---
title: "Ten-Year Review: How Will Tao Shiquan Lead Jiangxiaobai in the Next Decade?"
description: "Jiangxiaobai, a young Chinese baijiu brand, has just celebrated its tenth anniversary. Founder Tao Shiquan held a review meeting to reflect on the past and outline future strategies, focusing on product strength, supply chain, and cultural branding to navigate the next ten years."
author: "陈峰"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2020-09-09"
language: "en"
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# Ten-Year Review: How Will Tao Shiquan Lead Jiangxiaobai in the Next Decade?

> Jiangxiaobai, a young Chinese baijiu brand, has just celebrated its tenth anniversary. Founder Tao Shiquan held a review meeting to reflect on the past and outline future strategies, focusing on product strength, supply chain, and cultural branding to navigate the next ten years.

Recently, two ten-year-old brands with the character 'xiao' have been hotly discussed: one is Xiaomi, and the other is Jiangxiaobai. Lei Jun's Xiaomi has been discussed too much; instead, I am more interested in Jiangxiaobai in the liquor circle. Coincidentally, its founder Tao Shiquan recently held a ten-year review meeting for Jiangxiaobai at Jiangji Distillery. Let me share my personal views on Jiangxiaobai's past decade.

**-01-**
### **Ignoring Negative Publicity, Jiangxiaobai Focuses on Products**
In 2011, Tao Shiquan prepared and founded Jiangxiaobai, but he did not rush to bring it to market immediately. He was well aware that entering the market with an immature brand and product would only lead to being crushed by the big waves.
The baijiu industry is highly hierarchical; national famous liquors and regional strong enterprises are all old liquor companies with deep historical roots. It is extremely difficult for a young baijiu brand to 'break through the city walls.'
In the first year after its founding, Jiangxiaobai did not make much noise. It wasn't until 2012 that Jiangxiaobai entered the market.
With copywriting that struck a chord, young people found a 'soulmate.' Moments was flooded with Jiangxiaobai posts. At that time, WeChat had only been on the market for a little over a year and was in a period of explosive user growth. Jiangxiaobai quickly became known and familiar across the country.
Jiangxiaobai's rapid rise to fame slapped the faces of all baijiu insiders. From that time on, aggressive rumors such as 'Jiangxiaobai is not pure grain liquor,' 'Jiangxiaobai tastes terrible,' and 'Jiangxiaobai relies on marketing tricks' were endless. To this day, there are even claims that Jiangxiaobai has 'fallen from the altar.' Some of these remarks may be genuine, but more are sour grapes, bandwagoning, or pure 'keyboard warriors': if you become popular, you get criticized.
As a result, the 'fallen from the altar' Jiangxiaobai achieved a transaction volume (including tax) exceeding 3 billion yuan and established channels in over 80% of prefecture-level cities nationwide.
Beer industry expert Fang Gang said, 'The baijiu industry should thank Jiangxiaobai.' It broadened the age limit of baijiu consumers, making the age of first-time baijiu drinkers younger, which effectively expanded the overall baijiu market.
In addition, Jiangxiaobai took a path different from all other baijiu brands, showing the industry that even a traditional industry like baijiu, with high barriers, still has hope for a new path.

**-02-**
### **Ten Years of Growth and Gains**
Jiangxiaobai's success is actually based on product strength across the entire industry chain, terminal scenario-based deep distribution, and scenario-based brand promotion. Although many aspects are not perfect, it is undeniable that Jiangxiaobai has grown rapidly. Over the past decade, from zero to 3 billion, it has been quite fruitful.
Under drastic changes in the consumption environment and market, the influence of some channel brands is rapidly expanding. If one day Tmall, Pinduoduo, Walmart, and other channel brands launch their own baijiu brands, their brand and culture may not be that important. Products endorsed by channel influence would be easily accepted by consumers.
Enterprise management expert Shi Wei believes that production capacity, production facilities, and the entire supply chain system are the most important for future development.
Jiangxiaobai clearly agrees with this view. 'Even if one day Jiangxiaobai is defeated by others, even if you want to make a Jiangxiaohei, you still need to find someone to produce it. Come to me, and I can make good products.'
Thus, we can see Jiangxiaobai's 5,000 mu of high-quality sorghum origin, with plans to radiate to 100,000 mu in the future; the Jiangji Distillery, built with an investment of over 2 billion yuan, covering 760 mu, with a production capacity of 100,000 tons.
There is also the protective acquisition of the Luxi Distillery, which has intangible cultural heritage brewing techniques, to strengthen the brand foundation and skill inheritance; the building of a technical team comparable to first-tier liquor companies; the establishment of a 'one product, one code' quality traceability system and the construction of digital workshops...
Jiangxiaobai's greatest growth may not be the increase in sales or market coverage, but the possession of a modern Jiangji Distillery, a strong production line, and a relatively complete upstream and downstream industry chain.
Tao Shiquan also agrees that merely innovating a brand cannot build a century-old enterprise. Relying only on brand and copywriting influence cannot sustain the market. The most essential work still comes from category differentiation and quality recognition. In general, intrinsic growth is more important than explicit growth.
Jiangxiaobai's full industry chain construction has been kept under wraps. Its supply chain and product capabilities may be stronger than people imagine; otherwise, it could not have sustained growth to today's 3 billion amid various 'falling from the altar' voices.
In addition, Jiangxiaobai has also gained many experiences and lessons.
For example, the marketing and product positioning that made it famous have now become bottlenecks limiting brand development. So much so that Tao Shiquan said, 'Our marketing is not that good.'
I agree with his statement. Jiangxiaobai's marketing still has a certain gap compared to the methods of leading baijiu brands.
In recent years, Jiangxiaobai has incorporated too many elements around youth culture, leading to a scattered and inconsistent impression in consumers' minds. Regarding this, Tao Shiquan admitted that in the past decade, Jiangxiaobai has made some innovations in certain 'tactics,' but has made many mistakes in the essence of marketing.
To this day, most people's perception of Jiangxiaobai still remains on the expression bottle. But even the expression bottle, which made Jiangxiaobai famous, with hundreds of copywriting lines, is not as strong as the single line 'Jingjiu is good, but don't overindulge' that achieved tens of billions.
Moreover, when it comes to telling brand stories, Jiangxiaobai seems to tell consumers' stories, but its own story is still not clear. Compared to the baijiu leader Moutai, just the story of 'throwing the bottle to win a gold medal' is enough to learn from for a while.
And in the face of negative publicity, Jiangxiaobai is basically defenseless.
So, 'Our marketing is not that good' may not be entirely self-deprecating.
But it is undeniable that in that era when there were only images and text without video, and the baijiu industry was highly barrier-ridden and hierarchical, Jiangxiaobai's appearance broke the industry's perception.

