Agriculture is a "reduction race"

Agriculture is a "reduction race"

Investing in agriculture and turning to agriculture have become the focus and hotspot of the whole society. From the government to the people, from the enterprises to the media, they are eagerly paying attention to agriculture. This craze continues and is deep, not a gust of wind. Many industries and many companies have already joined in, and more industries and enterprises are coming and eager to try.

Four characteristics of the agricultural field

1, hot

Perhaps it is too difficult for other industries to make money, domestic sales are insufficient, export sales are blocked, real estate is subject to control, and the Internet burns money...

Perhaps the issue of food safety is really hard to prevent. The people who have the money and the ability to operate can’t stand it. Entrepreneurs and investors have turned their eyes to the land and turned to the original, unconcerned, backward production and management methods. Even in the status of status, "look down" agriculture.

Agriculture is not only hot, it can even be described as hot.

From Ding Lei raising pigs, to Lenovo Blueberry blossoming in Qingdao; from Zhu Xinli by fruit farmers and vegetable farmers in the suburbs of Beijing began organic business, to Wanda's Wang Jianlin spent hundreds of millions of vegetables in Yanqing; from the old tobacco king Yu Shijian's inspirational orange online Hot-selling, to the spirit of God, No. 1 soil pig and Xiangcun black pig to double the high price; from WISCO also claimed to raise pigs to countless size bosses everywhere to find people to raise vegetables to raise chickens for fun...

Many industries and scent-sensitive capitals, either active or promoted, have gathered in seemingly backward, traditional agricultural industries.

2, the income is slow

Agriculture is a long-cycle industry. It takes more than ten years for technological innovation and variety cultivation, and even a forty-five years to accumulate a breakthrough creation. To promote a variety, taking species and species as an example, as long as one year, and more than seven or eight years to achieve high yield and see benefits. This is a big difference from industries such as investment industry!

Entrepreneurs who have entered and intend to enter the industry should not fail to understand this. However, due to the inherent profit-seeking nature of the company, most companies are still under-prepared for the slow results. Some are mentally inadequate, and some are insufficiently prepared for financial strength.

Insufficient psychological preparation, work is easy to make quick and profit, do not respect the law, after the speed is not up; lack of preparation for financial strength, eager to withdraw funds, must not do good quality, or the road goods.

3, difficult

The industrial chain of agriculture is long. Taking fruits as an example, there are several links in breeding, cultivation, harvesting, picking, packaging, transportation and sales. The management of each link has its professionalism, and the quality of the final is uneven.

The difficulty of agriculture also reflects the fact that there are more or less degrees of "days" to eat, droughts, colds, warmth, and so on, which people cannot fully resist.

The difficulty of agriculture is still difficult to maintain, and the loss is large. The work here is extremely flexible. Only companies with strong management and control capabilities can do well.

If agriculture is not on the scale, it is impossible to make a brand, dominate the market, and obtain stable income. However, in order to scale, in addition to overcoming the obstacles of the land transfer system, it must have strong control and integration capabilities to ensure The products produced by different plots are basically the same, and at the same time, they can carry out strong worker-style training on the original agricultural labor force, and transform them into agricultural industrial workers.

It is difficult to do agriculture and the market and brand. According to the survey, in all the sorts of problems that make entrepreneurs have troubles, the problem that lies in the agricultural enterprise is how to hit the market, make brands, and sell sales. This is also the place where traditional agriculture was weak.

Since China's agricultural production units have been too small for a long time, one household is highly dispersed, and the output of a single variety is not large. The quality of each household's products is uneven, and there is no consistency.

Their production and sales are basically invisible, and all links in the industry are fragmented, not interlocking chains.

The vast majority of so-called products are actually the raw materials of others, and they have no voice in the market and can only be sold cheaply.

Therefore, farmers' friends and traditional agribusinesses simply cannot talk about modern large-scale brand marketing, which is seriously out of touch with food processing and does not interface with modern business. Marketing is never and never is difficult for farmers and traditional agribusinesses.

4, the layman enters

Non-agricultural capital represented by Lenovo is optimistic about the agricultural industry. They come from real estate, mineral energy, finance, IT, building materials, etc. Another feature of this agricultural fever is that a large number of laymen have entered the agricultural industry.

Non-agricultural capital is farming with different motives and mentality. The advantages, shortcomings and problems they display are different. When they activate the agricultural industry, they need to find the purpose, direction and direction in line with the laws governing the development of the agricultural industry. Path method.

Two major elements of agricultural development

1. A center: focus

Focus, product focus, market focus, and focus on the basic principles of success at any stage of any business. This is not a question of ability, which is determined by the rules of consumer acceptance and the rules of market operation. However, most enterprises that are new to the agricultural industry do not have enough understanding of this principle and law and pay insufficient attention.

