With the channel sinking of large dairy enterprises and the increase of imported dairy products, the living environment of regional dairy enterprises is becoming more and more difficult. However, newly listedSunshine dairy industry(001318), however, with its profitability far higher than that of its peers, earned enough attention in the capital market.
Sunshine dairy industryWhat kind of enterprise is it? How is it in deus ex in the highly competitive dairy market? What is the company’s future development strategy? With these questions, the Securities Times recently entered.Sunshine dairy industryInterview with Hu Xiaoyun, the chairman of the company, trying to solve the mystery of the company’s growth.
Intensive cultivation of local market
Sunshine dairy industryIt is an old-fashioned dairy product market. The company’s predecessor, Nanchang Milk Factory, was established in 1956 with a long history, and its popularity in the local market is not inferior to that of Mengniu and Yili.
Talking about the entrepreneurial past 25 years ago, Hu Xiaoyun still remembers it vividly: "Like many enterprises before the restructuring, the Nanchang dairy farm at that time was on the verge of bankruptcy, and some employees who could not see the hope could not get their regular wages. They all chose to leave their jobs. The dairy farm with more than 600 people, except for more than 200 retired employees, has only more than 200 people on the job. "
It was also in this crisis that Hu Xiaoyun was entrusted with an important task by the local government in 1996 and came to Nanchang Dairy Factory from Jiangxi Provincial Department of Agriculture. "At that time, it coincided with the implementation of restructuring throughout the country. There is only one way for dairy farms to survive. Therefore, everyone raised funds for restructuring as a start-up fund. " Hu Xiaoyun said.
The restructuring has also completely stimulated the fighting capacity of employees. The remaining 200 people are both employees and shareholders, and Nanchang Milk Factory has been reborn. Hu Xiaoyun said with emotion: "Now, many old employees miss the entrepreneurial era at that time. In order to open up the market, everyone, regardless of their position, sells all the staff, regardless of holidays, and knocks on the door to sell. Even on New Year’s Eve, we have to sell milk door to door. Nowadays, most of these employees have reached retirement age, but they are still indirect shareholders of the company and enjoy the fruits of development.
In response,Sunshine dairy industrySales have been singing all the way. Hu Xiaoyun said, "From a few hundred copies at the beginning to thousands and tens of thousands later. After 100,000 orders, the word-of-mouth and economies of scale of’ Sunshine’ began to be released, and soon it rose to 200,000 and 300,000 …, gaining a firm foothold in the Nanchang market, and we copied this model to other cities in Jiangxi. "
After years of development and improvement,Sunshine dairy industryThe "milk delivery to households" has gradually formed a sales model based on dealers and supplemented by direct sales. In Nanchang and its surrounding areas, the company develops individual dealers according to the community, who are responsible for market development, milk delivery to households and other sales matters. Individual dealers mainly sell the company’s products through "milk delivery to households" in the selected sales areas; Outside Nanchang, the company mainly develops regional distributors, and selects 1-3 distributors in each municipal area. The company delimits corresponding distribution areas according to the channel resources of each distributor, and is responsible for market development and sales in the area.
After years of intensive cultivation,Sunshine dairy industryIts market share has also risen. According to Euromonitor data, in 2020,Sunshine dairy industryThe market share of low-temperature dairy products in China is about 1.18%; In the Jiangxi market,Sunshine dairy industryYou can wrestle with dairy duo Mengniu and Yili. In 2018,Sunshine dairy industryThe milk market share in Jiangxi is 9.62%, and it is in a leading position in the low-temperature milk market.
Now,Sunshine dairy industryIt has two core trademarks and brands of "Sunshine" and "Everyday Sunshine", with Jiangxi market as the core and radiating markets in neighboring provinces and cities such as Hunan and Anhui. The company’s products are deeply trusted and loved by consumers, and have become one of the most influential dairy enterprises and brands in Jiangxi.
Differentiated competition leads the low-temperature milk market
From a small factory on the verge of bankruptcy to one of the most influential dairy enterprises and brands in Jiangxi today,Sunshine dairy industryAlong the way, we have to face not only giants such as Yili and Mengniu, but also local competitors such as Niu Niu Dairy in Ji ‘an City, Dafu Dairy in Pingxiang City and Gaoshan Qingcao Dairy in Yudu County of Ganzhou City.
whySunshine dairy industryBeing able to break through the tight encirclement, Hu Xiaoyun’s answer to reporters is "innovation-driven, differentiated competition".
In terms of products,Sunshine dairy industryFocus on providing consumers with diversified varieties, fresh quality and personalized functions of low-temperature milk products, andYili stockDairy enterprises such as Mengniu Dairy mainly focus on normal temperature milk products, and the differences in product structure make direct product competition avoided to some extent.
