Why does Lao Ganma lead 8 million farmers to become rich

In 2014, Laoganma Group received the "A8888" license plate awarded by the government because it achieved a three-year tax payment of 1.8 billion yuan and an output value of 6.8 billion yuan, which directly and indirectly led 8 million farmers to become rich.

Lao Ganma is a miracle in the history of Chinese business. Too many people study it and too many people learn from it. My opinion is that Lao Ganma’s way of success lies in the word “pure”, and other experiences and magic weapons of the branches serve this word.

1. Extreme product thinking

Lao Ganma has only done one thing for so many years: make the peppers well. Chili is an industry with very low threshold and competition is very fierce, but Lao Ganma has set up a threshold in this industry without threshold. Many competitors were not defeated by Lao Ganma, but by themselves. Lao Ganma only focuses on making peppers, not developing new products randomly, not expanding blindly, or speculating.

It is easy to launch new products, but whether new products can stand firm is the key.

Expansion is too easy. It’s enough to have money and have products, but whether you can take over the territory is the decisive game.

Speculation can make a lot of money, but speculation can also lose all your money.

There are many temptations, but Lao Ganma is very simple, sticking to the spirit of craftsmanship, focusing on and striving for excellence, and just making the products well. Only by doing the ultimate product thinking can this ultimate product thinking stand firm in the bloody business war. Decades and a hundred years later, the current bustling and bustling speculative companies may have long gone with the wind, but Lao Ganma is still our Lao Ganma.

Focus on products

2. Adhere to not go public or financing

Tao Bihua, the founder of Laoganma, has a famous theory of listing money-making. For many years, he insisted on "not lending, not financing, not listing, not allowing others to invest, and not investing in or controlling others." Although Chinese companies have a mysterious enthusiasm for listing, believing that listing can obtain more funds and enable the company to develop rapidly, smart companies will not regard listing as a panacea and usually choose the time to go public carefully. The fact is that often the worse the finances, the stronger the motivation for companies to go public.

Companies like Lao Ganma focus on products, have sufficient funds, have clear development paths, and do not have a strong desire to go public. What's more, listing means diluting the founder's equity, and corporate decisions will be constrained by the board of directors, which will affect the coherence of corporate decisions, the implementation of corporate culture, and the focus on strategic development. Jobs was once kicked out of the house by Apple, which he founded.

"He is strong, he is strong, the breeze blows through the hills; he is letting him be wide, and the bright moon shines on the river." This mantra of the Jiuyang Divine Art is appropriate to use Lao Ganma. No matter whether it is good or not, no matter how the business environment changes, it is naturally good to make the product well.

3. Family-owned enterprises that pursue family culture

Lao Ganma is a pure family business. This "home" is reflected in two points. One is shares. The eldest son of Lao Ganma Group holds 49% of the shares and is in charge of the market; the younger son is 50%, and is in charge of production-Tao Huabi himself, accounting for only 1%. The second is culture. Tao Huabi has never attended much and does not understand modern management. However, she insists on "relying on mental arithmetics to manage wealth and family affection to manage people." To be more fashionable, it is similar to the emotional management advocated by Western management. It is said that Lao Ganma will provide food and accommodation for employees, and employees must be witnesses when they get married. If anyone who resigns from Lao Ganma is wronged outside, they can come back to work. (Excerpt from "Time Weekly") Although the modern professional manager system has its advanced features, it is difficult for managers who are quick to compare their loyalty with the "shopkeepers" cultivated by "family culture" under the Confucian cultural system.

Enterprises have two lifelines: people and products. Using emotions to maintain employees while ensuring their high loyalty, employees can focus on the company and product development, and will not be devout enough for products like professional managers. They may leave the company for a higher salary and better development at any time, causing the development of the operating company to be out of reach. The development of a company is affected by personnel changes as little as possible, and focus on products. This is a kind of focus and a kind of purity.

4. Adhere to social responsibilities

In 2014, Laoganma Group received the "A8888" license plate awarded by the government because it achieved a three-year tax payment of 1.8 billion yuan and an output value of 6.8 billion yuan, which directly and indirectly led 8 million farmers to become rich. Whether a company is successful depends on whether its roots are deeply rooted, and this root is its ties with society and its responsibility to society. It doesn’t matter how much money a company makes by itself, but it’s important to lead how many people to make money with you. Society is very fair. If you make contributions to society, society will naturally repay you. Why are too many O2O entrepreneurship being cheated by pseudo-demand? It is because they have not made much contribution to society, they are just a mirage.

Tao Huabi, as the National People's Congress, participated in the two sessions

Compared with the two companies, Lao Ganma and Didi, it is the two levels of business model. Didi relies on capital to ripen, and Lao Ganma insists on not going public or financing; Didi is an open expansion model, and Lao Ganma always adheres to the principle of conservative expansion; Didi has become an oligarch in the actual shared travel, while Lao Ganma has basically made it necessary for Chinese people to choose Lao Ganma to eat chili. But in terms of corporate brands, Didi often accompany the keywords are "subsidies, coupons, monopoly, money-burning wars, various accidents". In contrast, Lao Ganma has even become the "real mother" mentioned by international students. The reason is that Didi is a capital-ripening enterprise. It is one thing that is too fast to reap market dividends, and it is more important that Didi’s value supply fails to imprint in the minds of consumers.

Behind Lao Ganma's insistence on not going public or financing is the simple business view of Chinese businessmen: good products will naturally support customers. Craftsman spirit, ultimate user experience, adherence to quality, and paying attention to reputation are the magic weapon that Lao Ganma can stand firm. If it belongs to one word, it is in the word "pure".

This article: Why does Lao Ganma drive 8 million farmers to become rich? Xuanming.com. Original work  by Yun Feiyang. Please indicate the source when reprinting http://www.shxuanming.net/article/20395.html