" with you. 01 We are Xiaobai, but the small self has power When Tencent tools and QQ appeared on the internet, the term "Xiaobai" also emerged. What does "Xiaobai" mean? It is a self-deprecating, modest, yet confident self-expression, with a firm direction and down-to-earth attitude, creating one's own miracles without needing to prove oneself to the outside world. This is a bit of "Xiaobai spirit" I have realized in the 21 years since graduating from university. During my four years at university, I gradually formed some ideas: no matter how difficult the environment or how bad the situation, I am willing to change things little by little. I would set a goal, which might be far away and require 20 years of continuous effort to achieve, but I would still work step by step to climb that high but not steep mountain. Now, running a business is the same. Other companies quickly get US financial investment and pursue rapid growth. We pursue down-to-earth growth in the real economy, slowly learning and slowly improving. Admitting that we are not good enough is the starting point for continuous improvement. The small self has power; Xiaobai has perseverance. As long as we simply and purely engage in self-improvement and sustain it over a long period, we will progress and get better and better. Everyone knows the Yolo Youth Culture and Arts Festival. We spent three years building this event from scratch into China's top street music festival. From the earliest music scene with only a few hundred spectators, we have grown to today's spectacular scene with 60,000 people. Compared to the beginning, the scale has increased nearly a hundredfold. The power of the small self has been unleashed, which is undoubtedly moving. Each person is a very small individual, and from nothing to something, we have experienced too much. Several rappers from Chongqing in Yolo started from the bottom. Watching them sing on the streets and in bars, from underground music, step by step to today, growing into superstars, is moving. Let me mention another touching thing. Jiangxiaobai is a Chongqing brand. Since its founding, we started from zero and step by step have become a consumer brand that can initially represent Chongqing, has national recognition, exports to 27 countries and regions, and in the next five to ten years will become an international brand. All these achievements are the result of a group of "Xiaobai" and "small selves" coming together.
Pinshu's Notes:
Jiangxiaobai's growth path is very clear: first easy then difficult, first regional then national.
2012-2014: In Chongqing, Chengdu and other southwestern markets, validate the market model and optimize the product system.
2015-2017: Enter highly competitive markets such as Wuhan, Hefei, and Zhengzhou, tackling tough challenges.
2017-2018: After the model matured, roll out nationwide, entering more than 50% of cities and counties.
02 Say less, do more We must uphold the Xiaobai spirit: self-deprecating, modest, yet confident, with a firm direction and down-to-earth attitude, creating our own miracles, saying less and doing more, without needing to prove anything to the outside world. Before doing something, we are eager to make a statement, with thunder rolling, hoping to tell the world our determination; during the process, we are eager for quick success, and because we take wrong paths or detours and suffer, we hope to tell the world about the hardships. After success, we are complacent and don't review lessons and shortcomings, hoping to tell the world about our achievements. Truly capable people never emphasize the hardships of the process to the outside world. Why make a fuss? This is a kind of kitsch, pleasing oneself, catering to oneself, and is not "doing things well" itself. This is a disease that must be avoided. Remember: say less, do more. 03 Eliminate vanity and pretentiousness The premise of saying less and doing more is that we first break through "vanity." There is a psychological law: people like to exaggerate. Everyone has a tendency to overestimate themselves. For example, girls may buy luxury brand bags, and boys may overspend their living expenses to treat others to meals. During university, we also like to express grand ambitions, how we will change the world. Vanity is divided into negative and positive. Blind comparison is negative vanity; pursuing fame and buying fame is positive vanity. Influenced by the impetuous environment, having vanity is understandable. But I suggest eliminating all kinds of vanity. Since we have both rational analysis and self-ideal drive, we don't need to shout slogans or get pumped up. Superficial appearances are fleeting; what truly needs cultivation is the heart. People must have the courage to change the world and the courage to face themselves. Only by discarding vanity can we find our true selves. Put aside vanity and put 100% of your energy into "doing things well" to turn the long race of life into a smooth path. I suggest everyone: eliminate vanity and eliminate pretentiousness.
Pinshu's Notes:
1 The essence of Jiangxiaobai's copywriting is active interaction with users. It's a simple thing, but Jiangxiaobai does the actions well and puts users in the right position. Many companies just go through the motions of self-congratulation rather than getting into the consumer's mind.
2 Jiangxiaobai avoids competition with traditional baijiu and targets the incremental market of young people. If it followed the traditional taste route instead of the light and smooth route, the breakthrough would be very difficult.
3 Jiangxiaobai basically ignores external discussions. In fact, many entrepreneurs, when building a brand, are more or less disturbed by external factors, not having thought through their brand actions, not doing them thoroughly, and not being firm.
