---
title: "The Crazy Genes Behind Evergrande Grain and Oil's Success!"
description: "Last year, Evergrande Spring Water made a grand debut at the AFC Champions League and achieved a miracle of 5.7 billion yuan in sales within 30 days. Despite industry experts' skepticism, it has now established a foothold in the market. This year, Evergrande entered the grain and oil industry with a similar aggressive strategy, achieving a staggering 11.9 billion yuan in distributor recruitment. The author argues that Evergrande Grain and Oil is bound to succeed due to its strong capital, platforms, model, and endorsements."
author: "邹凌远"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2014-09-11"
language: "en"
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markdown: "https://xinjignxiao.com/en/articles/the-crazy-genes-behind-evergrande-grain-and-oil-s-success-e1405fa8.md"
original_source: "https://mp.weixin.qq.com/s/WRCphV3AppMd-JnIku5elQ"
translation: "https://xinjignxiao.com/zh/articles/%E6%81%92%E5%A4%A7%E7%B2%AE%E6%B2%B9%E6%88%90%E5%8A%9F%E7%9A%84%E7%96%AF%E7%8B%82%E5%9F%BA%E5%9B%A0-e1405fa8.md"
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# The Crazy Genes Behind Evergrande Grain and Oil's Success!

> Last year, Evergrande Spring Water made a grand debut at the AFC Champions League and achieved a miracle of 5.7 billion yuan in sales within 30 days. Despite industry experts' skepticism, it has now established a foothold in the market. This year, Evergrande entered the grain and oil industry with a similar aggressive strategy, achieving a staggering 11.9 billion yuan in distributor recruitment. The author argues that Evergrande Grain and Oil is bound to succeed due to its strong capital, platforms, model, and endorsements.

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Last year, Evergrande Spring Water made a grand debut at the AFC Champions League and officially entered the market, subsequently creating an industry miracle of 5.7 billion yuan in sales within 30 days. Following that, Evergrande Spring Water aggressively invested money across the country to expand its territory, frantically recruiting distributors in major cities, with advertisements everywhere, continuously impacting the entire bottled water industry. Just as all aspects of the work were in full swing, industry experts and public opinion began to "oppose Evergrande," with articles questioning and even attacking Evergrande Spring Water one after another. However, to this day, Evergrande Spring Water has established a firm foothold in the market with a relatively high retail price of 4 yuan, which may have surprised many experts.

This year, again at Evergrande's Tianhe Stadium, during the AFC Champions League quarter-final match, players wore jerseys with the "Evergrande Grain and Oil" advertisement on the chest. In the stands, Xu Jiayin and Ma Yun watched the game wearing the same jerseys, which also signaled the arrival of Evergrande Grain and Oil to the public. Evergrande's entry into the grain and oil industry caused an uproar in the industry, and soon advertisements for Evergrande Grain and Oil were everywhere on the streets of Beijing. Even more shocking, Evergrande Grain and Oil achieved a remarkable 11.9 billion yuan in distributor recruitment. Evergrande Grain and Oil adopted the same operational approach as Evergrande Spring Water, seemingly investing money without regard for cost, with absolutely comprehensive advertising bombardment. However, this time Evergrande Grain and Oil still failed to silence marketing experts, and doubts followed, with early judgments that Evergrande Grain and Oil could not succeed. They believed that Evergrande Group's foray into the highly competitive grain and oil market was entering a highly saturated red ocean. They argued that Evergrande's success in real estate was due to comprehensive factors such as policies and connections, while the grain and oil industry is a fully competitive industry with low barriers and thin profits. They claimed that Evergrande's old tactics of throwing money around would not create a famous brand. Such doubts are not without reason, but they are just superficial generalities, essentially empty talk that applies anywhere. On the contrary, the author believes that Evergrande Grain and Oil is bound to succeed under sound operations, and it may even open up a new business model because it possesses the crazy genes for success.

The three elements of business success: platform, capital, and model. Whether making products or running a business, whether in a red ocean or blue ocean market, competition ultimately comes down to capital. Without brand awareness, advertising can bring it; without a core team, dispersing wealth can attract people; without core competitiveness, having people and technology can create it. In an era of intense competition, especially when traditional and new media conflict, brand positioning is no longer as effective, and various emerging marketing strategies have succeeded surprisingly. This is the worst of times, but also the best of times. No brand can firmly occupy the market; falling behind one step may mean falling behind at every step. Grassroots and emerging brands can create a new era if they seize opportunities. Evergrande Grain and Oil is bound to succeed, not only combining the three elements of business success but also integrating powerful advantages, from capital, platform, model, to endorsement, forming a complete chain, each with strengths that competitors find hard to match.

