The original 'FMCG Distributor Professional Management Consulting' has been renamed to New Distribution Read the original text to register. 30+ industry experts, 100+ B2B platform founders, and 800+ manufacturer friends gather in Fuzhou to discuss the internet transformation path of the FMCG industry. Change-makers have always been deeply interested in how to monopolize a local market. Lao Gan Ma is undoubtedly a very good sample. Today, Change-makers will talk about how Lao Gan Ma's business model achieves local monopoly. From this, you can also see how the warm-hearted old mother behind the scenes rules a market with iron fist. And this might be exactly what you want. No sales pitches, no advertising, no promotions—sitting at the doorstep, distributors come to grab goods. No listing, no loans, no financing. While other companies scramble for loans, financing, and listings, Lao Gan Ma has repeatedly rejected government financing suggestions. Cash on delivery: distributors must pay before shipment, and the cash flow is astonishingly abundant. Lao Gan Ma-flavored specialty dishes are found in restaurants and eateries everywhere. Lao Gan Ma's market miracle leaves the FMCG industry puzzled. What exactly is Lao Gan Ma's killer move?

Restaurants dare not easily replace 'Lao Gan Ma'; replacing it is like changing the dish

Lao Gan Ma's unique and stable flavor is a strong support for its catering channel. Many dishes based on Lao Gan Ma products are common in restaurants. Many companies want to launch follow-up products, but catering demands higher stability in product flavor because changing seasonings often causes flavor fluctuations. With this characteristic, Lao Gan Ma has become an irreplaceable seasoning.

The real price war: hold a suitable price, and competitors can't break in

Price often determines the positioning of the brand and target audience. Price changes are not just changes in profit and sales volume, but also a shift in brand positioning. Especially when a company has a leading market share, raising prices often gives competitors room. Lao Gan Ma deeply understands this. Take Lao Gan Ma's main products, Flavor Douchi and Chicken Oil Chili, for example. Their main specifications are 210g and 280g, with 210g locked at around 8 yuan and 280g at around 9 yuan (prices vary slightly by terminal). Other main products, depending on specification, mostly fall in the 7-10 yuan mainstream consumption range. Based on Lao Gan Ma's strong brand power, other brands can only choose to avoid price competition. For instance, Lee Kum Kee's 340g Flavor Douchi Sauce is priced at around 19 yuan, and Xiaokang Beef Sauce 175g is around 8 yuan. Either the total price is high or the cost-performance is low, making it hard to compete with Lao Gan Ma. This makes pricing difficult across the seasoning sauce industry: below Lao Gan Ma means no profit, above Lao Gan Ma means no market. Lao Gan Ma's prices have remained very stable, adhering to its price positioning with minimal increases, leaving no opportunity for competitors. Under Lao Gan Ma's strong brand power, competitors either lower quality to lower prices or abandon the low-end to go high-end, but the table sauce category struggles to support high-end products.

Highways are the channel; truck drivers nationwide 'lead the way' for Lao Gan Ma

Here's a little story about how Lao Gan Ma went from a remote place in Guizhou to the national market. In 1994, Guiyang built a ring road, and the once-remote Longdongbao became the main road of Guiyang's South Ring Line. Truck drivers passing through increased, becoming the main customers of the 'Affordable Restaurant'. Lao Gan Ma's founder, Tao Huabi, almost instinctively used her business wisdom: she began giving away free samples of her homemade chili sauce, spicy vegetables, and other snacks and seasonings to drivers, which were very well received. It was the truck drivers who spread Lao Gan Ma like dandelion seeds across the country, taking root in the most suitable places. At that time, represented by Guangzhou, a large number of migrant workers entered the cities. Lao Gan Ma matched their taste and price point, so it first achieved a sales explosion in the Guangzhou market, then gradually expanded nationwide.