**-03-**
### **Next Decade: Dual Billion-Yuan Categories + Track Upgrade**
Zhao Bo, founder of New Distribution, proposed at the tenth anniversary review meeting: 'The tenth anniversary review meeting, though it reviews the past, aims to envision the strategy for the next decade. Jiangxiaobai's success is not about what it did wrong in the past; it must have done something right to succeed. If Jiangxiaobai's success in the past decade was the success of copywriting, then in the next decade, it must be the success of culture. Because copywriting is temporary; only cultural and value recognition can generate circle recognition, and consumers will have more lasting resonance.'
On the cultural level, whether in historical accumulation or the completeness of the cultural system, Jiangxiaobai indeed has a significant gap compared to established famous liquors like Moutai and Wuliangye.
The baijiu market structure has gradually become clear: Moutai, Wuliangye, and Yanghe have captured over 80% of the industry's profits. Jiangxiaobai must create its own unique culture and values to help the brand achieve faster growth and break out of the encirclement of future oligopolies.
At present, a feasible direction is to make Jiangxiaobai the consumption culture of the new generation, then run through each generation of young people, forming a sustainable cultural development, making Jiangxiaobai the 'spokesperson' for young people. This is also the field where Jiangxiaobai excels and leads.
Hardware such as the industry chain, supply chain, and channels must be continuously strengthened, and the organizational management system optimized. The only purpose of doing this is to achieve higher cost performance for products.
Today's young consumers have unprecedented acceptance of new things, but they are also particularly sensitive to price and quality—such consumption characteristics will boost the rapid growth of high-quality affordable consumer goods.
The development of high-end liquor relies more on the hard demand for gift attributes based on national conditions. In the short term, at least in the coming decades, it will be difficult to create another Moutai or Wuliangye. Returning to the product side, meeting consumers' basic needs such as self-drinking is the trajectory for Jiangxiaobai's new decade.
Let's look at Jiangxiaobai's current actions. The previous 40-degree liqueur opened the young people's market, becoming the first baijiu product for many young people. What's next?
Tao Shiquan revealed: 'In terms of products, we have at least identified two sub-categories (green plum wine and fruit-flavored sorghum liquor).' At the review meeting, experts estimated that both categories would reach over one billion yuan, because based on the current situation, both categories are expected to reach over 300 million yuan this year, and they are in a growth period.
Not to mention whether these two categories can achieve over one billion in the future, this move alone undoubtedly shows Jiangxiaobai's determination to push high-quality affordable daily liquor to the masses, and its consumer base may continue to expand.
In this regard, enterprise management expert Shi Wei proposed that in product line layout, Jiangxiaobai still needs to be volumetric, dividing product lines of different scales and alcohol content according to market positioning. Marketing expert Miao Qingxian once criticized Jiangxiaobai for 'squeezing milk from a stone' and 'young people will eventually turn to traditional high-proof baijiu.'
In fact, Jiangxiaobai has indeed made such plans. In addition to various low-proof products, it has also launched a 52-degree original sorghum liquor to extend services to old liquor drinkers. That is, from light drinking to heavy drinking, Jiangxiaobai can effectively retain its consumer base.
Here I emphasize one point: in opening the market for consumers' 'first glass of baijiu,' Jiangxiaobai's advantage may continue to expand.
Finally, Tao Shiquan mentioned that on the basis of the main brand, it is necessary to open up a main track closer to the mainstream market. Because small bottles are indeed a too niche track, we need to upgrade the track in the future.
Jiangxiaobai has already passed the first decade. In the days ahead, it should persist in building the full industry chain, take the route of scale and quality, be fashionable and international in brand marketing, continuously strengthen its market foundation among young people, and continuously expand brand positioning and influence.
Under Tao Shiquan's leadership, Jiangxiaobai may truly move towards the 'New Liquor Drinking Era' he proposed in the next decade.


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