A review of the development history of Golden Seed Liquor
The predecessor of Golden Seed was the first batch of state-owned distilleries in New China established in July 1949 - Fuyang County Distillery, which originated from the Dasheng Distillery of the Ming Dynasty and the Yuntai Distillery of the Republic of China. After the reform and opening up, the new brands "Golden Seed" and "Seed" liquor launched became well-known. Golden Seed Co., Ltd. was listed on the Shanghai Stock Exchange in August 1998 (becoming the 8th listed liquor company).
The company's development focuses on the liquor business, and its series of products mainly include strong flavor Golden Seed series liquor, seed series liquor, Zui Sanqiu series liquor and Fuhexiang liquor, etc., focusing on the mass and sub-high-end price bands to carry out product layout in the whole price range.
Analysis of the reasons for falling behind - missed opportunities for promotion
The mainstream price band of Anhui liquor in 2000 was 40 yuan (Wenwanggong, etc.), before 06 years it was less than 60 yuan (blast furnace home, Xuanjiu, soft seeds, etc.), 06-11 years was 60-80 yuan (Kouzi 5, gifts, Yingjia Silver Star), 12-16 years was 80-120 yuan (ancient 5, Kouzi 5/6, Dong 6, Haizhilan), 17 years later it was 120-250 yuan (ancient 8, Dong 9, Kouzi 10). The mainstream price band is moving towards more than 80 yuan in 12 years, and 100 yuan or even more than 200 yuan after 17 years, while a large number of Golden Seed products are still below 100 yuan (87% below 100 yuan in 23Q1; 22 years below 50 yuan accounted for 56%).
In the final analysis, the company's missed upgrade opportunities are due to the lack of clear strategic cognition, the late layout of upgraded products, and the lack of attention. On New Year's Day in 2011, the company laid out Huiyun's 6-year, 10-year, and 20-year products, but did not focus on investment. In 2015, although a new version of soft, auspicious and value-added packs, red classics, etc., was launched, it was still below 100 yuan; After 2016, the 6-year and 10-year upgrade models were re-launched, although the investment was increased, but the start time was late (the 100-yuan price band has been a gift, ancient 5, mouth 5 and other billions of large items). (During the period of restricting the consumption of the three publics, the development trend was misjudged, focusing on low-end basic disks and compressing high-end projects)
Analysis of the reasons for falling behind - diversified business operation and scattered main business
Although there are many sub-brands and categories of Golden Seed Liquor, it has been in many but not strong for a long time, and the internal homogenization is serious, and there are too many product categories below 100 yuan, and the company's resources cannot be focused.
Since 2015, the company has even dispersed its efforts to cultivate the pharmaceutical industry as a new fulcrum; In 2016, Daikin Health Wine Company was established in an attempt to enter the health wine track, but the effect was not good; In 2016, the business scope added real estate business (which refers to the change of the location of the original stock land, the development of the surrounding land one after another, and the construction must be carried out according to the new urban planning requirements to meet the requirements of municipal image); After 2018, the proportion of alcohol decreased to about 60%.
Analysis of the reasons for falling behind: the pace of reform of state-owned enterprises is slow, and management problems are prominent
Although Golden Seed Liquor is a listed company, the proportion of shares held by major shareholders is only 32%, but the management system is still the old state-owned enterprise method, many employees are still state-owned enterprises, the identity has not been converted, and the salary has not been marketized, for example, the annual salary of Ning Zhongwei, chairman of Golden Seeds, was only 380,000 yuan when the performance was the best in 2012, and Zhang Xiangyang, the general manager, was only 300,000; In 2016, the annual salaries of the two were 306,700 and 339,100 respectively, while the annual salary of the chairman of Kouzijiao in the same province in 2016 reached 1.607 million, and the annual salary of Yingjia Gongjiu was 528,100.
From the perspective of executive shareholdings, only Ning Zhongwei holds the company's shares, and only 20,800 shares, which can be regarded as symbolic shareholdings. There are 9 members of the directors, supervisors and senior executives of Kouzijiao, with at least 4.36 million shares and a market value of more than 200 million, and Chairman Xu Jin holds more than 100 million shares and a market value of more than 5.1 billion. The outdated state-owned system has seriously affected the company's business strategy and capital operation, and it is difficult to stimulate the enthusiasm of the management team.