4 Like Jiangxiaobai's light taste, many people don't like the flavor of soy sauce aroma liquor. But Moutai achieved the unity of category and brand. For a long time, Moutai's brand and sales were not as good as Wuliangye's. Moutai doesn't need everyone to like it. 04 Only by loving it can you win Because you love it, you will work hard, and only then have the chance to become number one. Achieving number one is very difficult, but not impossible. During university, I learned a skill I consider "top-notch." I was an engineering student, but I scored first in the county in the Chinese language college entrance exam, which I treasured. During university, I practiced "writing" skills desperately. I remember when the school anniversary needed a "Letter to Alumni," I became the person who wrote it. Becoming "that person" is really hard, but I was willing to do it, even though it took me an entire summer vacation. Even now, I still maintain the habit of writing. If you like something, you will devote all your energy to it. Here, some classmates might say, "I only like playing games, eating, shopping..." Everything can be transformed in essence; great truths are universal. If you can become the number one in gaming, a food critic, or a fashion designer, that's also great. When planning your career path in the future, you must follow your heart. Don't settle because of parents' suggestions or friends' approval. Even if you are forced by reality and have little choice, don't lose your "self." Because as long as you love it, even if the beginning is difficult, the result will definitely be beautiful. 05 Better me With interest, we can continuously improve and become a better me. If everyone in a company becomes a better self, then the collective becomes a better organization. Returning to methodology, there are many ways to learn. The scientific principles in textbooks are very important, but besides that, everyone around you has something worth learning. A person's ability may be insignificant, but if you combine the strengths of everyone around you, you can definitely get a "superman." Similarly, if you can learn everyone's strengths, then you are a superman. I understand that young people are unwilling to suffer losses. But if you change your mindset and become the one willing to take losses, to a certain extent you will gain a lot and gradually become a superman. During university, cleaning the dormitory and fetching water were two tasks that had to be done but no one wanted to do. I tried to take the initiative, and found that it didn't take much time but opened a new world, because soon everyone would like you. Not wanting to suffer losses is human nature, but if you are willing to take the initiative, over time, the bond deepens. You will not only become a popular person, but also become a better me. 06 Form a magnitude mindset After continuous improvement, quantitative changes will lead to qualitative changes, and we will rise to a new magnitude. Here I want to share the magnitude mindset. What is magnitude thinking? An 8.0 earthquake and a 6.0 earthquake differ by only two points in number, but the energy differs by more than a thousand times. Similarly, a monthly salary of 5,000 and 8,000 is not much different, but a monthly salary of 500,000 is a qualitative difference. So we must form the correct mindset to think about how to promote qualitative changes in ourselves. Of course, qualitative changes must be accumulated by quantity, but we should look further and longer. According to this thinking, entrepreneurs should think about what the company will be like in ten years, rather than haggling over monthly or annual sales. Learn to allocate energy to things of greater magnitude, things that play a decisive role in the future. In the future, for work, choosing an industry and city is more important than choosing a monthly salary of 8,000 or 5,000; for a lifelong partner, choosing character is more important than appearance. We must focus on things of greater magnitude. Pinshu's Notes:
Brief introduction to Tao Shiquan's magnitude concept
Pilot magnitude: Enterprises need to go through a pilot phase of 3-5 years to validate the market model, with a scale generally at the hundred-million yuan level;
National brand magnitude: After the brand positioning and business model are clear, they can enter the national brand magnitude, with a scale usually above one billion yuan;
Industry chain magnitude: Gather three core capabilities: high-quality supply chain, brand building, and channel distribution, with a scale usually at the ten-billion yuan level. 07 Slow but steady: the growth curve should not be too "steep" We need a magnitude mindset, but magnitude is often triggered slowly. Here I want to share an original curve model. This model is similar to an airplane takeoff curve. When an airplane takes off, it needs a long taxiing distance, and the takeoff is relatively gentle; only when it truly breaks through a critical point of magnitude does it rise sharply. Completing the entire takeoff is not achieved overnight; it requires a long process. We must firmly believe in this process; what we need to do is make friends with time. My first job after graduation had a monthly salary of 860 yuan, but I focused on long-term value. Through hard work, after half a year, my monthly salary became 8,500 yuan. To achieve this qualitative change, I paid the "most" among all colleagues in those six months. From serving tea and water, repairing computers, to customer service, market research, and creating methodology for the team, I became the most diligent person in the office in those six months, proving my value. In 2008, I left Beijing. In the process of creating Jiangxiaobai, I was also slow but steady. Establishing the company, making products, brands, distilleries, farms, and the full industry chain, all step by step. Too many examples of "focusing only on development speed and accelerating the demise of the company" make me pay more attention to the gentle period and long-term value. Overall, Jiangxiaobai is a slow company; we particularly focus on internal strength building. Brand building is only a small part of the real economy. We should not set goals that are too "steep"; completing goals requires a slow run-up, waiting for the right time. Of course, if the result comes early, just accept it. This curve may not apply to everyone, but for ordinary people, following this development is good. It is a curve worth referencing. Pinshu's Notes:
From 0 to 1 billion, Wanglaoji took seven years.
