Click to read the original article for details. On July 11, Zhuang Qichuan, 66, Party Secretary and President of Naaisi Group, passed away due to illness. Compared to some well-known entrepreneurs, Zhuang Qichuan was always low-key, but the Naaisi he led was one of the few Chinese companies able to compete with foreign giants like P&G. Since 1994, Naaisi has been a leading domestic detergent company, owning famous brands such as Diao Pai, Chaoneng, and Naaisi. In 2015, its sales exceeded 19 billion yuan, ranking fifth globally. A P&G president once marveled: "Where water doesn't flow, Diao Pai laundry powder has been sold." At its peak, Diao Pai laundry powder sales were five times the total sales of multinational companies in China, and Fortune 500 companies like P&G and Henkel had their Chinese factories produce for Naaisi under OEM agreements. A Man Who Refused to Accept Fate The success of Naaisi is attributed to a man who refused to accept fate: Zhuang Qichuan. In 1985, at age 33, Zhuang Qichuan was elected by workers through democratic election to become the factory director of Lishui May 7th Chemical Plant (the predecessor of Naaisi). At that time, the Lishui Chemical Plant was a small local state-owned factory, ranking second from the bottom among the 118 designated soap manufacturers nationwide. Additionally, located in the mountainous area of southwestern Zhejiang with inconvenient transportation, its prospects were extremely bleak. Before Zhuang took office, the factory had already stopped production due to soap overstock. He had to face two choices: one was to follow the arrangements of superiors and close, stop, merge, or convert; the other was to hold the ground and wait for opportunities. Zhuang, who refused to accept fate, chose the latter, hoping to expand the factory to become the first in the province and even the country. At the time, this idea was somewhat "audacious," after all, the chemical plant had no resources, no technology, and its geographical "remoteness" was a fatal flaw. Zhuang knew that to reverse this disadvantage, he had to go out. So he found cooperation with the "big brother" Shanghai Soap Factory, doing OEM work for them, earning money while learning to make soap. After accumulating some capital, he introduced advanced technology from Switzerland and developed the first self-owned brand: Naaisi soap. After product inspection, it was appraised by international commercial organizations as "world-class fine product." For a small state-owned factory, this was an unparalleled honor. But before Zhuang could rejoice, he was warned for "redundant construction" with the "Three No's" policy (no designation, no investment, no supply). At that time, soap was produced by designated state-owned enterprises, and Lishui May 7th Chemical Plant was not on the list. Zhuang was not intimidated; he withstood pressure and boldly invested in production. Under his leadership, the chemical plant turned the corner and gradually got on track. Just then, disaster struck again. In 1989, due to a national coal supply shortage, many soap factories had to stop production for lack of materials. The stubborn Zhuang decided to use firewood instead of coal. One cold winter day, Li Zemin, then Secretary of the Zhejiang Provincial Party Committee, visited the factory and saw workers with blistered hands still splitting firewood to keep the boiler burning red. He couldn't help praising their "poor stick" entrepreneurial spirit. With this spirit, Naaisi became the number one soap manufacturer in Zhejiang Province within just two years. Later, a reporter asked: "Naaisi had inferior conditions in all aspects back then; how did it succeed?" Zhuang replied: "Because there was a group of people who refused to accept fate." In his view, fate includes two aspects: "destiny" is innate and cannot be chosen, but "fortune" depends on human effort; people can change their living conditions by changing their "fortune." A "Left-Hander" Zhuang Qichuan said he is a "left-hander" because he always sees problems differently from others. This reverse thinking sometimes made him seem unconventional, but it also allowed him to capture opportunities others couldn't see. In the late 1980s, influenced by the planned economy, many enterprises were accustomed to building first and then marketing, i.e., first constructing infrastructure, producing products, and then finding sales channels. But Zhuang realized that the market environment was changing; the days of "a king's daughter doesn't worry about marriage" were gone, and the mindset had to shift to market first, then construction. So when making Naaisi soap, Zhuang weighed the