Laoganma was exposed to the highest 15%

Laoganma was exposed to the highest level of 15%

Laoganma was exposed to the highest level of 15%. The official letter said that the reason for the price increase was the rising cost, but there were media reports that some dealers said that the price increase was more likely due to sales pressure, and it was a fact that the competition on the hot sauce track was rising. Laoganma was exposed to a maximum of 15%. Laoganma is exposed to the highest 15% 1

Laoganma, the "national goddess", is going to raise her price.

Recently, it was reported that a "price adjustment letter" signed by Guiyang Nanming Laoganma Flavor Food Co., Ltd. showed that the rising cost of raw materials, labor costs and freight has seriously affected the production and stocking of some products of the company. After careful consideration in many aspects, the company decided to readjust the sales prices of some products from March 1, 222.

The implication is that Laoganma decided to raise the price because of the annual increase in raw materials, labor costs and freight charges.

Once upon a time, Laoganma, who was necessary for a dry rice cook, was once famous all over the country for its cheap price and delicious taste. However, with the rise of emerging dipping sauce brands such as Tiger State, Fanye and Zuodashi, the hot sauce market that originally belonged to Laoganma began to be eroded. At the same time, young people and other groups are also beginning to abandon Laoganma.

under the crisis, can the price increase really save Laoganma?

raise the price by 15%!

Laoganma's price is no longer friendly

According to the enterprise survey data, Guiyang Nanming Laoganma Flavor Food Co., Ltd. is a family joint venture with Li Miaoxing holding 51% and Li Guishan holding 49%, both of whom are sons of Laoganma's founder Tao Huabi.

On Laoganma official website, Guiyang Nanming Laoganma Flavor Food Co., Ltd. is also the main registration place of the company. Some analysts in the industry pointed out that with Guiyang Nanming Laoganma Flavor Food Co., Ltd. sending a letter to announce the price increase, the price increase of Laoganma sales nationwide will soon be noticed by consumers.

In fact, the relevant customer service staff of Guiyang Nanming Laoganma Flavor Food Co., Ltd. had already admitted this matter when responding to external inquiries, saying that Laoganma had recently issued a price adjustment letter to all dealers, and the price increase was implemented from March 1.

Laoganma dealers from Kunming, Yunnan and other places have captured the price increase and adjusted the price of the products they sell. In addition, many dealers have also revealed that the price of one (24 bottles) of hot sauce has probably increased in 2 yuan, and the price increase this time is between 5% and 15%.

With the appearance of Laoganma's price increase, more and more people began to vomit, "(Laoganma) tastes worse now" and "it is not the Laoganma it used to be". Laoganma, once popular for its delicious taste and low price, has "no previous cost performance".

Abandoned by young people

Did Laoganma panic?

In 214, the founder of Laoganma handed over the company he founded to his youngest son, Li Miaoxing, and began to retreat to the second line. Unexpectedly, after Li Miaoxing gave up power, the taste of Guizhou pepper was not as good as before, and Laoganma's performance began to rise steadily and decline.

The data shows that Laoganma earned 4 billion yuan in 214 and reached 4.549 billion yuan in 216. However, in 217, with the departure of Tao Huabi, the founder of Laoganma, the company began to see a decline in revenue, from 4.447 billion yuan in that year to 4.389 billion yuan in 218.

due to the sluggish performance, Tao Huabi, the founder of Laoganma, returned in 219, changed the seasoning of Laoganma into the original material, and rearranged the formula of Laoganma. Immediately, the company returned to the growth channel. In 219, Laoganma achieved sales revenue of 5.23 billion yuan, up 14.43% year-on-year, and reached a record high. In 22, sales reached 5.3 billion yuan.

However, in those few years when the performance was low, many domestic online celebrity brands saw this opportunity, and many new brands such as Hubang, Fanye and Zuodashi came into being. These brands quickly seized the minds of users through capital operation and financing, and tried their best to seize market share in the hot sauce market. The fault of Laoganma gave new brands who coveted the domestic hot sauce market an opportunity.

according to the statistics of enterprises, there are more than 5, enterprises related to Chili sauce at present, most of which were established in the last decade. Under the siege of many brands, consumers have more choices, and Laoganma with a single taste seems to be less "fragrant". Most post-9s and post-s groups began to switch to the emerging' online celebrity brand.

