In March this year, Li Tao Bread announced its 20 18 annual performance report. The report shows that the company achieved revenue of 4.833 billion yuan last year, an increase of 4.833 billion yuan year-on-year. Among them, the net profit was 642 million, a year-on-year increase of more than 20%, which was outstanding. At present, the company's market value has exceeded 30 billion yuan (as of August 30), with strong strength. However, the success of Li Tao Bread cannot be separated from the management wisdom of its founder, Wu Zhigang.
Born in 1930s, Wu Zhigang experienced a period of chaos and turbulence. After entering peacetime, he resumed his studies and obtained a university degree. After graduation, he was assigned to the local telecommunications bureau as a telegraph operator. He quit his job because he was not interested in himself.
Many entrepreneurs in China started their businesses when they were still confused, such as Ren Zheng Fei of Huawei and Liang Qingde of Galanz. However, few people start their own businesses in their sixties, and Wu Zhigang is one of them. In the mid-1990s, Wu Zhigang officially retired at the age of 60. Generally speaking, it was the time to enjoy family happiness, but he didn't want to live such a dull retirement life. At that time, the domestic tide swept across the country, and he took this opportunity to start a business trip.
At that time, Wu Zhigang saw bakeries everywhere in the street. Although the industry is in full swing, the market is quite chaotic. He saw business opportunities here. Why not set up a company to be the boss of the bread industry? Therefore, he founded a bread workshop called Li Tao. In order to gain a firm foothold in the market, Wu Zhigang put forward a new strategy, which won the recognition of many consumers. In just two years, it won a place in Liaodong market, which officially kicked off the glory of peach and plum bread.
Later, in addition to paying attention to freshness, Wu Zhigang also put forward the business philosophy that products are expensive or not. It is reported that the series of peach and plum bread has never exceeded 5, and the total number of products has not exceeded 30. On the other hand, the unique taste of the product has won the excellent reputation of users, making the repurchase rate very high. With this, peach and plum bread quickly occupied a large number of markets. By 2005, it has become the largest fresh bread producer in Northeast China, and Wu Zhigang has become the real bread king in Northeast China.
Since then, under the leadership of Wu Zhigang, Li Tao Bread has started a national strategy based on the northeast market, and rapidly expanded to the surrounding markets. It is worth mentioning that the company's business model is different from other enterprises, using the "central factory wholesale" model for production and sales. Large-scale production greatly reduces the production cost and forms a virtuous circle, so that the company can develop rapidly.
In addition, the company is very cautious about the launch of new products and adopts pilot promotion to reduce the cost of trial and error. In other words, it is necessary to try to sell in a certain area for 4-6 months, eliminate backward products by analyzing the data, and copy the successful products to other areas for promotion, and finally achieve the function of optimizing product structure.
When Li Tao Bread was successfully listed, 80-year-old Wu Zhigang surpassed many real estate developers and became the richest man in Shenyang. According to the latest Hurun Global Rich List (20 19) and family fortune, Wu Zhigang's net worth has reached US$ 2.6 billion, equivalent to about RMB186 billion.