Chapter 392: Too Exposed, Boycott (2/4)
We can't let Jiagu grain and oil develop like this anymore!
Yihai Kerry and Guoliang Group came up with such ideas at the same time.
Originally, after years of disorderly development and accumulation, the three major brands of Arowana, Jiagu and Fulinmen almost occupied most of the market for small packaged edible oil, and the latecomers fought in the residual market, and new brands continued to emerge and die, maintaining the delicate balance of China's edible oil market.
Now, Jiagu Grain and Oil has unexpectedly stood out with the "non-GMO" factor, and it is about to occupy half of the market. Not to mention that the leader Arowana will not watch it, even Fu Linmen will not be reconciled.
China's edible oil battlefield is actually a battlefield with a very clear pattern of first-line camp and second-line camp.
Among them, the three giants of the first-line brand mainly focus on blended oil and popular category oil on the battlefield, which is a comprehensive brand, and the battlefield status is determined by strong brand influence.
Second-tier brands are conquering the battle situation through category occupancy, such as Luhua seizing the peanut oil category and Xiwang seizing the corn germ oil category......
For end consumption, soybean oil and rapeseed oil are the most consumed basic oils, followed by blended oil. The edible oil industry is as competitive as any other FMCG industry, and the base oil is extremely competitive due to its low barrier to entry and low technical content.
In the first-tier city market, it is difficult for domestic small and medium-sized enterprises to compete with the leader in the mainstream edible oil varieties, but in the second- and third-tier cities and even county and township markets, some small and medium-sized enterprises and local brands have certain brand, channel and distribution advantages, occupying a large market share.
At this time, if you want to occupy a larger market share, you have to fight the distribution channels of edible oil brands.
Yihai Kerry and Guoliang Group, the "old enemies", in the face of the latter and fierce Jiagu Grains and Oils, tacitly opened the prelude to joint suppression in terms of channels.
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"Guoliang Group is okay to say, like us, there are too many lessons to make up. It's not so much about us, it's about making up for their shortcomings. Wang Yuye, who led the battle of Jiagu Grain and Oil, analyzed the competition situation with Qi Zheng.
Qi Zheng agreed with this statement.
The national grain group in this time and space has changed a lot, and the most important influencing factor is the rise of Jiagu Group. Take the edible oil market as an example, there was no Jiagu, and although the National Grain Group could not beat Yihai Kerry, it was still the second, barely able to maintain the face of a state-owned enterprise.
But the fact is that the young Jiagu Grain and Oil has come from behind, not only surpassing Fulinmen, but now even the Arowana is feeling great pressure, which makes it impossible for the national grain to say.
Not to mention the dominance of Jiagu Group in the domestic rice field, as well as the first move to go abroad, so that Guoliang can no longer be distracted from various businesses as before.
Ning Laoda, the helmsman of Guoliang Group, has thoroughly realized that compared with Jiagu, the scale of Guoliang Group has indeed risen, but the core capabilities have not been formed. In China, the world's largest market, success is not how much to do, but to make things stronger and deeper, which is also the inevitable choice for Guoliang Group to make its core business such as "grain, oil, sugar cotton" bigger and stronger.
After no longer taking it lightly, as soon as he compared it with his competitors, Boss Ning found out where the gap was.
The reason for its backwardness is that the national grain is relatively lagging behind in the key elements of the front end of the industrial chain, such as technology, resources, varieties and single product scale, and has not formed a "monopoly".
Or take edible oil as an example, behind every drop of edible oil, there is a processing market war without oil smoke.
The reason why Yihai Kerry has a greater voice in the small package oil market is mainly due to its close cooperation with the four major grain merchants such as ADM, and the large number of genetically modified soybeans imported from overseas has effectively controlled its costs.
Of course, what he admires the most is Jiagu. It has not only taken food from foreign capital and created the largest production capacity of domestic oil processing, but also took root in the Russian Far East, has its own soybean raw material production base, and also has great advantages in cost control. This is the "whole industry chain" model he dreams of.
Therefore, at present, Guoliang has not only reached a cooperation with the State Grain Reserve, which undertakes a part of the soybeans under its management at a price lower than the market price, to reduce processing costs, but also faces direct competition with Jiagu Grain and Oil in distribution channels.
"In first-tier cities and even some second-tier cities, the three of us can be said to be on par in terms of sales channels. However, the channels that continue to sink to the bottom, we and Guoliang Group are not as good as Yihai Kerry combined. Wang Yuye said a fact with a slightly wry smile.
This pattern is mainly due to the fact that Yihai Kerry's channel strategy has a "killer feature", that is, the exclusive agency system of distributors. Wang Yuye calls it "monogamy", that is, each distributor can only act as an agent for the Arowana series of edible oil brands, and Arowana only chooses one distributor in a region.
Due to Yihai Kerry's channel layout in the past 10 years, the "monogamy" implemented by the group has cultivated a group of tens of millions of dealers. Today, Kerry Grains & Oils' exclusive agency system has been extended nationwide, with more than 600 distributors cooperating with Yihai Kerry Grains & Oils.
"This is a fatal threshold for us. We can't find a dealer in almost every second- or third-tier city that we can compete with. Wang Yuye rubbed his brows and said.
The situation seems to be obvious, the best channel platform companies in each city are tied to Yihai Kerry, and the agents are among the top three "local snakes" in the local area.
This kind of layout is a great obstacle to the expansion of Jiagu grain and oil, what if your products are popular? Now is not the era of extremely developed online shopping in the future, in the second- and third-tier cities and even county and township markets, there are no distribution channels, and your products cannot even enter the market.
Jiagu Grains and Oils also planned to rebel against some channel providers, but Yihai Kerry had already taken precautions, stabilized the agents, and refused the distribution of Jiagu Grains and Oils products.
The channel and terminal "highland" are firmly occupied by the opponent, which is not only the biggest difficulty faced by Jiagu Grain and Oil, but also the weakness of Guoliang Group.
Qi Zheng frowned slightly, this is the disadvantage of starting late, people are step by step in the channel, the key is that he can't handle this situation!
Wang Yuye has been prepared for a long time: "Now we have a good partner Yiyatong. This is a giant that helps enterprises to outsource all aspects of the supply chain from procurement to production to sales, and they are considering transformation, strengthening distribution execution business capabilities, and trying to make a deep supply chain platform that extends to the terminal. ”
"For us, Eaystone is a channel platform that can compete with the big names of local dealers, and with the help of this enterprise that is good at channel resources, it can play a 'group battle' effect and make up for the lack of our underlying distribution channels. ”
"The problem is that Guoliang has also seen this and is now competing with us for cooperation with Yeeyatong. ”
Qi Zheng asked, "Is Yi Yatong biased?"
Wang Yuye shook his head: "I don't see any bias for the time being, the cooperation conditions offered by our two families are actually similar." Our products are slightly better, but the political resources of Guoliang Group are more abundant, and it can also be said that each has its own advantages. ”
Qi Zheng pondered for a moment, then raised his head and said, "Then continue to increase our advantages and let the advantages form a crushing trend!"
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