What has been the operating status of Liby Group (daily chemicals) in the past five years?

At the beginning of this year, Liby made an important appointment at its dealer conference. She Chuhong, who has been in charge of Liby's sales for more than ten years, was transferred from the position of general manager of the sales company, and Jiang Xingzhou, the former national sales general manager of Jianlibao, assumed the position. Sales executives change frequently. She Chuhong, the former general manager of Libai Sales Corporation, and her boss Chen Kaixuan started their business together. They are senior figures in Liby. His departure reflects the adjustment of Liby's business thinking. At the beginning of 2008, Liby proposed a new slogan at the dealer conference, namely, "Say goodbye to Liby's traditional marketing campaign and win the second battle of international modern marketing." At the beginning, Liby was just a brand that did not even have a factory or products. Chen Kaixuan used the idea of ​​​​"resource integration" to successfully persuade some state-owned enterprises to give him unsold washing powder and sell it with the Liby trademark. This accumulated the first pot of gold for the establishment of Liby. In 1994, Chen Kaixuan established Liby Detergent Products Co., Ltd. in Guangzhou. One year later, Liby's sales reached 100 million. Liby's sales in 2007 were nearly 8 billion yuan. It has eight production bases, more than 20 processing plants, eight categories of products across the country, and one of the world's most advanced automatic liquid detergent filling production lines. Liby became P&G's research target in the laundry industry. When She Chuhong served as the general manager of the sales company, he explored a unique dealer franchise model, which ensured the stability of Liby's channels and the effective communication of dealer policies. He has always been praised by the daily chemical industry, making Liby successful in just 14 years. , from a small workshop, it quickly became the third largest daily chemical company in China after Procter & Gamble and Unilever. However, an industry source revealed that Liby’s rebate to dealers is not high, only 2.5%, and the industry’s maximum does not exceed 4%. However, dealers have only represented Liby products for many years. Liby currently has more than 1,000 first-level dealers across the country. They sign contracts with Liby and accept Liby's management. These first-level dealers authorize second- and third-level dealers on their own. Xu Xiaodong said that 90% of Liby’s original dealers still serve Liby. Initially, most of these dealers were relatives and friends of Chen Kaixuan, and most of them were mom-and-pop shop operators. They were mainly responsible for channels in South China. 90% of dealers intend to expand later. Liby helps them establish internal management organizations, manage them in a corporate manner, and help them operate in the form of branches. Xu Xiaodong, assistant to the president of Liby, said that channels are a very important factor that distinguishes Liby from Procter & Gamble and Unilever, which are very successful in terminals. The second battle of modern marketing mentioned by Liby is actually to increase efforts on the terminal, and the general manager of the sales company also needs a younger successor. Industry insiders said that Liby hired Jiang Xingzhou, who had served as the national sales general manager of Jianlibao. He proposed concepts such as "Fifth Season" to reshape the Jianlibao brand image and set a record of Jianlibao's sales of 2.7 billion yuan that year. Liby is exactly Hope it makes a difference on the terminal. "But Liby is a family-owned company after all. Many things are difficult to withstand the confrontation of the original forces. It is difficult for Jiang Xingzhou to integrate into Liby's family-style management culture." The above-mentioned person said. Liby said that Jiang Xingzhou's resignation was due to personal reasons. Later, the general manager of Liby Sales Company was promoted to the post by the original deputy general manager. She Chuhong was promoted to vice president of Liby Group, directly managing the sales department and marketing department of the sales company. Still, some say the new position is more sinecure-like. An industry insider believes that the change of sales general manager will not affect its operations. Liby has always operated according to the ideas of CEO Chen Kaixuan. Terminal breakout Gu Jun, a veteran in the daily chemical industry, believes that 7-8 billion yuan seems to be a bottleneck for local daily chemical companies. For example, Diaopai claimed to achieve annual sales of 10 billion yuan, one-third of the world. However, after its sales reached 7-8 billion, it began to stagnate or even decline. Nowadays, the low-key Libai is about to reach 8 billion yuan without making any noise. However, Liby and its peers have faced a similar problem recently. The sharp increase in oil has brought about an increase in the cost of daily chemical products. Xu Xiaodong said that the price of daily chemical raw materials in 2008 has increased by more than 100% compared with 2006. However, detergent products rely on volume sales and the profit itself is not high, so they face great operating pressure, but they cannot be passed on to consumers. , so we can only rely on reducing management costs and other means to digest the problem of cost and price increases to the maximum extent. At the same time, Liby has been growing steadily at a rate of more than 30% in recent years. In 2008, Liby set an annual sales target of 10 billion yuan.

"With sales of nearly 8 billion yuan in 2007, how can we break through? One of them is to build terminals. The only way for us to develop large terminals is to develop large terminals." Xu Xiaodong said that currently, most daily chemical companies sell through terminals. China has a large rural population and few access to large supermarkets. Therefore, it is necessary to make changes at the terminal and explore a marketing model that is in line with international trends. Liby Sales Corporation has set up a direct sales department to manage major international and national direct chain stores across the country, and at the same time leverages the power of dealers from all over the country to strengthen store sales. In 2007, Liby became the supplier of laundry supplies for the Beijing 2008 Olympic Games and the exclusive supplier of laundry supplies for the Beijing 2008 Paralympic Games, spending more than 100 million yuan. Xu Xiaodong said that Liby plans to invest approximately 200 million yuan to open more than 50,000 Olympic Games specialty stores across the country. Another way for Liby to break through is through capital expansion. It hopes to expand its product line through acquisitions and penetrate into daily chemical industries such as toothpaste, shampoo and cosmetics in addition to detergents. In 2003, Liby acquired Guilin Henkel and leased Luoyang Minghua. In 2004, it acquired Siping Henkel. In 2005, it acquired Hunan Chaowei and Tianjin Lantian. In 2006, it acquired Jiangxi Chaoling and Shanghai Gaozi. "As long as there are brands on the market that are suitable for our product line and in line with our development strategy, we do not rule out continuing to adopt this approach for mergers and acquisitions." Xu Xiaodong said that Liby plans to go public in China.