From 1 billion to 10 billion, Wanglaoji took two to three years.
Similarly, it is reported that Jiangxiaobai has already completed the accumulation of 1 billion, and in the future, it only needs to replicate the model in blank markets. 08 Pursue long-term value Triggering a change in magnitude is a long-term process. A higher-magnitude goal can be seen as long-term value, which is laying out the future; future value is more important than today's value. Everyone fantasizes about having a time machine to go back: you might think if I could go back to high school, I would study hard; I would not miss that person; I would not choose this major... Many middle-aged people would want to go back and buy a house in Beijing or buy Tencent stock. In the real world, there is no time machine. But if you have a long-term value mindset, you can also have a "similar" time machine. It has been proven that every advanced business model will appear in developed countries a few years earlier. Therefore, I personally like to go to "first-comer" countries to see what will be popular in China in the future, to see "others'" time machines. Find this time machine, reverse-engineer the 5-year and 3-year goals, and then today, everything becomes easy. Truly excellent people are those who focus on long-term development, continuous progress, and have a mindset of thought. Although ideals and values cannot be eaten, they can let us "eat better food." At Jiangxiaobai, everyone adheres to "having the ambition of ideals and dreams, the talent of knowledge and thought, with kindness and integrity as the original intention, with continuous improvement as perseverance, down-to-earth, creating long-term value." So I hope you can find a field you love, look at others' growth trajectories, and find your own time machine. 09 Knowledge is important, but insight is even more important Knowledge is important, but I personally think insight is also important. In a sense, insight is more important than knowledge. During my four years at university, I participated in many social practices, such as running an internet cafe on campus. My roommates and I took turns watching the computer room and working as cashiers; the business was booming. There were also film festivals, guitar training classes, and other activities. Although I didn't gain much financial benefit at the time, I accumulated a lot of practical experience. These experiences gave me abilities in public speaking, interpersonal communication, coordination, and more. Our pattern and vision come from your insight. What we generally lack today is not only knowledge but also insight. So try more new things, go to different places, and meet different people. The world is already wonderful; seeing more is your gain. So my personal view is to learn knowledge well and also gain more insight. 10 Live young The most important point in the Xiaobai spirit is "living young." Being young is not losing the imagination of the future at 20, not stopping believing in beauty at 19, not having an old soul. Being young is having an open mind, a youthful soul and mental state. We already have young bodies, but we must also maintain a young soul. People's personalities are divided into positive and optimistic, and negative and pessimistic. Positive and optimistic people are like the Yabuli Young Partners, organizing these activities and doing particularly valuable things. Pessimistic people have too strong self-protection, over-defend against everyone they contact, have low information perception, and are not easy to live young. I like doing new things, so Jiangxiaobai came to be. The brands in China's liquor industry are all high-end, with high style, high prices, and high-end consumption scenarios. We are the first Chinese liquor brand targeting young people, the first enterprise to value young people. If you lack opportunities, we create a stage for you to unleash your greatest potential. I particularly respect young people because I firmly believe that the waves behind drive the waves ahead, and the back waves will be bigger than the front waves; it is you who will surpass us. Most of our employees are young, and there are more than ten directors born in the 1990s. Youth is the greatest capital, so I hope everyone lives young. Don't be afraid to say the wrong thing, don't be afraid to make mistakes, and form your own unique, independent perspective. Finally, I hope you not only have young bodies but also young souls, and maintain that power. The above ten points are all values and beliefs I have always upheld. I only hope that one or two sentences can inspire you; that would be my greatest comfort. Pinshu's Notes:
If you pursue a development magnitude, you must build a team that matches it. Based on incomplete statistics, Pinshu found some highlights of Jiangxiaobai's organizational building.
1 The assessment of external distributors puts the first priority on team building, the second on market actions, and the third on performance.
2 All departments value young people, reuse young people, and let young people lead business.
3 Simple and pure, minimizing management hierarchy losses.
4 Growth and success are designed. Source: Chief Brand Officer (ID: pinpaimima) -END-