pros and cons and decided to take a loan of 2 million yuan for advertising. This "gambler's" approach would be a risky move even today. Moreover, he launched a strategy of "popularizing high-end products," pricing at half the level of similar foreign products. Zhuang's gamble paid off. In that era of scarce advertising, every penny spent yielded super returns, and with affordable prices, Naaisi soap quickly became a hot seller. In 1992, after Naaisi Company was established, Zhuang turned his attention to laundry soap. For a long time, Chinese people used yellow soap for washing clothes, which was rough, hard, and smelly, commonly known as "stinky soap." Zhuang seized this pain point and developed a brand-new soap: Diao Pai Super Energy Soap. The new soap was blue with a concave line in the middle, soft, strong in decontamination, and wrapped in a plastic film bag with a large eagle on the packaging to symbolize quick stain removal—truly innovative. However, this revolutionary product was cold-shouldered in its early market launch. At this point, Zhuang's reverse thinking came into play again. In a flash of inspiration, he decided to give away 1 million yuan worth of samples. Specifically, he placed an advertisement in the Zhejiang Daily; readers who cut out the coupon could get a free bar of Super Energy Soap. This practice, common today, was earth-shattering then. An enterprise with a profit of less than 1 million yuan was giving away 1 million yuan for free, which many couldn't understand. Controversy erupted internally and externally; some said Zhuang loved the limelight, others said he was fooling around, and even county leaders couldn't stand it, calling him a "spendthrift." Under such pressure, Zhuang felt immense stress. But he didn't yield; he withstood the pressure, braving the "political risk," and resolutely pushed forward with the giveaway. As a result, many consumers who hadn't known about Super Energy Soap tried it and were full of praise, becoming loyal fans of Diao Pai. Afterwards, Zhuang lamented: "If it failed, it would only be heaven's will!" After Super Energy Soap, Naaisi launched transparent soap, smaller in size, fitting in one hand, with a light fragrance. This upgraded version also achieved great success, selling out immediately upon launch. By 1994, Naaisi had become the number one soap manufacturer in China and never let anyone else take that position again. "Price Butcher" With the success of Diao Pai laundry soap, Naaisi not only took the national top spot but also captured over 90% of the profits in the soap market. This solid financial foundation laid the groundwork for Zhuang's later sweep of the laundry powder market. In 1998, Zhuang attended the National Washing Industry Conference in Qingdao and specifically went to the laundry powder session to listen, hoping to spot opportunities. He found most people complaining about market saturation and suggesting the state raise entry barriers. Hearing this, most would have backed off, but the "left-hander" Zhuang saw an opportunity. His logic: "Wherever there is fear of competition, there must be unlimited market space for growth." So upon returning from Qingdao, he gathered his team to study the laundry powder project. At that time, the laundry powder market in cities was already divided among the three giants P&G, Unilever, and Henkel, while in rural areas, Qiqiang dominated. The landscape seemed set. But Zhuang still found a gap in this seemingly impenetrable market. Due to long-term monopoly, foreign laundry powders were priced high, and there was a lack of mid-to-low-end products. Zhuang decided to wield the killer weapon of low prices. In 1999, Naaisi built the largest fully automatic spray tower in China at the time to produce Diao Pai laundry powder. Supported by capacity and efficiency, Diao Pai laundry powder was priced directly at 29 yuan per box. Complementing this, Zhuang broke the foreign brands' convention of simply introducing functions and used the emotional appeal "Mom, I can help you with the work," warming the hearts of millions of laid-off workers. Low prices plus emotional advertising made Diao Pai laundry powder the national number one within just one year. By 2002, sales exceeded one million tons, five times the total sales of all multinational companies in China! According to Hua Shang Tao Lue, due to explosive sales, Naaisi had to find more than 20 OEM factories nationwide, and Fortune 500 companies like P&G and Henkel had their Chinese factories produce for Naaisi. The president of P&G also marveled: "Where water doesn't flow, Diao Pai laundry powder has been sold." They brought blank contracts to