Winning the new financial era

Chapter 7 Pet Food Industry

From the father's point of view, the development of an enterprise must not rest on its laurels, it must persevere in research and development, and new products are constantly launched and iterated.Innovation is the first competitiveness, and sticking to the rules will only be gradually eliminated by the market.

And my mother's starting point is also good. It is really risky to rush into an unfamiliar field without sufficient market research.

"Today's life is not easy. Houses and cars are not bought after [-] years of hard work to make money. What should I do if I lose money in research and development?"

"I still have to invest tens of millions. Is that a small amount? Whose money is blown by the wind?"

Xia Xiaorong was very excited, arguing with her face flushed.

"I know it's not easy to make money. Have I spent a penny in these years?"

"You think about putting money in the bank all day long. It's better to buy a few more houses than to put it in the bank."

Zhang Qinghua was also out of breath for a while, so he quickly lit a cigarette and inhaled it into his lungs to relieve the restlessness in his heart.

Seeing this, Zhang Yida hurried out to smooth things over, and said:

"Mom and Dad, what you all said is very reasonable. You really have to make a plan before you do things. Doing things recklessly will only hit your head and bleed."

"Talking about you, you are so stupid that you don't investigate everything clearly and you have to invest 1000 million. If you have too much money, there is nowhere to spend it!" Xia Xiaorong said, casting a glance at her husband.

Zhang Qinghua was about to speak when Zhang Yida continued:
"As far as I know now, there are many giants in the feed field, and the output of the industry last year reached 1.8 million tons."

"Hopefully, Zhengtai, Wen's, Twins and other top ten giants together sold a total of 6600 million tons last year, accounting for 36% of the industry's market share, compared to 29% last year."

"In one year, the market share has increased by 7%. The giants have obvious advantages in capital, technology research and development, advertising, and supply chain management. Looking at future development, it is foreseeable that these giants will further encroach on small and medium-sized feed companies. market share.”

"Under the accelerated reshuffle, a large number of small and medium-sized feed companies with an annual production capacity of 10 tons will be eliminated by the market."

"If you want to survive in the feed industry, you must improve your own product competitiveness and form differentiated competition with giants."

After speaking, he looked at his stunned parents, who were digesting the information in Zhang Yida's words.

"Son, where did you hear the news?"

Xia Xiaorong asked a little anxiously.Thinking that the development of my own factory is at its peak, this year's sales and profits have both broken through history and reached 2 tons and 1 million.How come the son said that he was about to go bankrupt and go bankrupt.

"Look, my son said that he wants to develop new products, improve technology, and enhance the competitiveness of enterprises."

Zhang Qinghua spread his hands and said triumphantly.

"Where did you get this information? Is it reliable? Are you really going to close down a large number of small feed factories?"

Zhang Qinghua was glad that he had the foresight, but he also questioned the news.

"It's true. An old professor in our school mentioned these views and opinions in a special lecture. He calls on small feed companies to transform as soon as possible and prepare for market shocks as soon as possible!"

Zhang Yida didn't blush even when he panicked, and his heart didn't beat.Capital University doesn't have agriculture and forestry majors at all, so where can the old professor give lectures.

But it’s also a painstaking effort. It must be stopped if you continue to develop new feeds like in the previous life. If you don’t do anything, the feed factory will also decline in the future.

So he thought about his language, and said:

"In addition, the old professor also mentioned some views and cases on the transformation of small and medium-sized feed mills!"

Zhang Qinghua hastily asked:
"How do you say it? Are there any success stories?"

"Transforming a pet food factory!"

"First, pig feed and pet food have some commonalities, and the span is not particularly large."

"Second, with the development of urbanization and the improvement of people's living standards, keeping pets, such as cats and dogs, is becoming more and more popular. This is a market worth hundreds of billions."

"Third, the development of the industry is relatively slow, and it has only begun to develop rapidly in recent years. There are no giants in the industry, and there is a lot of room for development and opportunities."

Zhang Yida paused after speaking, and glanced at his parents. Zhang Qinghua and Xia Xiaorong were listening with great interest, and urged him to continue the success story.

"There are many successful cases. The most typical and successful one is Nanhe County in Yandi, which used to be full of small factories and workshops for processing feed."

"Since 06, these small factories have begun to transform into pet food. After nearly ten years of development, they now have 38 pet food companies and more than 330 registered brands. The annual output has reached 54 tons, with an output value of 50 billion yuan. Accounting for 60% of the national market share, it has become the largest pet food production base in the country. At present, there are 229 pet-related enterprises in the county, and 3.3 people are directly or indirectly engaged in the pet industry."

"At present, there are relatively well-known brands in China, such as Rongxi, Huaxin, Saide, Nock, etc."

……

Zhang Yida talked a lot, his mouth was dry, and he watched his parents who were thinking while drinking water.

"After the National Day, I'll go to Nanhe County to investigate. If it's really as good as you said. It's not that we can't do it."