For example, in product packaging,Sunshine dairy industryThere are many forms such as glass bottles, boxes, cups, bags, etc. Among them, the "low-temperature, fresh-keeping" products packaged in glass bottles are favored by consumers. "In terms of taste and quality, the low-temperature milk packed in glass bottles is obviously better than other packages. After high-temperature antivirus, it can be reused to reduce costs. "
While paying attention to quality and taste,Sunshine dairy industryAlso constantly introduce new products. For example, according to the local cultural characteristics and consumption habits, the company has launched products that meet the needs of consumers, such as colostrum products for improving children’s immunity, high-calcium and low-fat fresh milk products for middle-aged and elderly people, low-fat yogurt products for young women, bifid low-fat yogurt products for people with gastrointestinal discomfort, sugar-free yogurt products for diabetics and hotel catering.
"The diversity of products not only effectively meets the needs of market segments, but also the differentiation of products avoids fierce competition in the industry to a certain extent and improves the competitiveness of the company." Hu Xiaoyun said.
In terms of channels, after years of exploration and practice,Sunshine dairy industryA relatively complete sales network has been established, including milk delivery to households, supermarkets, specialty stores, vending machines and other channels, of which milk delivery to households is the main channel.
Hu Xiaoyun said that the milk delivery channel has the characteristics of closure, high customer loyalty and high repeated consumption rate, and the customer viscosity is higher.Yili stockDairy enterprises such as Mengniu Dairy are mainly supermarkets. Therefore, it also effectively avoids direct competition in marketing channels.
Differentiated business strategy also allowsSunshine dairy industryOur profitability leads the peers, which is mainly due to the fact that the company has been mainly engaged in low-temperature products with high gross profit margin for many years, and after years of accumulation, the company has established a flat distribution channel based on "delivering milk to households" and used reusable glass bottles as the main packaging form of products to save packaging costs; At the same time, the "Sunshine" brand has withstood the market test for many years, accumulated a good reputation and saved a lot of advertising promotion expenses.
Sticking to the moat of quality and creating new growth points
In recent years, consumers have paid great attention to food safety. From the "melamine incident" in 2008 to the "Aspergillus flavus incident", "caustic soda incident" and "milk powder mercury exceeding the standard incident" in 2012, many weak links still exist in China’s dairy industry.
Sunshine dairy industryLow-temperature dairy products and low-temperature milk drinks need to go through many links from product production to final sale to consumers. It is worth noting that in all previous food safety inspections, including the "special inspection of melamine", the quality of the company’s products met the requirements, and no food safety accidents occurred.
"Food safety needs to start from the source, and good cows can produce good milk." Hu Xiaoyun said,Sunshine dairy industryOur raw milk comes from self-owned pastures, cooperative pastures and professional cooperatives. Among them, Changshan Ranch, a subsidiary of the company, was rated as a standardized demonstration farm for dairy farming by the Ministry of Agriculture, and passed the organic pasture certification. The newly-added Fengxin Jiamu Ranch will become the best pasture for sightseeing and experience because of its vast territory and good environment. In addition, the company has established long-term cooperative relations with modern animal husbandry, Huahao breeding and other large-scale breeding pastures. By establishing a long-term and stable cooperative relationship with the cooperative pasture, the company has effectively ensured the supply of high-quality milk, thus ensuring the quality of the company’s products from the source.
"Respect cows and be kind to cows" has also becomeSunshine dairy industryThe concept of grazing in all pastures. To this end,Sunshine dairy industryProvide cows with intelligent skylight cowshed, cow "Simmons"-biological fermentation mattress, intelligent anklet, earrings management, massage bath and other environmentally friendly and comfortable grazing environment, as well as perfect management guarantee systems such as health monitoring and professional scientific nutrition catering, so as to ensure the happy and healthy life of cows.
In the logistics transportation system, low-temperature products, as high-nutrition products, have extremely high requirements for low-temperature cold chain transportation from the factory to consumer consumption, which also determines whether the corporate brand can be recognized by consumers for a long time. After years of development,Sunshine dairy industryA cold chain logistics transportation system covering the urban area of Jiangxi Province has been established.
It is understood that according to years of practice,Sunshine dairy industryAccumulated rich experience in cold chain transportation, in the process of product sales, it can realize seamless connection between cold chain transportation vehicles and the whole process of product storage and sub-packaging, avoid the product quality and safety problems caused by the long distribution chain of low-temperature milk products, ensure the timeliness of product transportation, promote the sales of the company’s products, and enhance consumers’ sense of "freshness" of the company’s products.
Hu Xiaoyun, who has just finished his trip to the market, has now plunged into the development of new products. On his desk, the reporter saw the promotional materials of the company’s new product-"Screen Eye Treasure". This product is a functional dairy product that contributes to the health of glasses. It is a key technology and industrial application product of probiotic fermentation of fruits and vegetables, and won the second prize of the National Science and Technology Progress Award.
Hu Xiaoyun said that listing is a new starting point for the company’s development. The company will take this listing as an opportunity, and with the help of the power of the capital market, in terms of products, it will further enrich the product categories through innovative development with high-quality milk sources and stable product quality as the guarantee; In terms of market, Jiangxi is the core market for intensive cultivation, and the marketing system and channel construction of new markets are gradually accelerated to achieve the development goal of "basing on Jiangxi and radiating the central market".