Searching for keywords such as spicy sauce and bibimbap sauce in Tmall and JD.COM respectively, it is found that most of the top brands are Haitian Recruitment Bibimbap Sauce, Liziqi, Jixiangju, etc. If you don't directly search Laoganma, it is difficult to find its trace.

In the Internet world, where the new generation of Internet groups are highly concentrated, the figure of Laoganma is overwhelmed by new brands in online celebrity.

According to Zhu Danpeng, a food industry analyst in China, Sina Technology, "Because the thinking and consumption behavior of the new generation of consumers are different from that of the older generation, they prefer the new and hate the old, and like some brands with high value and fast iteration of innovation and upgrading, which leads them to consider trying some new flavors and brands. This has also forced the iterative speed and quality of innovation and upgrading of traditional enterprises. "

In addition, besides online stores, the sales of Laoganma in some offline stores are also beginning to decline. According to industry media's recent visits to many supermarkets in Beijing, it is found that the production date of Laoganma is almost not in 222, and most of them are produced around October 221. The oldest one was produced in June last year, which is only half of the shelf life of Laoganma's 18 months.

Even a distributor who has been selling condiments in the vegetable market for five years said, "It is obvious that Laoganma is getting harder and harder to sell. Although some people still recognize this brand, the sales volume is obviously not as good as before. Now, in the face of customers who want to buy hot sauce, Laoganma will no longer be recommended first. "

Can the price increase save Laoganma?

With both online and offline sales facing challenges, can the price increase really help Laoganma break the deadlock and overcome the current difficulties?

As the population of spicy food in China continues to climb, in 221, the population of spicy food in China has exceeded 65 million, and it is still expanding at an annual growth rate of 1%. Under this node, there will be more players in the whole hot sauce market in China in the future, and the degree of embrace and welcome of new brands by capital and the whole industry will be further enhanced.

"Laoganma's price increase has both cost pressure and a consideration of its own development, which is a comprehensive consideration of both internal and external factors. With the continuous development of Laoganma in the future, listing in the future will be his ultimate goal. But now, we must first sort out some factions and interests within it. " Zhu Danpeng said.

In Zhu Danpeng's view, at present, Laoganma has a market share of nearly 5 billion, and the share of emerging brands like Fanye and Hubang is still very small, and it still cannot shake Laoganma's position in the short term. However, with the entry of new brands, the whole domestic hot sauce industry structure will enter an all-round and multi-dimensional state of blooming. Laoganma needs to do a good job of top-level design as soon as possible to avoid the complicated internal relations of subsequent family businesses. Laoganma was exposed to the highest level of 15% 2

On March 9, Red Star Capital Bureau found that there were recent media reports that Laoganma issued a "price adjustment letter" to dealers on February 28. The contents of the official letter show: "Because the cost of raw materials, labor costs and freight are rising every year, the rising costs have seriously affected the production and stocking of some products of the company. After careful consideration in many aspects, the company has decided to re-adjust the sales prices of some products from March 1, 222. "

In this regard, Red Star Capital Bureau called Laoganma's general distributor in Chengdu, which was confirmed to be true. "All series have increased in price. One (24 bottles) rose by ten or twenty yuan. " At the same time, the dealer said that they received the news of the price increase on March 1 and had not heard any related news before.

Red Star Capital Bureau also contacted Laoganma official website, but no one answered. Laoganma Tmall flagship store customer service responded to the Red Star Capital Bureau on March 9, and there is no price increase notice yet. On the same day, I bought a bottle of Laodopted Mother-flavored Douchi 28g at Tmall flagship store, and the price was still 9.9 yuan.

On the morning of March 9th, the screenshot was taken from the official flagship store of Laoganma Tmall

"The market competition is too fierce now." The dealer lamented the Red Star Capital Bureau. Although the official letter said that the reason for the price increase was rising costs, some media reported that some dealers said that the price increase was more likely to come from sales pressure. In 219, Laoganma also faced a sharp increase in costs. At that time, the prices of fresh peppers and dried peppers in Guizhou rose by about 5%, and Laoganma chose to change peppers instead of raising prices. However, it also faced the public pressure of "changing peppers and getting worse in taste". After that, Laoganma switched back to Guizhou peppers, and the price still did not rise.

