Give up the iron rice bowl to go home and start a business, now the company is listed at a valuation of 7 billion, how did he do it?

June 6, 2017, after three consecutive impact IPO failure, Xiang Peopeo launched the fourth impact, and successfully passed the meeting, complete the listing, the end of 7 years of IPO on the long run. In this IPO, Xiang Peopeo intends to raise 748 million yuan to invest in liquid milk tea construction projects and cup milk tea automatic production line projects related to the main business, and the company's valuation reached 7.48 billion yuan. From the industry's beginner to the market leader to IPO listing, only a single product of the fragrant Peopeo is how to do?

Giving up the iron rice bowl, go home and start a business

When it comes to Peopeo, the first thing that comes to mind is the familiar advertisement slogan: one year sales of 1 billion cups, the cups can be linked together to go around the world three times. The slogan has dominated the screens of major TV stations, and it is not an exaggeration to say that it is a household name, but compared to the brand itself, its founder, Jiang Jianqi, is a lot more low-profile, and is rarely known.

Jiang Jianqi was born in Nanxun, Huzhou, a famous fish and rice town in the south of the Yangtze River, and grew up in a strong business environment. He helped his parents' baozi store to sell baozi when he was young, and was surrounded by business every day.

At that time, after he graduated from college, he was assigned to work for the Railway Bureau. He was assigned to the Railway Bureau after graduating from the university. He held an iron rice bowl and lived an extremely leisurely life, drinking tea and reading newspapers at work, discussing the international situation and criticizing the current policy, and then returning home from work to study how to cook delicious food. Such days let him extremely uncomfortable, coincidentally at this time to learn food professional cousin in Nanxun did a small food factory, mainly engaged in pastry, Jiang Jianqi went back every now and then to help.

Such days, although some bumps and hard, but always more interesting than the daily idle life. At that time, a Spring Festival, he could earn more than 10,000, in the era of a movie ticket only 50 cents, 10,000 yuan is a huge amount of money. The most happy time for Jiang Jianqi, even if he can earn a million dollars a day now, he was not as happy as then.

In 1985, his cousin decided to give up the food factory because he wanted to do other business, so at the age of 20, despite his family's obstruction, Jiang Jianqi decided to give up the iron rice bowl job in the Railway Bureau, and went home to take over his cousin's food factory.

Founded the "old boy" ice cream, earn millions of dollars a year

Take over the initial period, he found a great problem! At that time, the industry is used in the distribution system, the dealer is responsible for selling goods, not sold back to the manufacturer. Jiang Jianqi believes that the distribution system is a kind of extremely inappropriate distribution. Production and channels of the two links can not constrain each other, resulting in a large number of wasted costs, forcing some manufacturers to put the remaining goods into the cold storage the next year to continue to sell.

In order to get rid of the distribution model, in 1886, Chiang Chien-qi started his own food factory, which specialized in ice lollies. Understanding the importance of flavor in the food industry, Chiang enlisted the help of his relatives at the Food Research Institute to create the recipe for the lollipop.

Jiang named the ice lolly "Old Boy". The name was derived from Zhou Botong, the old man in the "Legend of the Eagle Shooting Heroes", which was easy to remember. Because of the scarcity of food categories at the time, the "old boy" ice lollipop soon became popular, and by 2000, the old boy's profit reached several million.

The company attempted to transform itself by creating Peopeo

However, Jiang Jianqi was not satisfied with this, and he found that ice lollipop is a seasonally restricted product, with high sales in summer and high production in the factory, but in winter, the sales volume dropped significantly, and the old boy encountered his own limitations and bottlenecks. Jiang Jianqi began to seek his way, but specifically play to do what he did not have a clear goal in mind, only to know that doing something to drink will be bigger than doing something to eat sales.

Until 2004, Jiang Jianqi passed a milk tea store, the milk tea store in front of a long line, can not help but curious Jiang Jianqi also queued up to buy a cup. The taste of the milk tea is very good, so he sprouted the milk tea can not be convenient, do not have to wait so long.

With the idea of Jiang Jianqi said dry, he asked the Hangzhou Science and Technology Agricultural Research Institute to help develop the formula, please design the company to design packaging, about more than half a year later, the product trial success. The laboratory wafted a burst of milk tea flavor, so Jiang Jianqi named it "fragrant Peopeo".

