Listed on the list of four major competitors by Japanese chemical giant Procter & Gamble, Liby Group (hereinafter referred to as "Libai") is the only local brand that has entered the list.
After sales exceeded 10 billion yuan in 2009, Liby continued its efforts in 2010 to reach 12 billion yuan. Although there is still a certain distance between P&G (China), which has realized annual sales of 60 billion yuan, there is no lack of post-empty trends. Li Xiaodong, spokesperson of Libya News, told an interview with the reporter of the First Financial Daily that in the domestic first-tier cities supermarkets, hypermarkets and other channels, Libya is still weaker than P&G and other foreign-funded daily chemical brands, but the company’s entire sales channel is in daily use. The industry is recognized as the most competitive.
Founded in 1994, Li Bai initially adopted a strategy of “encircling the cities from the countryside†in order to evade the positive competition with the foreign capital giants. He also chose a rural market where foreign brands were hard to reach, and launched a marketing campaign for one counties and one county. In the campaign, no local department stores are found, but only local reliable and powerful individual dealers.
Due to limited funds, Li Bai Founder Chen Kaixuan was the first to implement the cash spot rule in the industry, and even set dealers can only do Libya products, which is convenient for capital intensive, resource concentration, but also conducive to development, but one It began to encounter many difficulties and boycotts.
In the daily chemical industry, there is a default unspoken rule: all manufacturers sell in the form of credit sales, first post-delivery settlement, how much the dealer's sales appetite, manufacturers have to give a lot of goods, and more money has to be Manufacturers padding. This unspoken rule has created a high obstacle for the latecomers. It is difficult for a start-up company to come up with so much money to spread the goods to occupy the market.
Li Bai’s “spot cash†clause was immediately launched and immediately met with fierce opposition from distributors. Chen Kaixuan talked with relatives and friends and persuaded dozens of relatives and villagers, including teachers, workers, and small bosses. The "Leading Pioneer" team rushed to expand markets throughout Guangdong.
It is this "relative card" that foreign-funded enterprises can't think of and can't use. Plus the strong pull of advertising, Liby's "Guangdong Raiders" has an immediate impact.
A few months later, shops, supply and marketing cooperatives appeared everywhere, and some dealers also took the initiative to find a door to seek cooperation and accepted all “harsh†conditions such as special salesman and spot cash. Within a few years, Libya occupied most of the township markets in Guangdong. In 1997, the triad debt crisis of the daily chemical industry broke out. A quarter of the country’s daily chemical companies were dragged to death or were forced to die. However, in this year, Libya took root in fifty to sixty counties in Guangdong and then entered the center. The city won the first battle of “encircling the cities in rural areas†and broke through in the grip of foreign brands. It took the top place in the detergent industry in Guangdong and achieved sales of more than one billion yuan, which has taken us to a new level.
After taking root in Guangdong, Liby Company further developed inland and seized key markets to break through one by one.
Li Bai’s proprietary dealer system was based on counties from the very beginning. If you enter a new province, you do not set up branches in the provincial capital. Instead, you choose two or three influential prefecture-level cities as breakthroughs to allow sales personnel to directly Several of the most powerful counties have selected several dealers for special sales. In Sichuan, several subsidiaries of Libya are even located in townships.
When dealers in a certain place make a name, many dealers in the vicinity often come here. At this time, through the existing "successful effect", dealers will be developed one by one, covering all areas that cannot be covered. Each distributor is subdivided into units set up by counties, each of which is required to do thorough work, and the channels extend down one level at a time.
Now, Liby's dealerships have reached more than 1600, and have already occupied the three-to-five-line market in China, which is the most difficult to break through and is the most complicated foreign brand.
In recent years, foreign brands have stepped up their efforts to deepen the market outside the frontline market, while Libya has accelerated competition for the frontline market. Xu Xiaodong mentioned that Liby's business in the first-tier cities has been climbing rapidly. It has joined forces with foreign brands in the first-line market and other markets, but it does not affect the rapid growth of Li Bai's performance. This is inseparable from Li Bai's channel advantages. In contrast, Li Bai is more familiar with the local market. After the accumulation of capital, technology, and talent in the early stage, the difficulty of accelerating attacks on first-tier cities will be less difficult than that of foreign brands entering the three- to five-tier market.
However, Libya encountered some bottlenecks in its profit growth. In the Libai Product Showroom, in addition to its own products, there is also a dedicated showroom to display competitors' products, which is like a big supermarket. Although the Liby brand washing powder and dishwashing detergents successively climbed the national sales championship for such products, Liby's products were mainly concentrated in middle and low grades. The research and development and marketing of high-end products was obviously weaker than foreign brands.