**Capital – Stable and Continuous Large Investment**

In warfare, before troops move, provisions must be prepared first; this is an eternal military truth. Business is like a battlefield. In a blue ocean market, one can proceed steadily step by step; but in a red ocean market, where brands are numerous and industry leaders are huge, to quickly build brand awareness and social influence, one must invest heavily and engage in comprehensive advertising bombardment. Evergrande Grain and Oil entered a competitive red ocean, and it deals with daily necessities. If it lacks brand awareness and exposure, consumers won't even consider purchasing. So if you're going to do it, you need to make a big splash. Only through such high-intensity, wide-ranging continuous investment can a brand quickly occupy consumers' minds. This may seem like a crude marketing tactic, but it's the first step to quickly building a brand. So Evergrande Grain and Oil has done it, and Evergrande can do it.

According to data from March this year, Evergrande Group's performance indicators have grown significantly, with frequent good news. In 2013, Evergrande's total assets reached 348.15 billion yuan, ranking first among domestic real estate companies, with the largest scale nationwide. Additionally, Evergrande Group achieved a net profit of 13.71 billion yuan for the year, a year-on-year increase of 49.3%, ranking first in growth; cash balance increased by 113% year-on-year to 53.65 billion yuan, ranking first in the industry; brand value reached 26.78 billion yuan, ranking first nationwide. Moreover, with 11.9 billion yuan from distributor recruitment, it has more than enough capital for nationwide advertising and market operations. If large companies with money are unreliable, then distributors can only trust small companies.

**Platform – Evergrande Real Estate and Taobao**

Under policy influence, the real estate sector has cooled somewhat, but mature properties with comprehensive supporting facilities remain unaffected. E-commerce platforms are also a very popular shopping method nowadays, and the post-80s and post-90s generations will be the main purchasing force in the future. For products, placing them in different locations can lead to vastly different sales prices; for brands, the platform they rely on determines their future development height. Evergrande Grain and Oil exclusively enjoys two major platform advantages: Evergrande Real Estate and Taobao.

Evergrande Real Estate has a total construction area of 39.48 million square meters, ranking first nationwide; completed area of 19.382 million square meters, ranking first; Evergrande has entered 147 cities nationwide, ranking first in the number of cities. Evergrande Real Estate is constantly creating homes for Chinese people, while Evergrande Grain and Oil provides healthy grain and oil. If the two are integrated, it solves the market and purchasing targets. Moreover, Evergrande has begun building plazas to achieve integrated shopping. If Evergrande controls the stores and only allows Evergrande Grain and Oil to be sold, it ensures single-brand selection.

Taobao, as the largest e-commerce platform in China, has just partnered with Evergrande Group this year, with Alibaba Group investing 1.2 billion yuan in Evergrande Football. Since they are partners, the e-commerce platform for Evergrande Grain and Oil is open, which broadens the channel and creates a privileged e-commerce channel. Yihai Kerry and COFCO can only look on with envy.

**Model – One-Stop from Farm to Community**

This year, the GMO incident has been widely discussed in China, making people pay extra attention to food safety, and choosing "non-GMO" products has become common sense. In the future, this demand will be even more valued by community residents and may even become a consideration for homebuyers.

Evergrande Group itself comes from a real estate background and has built numerous communities across the country. This entry into the grain and oil industry is a forward-thinking move by a real estate developer, creating a safe food guarantee and achieving one-stop health quality from farm to community. For consumers, this will be a reassuring guarantee, giving Evergrande community residents extra peace of mind. For a nation as cautious as China, what could be more important than non-GMO and health?

**Endorsement – A Star Team in the Media Spotlight**

A celebrity endorsing a brand may only bring reputational influence, especially for food brands. But if a group of athletes endorses a brand, it creates a group effect, and for food brands, it serves as a vivid case of safety, quality, and nutrition. Evergrande Grain and Oil has this inherent advantage: the Evergrande football team is its spokesperson. This team is the focus of media attention, and every member is a media focus, bringing both tangible and intangible dual endorsement to the brand, with visible influence.

The Evergrande football team is currently the top team in China, with significant influence in Asia. In the eyes of many Chinese, there is no football without Evergrande. This is a loyal fan culture, and some even regard Evergrande as an honor. Such positive associations can be transferred to the brand, potentially leading to loyal purchases. Moreover, if they publicize that Evergrande football players eat Evergrande Grain and Oil, and seeing their energetic performance on the field, who would doubt its quality? The unique brand endorsement advantage is very obvious.

Therefore, for a brand that combines capital, platform, model, and endorsement, failure would be surprising. If there is any issue Evergrande Grain and Oil might face, it's that in the future, if Evergrande Group adopts the "Evergrande +" model for all its brands during diversification, it might cause consumer memory confusion. But that's not a concern for now. Currently, in the brand introduction phase, it must leverage Evergrande Group's influence to expand the brand momentum of Evergrande Grain and Oil. So, Evergrande Grain and Oil is bound to succeed. The crazy spending is just the surface; what it gains is invisible.

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