Chapter 516: The Beginning of Industry Consolidation (4k)
The success of the first quarter made the whole of Jiagu full of energy, and thus started the expansion road in 2011.
The expansion of the Jiagu system this round is different from the previous hard work and rapid construction, but is more inclined to be an "integrator".
The so-called "one will make ten thousand bones dry".
Behind the success of every large enterprise is the huge impact of hundreds of small and medium-sized enterprises. This is especially evident in the domestic agricultural sector. Those "scattered, small, and chaotic" small workshop-type enterprises, in front of leading enterprises like Jiagu, are out-and-out backward production capacity and struggle to survive.
With multiple advantages such as customer base, technology research and development, cost control, and industrial layout, Jiagu has moved from a large enterprise to a giant enterprise. Under the situation of stricter environmental protection and safety, quality and safety review, Jiagu began to concentrate the market share of the industry to the head of Jiagu through a series of mergers and acquisitions in China.
The first to take action was the pig breeding business of Jiagu Agriculture and Animal Husbandry.
In fact, if it weren't for the unexpected popularity of Xianming rice and Jiagu milk this year, Jiagu pork should be the main "star" supporting the performance of Jiagu this year.
2011 is by far the most brilliant year in the history of hogs.
In previous years, pork consumption entered the off-season after the Spring Festival, and pig prices began to decline, but this year it did not fall but rose. The second quarter is generally the lowest pig price of the year, but now it has unusually entered a period of soaring pig prices.
——Subject to the downturn in the previous few years, the enthusiasm of farmers to fill the pig column is insufficient; coupled with the impact of the epidemic last year and the sharp rise in feed costs, there has been a tight situation of pig slaughter after the first quarter of this year.
With the sharp rise in the price of live pigs, the price of ordinary piglets has risen from more than 200 yuan per head in January to 400 yuan per head now, and the price of piglets in Jiagu agriculture and animal husbandry has reached more than 500 yuan per head.
In such a market, it can be said that Jiagu agriculture and animal husbandry can make a lot of money even if they close their eyes.
This also gives Li Dongliang of Jiagu Agriculture and Animal Husbandry more confidence to start industry integration to expand.
The first target he aimed at was a small business - No. 1 Earth Pig.
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No. 1 local pig, a high-end pork brand that emerged in Vietnam Province in 07 years. Its founder, Chen Sheng, is a model of successful alternative entrepreneurship, and the legendary "selling pork to the level of Peking University" is "No. 1 local pig".
Driven by No. 1 local pigs, many local pork brands such as Dongsheng brand local pigs, Hoyaka pigs, and Shanhei brand organic pigs have emerged in the Guangdong provincial market, which can be described as in full swing.
But in Chen Sheng's view, although No. 1 Native Pig claims to be the largest local pork brand in the country, it has less than 200 million yuan in sales, and the plate is still too small. So much so that he was a little flattered after Jiagu Agriculture and Animal Husbandry handed over the olive branch.
At this time, the No. 1 earth pig is far from being like the original time and space, and its development is smooth and soaring.
The biggest reason is the impact of the rise of Jiagu's pig business. This also made Chen Sheng always have mixed feelings in the face of Jiagu agriculture and animal husbandry.
After the official launch of Jiagu pork, business boom has become the norm. It often goes on sale at 7 a.m., leaving only ribs and some fatty meat at noon, and selling out in the afternoon.
It meets all the specifications of safe meat, has a traceable and certified feeding process, has a large-scale supply formed by stable varieties, has stable quality, and has reached cooperation with Wal-Mart, Huayan Wanjia, Carrefour and other large supermarkets......
That's it, the key is that Jiagu Agriculture and Animal Husbandry has raised commercial pigs with the unique flavor of native pigs, which is simply too foul!
He raises native pigs, often need to feed three or four catties of feed to grow a catty of meat; and the breeding time is long, 10 to 12 months to be slaughtered, the cost of breeding can be much higher than that of ordinary commercial pigs, and naturally it is profitable to sell at a high price.
But the full listing of Jiagu pork in Viet Nam almost didn't drive him to a dead end.
It has the same flavor as No. 1 local pig, but the price of Jiagu pork is only 10%~15% higher than that of ordinary pork, which makes No. 1 local pig, which is twice as expensive as ordinary pork, embarrassed!
Consumers vote with their feet, and after the launch of Jiagu pork, No. 1 local pig has been visibly "out of favor".
Therefore, No. 1 Earth Pig did not attract capital from all walks of life as it did in the original time and space. Regarding the hydrangea thrown by Jiagu Agriculture and Animal Husbandry this time, Chen Sheng naturally couldn't be calm. On the contrary, he gave positive feedback the first time.
"Jiagu plans to build its own high-end pork brand?" After learning about Jiagu Agriculture and Animal Husbandry's intention to purchase No. 1 local pigs, Chen Sheng's spirits were lifted.