Before the launch, Jiang selected four cities to test the market for Peopeo. He selected Wenzhou, Huzhou, Wuxi and Suzhou around Nanxun to test the market, and each city only selected high schools, universities and standard supermarkets, and each point of sale, the company has arranged for people to follow up, and then the results will be drawn into a chart.

The results of the six-month test were satisfactory - this is a product with potential. Putting aside the hard numbers, what he saw with his own eyes made Jiang Jianqi excited.

Although the test results showed that the product would be well received by the market, Jiang Jianqi did not immediately put the product on the market in large quantities. In order to avoid large companies and large enterprises to find business opportunities after the direct copy and then beat themselves, he first selected students as the target, successively to Hangzhou, Zhengzhou, Nanjing, Beijing and other large and medium-sized cities as the center of radiation, in the school around the stores and supermarkets for test marketing. Do deep and thorough, and then to the neighboring cities radiation, take advantage of the situation into things, water to the canal.

In this way, Peopeo got a very good market response, and the order phone was ringing non-stop.

In 2005, the National Sugar and Wine Ordering Conference was held in Jinan, and Peopeo was officially invited to invest in the country. Previously, the dealers have never seen the cup milk tea, after tasting the excitement, the scene of the signing of the single endless. A few months later, orders from all over the country have to gather in Huzhou, Peopeo's books that year, quickly climbed to 50 million yuan.

With the generous funds, Jiang Jianqi realized that he had to quickly seize the market and occupy people's attention, and he had to be the first to take the lead. So Jiang Jianqi in Hunan TV spent 30 million to do advertising. The first one in the milk tea industry to do advertising.

Jiang Jianqi heart is very clear: " for the easier to imitate the new product, the first punch must be heavy, to be ruthless, and must quickly hit the customer mind. "

The effect of advertising and market promotion, its sales from tens of millions of dollars in 2005 jumped to 480 million yuan in 2006, a year, the release of the speed of the speed, so that Jiang Jianqi himself feel surprised.

The rise of a new army, the four sides of the song

Peopeo gross profit margin of up to 40%, this amazing data immediately attracted peers, in the second half of 2006, Heijirang, Lipton, Dahao have entered the cup milk tea industry, a time on and off the whole country, the emergence of a dozen small and large cup milk tea brands to share a piece of the pie with the fragrant Peopeo. At that time, the Hei Zhirang also said that within two years to take Peopeo.

In the face of the rise of rivals, Peopeo did not feel too much pressure, especially Xizhilang, due to Xizhilang's milk tea at the beginning is not called Yummy, it is called Xizhilang. Heizilang originally only focus on jelly, suddenly enter the milk tea industry, consumers hold up a cup of milk tea will inevitably be associated with jelly, and then affect the desire to buy. The company spent 4 times as much on advertising as Peopeo, but it still couldn't shake Peopeo's position. This naming mistake made Jiang Jianqi feel that the enemy was not as powerful as he thought. In addition, after two years of fighting in 2005 and 2006, Peopeo began to ride the wave of the South and North, and then began to drift away.

Peopeo is floating

In 2007, Jiang Jianqi played a diversified, one is to invest tens of millions of dollars in the development of "convenient rice cake" and peanuts, the second is to open a chain of milk tea, the third is to get involved in real estate, coupled with the original cups of milk tea, Peopeo is intended to be "four-wheel drive "

This is the first time I've ever seen a company like this one.

On the other hand, the rival side, Xizhilang realized their own mistakes and quickly adjusted, renamed Yulome, and continued to put a lot of advertising on Peopeo to continue to pursue. In the two years from 2007 to 2009, there were price wars, channel wars, advertising wars and wars of words. Peopeo had to face many rivals on the one hand, and on the other hand, it also had to spare energy to do other diversified projects. Jiang Jianqi simply did not have enough energy to cope with, seize the opportunity to Peopeo's sales in 2008, although the sales of 1 billion, but with the second-ranked Yolmei gap is not large. Jiang Jianqi realized: the crisis is coming. His own status as the big brother is likely to be unprotected.

