Company Profile
Company Introduction: Rapidly expanding new species, unicorns
Founded in 2015, Shijiufang is an industrial Internet new retail enterprise focusing on the livelihood industry, focusing on the production and operation of soy sauce and fragrant wine, and concurrently engaged in other sources of health food. With soy sauce wine as its core business, based on the core production area of Moutai Town, it has established a modern quality control system for the whole industrial chain of "winemaking, wine storage, filling and logistics", and has built a production capacity of more than 10,000 tons and four wine storage bases, accumulated millions of loyal users, and has more than 100 distributors, more than 2,000 new retail experience stores, and thousands of new retail terminals, covering 34 provincial-level administrative regions, more than 300 cities, and 1,500 counties and districts across the country.
In 2021, it completed Series A and B financing, with the latest valuation of more than 20 billion yuan, and entered the list of the world's top 500 unicorns in 2023.
Product matrix: from soy sauce wine to extensive layout of "excellent life" consumption ecology
Capacity reserve: the core production area of Moutai Town, 12987 ancient brewing process
The production capacity of the new 10,000-ton liquor base Lanjiawan project can be doubled after the completion of the project, with an estimated investment of 5 billion yuan, and it is planned to build a liquor plant, koji-making plant and related ancillary buildings, office buildings, wine culture centers, etc., and the first phase of the project is planned to be put into operation at the end of the year to achieve 5,000 tons of Daqukun sand sauce wine production capacity; After the completion of the second phase of the project, the total production capacity of the project will reach about 12,000 tons. It is planned to build a production capacity of 50,000 tons and 200,000 tons of energy storage in Renhuai in 3 to 5 years.
Brand building: After the rapid increase in the volume of the private domain, the public domain investment flow diffusion cognition, online and offline combination
Path review
Germination and genes - origin
In January 2015, Zhang Chuanzong took a liquor with no brand, no logo, and no packaging from the "three nos" in Moutai Town, and finally sold 10,000 bottles of liquor at a reunion of middle-aged and middle-class friends and classmates. (Good products can be pushed with the help of the circle of friends) This test was successful, which gave Zhang Chuanzong confidence. In July 2015, Zhang Chuanzong and 49 partners, including himself, established Shijiufang in Moutai Town, Renhuai, Guizhou, the core production area of soy sauce wine. (crowdfunding-style equity business model).
In January 2016, Liu Jun, executive vice president and "second-in-command" of Lenovo, joined the company as the chairman of the company, and put forward the corporate vision of "being a business legend with feelings". (Lenovo Team, Internet Gene)
2016.04, Shijiufang reached a strategic cooperation with Sichuan Liquor Research Institute and jointly established "Shijiufang Liquor Research Institute". According to the professional liquor evaluation of Sichuan Provincial Liquor Research Institute, the quality of the sauce-flavored liquor produced by Shijiufang is above 90 points, ranking among the 1% of China's high-quality liquor camp. (Brand Endorsement)
Just one year after its establishment in 2016, the company was selected as one of the "Top 100 MBA Cases in China" and entered the university textbook as an innovative business case.
Sprouts and genes - Lenovo team
Zhang Chuanzong, the founder, executive chairman and CEO of Shijiufang, turned out to be the general manager of Lenovo's multi-regional and multi-business divisions; Chairman Liu Jun, former executive vice president of Lenovo Group and president of China; President Ma Jinsong, former general manager of Lenovo's largest distribution; Zhang Xinzhong, Chairman of the Board of Supervisors, CEO of Lenovo Core Distribution.
Inverted equity model - crowdfunding, crowd-creation, and crowd-sharing
There are two ways to make money: money from sales + money from equity
Platform replication: From the sauce wine workshop to the red wine workshop, the beauty kitchen workshop, the good tea workshop, the health workshop, the farm workshop and other "wanton Jiufang".
Iterative evolution of business models
Since the introduction of capital in 2021, especially after the state-owned assets of Guizhou New Kinetic Energy became a shareholder in 2022, the business model of Shijiufang with IPO as the appeal has been continuously iterated and gradually formalized.
Private domain GMV revenue model
Through the introduction of multi-channel network resources, expand the fan base of the terminal store community; New customers are given priority to the first transaction, which promotes product experience, increases the bargaining chips to attract partners, and improves the conversion rate, and promotes the activity of partners through community operation and interaction. Promote the repurchase rate through experiential activities + preferential activities; Finally, by recycling old customers and sharing after purchase, we can promote fission and new conversion.
Private domain empowerment model
The online empowerment department teaches the platform Xiaoer private domain operation skills and knowledge, and leads the Xiaoer to get started through the demonstration store model, and the platform Xiaoer replaces or empowers the terminal store owner to operate its community and cloud store, so as to improve the activity of partners/first order transaction/repurchase rate increase/new customers are converted into partners, so as to increase the sales of service stores.
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Summary of core competencies
Good product quality is the premise of development.
On the basis of adhering to the source production area of Renhuai Moutai Town, the company adheres to the 12987 ancient brewing method, and improves the quality of liquor from multiple dimensions such as raw materials, technology, management, production capacity, and filling technology. Through investment and other means, Shijiufang has seven major liquor storage bases, including Lanjiawan, Maoquan, Guolian, Wuma, Guankou, Licheng and Datong Village, and invites industry leaders and masters to join to ensure the basic quality of liquor.
Innovative channel models are the key to rapid growth. (Channel before brand)
In the past 8 years, it has developed 100,000 partners covering the whole country, and has built a network of more than 100 distributors, 2000+ stores and thousands of new retail terminals, distributed in 34 provincial-level administrative regions and more than 300 prefecture-level cities across the country. After the rapid start of volume and a certain scale foundation, we will do large-scale brand building and channel laying.
Online channels have bright spots and characteristics, but the effect is limited according to the interview information, which belongs to "online promotion and offline volume".
The model innovation point of the Wanton Jiufang
Adjustment and reform under the industry cycle
In 2021, the performance and financing of the company reached the peak moment, but in the past year, the liquor market has experienced great ups and downs, and the overall performance has fluctuated and declined, which has also affected the decline in the performance of the company. The impact of the epidemic has prolonged the cold winter market of the industry, and many offline stores in Shijiufang have also been hit hard and have to choose to close.
The reflection of the brand is in a series of policy adjustments, and the company has carried out unprecedented reforms. It not only announced that it will reduce costs and increase efficiency, return to the development path of traditional consumer goods companies, comprehensively strengthen the construction of multi-dimensional supply chains, and achieve sustainable and high-quality development. Moreover, in the future, we will continue to improve and innovate in terms of comprehensive capabilities such as production capacity, quality, brand power, and channel operation, and will continue to optimize the secret weapon of "community socialization", continuously introduce fresh blood, and spread the culture and brand value of soy sauce wine.