discuss capital cooperation with Naaisi, leaving the terms open, but Zhuang politely declined. In Zhuang's view, this was just a repeat of foreign tactics; once they succeeded in co-opting, national brands would be "flipped over" overnight. Seeing the failure of co-optation, P&G began to counterattack, launching a nationwide "Shoot the Eagle" campaign. Tide, which had never cut prices before, suddenly dropped from 3 yuan per bag to 1.9 yuan, and followed Diao Pai's distribution closely—wherever Diao Pai was, Tide was there. For a time, it seemed like "dark clouds pressing down, ready to flatten Diao Pai." In response, Zhuang strongly retorted: "If you have the ability, kill me; if you can't, I will become stronger." While saying this, he wasn't idle. Starting in 2001, Naaisi successively built five major production bases in Yiyang, Hunan; Chengdu, Sichuan; Zhengding, Hebei; Siping, Jilin; and Urumqi, Xinjiang, forming a "six-wall encirclement" with the Lishui headquarters, achieving local production and sales, greatly reducing production and logistics costs, and enhancing competitiveness. In hindsight, P&G's pressure not only didn't make Zhuang yield but ignited his fighting spirit, prompting him to lead Naaisi's transformation into the high-end daily chemical sector. It's Time to Stir After achieving national number one in soap and laundry powder, Zhuang's heart began to "stir," yearning to make Naaisi a great company like P&G. To this end, he chose to break through in two directions: one was mid-to-high-end washing products, and the other was high-value-added personal care products such as toothpaste, shampoo, and body wash. "Selling cheap goods to expand the market is not a skill; only when high-value-added products also sell the most is that heroism," he said. At the time, this idea was somewhat dangerous, given the lesson of Huoli 28. In the 1990s, this laundry powder company was the number one daily chemical brand in China, but later, due to product line expansion and blind entry into shampoo, sanitary napkins, and purified water markets, it failed completely and was bought out by a German company. Facing doubts, Zhuang remained unmoved. In his view, enterprise development has stages; it's wrong to stir without the necessary conditions, but it's equally wrong not to stir when you've accumulated capabilities for a long time. "Why can foreigners do it, but it becomes a forbidden zone for Chinese?" Zhuang retorted. If "we don't break through in this area, we will always stay at the low end of the value chain." "Naaisi should stir to show its strength!" Zhuang placed the first breakthrough point on toothpaste. In 2003, Naaisi launched a toothpaste focusing on "nutrition" and won consumers' favor with its transparent paste; then in 2006, it launched Yayale, capturing the number one children's toothpaste brand; in 2015, the newly launched Jianshuangbai toothpaste also achieved good results. Also in 2003, Naaisi launched a high-end washing product: Chaoneng Natural Soap Powder. This new product was a disruptive breakthrough over traditional synthetic laundry powder, using natural oils as raw materials, environmentally friendly and gentle on hands. With Sun Li's advertising blitz "Use it once and you'll know it's what I want," the natural soap powder quickly became the first choice for housewives. After 2008, with the rise of laundry liquid, Naaisi followed up and launched Chaoneng laundry liquid. Of course, Zhuang knew that to catch up with industry leader P&G, these weren't enough. Shampoo, body wash, and other personal care products were P&G's main profit makers. But for Naaisi, which made washing products, this was like a mountain to cross. Zhuang had tried before; around 2002, Naaisi launched its own shampoo but failed. So he had to take a roundabout path. In 2006, Naaisi acquired brands like Bainian Runfa and Xias from Hong Kong Aoni, and in the following two years, spent over 500 million yuan to secure the title sponsorship of CCTV's special theater, preparing for a big push. Naaisi's "big gamble" reminded people of Qinchui, which had won the bid for the CCTV advertising king years ago. Many worried that Naaisi would follow Qinchui's path. Qinchui, in its heyday, won the CCTV advertising king twice in a row, rising overnight from an unknown to China's best-selling liquor brand, but later fell from its peak due to the "Sichuan liquor blending incident." Facing doubts, Zhuang said: "Qinchui's fall due to the 'advertising king' is an isolated case; the problem was with Qinchui, not the 'advertising king.' Today's Naaisi is not yesterday's Qinchui; Naaisi will clear the name of the 'advertising king' with