As a traditional industry, the breeding industry generally has the status quo of raising but not selling, only varieties and lack of brands. Chen Sheng is not afraid to say that the whole industry chain model of No. 1 local pig breeding, brand and sales is the first in China.
Although Jiagu pork can be said to be the largest pork brand in the country based on its unique flavor, it can be seen from the pricing that the brand "Jiagu pork" is not positioned as a high-end at all. Moreover, Jiagu pork does not sell it by itself.
He seems to see his value to Jiagu farming!
If the level of pig raising is compared to reading, Chen Sheng thinks that he can only be regarded as a junior high school level, and Jiagu is at least a graduate level, but in terms of marketing level, he can boast that he is the best in selling pork, at least, at the university level, right?
To a certain extent, Li Dongliang took a fancy to No. 1 Soil Pig, that is, he took a fancy to Chen Sheng, so he did not object: "In terms of building a high-end pork brand, Mr. Chen can indeed be said to be experienced." ”
Recognized by the pig giants, Chen Sheng called it a beauty in his heart, "Many people in the industry think that selling pork does not need to be marketed, but they don't know that marketing is the main battlefield for the traditional industry of pork, a traditional agricultural product." ”
"To do the terminal, to do the market, in fact, I pay more attention to the downstream. ”
Li Dongliang nodded.
Yue Province is one of the main battlefields of Jiagu pork, No. 1 local pig can still survive under the strong impact of Jiagu pork, Chen Sheng, who has switched from the fierce competition in the wine and beverage industry of the brand, can definitely be called a high degree of hard work.
In order to withstand the impact of Jiagu pork, Chen Sheng's strategy is also different, one does not rely on advertising on TV, and the other does not rely on rebates to dealers, but "gongs and drums are noisy, and firecrackers are ringing" - for example, every time No. 1 Soil Pig enters a new shopping mall, he leads a big earth pig wearing a big red flower and a black body to "parade the street" in the vegetable market, saying that it is to let the people in the city see "what the appearance of a native pig is", which can be described as a "strange trick".
And this kind of guy who has both experience and execution in terminal marketing is exactly what Jiagu agriculture and animal husbandry urgently need.
Chen Sheng also saw Li Dongliang's appreciation for him, and his confidence increased a little.
He did not resist Jiagu Agriculture and Animal Husbandry's acquisition of No. 1 Native Pig, but he also did not want to completely lose his voice in the negotiations. And to get the right to speak in front of an industry giant like Li Dongliang, it is useless to say that no matter how much vanity there is, the key is to let him see the strength he has.
Compared with the scale of six or seven million pigs slaughtered annually in Jiagu agriculture and animal husbandry, the No. 1 soil pig with sales of less than 200 million yuan, what is stronger than Jiagu agriculture and animal husbandry?
For example, the "butcher's school"!
Li Dongliang also saw the other protagonist of "selling pork to the level of Peking University", Chen Sheng's younger brother Lu Buxuan.
Lu Buxuan is worthy of the name of "butcher", and his most powerful skill is nothing else, it is extremely accurate knife skills.
"You give him the weight you want to buy, and you cut it off with one cut, and you don't miss it. Chen Sheng said.
For selling pork, how to divide and match fatty meat, lean meat, pork ribs, etc., determines whether the profit or loss of selling pork is very variable. If you can do this like Lu Buxuan, the loss rate of pork sold is almost 0, and it will be a profit that cannot be underestimated after a long period of accumulation.
- This is not impractical for self-sales.
To this end, Chen Sheng cooperated with Lu Buxuan to open a butcher school to train professional butchers, and Lu Buxuan also compiled a lecture "Pork Marketing" and taught it himself, filling the gap in the butcher's professional school and professional teaching materials.
"I just want to run a school and train some 'all-rounders'. In addition to learning how to 'solve pigs', you also need to learn many courses such as market operation process, supermarket management system, and pork nutrition cooking. ”
"In the past, butchers were very open-faced, but I would train them to smile, and he not only sold pork, but also gave away what others couldn't sell, so that customers could bring back joy, and the value we provided exceeded customers' expectations, which is our competitiveness. Chen Sheng said proudly.
Li Dongliang smiled.
This is indeed the resource that Jiagu agriculture and animal husbandry need, but it is by no means a reason for Chen Sheng to take the initiative in the negotiation - he also saw Chen Sheng's careful thinking.
However, there must be a back and forth in negotiations.
Although the "little arms" of the No. 1 soil pig cannot resist the "thick thighs" of Jiagu agriculture and animal husbandry, Li Dongliang has always liked to convince people with "morality".
