Wugudaochang: from the 2 billion peak to trough 100 million

Dojo grain trough peak

shangjie· 2016-12-11 04:52:44

", the business reporter Xue Yi

a new year approaching, COFCO said publicly sold wugudaochang news to the market with a basin of water in cold winter.

wugudaochang is no stranger in the market.

it became popular because of the concept of "non fried", the peak period of annual sales reached about 2 billion yuan. However, the glory is only a flash in the pan. Then, wugudaochang experienced production, sold COFCO, return to the market has not improved, 2015 revenues of only 100 million yuan, the end did not escape the fate of being abandoned cofco.

wugudaochang was 12 years, but like over 100 years. Life is full of frustrations, the word is probably wugudaochang portrayal of 12 years.

three Prince of the heart, known to all

wugudaochang stories always cannot do without its founder Wang Zhongwang. Before the establishment of

wugudaochang, Wang Zhongwang has fought for many years in the instant noodles industry.

1996 years, Wang joined the Hualong Hebei food company, which is the beginning of his instant noodles career. But he is not willing to marry only for others to do, just next to set up headquarters in Hualong Wang food, set up production Chinese minimum 30 thousand bags of instant noodles small line.

"grassroots" born Wang food focus on rural areas and small towns of the two or three line of the market, by virtue of the rural market, a way to move forward, the creation of the "bowl" instant noodles sold for. In 2002, sales revenue has been close to 500 million yuan, all of a sudden from the grassroots to the side of the industry 5 strong.

"sold for a bowl of instant noodles"

Wang food rapid development attracted by industry leader Tingyi, take the initiative to come to seek cooperation.

wants to compete with Hualong, Wang Zhongwang think the opportunity came, quickly reached a cooperation and Tingyi, established three Prince Edward Food Co. Ltd., Hualong wins the, and shouted "Challenger three Prince" slogan, the smell of gunpowder. Longyao town residents are aware of, "Wang Zhongwang wants to talk to Hualong about a battle of wits".

Wang food and Hualong competition is master of the purpose, but did not think the result was appeasement brings disaster. The two did not cooperate long, Wang Zhongwang will expose greater ambitions, he proposed to do in the high-end market, enter the big city, this equates to the master and play the positive.

the two sides deadlocked, finally, Wang Zhongwang with three production bases and the "bowl" trademark bought a 30% stake in the hands of the master, in order to obtain absolute control. The master is a word ending cooperation: "we do not understand because Wang, so enter, because to understand, so quit. The "

" traitor "positive

in fact before the fire, and Kangshifu cooperation, Wang Zhongwang once went to Japan were investigated, found that non fried instant noodles with great potential. Although the master's exit, let Wang food loss "bowl", but also to the king in the determination of non fried HomeDeco push.

for the rapid introduction of non fried instant noodles, Wang Zhongwang, Ren Licao knife marketing planning. Ren Li served as administrative and human resources director in Hualong, but also in charge of marketing. Two people had once, Wang Zhongwang is also regarded as the "three" will invite Ren li.

2004, in the Chinese high-end instant noodles market, Kangshifu, unity and Hualong occupy a major share of the market, at the same time, more than 90% of the market have been fried instant noodles to control. Wang Zhongwang wanted to tear off a piece of fat from the giant mouth is not easy.

wugudaochang was born may account for a day".

2005, in April, the Ministry of Health issued a document questioned French fries and other fried foods contain carcinogenic substances. The market sensitive Ren Li immediately seize the opportunity, the instant noodles named "wugudaochang" planning "refuse fried, also my health" ads, and broadcast on cctv.

" wugudaochang non fried instant noodles was born in

advertising bombing at the same time, wugudaochang also began to display skills to the full in the market. In the first three months, in the various cities of the high-grade communities, office buildings, schools and stations and other places to carry out a large-scale push activities. When it was officially market-oriented, with the advertising effect, the first month will be achieved sales of 6 million yuan. Then, wugudaochang began in the 12 National City on the market, and quickly in the country set up 38 branches and offices also reached more than and 80. Waiting to pull a large cargo truck in various parts of the production workshop in a long queue.

threatening momentum wugudaochang stand directly in the market on the opposite side, facing the enemy fire, the risk measures the result, is quickly attracted the attention of consumers. But at the same time, the industry also ignited the flames of war, what is more, allow yourself to fall into the besieged on all sides. Second days

broadcast advertising, Wang Zhongwang was bombarded with phone. First, the bank governor found him: "you do not do so, ah, we have a lot of pressure ah. You put others down, but they will not loan! "Then, instant noodles industry leaders directly visit, denounced his approach is misleading to consumers, serious damage to the interests of the industry.

Wang did not put their words on the heart, in contrast, this is what he wanted to achieve the results. Finally, in this, the number of instant noodles enterprises joint condemnation of wugudaochang, that belongs to the category of their advertising acts of unfair competition. However, Wang Zhongwang and Ren Li ready, "wugudaochang did not explicitly say in advertising rejected what. "This

to break the rules of the market game, the chiefs of the instant noodles to temporarily swallow guard.

blind expansion, fell into bankruptcy in the first half of

2006, instant noodles industry suffered a "Waterloo", compared with the same period last year, sales fell 8 billion 100 million. Wugudaochang has a stride forward singing militant songs to create a miracle. The rapid expansion of

wugudaochang sales team to 2000 people, the monthly sales increase rate of 30%. In 3, April, many dealers demand proxy wugudaochang, Beijing base to supply the country, once out of stock.

just six months time, wugudaochang sales of more than 300 million yuan, even at the end of the year to get a "growth champion" title China enterprises.