"Our family has ready-made workers, equipment, and factory buildings. We can even come up with 5000 to [-] million yuan if we put together the funds."

Zhang Qinghua said excitedly as if he had discovered the New World of America, feeling that he had opened up a whole new world.

"I think there are a lot of people in our county who raise dogs and cats. If the dog food produced can be sold, that would be great. I heard that a bag of ten catties of dog food costs more than 100 yuan! The profit is more than Pig feed is at least several times higher.”

Xia Xiaorong was also interested in this and interjected.

"Mom, that's a good question."

"If the produced pet food is to be sold, we must do the following two things well."

"First, we must pay attention to technology research and development."

"The long-term plan is to cooperate with the Agricultural University to establish a pet food research institute, continue to develop and promote new products to the market, and strictly control product quality."

"The short-term plan is to dig a research and development team directly from Nanhe and get started quickly."

"Second, is the marketing channel"

"The traditional channels are cooperative dealers, shopping malls and supermarkets."

"The emerging channel is to open online stores, cooperate with Internet celebrities to bring goods, and engage in online marketing."

Zhang Yida paused, and then emphasized:

"Especially in online marketing, we must take it as the main battlefield to focus on breakthroughs, and it is also a great help for us to get closer to the current leading enterprises in the pet food industry."

"The online marketing you are talking about, isn't online sales just like opening a Taobao store. Can you still sell tens of thousands of tons a year?"

Zhang Qinghua frowned and said.

He is not very unfamiliar with Taobao stores. He knows that young people like to buy clothes, lipsticks and so on.

"Taobao store is just one of the online marketing methods. Thousands of search bidding rankings, pet websites, Internet celebrities to cooperate with publicity and hype, pet scarf numbers, water army public opinion publicity...etc. can be done. It is to hype the popularity of our products go up."

"Most of the people who keep dogs and cats are young people, and they all go online. We just do publicity and place advertisements online."

Zhang Yida explained the manipulation techniques of his previous life.

"We are too old to play with the Internet."

Zhang Qinghua shook his head, smiled and said.

"I will, and I can also find someone to help you. Capital University has a lot of talents. I can invite a few graduates who are good at online marketing to help me."

"These are small problems. The key is that we have to do a good job in the production line and food formula, and we will never worry about buying them after production."

Zhang Yida said confidently.

"That's fine, I'll discuss it with your mother, and then investigate the pet food industry."

"If there is something really wrong, let's make a plan and let's see!"

Zhang Qinghua turned to look at his wife and said.

"Okay then, the corporate strategy consulting class is over, it's time to pay."

After speaking, Zhang Yida extended his palm to his father.

"Have you run out of living expenses so quickly? You only got 2 yuan when school started, and [-] yuan a month is not enough. Your parents still work hard to earn money, and they are all saved from bags of feed. You should save Save some money."

After Xia Xiaorong finished speaking, she slapped Zhang Yida's outstretched palm with a "slap".

"No, I will teach you how to get rich and tell you a way to make money."

"This kind of strategic consulting service is all paid, and the fee is not low. Seeing that you have raised me for 18 years, the price of raising me is 100 million!"

"Quick, quick, take the money, take the money!"

Zhang Yida said innocently.

"Okay, I know you've spent all your living expenses. When you go to school in a few days, Dad will give you another 2 yuan, so you can save some money!"

Looking at his son with a hippie smile beside him, Zhang Qinghua said boldly.

Zhang Yida is going crazy, why don't you believe me, living expenses are more than 1, he is a thrifty person!

"To tell you the truth, it's me, a senior who wants to start a business. I have already gathered a group of top students from Aoki and Beijing University. The only thing I need is funds. I'm going to invest in them."

"The team is amazing. My senior brother is a formidable figure. He is the chairman of the school's student union, with excellent character and learning. Investing in his project will definitely succeed!"

Zhang Yida could only say this. Based on his understanding of his parents, it would be impossible to say that he was planning to start his own business.

Then I took out the business plan I had used in my chat with Lin Zhenyang Cafe that day, and explained to my parents the future trends and prospects of Internet financial entrepreneurship.

"You said that you can borrow money through this website in the future? You can also invest and manage money?"

Father Zhang said.

"Yeah, Jack Ma has already started to do it, and Yu'e Bao will come out in June."

After Zhang Yida finished speaking, he took out Alipay on his mobile phone and showed his parents how to transfer in, transfer out, and the rate of return.

"Jack Ma is doing it, how many college students can compete with others?"

Father Zhang pursed his lips and said.

"Aspirations do not come at a young age. This market is trillions of dollars, very large, and has not yet formed an inherent power structure."

Zhang Yida said unconvinced.

"If you want me to say, it's better for you to study hard than anything else. It's enough for your father and I to worry about doing business!"

Zhang Muyu said earnestly.Why didn't this kid go to Beijing for a month to study in university?My temper has also started to become wild, I need more education!

(End of this chapter)