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"This is our main high-end two major local pig breeds - Jiagu black pig and Jiagu flower pig, respectively to Taihu pig and Ningxiang flower pig as the main female parent, has formed a population and has been recognized by the state, in terms of growth rate, fecundity, lean meat rate and other indicators, is slightly inferior to commercial pigs, but far better than the general pig ......" - please see!
At the Jiagu pig farm in Yue Province, Chen Sheng was already dumbfounded.
The native pigs he raised, although they call themselves "Liangguang small-eared flower pigs", are actually not fundamentally different from other native pigs. And like Jiagu agriculture and animal husbandry, as soon as it is shot, it is a new matching variety, and it is two, which is crazy!
"This pork with a marbled oil pattern like a Kobe steak is Kaya black pork, which is extremely delicious, and this is Kagu pork, which has an amazing amount of unsaturated fatty acids such as linoleic acid and linolenic acid, which is beneficial to the health of intramuscular fat, and is still a rare health treasure...... "Please try it!"
Chen Sheng's eyes widened!
The delicious taste of the explosion made him "full of cows". After eating Jiagu black pork and flower pork, and then eating your own local pork, well, it can probably only be described as "taste and chew wax".
It is said that "once you taste Jiagu pork, it is difficult to look at other pork", Chen Sheng while enjoying the supreme treasure pork, while shouting in his heart: "You are so naïve, after tasting Jiagu black pork and flower pork, you know what it means to really look at other pork!"
This is not an ordinary pig, or even an ordinary local pig, but a "Rolls-Royce of pigs";
"The initial price is about two to three times that of ordinary pork. Well, the production cost is about twice that of ordinary commercial lean pigs, but its gross profit is more than ten times that of ordinary commercial lean pigs......" - please count!
Chen Sheng nodded like pounding garlic.
Expensive is never a problem, the question is how to convince consumers that it makes sense to be so expensive.
But from the moment the pork was entered, Chen Sheng knew one thing deeply, and he didn't need too many reasons at all, okay?
Chen Sheng is going to kneel!
Oh my god, Jiagu's scientific research strength is amazing!
Don't talk about the rest, just look at the lean meat rate.
The lean meat rate of high-quality foreign white pigs can reach 65%, while the lean meat rate of "No. 1 Native Pig" is only 36%, which is about half of that of foreign pigs. And fatty meat is not branded, it can only be refined.
What about Jiagu Black Pig and Jiagu Flower Pig?
The lean meat percentage is approaching 60%. The key is that the meat quality does not decrease but rises, what a slot operation this is!
In the era of the British Industrial Revolution, in order to cultivate high-quality brand pork, the British introduced China's South China pig as a breed resource, and used it to improve the European pig breed with rough meat, and cultivated the world-famous Yorkshire and Bakshire, which Darwin also wrote to affirm.
Chen Sheng seems to see that Jiagu's best pork, based on China's local pig breeds and pig culture, will once again go to the world and promote the improvement of international pork meat quality.
——He also heard the news that Jiagu has increased investment in scientific research this year and reached scientific research cooperation with many agricultural research institutions, which made him numb.
You're so bullish now, how far will you go in the future?
Not to mention, the top management of Jiagu is far farther than he imagined.
Li Dongliang, who is prepared for danger in times of peace, sees not achievements, but possible bottlenecks: "High-end brands, of course, need to open stores offline. But even if there are 2,000, 3,000, or even tens of thousands of stores, what will happen in the future? Is it possible to expect that the post-90s and post-00s generations will carry baskets to the farmers' market to buy vegetables......
"However, we have invested in JD.com in the field of e-commerce, and we also have a complete network in cold chain logistics, which can help brands solve many problems such as warehousing and logistics, cold chain transportation, and sell high-end pork to the national ...... through e-commerce."
"......" Chen Sheng simply "disarmed and surrendered".
You still need the initiative of a fart, and hugging your thighs is the first priority, okay?
Jiagu Agriculture and Animal Husbandry has successfully acquired 90% of the shares of "No. 1 Native Pig" and built it into a high-end local pig brand of Jiagu; and plans to complete the expansion of the national territory in five years, and open up a high-end market scale that can digest 1.5 million to 2 million Jiagu native pigs; the first batch of 200 stores out of Yue Province will land in Shanghai and the capital at the same time......
The vigorous expansion plan and abundant expansion resources really made Chen Sheng feel the coolness of hugging his thighs.
In his opinion, Jiagu Agriculture and Animal Husbandry, which can be said to be "thick thighs", is just a subsidiary of the Jiagu system.
This made him even more admired by Qi Zheng, who created Jiagu, and regretted that Qi Zheng could not attend the acquisition signing ceremony.
When Li Dongliang heard about it, he patted him on the shoulder and smiled: "Don't regret it, you can see the big boss sooner or later anyway." The big boss is busy welcoming the birth of the 'little boss' now!"
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