Chapter 102 LiabilitiesUnlike the farmers who are eager to take action, the seed companies are wary. As a distributor of Tianhe Seeds in Shandong Province, Zhao Hua was very satisfied with Tianhe's publicity efforts. Channels are king, this is the consensus in the seed industry. Whether the channel is vertical or flat, channel members should have a common motivation point. Like a train, Traditional trains have to rely on the locomotive to run fast, but EMUs start with braking at each stage, which greatly increases their speed. If new varieties are to be promoted in new markets in a short period of time, intensifying publicity of the varieties is the only option. Once the publicity reaches a certain level of popularity and the product becomes a mainstream variety, there will be no worries about sales. Not only that, In order to develop new markets, Tianhe has also introduced many other promotional policies.
For example, widening the gap between wholesale price and retail price to give dealers concessions. For example, free samples and gifts were given to farmers who were interested in Tianhe's hot pepper seeds. What makes foreign seed companies feel uncomfortable is that With the great price discount, some reputable large-scale growers in Shandong Province have chosen to demonstrate the planting of Red No. 1 sweet pepper seeds. The vegetable seed market in Shandong Province is the base camp for foreign-funded seed companies. After several years of development and huge investments, Syngenta and Syngenta have become well-known brands in the local area. However, although Syngenta and Syngenta Seedlings are well-known in the field of vegetable seeds, they are still companies with weak financial strength compared with multinational companies in other industries. Especially for Sunnis, it does not have much money to invest in advertising, and mainly relies on its own funds to cultivate the market. Resource limitations mean that it is unlikely that he can open up too many markets at once. Therefore, managing the existing market well and expanding the market share in advantageous regions is an inevitable choice for Sunnis. Faced with Tianhe's disruption, Shengnis Seed's reaction was the most intense. Various promotional methods are also constantly followed up. At the same time, they were very afraid that Tianhe would initiate a price war and fall into a situation of low-price dumping. The high profits of Seminis Seeds will no longer exist. What makes Saint Nice uncomfortable is that the price of Tianhe Seed's Red No. 1 sweet pepper seeds has always been very low. Tianhe here, Without having time to consider other people's ideas, we gradually strengthened the construction of our service system. Through pre-sales, in-sales, after-sales and training services, we convey product-related knowledge, including other agricultural knowledge, to consumers. This makes foreign seed companies such as Saint Nis even more worried! Although those unlicensed guerrillas in China still occupy 20% of the market share, they are not worried at all.
The newly emerged Tianhe Seed Company made them extremely wary. A systematic regular army is more difficult to deal with! The situation in Shandong Province is just a microcosm. In important markets such as Yunnan Province, Zhejiang Province, and Hebei Province, Tianhe has also simultaneously implemented a deep distribution strategy. With strong financial support, Tianhe’s marketing network took shape quickly. Tianhe’s logistics system also develops in parallel with its marketing network. The average inventory cycle of seed production enterprises in Hexi region is as long as 4 months. However, Tianhe has invested huge amounts of money and has initially established its own logistics system, and the inventory cycle can now be controlled within 2 months. In Longnan Province, Tianhe adopts the direct sales model of company-retailer-farmer, penetrating into various towns and setting up more than 500 seed retail outlets. Seeds are also distributed directly to sales points from Tianhe’s central warehouse. In important markets such as Shandong Province, Zhejiang Province, Yunnan Province, and Hebei Province, Tianhe has also established distribution centers to carry out distribution. As for the remaining market, we will temporarily cooperate with third-party logistics companies. In this way, Tianhe completed its entry into the seed industry in an upright manner. With Tianhe's strong publicity and concessions, Distributors and retailers in various places dare to distribute large quantities of goods, and each of them has the motivation to carry out seed promotion. The processed and packaged seeds are continuously sent to sales outlets through central warehouses and distribution centers. Shandong Province, Quancheng, Seminis Seed Company sales office. Office manager Jiang An and a group of salesmen concentrated on calculations for a while before speaking in a sigh. "Retailers are seeing a noticeable reduction in the amount of bell pepper and hot pepper seeds they are taking." "Tianhe's move is too ruthless!" “赤红1号和天椒1号种子每包都是20g，刚好一亩的量，。” Jiang An is a young and strong man, and he has mixed feelings after hearing this. Foreign seed companies are better than domestic companies in terms of working environment and treatment, and they rely most on high profits. Most of the bell pepper seeds from Seminis are priced by the seed. Some varieties can even be priced at yuan per grain, which is equivalent to 4 yuan per kilogram. He had already tasted Red No. 1. The taste is not bad at all. The price of yuan per bag is only considered to be upper-middle level among domestic seeds, and its competitiveness is unquestionable. Jiang An felt that this year's performance would not be good. Beijing, the Chinese headquarters of South Korea's Shinong Corporation.