Now, not only is the cost rising, but it is also a fact that the competition on the hot sauce track is rising. Since 216, new brands of hot sauce have come to the fore and been favored by users and capital.

Tiger State Hot Sauce against Laoganma made a way through the weak online shopping and take-away channels of the former-during the "double 11" in 221, it sold a total of 6.9 million cans, ranking first in the online hot sauce category. In the last year alone, I got two financings with a little taste, and Chuanwazi raised nearly 3 million yuan.

Laoganma obviously felt the pressure, too. The Red Star Capital Bureau found that Laoganma is currently promoting a new tomato hot sauce in her Tmall flagship store. Laoganma has also developed hot pot bottom materials and "spicy dishes" similar to mustard tuber. However, consumers' awareness of these new categories is not high, which is related to Laoganma's dislike of advertising, especially specific category advertisements.

Zhu Danpeng, a food industry analyst, believes that Laoganma's advantages in product, channel and terminal are declining, and then it needs to be laid out from multiple scenes, channels and categories. Laoganma was exposed to the highest level of 15% 3

According to the news from the media "seasoning home", the seasoning brand "Laoganma" issued a price adjustment letter to the dealers, and the sales prices of some products were readjusted from March 1, 222.

interface news confirmed the price adjustment news from many dealers. Although Laoganma didn't specify the specific increase, according to dealers, the increase rate is about 1-2 yuan per bottle, and the increase rate of each item is 2-3 yuan.

The price adjustment letter issued by Laoganma said that the reason for the price adjustment was that the cost of raw materials, labor and freight increased every year, which had a serious impact on the production and stocking of some products of the company.

"Most condiment brands have gone up in price, not just Laoganma." A dealer in Zhongshan, Guangdong told Interface News that condiments had risen once at the end of last year, and now it is the second time. Since 221, soybean, soybean meal, soybean oil and other commodities have increased in price, and Haitian Weiye, Arowana, Hengshun vinegar and other enterprises have announced price increases. Haitian Weiye, Arowana, Hengshun Vinegar and other enterprises have successively announced price increases.

However, based on Laoganma's brand influence and market share, the price increase has not affected the dealers' delivery at present. "Some people only recognize the brand of Laoganma. Although other brands are cheap, they are not easy to sell." The above dealers said that the sales of Laoganma are still in the forefront of similar brands. A dealer in Kunming, Yunnan, even feels that it is still difficult for Laoganma to get the goods now. "As long as you can get the goods, you won't worry about selling them, and the circulation speed is very fast." The dealer said.

Laoganma's dealer strategy is different from that of traditional FMCG products. She only chooses distributors in large areas and is responsible for logistics and transportation. In order to achieve the sales purpose, regional distributors must carry out the development and layout of two batches, and gradually form a distribution network all over the major regions. Therefore, in convenience stores, supermarkets and other places, Laoganma's products can be seen everywhere.

For dealers, the profit margin of Laoganma is not high, even a bottle is only a few cents. However, the strong distribution ability made Laoganma occupy the market very early, turning the products into hard currency, and the relatively stable shipment also ensured the profit stability of dealers.

in the field of hot sauce, Laoganma's status in the Jianghu is beyond doubt, but since last year, the new consumption wave has violently crushed the traditional brands in the industry, and the new consumer brands such as Hubang, Diandianwei and Chuanwazi have given Laoganma a certain degree of pressure with the blessing of capital.

Laoganma, who has never advertised in the past, has started marketing frequently in the past two years. In 219, Laoganma launched the magical video "Unscrew the Godmother"; In 22, the official flagship store of Laoganma cooperated with Taobao to launch the "Laoganma Love Bottle". Various attempts have also been made at the product end, the channel end and the terminal.

In addition to continuing to produce traditional products, Laoganma has also introduced new products such as tomato Chili sauce, spicy dishes and chafing dish bottom materials. These attempts have also enabled Laoganma to maintain its growth momentum. In 219, Laoganma achieved a sales income of 5.23 billion yuan, a year-on-year increase of 14.43%. In 22, Laoganma's sales reached 5.3 billion yuan.