Maybe they are too anxious, maybe they are deriving according to technology and production capacity. Maybe they think that the East is not bright and the West is bright, so they produce and sell many products at once. As a result, many products are not refined, and enterprises are not strong.

The more products, the smaller the company, the smaller the company, and the more products it launches. It seems to be dazzling, but there is no star product, no market dominance, a product sold only a few hundred thousand, millions in a year, simply can not talk about the brand!

A great company is great because it has one or several products. I call it a strategic star product. The fate of a company is determined by them.

Wahaha's Nutrition Express, Coca-Cola's Coca-Cola, Sprite, Minute Maid Orange, Nestlé Instant Coffee, Milk Powder, Bottled Water, Kraft's Maxwell Coffee, Fruit Jane, Oreo Cookies, Top The new group's Master Kong instant noodles, Shuanghui Group's "Wang Zhongwang" ham, Hong Kong Hongdao Group's Jiaduobao herbal tea is the same.

The success of well-known brands is the focus of success. Among the world's top 500 companies, 140 products accounted for more than 95% of total sales, accounting for 28% of the total 500; the sales of leading products accounted for 70% of total sales. 95% of the 194 companies accounted for 38.8%; related products accounted for 146 of the total sales of 146, accounting for 29.2%; and unrelated diversified enterprises are rare.

The right thing to do is to focus, focus, and refocus. By focusing on strategic star products, focusing on the market, establishing status, breaking through rivals, harvesting profits, and building brands, then there is an opportunity for further expansion.

2, two grippers: base and brand

Why does Chinese agriculture not make money, because China's agricultural bureau is limited to the risky, hard-working, market-free, and non-profitable breeding links. At the two ends of the profitable industry, there is insufficient attention, insufficient investment, insufficient research and development, few methods, and no practice. deep.

In the agricultural industry chain, as well as the smile curve rule described by Shi Zhenrong, at this stage in China, the agricultural industry is only in the middle of the industrial chain, and the general processing is relatively strong. Unfortunately, this is a chain with low profitability.

At the front end of the industrial chain, the variety of R&D and planting technology is weak, and the ability to form superior products is low; at the back end of the industrial chain, the ability to do branding is not strong, the industry is too scattered, the method is too traditional, and the product value-adding method Lack of good products can not sell at a good price, and does not match the modern food processing industry and modern business.

Grip one: base

The base is the foundation of the industry, and it is the premise basis for the enterprise market and brand creation. To do modern agriculture can not be close to the eye, to have the concept of industry, to consolidate the foundation of the industry - base, do a good job in the industry. This is the reason for the mayor to ask for resources, and the intersection of enterprises and mayors to grasp the agricultural industry.

The so-called industrial base includes: integration, expansion and standardization of scientific and breeding bases, scientific management; declaration of origin products, geographical indication products, green and organic certification; declaration of featured varieties, selection of related awards; technology for provincial and national research institutes The integration of power; the pursuit of relevant policies, projects or financial support for national and local governments; the cleanup and rectification of brand and trademark chaos, and so on.

In the process of building the base and consolidating the industrial base, the ability of agricultural enterprises to integrate industrial resources and the organizational capacity for large-scale production will be greatly improved. It is a unique development law of the agricultural industry to do the industry and then do the market.

Grip 2: Brand

For a long time, branding is a short leg of China's agriculture, and it is an urgent problem for local specialty enterprises to find ways to find it!

Some enterprises in the agricultural industry, only the original ecological primary products, can only be sold at low prices in the form of raw materials; some do not know how to add value to the products, I do not know what products are needed by the market, blindly develop products; The heavy hardware investment, light thinking method, the result equipment is in place, the market is saturated; others can not see the market opportunities, there are countless fruit varieties, countless special foods, countless local specialties, no heads, no brand and High quality and low price.

As former Premier Wen Jiabao said, "The development of enterprises must rely on endogenous motivation." Find the mayor to collect money, but also to make money in the market!

With the funds in place, the project started, and entrepreneurs must move from looking for the mayor to doing the market. It is necessary to transfer a considerable amount of energy and work focus from the front end of the industry (requiring money, policy, building factories, production) to the back end of the industry (product value-adding, marketing, brand creation), allowing agricultural products to enter from the farm. The factory enters the market from the factory and enters the kitchen table of thousands of households from the market to fully realize the value-added, marketization and branding of agricultural products. The company has entered the track of its own hematopoiesis and rapid and healthy development.

This is a knockout, and there must always be someone who fails, so that the industry can be more and more rounded.

(Original title: Behind the agricultural heat, is it an opportunity or a trap?)