Everything under the heaven has its own law of operation and development trend, that is, “destiny”, except a few escape, the vast majority. Cycle is like a big hand with invisible power. When you go up, you will develop as soon as you step into it. Recessions, when they come, are like machetes, or even corporate shredders, with enormous destructive force.
How is this magic created? In my opinion, it is the result of the interaction between the uncertainty and volatility of the macro environment and the greed and willfulness of human nature seeking profit and fame on the micro level. Trends and cycles are the uncertain and out of control curves created by the collision of these two dynamic forces, personal and organizational greed and capriciousness.
The so-called crossing is just to break the magic spell of laws and transcend individual “destiny” and live longer through internal self-construction. In other words, it is how to make the enterprise continue to grow steadily and pursue lasting prosperity.
In order to facilitate the exploration of the way through and run to win, we first focus on an industry, through several liquor enterprises, to explore what is the underlying ability of the enterprise through.
Liquor industry nearly three cycles of fluctuation
Before we begin, we first sort out the cycle of nearly three rounds of liquor industry. Liquor industry is basically about 10 years of an industry cycle.
The first round: 1990-1999, liquor industry rapid development period; From 2000 to 2002, there was a low ebb in development for about 3 years.
The second round: from 2002 to 2012, the liquor industry entered a golden decade of rising volume and price. From 2013 to 2015, there was a 3-year low tide.
The third round: From 2015 till now, well-known liquor enterprises have started another round of rapid growth. And the impact of COVID-19 is accelerating the differentiation of growth.
Focusing on the analysis of kouzi, Yanghe, Gujing and other liquor enterprises in the three cycles of crossing and wandering, it can be found that all can cross the cycle of enterprises, usually have five basic conditions.
First, have a good product
In 1998, anhui cut winery change traditional aroma, launched the open pit and types, 5 years, 80-100 yuan price positioning, placeholder in the high-end, the main “social consumption”, relying on its unique yellow bearing tin box, triangle shape, degree of differentiation (40.6 degrees c), differentiation capacity (400 ml), differentiated scent and taste, As well as innovative marketing model, soon best-selling jianghuai land. At the same time, it also extends the 10-year cellar and 20-year cellar on the basis of the 5-year cellar. Kou zi cellar also therefore for many years firmly sit the seat of hui wine boss.
In 2003, Jiangsu Yanghe Distillery, in trouble, innovatively launched the soft series of yanghe blue classic “Haitian Dream” series. At the beginning, it mainly promoted the sea Blue of 168 yuan, which not only positioned itself as the first rank, occupying the middle and high-end positions, but also constantly raised the price to stand out in the high-end market competition. With the change of consumption channels and the innovation of marketing mode, we mainly promote the upgrading of products from sea blue to sky blue, and from sky blue to dream blue, and refine the product line of fission dream blue, step by step, continue to upgrade, and keep the leading price and brand occupying position, holding the potential energy of products and brand highs. Blue classic series, not only let yanghe winery out of the trough, and all the way into the industry top three.
In 2008, the original vintage of Gujinggong wine was born, thick, mellow and dignified. As a companion of gujinggong’s elegant wine, the main product promoted at that time, it attracted thousands of eyes when it appeared at the Chengdu Spring Fair. And its price positioning of 158 yuan, higher than anhui market first competitive product mouth cellar 5 years half a body. From the initial listing of 20 million yuan, to the current annual sales of more than 10 billion yuan, a miracle in the history of Chinese marketing. With more than 10 years of “double digit” growth, Gujing Gong wine was able to return to the first camp of liquor.
To sum up, a good product should be distinctive with distinctive quality and temperament, which can bring unique value experience to consumers. A good product is the root of an enterprise, the source of vitality and resilience.
Second, there is a good team
An excellent enterprise must have an excellent team who can fight well. Gujing Gong Wine can continue to develop rapidly, not only has a good product, but also benefits from an excellent team. Liang Jinhui, chairman of the board, is an entrepreneur who pays more attention to talent training and team building. When he leads Gujing Sales Company, he pays special attention to the ethos construction and talent echelon training of the team. He has personally taught the marketing backbone for many times and created the “marketing iron army” of Gujing.
Third, there is a good model
Enterprises through the cycle have a set of distinctive “play”!
Kouzijiao’s five years of success is due to its insight into channel changes, the initiative of the “hotel plate in the plate” model, through the hotel channel breakthrough and rise to prominence, leading hui wine for many years.
Yanghe blue classic take-off, is to rely on the back of the “dish in the dish mode” (that is, “consumer dish in the dish”), directly attack the core consumer mind, started the core consumption “dish” to be able to sell like hot nationwide, the industry top three.