in order to further expand production capacity, wugudaochang invested nearly 1 billion 800 million yuan of funds in the expansion of the 38 production lines; advertising also spent 170 million yuan. Wang Zhongwang put all bets on the future of the group in the wugudaochang body, "the only success, regardless of the cost. "

, however, in the decision-making, Ren Li and Wang Zhongwang appeared differences. Ren Li believes that "act according to circumstances, water is very potential, when using the very means, at this stage should focus on wugudaochang product development. Wang Zhongwang is bent on to the end of the marketing strategy before.

two people disagree, also caused Wang Zhongwang's dissatisfaction and suspicion. He has been removed from the executive vice president, wugudaochang planning director's position, finally, Ren Li can't leave.

indulge in ambition Wang Zhongwang did not realize that the appearance of strong wugudaochang already threatened by growing crises. Early

2007, wugudaochang into financial difficulties. A non fried instant noodles production line to about 20000000 yuan of investment, and fried instant noodles production line only need several million yuan; production of non fried instant noodles, flour is also more expensive than fried instant noodles 1000 yuan per ton. In order to compete for the market, wugudaochang pricing are always wandering in the edge cost. Perhaps, Wang Zhongwang had never counted this account, wugudaochang gross profit doesn't even guarantee payment of money supplier.

started from the second half of 2007, wugudaochang on stock, distributors and suppliers of payment arrears, arrears of wages and negative news continuously.

capital chain is more and more serious, Wang Zhongwang still refused to admit defeat. "Am I wrong? "He is in the internal summary of the meeting, quite a bit and said," wugudaochang direction is not wrong, but the operational level error. "

with the assistance of the capital, he was saying:" never allow the instant noodles industry capital to participate in the bid for wugudaochang shares in! "Paranoid that he would never see his hand in the business of the brand finally fall into the bag of competitors.

to 2008, wugudaochang total liabilities amounted to 600 million yuan, to full production. Wang Zhongwang could not bear such a heavy pressure, he finally sat down in a calm mood and acquirers to negotiate.

after nearly a year of negotiations, wugudaochang acquisition case was finally settled. In March 2009, wugudaochang was completely under the command of COFCO acquisition.

Wang Zhongwang also quit the wugudaochang, he is like a star, in glory after quiet soundlessness, become a China instant noodles market as trassient as a fleeting cloud.

usher in the "savior"?

is the world once thought that COFCO wugudaochang "savior".

wugudaochang was acquired, it is Ning Gaoning in the occasion of cofco. He is very optimistic about the instant noodles market, he is confident: "wugudaochang at least to occupy 30% of the share in the instant noodles market reached 1 billion yuan in sales. "In order to achieve this goal, he spared no expense to dig to Kangshifu co-founder and marketing director, Feng Hua Ren had instant noodles instant noodles Baixiang President Song Guoliang.

Song Guoliang did attempt to save the wugudaochang. He changed the original product and packaging wugudaochang boldly, in addition to the continuation of the traditional "non fried" concept, focusing on the tastes of the outstanding innovation. The second half of 2009, breath launched 6 new products, including the original cup Noodles in Chicken Soup "," secret beef noodles "," spicy pork thick soup and spicy noodles are thick bones "wugudaochang original.

" wugudaochang original spicy pig soup thick

market does not seem to be paying for these innovation -- sales difficult to see improvement, loss of business has been in a state of 2010, only completed 200 million yuan in sales. But this did not shake the Ning of wugudaochang "preference" of the heart, he continued to chase the wugudaochang dialed two hundred million.

's "preference" has his own purpose. Wugudaochang is COFCO extension strategy on the level of "Pathfinder stone" in the industrial chain, is the landing of the whole industry chain strategy tactics "pawn". COFCO abacus is, to instant noodles for the convenience of fast food products business, will be extended in the upper reaches of COFCO processing business nature, and agricultural and sideline products industry chain through bigger. The fact is

, COFCO wishful thinking off the air. On the one hand, consumers do not pay, on the other hand, wugudaochang also unfortunately caught the instant noodles industry as a whole fading environment. 2015, China's total output of instant noodles was 36 billion 249 million, down 8.54% over the previous year; instant noodles sales of 49 billion 91 million yuan, down 6.75% over the previous year. In the existing 22 companies, there are 6 out of the market, the other 13 companies fell. In the market environment is not good, the most vulnerable is the small and medium-sized enterprise and brand, wugudaochang in its column.

was over seven years, COFCO, wugudaochang has always been lackluster, has been at a loss, in 2015 fell into the trough, revenue is only 126 million yuan, liabilities amounted to 927 million yuan.

has nothing to do, had hoped that the group can try again, but the new chairman of the board Zhao Shuang even the instant noodles industry is not confident, but also not interested.

2016 at the beginning of the year, COFCO has sold the Kinde chocolate and Chateau Junding, finally at the end of November, will wugudaochang to 100% equity and 53 million 670 thousand yuan debt sale.

so far, wugudaochang again halted. Conclusion

deficiency, and hard to find something, when not, perhaps this is the crux of wugudaochang fading.

first, "non fried" is a dangerous step, since gone value demand routes, means that it is just not the connotation of health technology, more importantly, how to cultivate the cognitive level of consumers, and the depth of cut.

is the second, and the popular sentiment, italy. The first is Wang Zhongwang led Ren Li away, persist in wilfully and arbitrarily, although later Ning Gaoning's preference, but incapable of action.

finally, instant noodles the golden age has passed, even the first to occupy the market of the master, is also facing the dilemma of the performance decline for three consecutive years, wugudaochang in niche markets reversed and easier said than done.

wugudaochang "roller coaster" tragicomedy I do not know when the story ended, but it will become a part of history, for repeatedly aftertaste.

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