The strongest man to break his wrist

In the second half of 2009, Jiang Jianqi began to reflect y, but also intensively visited many domestic marketing management organizations, he tried to find a way to keep the "big brother" position of Peopeo in the jungle.

In the end, it was as if he had a sudden epiphany: focus, concentrate, and withdraw from diversification.

Focusing and concentrating means cutting out the unexpected business of milk tea, which is not easy.

First, rice cake has invested 30 million dollars, cut off the rice cake this 30 million dollars is equivalent to playing water.

Second, to cut the peanuts, you have to know that peanuts have begun to make a profit, the annual sales volume reached 30 million. The factory manager of peanuts has been hospitalized in a hurry because of the need to cut peanuts.

Third, the milk tea store has opened two, and business is still very good.

Fourth, the real estate industry at that time is extremely profitable, cut the real estate is not crazy?

Xiang Peopeo was built by his own hands, and the rice cakes and peanuts were not. At that time, Jiang Jianqi was like a father who wanted to sell his own children, and it was so painful to see the flesh on the back of his hand. But the opponent has been pressed step by step, when the break will be subjected to chaos. So Jiang Jianqi made up his mind to cut down the business other than milk tea and focus on Peopeo.

In order to make Peopeo the best, and industry rivals to distinguish, Peopeo not only in the advertisers to work, even packaging cups are higher than the collection of high and large, to show that Peopeo Peopeo amount of sufficient. In terms of straws, compared to competitors casually folded and put into the packaging of the straw, Peopeo Peopeo uses two sections, as long as the drink when the two sections of the straw connected, convenient and ceremonial.

Price war, up or down

With the gap with the rivals in the product, Peopeo solidified its position as the "big brother". However, by the end of 2009, due to inflation, the price of raw materials, in order to avoid the geographic halo dragged the enterprise into the quagmire, Peopeo took the lead in price increases. Jiang Jianqi predicted that rivals may stay put or follow the price increase.

But that's not the case. Unimix is sworn to take Peopeo down, and it's not thinking about profitability at all, and instead of raising prices, it's lowering them.

As many dealers in the traditional distribution channel are driven by profit, which low price will enter the goods, in Hunan and Hubei, where Peopeo does not occupy a strong market, Unimix began to invade, and the results are obvious.

In the face of rivalry at this time, Jiang Jianqi has done a good job of market share down 30% of the intention, must insist on raising prices. Finally, in December 2009, the terminal came the good news, although Unimix price cuts brought short-term sales of small novelty, but due to the flavor of Peopeo more pure, consumers generally return to the choice of Peopeo, so the distributors have also returned.

In 2010, Peopeo's sales volume exceeded 1 billion cups, and sales amounted to 2 billion yuan, which can circle the earth 3 times. So much so that there is a paragraph that says:

Someone asked, "What is outside the earth?"

The answer was: "Xiang Peopeo!"

The answer was: "What's the flavor?

And then the answer was: "It's the one that sells 1 billion cups of milk tea a year, which can circle the earth three times."

"I heard that recently there will be an asteroid to hit the earth, so scared! ""Don't worry, there are Xiang Peopeo milk teas outside the Earth, or three circles. "

The secret of Peopeo's victory

The reason why Peopeo has been able to rise up in the milk tea legion under the leadership of big brands such as Xijilang and Lipton is mainly based on the following two points:

Firstly, it is the quality of the consistent, many consumers are accustomed to the flavor of Peopeo, even if the price rises, but the taste is good, the packaging is good, and the quality is very good. "

The first is the consistent quality of Peopeo's products.

Second, thanks to Peopeo's zero inventory strategy. Peopeo's products are always produced in the form of orders, delivery on delivery, refused to sell, to avoid the pressure of inventory. This is also the benefit of Jiang Jianqi, who loathed the resale model from the beginning.

After a decade of fighting, today, Peopeo has firmly held the top of the market. 2014 to 2016, Peopeo's share of the cup milk tea market was 57.00%, 56.40% and 59.50%, ranking first in the cup milk tea market, and the market share is rising year by year.

And since 2011, Peopeo has been seeking an IPO listing after a series of twists and turns, and finally succeeded in listing. The story of the enterprise reached 7.48 billion yuan. The future of the Peopeo will be able to surge forward and become ten billion is worth the company? Let us wait and see.