its strength and restore its true charm." Zhuang kept his word; under his management, Bainian Runfa regained vitality. Although it didn't replicate the miracles of soap and laundry powder, it greatly enriched Naaisi's product line. After years of cultivation, Naaisi gradually established a foothold in the mid-to-high-end market. By 2015, high-value-added products accounted for 67% of its output value. Meanwhile, the company's sales exceeded 19 billion yuan, ranking fifth in the global daily chemical industry. Water Culture Zhuang Qichuan liked water. On the wall of his office was a quote: "The sea accepts all rivers, and is great because of it. It stays low without humility, absorbs all streams without filling. Only by not contending can no one contend with it." This quote was a true reflection of his character. In life, he was a low-key person. Many described him as: "Big ideals, low profile." Despite running a leading daily chemical company, his personal wealth was little known. For years, the Hurun Rich List tried to figure this out but never got an answer, so they listed him as a "hidden rich." At work, he advocated a water culture, treating employees as the company's primary capital. This view stemmed from an early experience. When he first became factory director, the factory was shut down, wages couldn't be paid, and many people made money by selling soap. One day, coming out of the hospital, he saw a female worker selling soap at the gate with a child. Suddenly, a downpour came; the woman used her umbrella to cover the child but couldn't cover the soap, so she bent over and lay on the pile of soap. This scene, even thirty years later, remained vivid in Zhuang's mind. From then on, he regarded employees as Naaisi's greatest asset and carefully protected their interests. During the shareholding reform, he transferred shares to employees, allowing them to share in the fruits of the company's growth beyond their wages; seeing employees bring pickled vegetables from home to save money on lunch, he ordered free lunches. Zhuang also proposed within the company to build an enterprise that "doesn't rely on connections," allowing capable employees to find their proper place. Over the years of running Naaisi, Zhuang and his company faced external criticism. When he took loans for advertising, rumors spread that Naaisi was "living on loans" and "insolvent"; later, when attacking the laundry powder market, some called Naaisi a "price butcher," "advertising killer," and "selling at a loss for publicity." Facing rumors and criticism, Zhuang never engaged in verbal battles or argued right and wrong. He said: "For Naaisi, the more pragmatic question may be how to effectively respond to and surpass competitors." Not saying doesn't mean not doing. A person familiar with Zhuang said: "He works hard in his heart and can be aggressive when encountering things." The aggressiveness here refers to actions, not words. Zhuang admired the Japanese entrepreneur Kazuo Inamori's saying: "If you do anything to the fullest, even gods will help you." In Zhuang's view, people are inherently lazy; to eradicate this, you must think things through, cut off retreats, and force yourself to move forward. From Naaisi's development history, it indeed followed this path. Create Another Naaisi Becoming a company like P&G is the dream of many in the daily chemical industry. Earlier, Zhuang proposed to "create another Naaisi" and grow into a world-class enterprise on Chinese soil. This was his clarion call to the world. Although such bold words might seem out of place in the current economic situation of deleveraging and structural adjustment, it fits his "left-hander" personality. For a long time, Zhuang adhered to a philosophy: don't slow down development prematurely; adjust during development and develop during adjustment. Thanks to this philosophy, Naaisi maintained double-digit growth after the 2008 financial crisis. But Naaisi's future remains challenging. Although P&G has seen declining performance and market share in recent years, it still dominates personal care products like shampoo and body wash. Meanwhile, domestic competitor Liby has developed rapidly since 2008 and is now on par with Naaisi. The two companies have highly similar product lines; Naaisi is the national champion in laundry soap, while Liby has overtaken in laundry powder, becoming the new champion. Both are expanding into personal care products, with results yet to be seen. Now that Zhuang Qichuan has passed away, Naaisi's future development may need more time. "Create another Naaisi," we look forward to it together! Source: Hua Shang Tao Lue (ID: hstl8888) -END-