After sales exceeded 10 billion yuan in 2009, Liby continued its efforts in 2010 to reach 12 billion yuan. Although there is still a certain distance between P&G (China), which has realized annual sales of 60 billion yuan, there is no lack of post-empty trends. Li Xiaodong, spokesperson of Libya News, told an interview with the reporter of the First Financial Daily that in the domestic first-tier cities supermarkets, hypermarkets and other channels, Libya is still weaker than P&G and other foreign-funded daily chemical brands, but the company’s entire sales channel is in daily use. The industry is recognized as the most competitive.
Founded in 1994, Li Bai initially adopted a strategy of “encircling the cities from the countryside†in order to evade the positive competition with the foreign capital giants. He also chose a rural market where foreign brands were hard to reach, and launched a marketing campaign for one counties and one county. In the campaign, no local department stores are found, but only local reliable and powerful individual dealers.
Due to limited funds, Li Bai Founder Chen Kaixuan was the first to implement the cash spot rule in the industry, and even set dealers can only do Libya products, which is convenient for capital intensive, resource concentration, but also conducive to development, but one It began to encounter many difficulties and boycotts.
In the daily chemical industry, there is a default unspoken rule: all manufacturers sell in the form of credit sales, first post-delivery settlement, how much the dealer's sales appetite, manufacturers have to give a lot of goods, and more money has to be Manufacturers padding. This unspoken rule has created a high obstacle for the latecomers. It is difficult for a start-up company to come up with so much money to spread the goods to occupy the market.
Li Bai’s “spot cash†clause was immediately launched and immediately met with fierce opposition from distributors. Chen Kaixuan talked with relatives and friends and persuaded dozens of relatives and villagers, including teachers, workers, and small bosses. The "Leading Pioneer" team rushed to expand markets throughout Guangdong.
It is this "relative card" that foreign-funded enterprises can't think of and can't use. Plus the strong pull of advertising, Liby's "Guangdong Raiders" has an immediate impact.
A few months later, shops, supply and marketing cooperatives appeared everywhere, and some dealers also took the initiative to find a door to seek cooperation and accepted all “harsh†conditions such as special salesman and spot cash. Within a few years, Libya occupied most of the township markets in Guangdong. In 1997, the triad debt crisis of the daily chemical industry broke out. A quarter of the country’s daily chemical companies were dragged to death or were forced to die. However, in this year, Libya took root in fifty to sixty counties in Guangdong and then entered the center. The city won the first battle of “encircling the cities in rural areas†and broke through in the grip of foreign brands. It took the top place in the detergent industry in Guangdong and achieved sales of more than one billion yuan, which has taken us to a new level.
After taking root in Guangdong, Liby Company further developed inland and seized key markets to break through one by one.
Li Bai’s proprietary dealer system was based on counties from the very beginning. If you enter a new province, you do not set up branches in the provincial capital. Instead, you choose two or three influential prefecture-level cities as breakthroughs to allow sales personnel to directly Several of the most powerful counties have selected several dealers for special sales. In Sichuan, several subsidiaries of Libya are even located in townships.
When dealers in a certain place make a name, many dealers in the vicinity often come here. At this time, through the existing "successful effect", dealers will be developed one by one, covering all areas that cannot be covered. Each distributor is subdivided into units set up by counties, each of which is required to do thorough work, and the channels extend down one level at a time.
Now, Liby's dealerships have reached more than 1600, and have already occupied the three-to-five-line market in China, which is the most difficult to break through and is the most complicated foreign brand.
In recent years, foreign brands have stepped up their efforts to deepen the market outside the frontline market, while Libya has accelerated competition for the frontline market. Xu Xiaodong mentioned that Liby's business in the first-tier cities has been climbing rapidly. It has joined forces with foreign brands in the first-line market and other markets, but it does not affect the rapid growth of Li Bai's performance. This is inseparable from Li Bai's channel advantages. In contrast, Li Bai is more familiar with the local market. After the accumulation of capital, technology, and talent in the early stage, the difficulty of accelerating attacks on first-tier cities will be less difficult than that of foreign brands entering the three- to five-tier market.
However, Libya encountered some bottlenecks in its profit growth. In the Libai Product Showroom, in addition to its own products, there is also a dedicated showroom to display competitors' products, which is like a big supermarket. Although the Liby brand washing powder and dishwashing detergents successively climbed the national sales championship for such products, Liby's products were mainly concentrated in middle and low grades. The research and development and marketing of high-end products was obviously weaker than foreign brands.