The year of raw pulp can blow a black cyclone in the industry, thanks to the “three links” project (namely, Lu Lu, stores, everyone), selected focus on the core area, to create core model stores, continuous communication with the core consumer groups, continue to improve the market coverage, market share and market named purchase rate.
Fourth, have a good brand
Brand is a person, a personified portraiture of corporate values. Brand is an external tool for enterprises to cross the cycle. All the characteristics, shortcomings, strengths, fireworks and human touch of a company will eventually be revealed in the brand.
Enterprises that go through the cycle not only pay attention to communication with consumers and consumer experience, but also pay attention to good interaction with the society. They actively shape the image of responsible and friendly social citizens and attach importance to the construction of social reputation. Focus on building brand identity, the pursuit of brand belief and build the highest realm of brand worship.
Fifth, have a good culture
Culture is the soul of the development of an enterprise, and it is the magic power to open the way through the cycle.
What truly penetrates and inherits an enterprise is not its product, brand or model, but its corporate culture. Any long-lasting enterprise has its own unique culture.
How to build sustainable and resilient growth?
There are no two identical leaves in the world, but leaves of the same kind have similar genes and the same rules. We want to go through the cycle from the enterprise case, looking for reference and inspiration.
Lesson 1: Have a sense of boundaries and the ability to know what can’t be
We all know that “you can’t do everything”, but few people are really willing to admit that they can’t do anything. Companies, like people, have their own strengths and weaknesses, but often like people, without realizing it, always think that they can do anything, just bad times.
For example, why did the Gujing Gong wine we studied slip from the top three of the national industry to the edge of delisting from 1999 to 2007?
Let’s replay: a white wine started with business enterprise, after the establishment of ancient group, widely involved in hotel, real estate, securities finance, wine, beer, mineral water, Chinese medicine pharmaceutical, biological, pharmaceutical, electronics, logistics, glass bottles, printing and publishing, agricultural and sideline products deep processing and so on dozens of industries, and thou expansion pace all over the country, all walks of life. A lot of people change from production clothes to suits on the production floor and are appointed project leaders.
Looking back on its past, can find: as if everything can be done, but nothing! And energy run off, resources spread pepper, but dragged down the main industry, some executives in jail.
Successful enterprises and successful people are the same, often have the heart of “fear”, know what they can do, can not do, know their own ability boundaries.
Revelation 2: The ability to focus
“There is no god of war, I am only good at using multiple times the strength of the enemy to focus on a small number of enemies! Fight battles of annihilation, quickly cut through and crush the enemy.” I can’t remember a sentence from which play, but the truth can never be forgotten, there will never be a breakthrough without focus.
Resources are limited, the enemy is always strong, the environment always has great uncertainty, resilience grows and can only focus on breakthroughs.
Revelation 3: Have the ability to control the pace
There is a rhythm to growth.
Many enterprises fail in the cycle, not because they are not excellent, but because they have developed too smoothly in the first place and have gone too fast in the second. Often, because the business is too big and the battle line is too long, when the external environment changes or shocks, they will fall down, and some will never be able to rise again.
Eat a meal bite by bite, fight a battle by battle. Yanghe blue classic growth, is to start from the blue of the sea. With the promotion of the brand and the upgrade of consumption, and to the sky blue as the main products, and then upgraded to the dream blue series as the main products, the annual sales of 20 billion yuan, dream blue series has been the first series.
The sense of rhythm, is not rash, not aggressive, not self-awareness imbalance. Respect the basic law, we should not only accelerate the sprint, but also have timely deceleration correction, positive direction, rest and recuperation. A retail enterprise with a better sense of rhythm is Xuchang’s Fat East, which is worth learning.
Revelation 4: have revolutionary innovation ability
Businesses, like computers, must do their own garbage cleaning and version updating every time a development runs, or it will slow down and even crash. However, sustained growth of resilience, or leapfrog development, maintenance cleaning and upgrading alone is not enough, must be planned in advance partition formatting, reinstallation of new versions, must carry out self-revolutionary innovation and upgrading.
Revelation 5: The ability to persevere
Crossing is a long war, psychological capacity and market endurance are huge consumption, need to insist, insist, insist until success. Because growth needs to be corrected in the implementation, in the implementation of correction.
In today’s bumper year, half of the first batch of customers developed in 2008 did not stick with it.
The ability to create a second growth curve
No matter the vintage pulp or the blue classic, the reason why it can sell well for more than 10 years is due to its second growth curve. Instead of waiting until growth peaks, leading entrepreneurs and companies launch new products or new businesses ahead of time to create a second growth curve and unlock a new wave of rapid growth.
Traversal is a process of cultivation, which confronts the external cycle but tests the internal basic skills of the enterprise.