Jin Yongshun crossed his legs and said in a decisive tone. "Selling seeds depends on the variety. If the variety is not good, no advertising or promotion will be of any use." "Do you think Huaxia can cultivate any good pepper seeds?" "Tianjiao No. 1 has received very good response in Lanzhou, Gangu and Jinchuan." A Huaxia salesperson reminded. Jin Yongshun glared at the salesman fiercely, "Just because it's suitable in the northwest doesn't mean it's suitable in other places!" "enough!" Jin Shimin slammed the table to vent his dissatisfaction. He is the general manager of Shinong Company in China and has been working here meticulously for many years. He had heard of Tianhe Seed Company a long time ago. However, he did not expect that Jin Yongshun, who was a seed producer in the same city, did not pay enough attention to it. As a result, before the peak seed sales season even arrived, SinoAgri was already at a disadvantage in every aspect. “Adjust the price!” “We are at a huge price disadvantage right now.” Jin Shimin made the decision helplessly. Jin Yongshun was still unwilling to give in, "Zhenqing 108 is the best variety of okra!" Jin Shimin didn't say anything. Although the Zhenqing series was excellent, Tianjiao No. 1 was not bad either! Whenever Chinese people enter an industry, even the highest profits seem to be slashed to dirt cheap. …… As December approaches, Jiuquan is covered in silver after the snow, and the air is filled with a moist smell. Guo Yang stood in front of the window, looking at the undulating mountains in the distance. Tianhe’s seed sales are going smoothly. In China, more than half of seed production companies believe that their core competitiveness lies in seed production and processing. Only a few large seed companies believe that their core competitiveness lies in breeding new varieties and controlling market sales channels. Tianhe is already one of the best among them. Tianjiao No. 1, Chihong No. 1, and Tianyu No. 1 are all very popular in the market. Farmers have a strong herd mentality and they become jealous when they learn through publicity that others have made money. What's more, Tianhe's sales outlets are spread all over the country, which greatly facilitates farmers. It has complete agricultural cultivation and management technical information, and technical guidance services can be provided directly to villages and households. Coupled with the promotion of dealers, Tianhe’s seed sales are rising steadily! I believe that as the planting results become apparent, Tianjiao No. 1 and Chihong No. 1 will enter a peak period of demand in the next two years. In contrast, Tianhe’s financial situation is not optimistic.
Building marketing channels, logistics systems, and advertising all require a lot of money. The total investment is about 3 million, which is only slightly inferior to the investment of hundreds of millions or even billions by giants such as Syngenta. However, this not only drained away the remaining funds in Tianhe's account, but also left the company in debt. The corporate debt ratio has exceeded 40%. The marketing system and logistics system have been initially established, and business personnel are spread all over the country. The company’s basic operating expenses are quite high every month. The foreseeable seed sales revenue is only 1 million at most. It is equivalent to Syngenta Seeds (Beijing) Co., Ltd., but lower than Syngenta Seeds. "It's time to go to the capital." The warm sunshine after the snow shines on Guo Yang's face. The domestic soybean futures market in 2003 was full of ups and downs. Beijing Weiguang Investment Company also achieved excellent results this year. (End of this chapter)