Due to the company's low salary, the brain drain is serious, which has led to problems such as internal management chaos, product aging, and insufficient channel thrust.
Internal reform after China Resources became a shareholder
In the past 22 years, China Resources has invested in the seeds of equity and launched a reform from the inside out. Judging from the third quarter report of 2023, the company's operating income has increased significantly year-on-year, and the year-on-year loss of net profit has shrunk significantly, and the reform has shown certain results.
At the group level, Xie Jinming, general manager of Fuyang Investment and Development Group, succeeded Jia Guangming as the new chairman of the group, Hou Xiaohai, general manager of China Resources Snow Beer, served as the director of the group, and Chen Meng, head of China Resources Snow Beer Anhui Region, served as the general manager of the group.
At the level of the joint-stock company, 4 of the 7 senior executives are the leaders of the original China Resources Beer regional company, and the new general manager He Xiuxia has successively served as the general manager of China Resources Anhui/Henan/Shaanxi Jin region and the general manager of Hefei sales region.
The internal reform after China Resources' shareholding - a product system with one body and two wings
After China Resources settled in 22 years, it launched a comprehensive rebranding action, launched the "number one seed" strategic new product, and renewed the five major upgrades of the "Fuhexiang series", covering the full price range of 300-600 yuan on 7/9/15/20.
In order to solve the two core problems of poor brand power and complex product lines faced by the current product structure, the company has completed the 12+4 "mainline product planning" and strategically focused on the "3+3" mainline products, namely "No. 1 Seed, Soft, Master" and "Fu 7, Fu 9, Fu 20". The second is to put forward the product portfolio strategy of "one body and two wings", forming a three-layer product structure of seed series to build a solid chassis, Fuhexiang brand differential competition, and drunken Sanqiu high-end cultural famous liquor.
The internal reform after China Resources' shareholding - a product system with one body and two wings
"One": With the Fuhexiang series as the main body, it is positioned as a sub-high-end differentiated brand. Golden Seed's original fragrance type is blended with sauce, thick and sesame fragrance, and has the characteristics of "six grain brewing, slate mud cellar, three-song co-fermentation, and one-step fragrance", with strong scarcity and uniqueness of the category. In 2023, Fu 7/9/15/20 will be newly launched, and the five major upgrades of the new "Fuhexiang Series" will reshape channel profits, and promote the high-end transformation of product structure and differentiated competition.
"Two wings": chassis seed + high-end cultural famous wine drunk three autumn for the two wings, stable chassis + strong brand double force. In 2012, the sales volume of chassis soft seed wine exceeded 100 million bottles, and it has a strong brand awareness and loyal customer base in the 100-yuan boxed wine market. The "number one seed" is positioned as a "liquor player" to focus on the young market, and it is also the main product of the company's "beer and white fusion" empowerment design, which is expected to achieve rapid expansion with the help of China Resources' ready-to-drink channel.
The high-end Zui Sanqiu series occupies a price band of 1,000 yuan, and the 1507 product is positioned as a high-end cultural liquor, and it is expected that Fu 30 and Zui Sanqiu new products will be launched by the end of the year to further enhance the company's brand.
The internal reform after China Resources' shareholding - the reform of the sales system and the reshaping of the channel play
The first is to reform the sales model, adjust the operation of the platform company to the direct operation of the company, and integrate the independent operation of the sub-product line into a "marketing center" control, and unify the scheduling and centralized efforts.
The second is to reform the sales structure, improve efficiency through flat management, integrate the back-end operation system, and comprehensively establish a "fixed + dynamic + flexible" sales organization model.
The third is to reform the sales team, and the core post staffing adopts the "three-three system" (snowflake secondment + external introduction + golden seed selection), and the unqualified personnel are forcibly eliminated through large-scale training and general battles, and the horse racing mechanism of strong assessment fully stimulates the team's enthusiasm. Fourth, the reform management of stubborn diseases, the company in the sales layer actively improve the price, anti-channeling, dealer management system, and continue to promote the cost of lean, to solve the problem of promotional price loss.