Enlightenment from Lao Gan Ma:

Lao Gan Ma is indeed 'spicy'! With these three moves, there are no rivals in the industry. First, excellent products. The product is so good that it becomes the standard seasoning for various dishes, which is almost a miracle. Dishes using Lao Gan Ma as the core seasoning are numerous and increasing. Moreover, the taste is considered authentic only when Lao Gan Ma is used, which is a strong attraction. Second, strong market development capability. Although Lao Gan Ma is conservative in financing, it is very advanced in market development and marketing channels. From word-of-mouth marketing to self-developed promotional dishes, from global market expansion to global supply chain integration, every step precisely hits the industry's 'sweet spot' and secures a core position. Third, strong industry control. Every market has its most lucrative area, and in the seasoning market, the most lucrative area is undoubtedly between 7-10 yuan. Below this price range means it's hard to make a profit. Above this range means huge sales pressure and difficulty in scaling. By firmly controlling this market, it effectively suppresses all competitors. For entrepreneurs who want to gain a dominant position in a market, Lao Gan Ma should be your banner. New Food Era · New Distribution —— 2016 China 'FMCG + Internet' Summit Forum —— This is a grand event focused on how the FMCG industry channels will transform under the trend of Internet+ transformation Conference Agenda 08:00-09:00 Registration 09:00-09:05 Host opening 09:05-09:35 2016 China FMCG Industry Trend Analysis Report — Zhao Bo 09:35-10:05 FMCG Enterprise Transformation Strategy and Path — Liu Chunxiong 10:05-10:35 Opportunities and Challenges Brought by FMCG Channel Transformation — Liu Zhao, CEO of Waiqin365 10:35-11:05 Reconstructing Distribution Channel System to Promote Urban Retail Upgrade — Tian Yuan, General Manager of Alibaba Retail Link's Backend 11:05-11:25 Channel Efficiency in the Internet Era — Fu Xiaoyun, Vice President of Benlai Holding 11:25-12:00 Roundtable Forum — Brand Transformation: Improvement vs. Reconstruction? Guests: Liu Zhao, Liu Chunxiong, Fang Gang, Chen Feng, Shi Zhengchuan, Deng Xia 12:00-13:30 Lunch 13:30-13:50 Distributor Transformation: City Distribution Trends — Wang Qi, CEO of Weijie City Distribution 13:50-14:20 Roundtable Forum — Why Distributors Should Do Logistics in Transformation Guests: Zhao Bo, Wang Qi, Liu Zhongmin, Tang Guangliang, Wang Cheng, Sheng Yan 14:20-14:40 How FMCG Enterprises Can Take Off with the Internet — Wang Hui, E-commerce Operations Director of Xijiu 14:40-15:00 Detailed Explanation of Zhongshang Huimin's 'One Machine, Two Wings' Strategy — Su Xiaoxin, Vice President of Zhongshang Huimin 15:00-15:20 Category Value and B2B E-commerce Development Strategy — Wang Chaocheng, CEO of Yijiupi 15:20-15:40 Supply Chain Finance as a Lubricant for B2B to Drive Traditional Business — Chen Xian, CEO of 51 Order 15:40-16:00 Zhanghe Cloud Factory Helps Upgrade FMCG Supply Chain — Yang Lixiang, CEO of Zhanghe Tianxia 16:00-16:30 Integrating Small and Micro Retail, Reconstructing Business Ecosystem — Miao Dong, Vice President of Quanshi 16:30-16:50 B2B Investment Principles and Ideas — Zhao Mingwei, Vice President of Legend Capital 17:00-17:30 Roundtable Forum — Who is the King in FMCG B2B Models? Guests: Fu Xiaoyun, Zhuang Jianzhong, Jiang Tao, Zeng Weiqin 17:30-19:30 Dinner For manufacturers and distributors who want to transform, this grand event is not to be missed. Interested friends can long-press the QR code below or click 'Read Original Text' to register. Registration: Long-press the QR code below or click 'Read Original Text' ↓↓↓ Click 'Read Original Text' [Register]