Huarun Card in Xijiang River, Conch "Abandoning the River and Entering the City" — — Decoding the Growth Logic of Conch in Guangxi for More than 20 Years

As a "veteran" who has been out of the conch for nearly ten years, it's okay to call him a "deserter". Today, I write about my old employer, neither praising nor belittling, neither blowing nor blackening. I only stand in the perspective of those who have experienced it, and review the origin and changes of Conch in Guangxi for more than 20 years.

I am a fresh graduate of 2007, and I am enrolled in Beiliu Conch. Beiliu Conch is one of the four self-built projects of Conch in Guangxi.

In 2002, with the development of the western region and the policy of 100 enterprises entering Guangxi, Conch formally set foot in Guangxi. In just a few years, the four self-built clinker bases of Xing'an, Fusui, Xingye and Beiliu have landed one after another, and the pace of expansion is rapid.

First, the four self-built bases, the key time line

of the four self-built bases in the golden window period

of intensive landing 1.2.3.4. It is the key node of the subversive iteration of the national cement industry: the large-scale elimination of backward mechanical shaft kilns and the replacement of old production capacity by new dry rotary kilns. At that time, the local cement plants in Guangxi were generally old in technology, scattered in production capacity and unstable in quality.

Conch went south with mature kiln technology, standardized management and large-scale production capacity, and stepped on the industry upgrade outlet perfectly. Directly raised the entire . II. Strategic diversion: Because of the golden coastline of the Xijiang River, Has long been locked

by China Resources, familiar with the Conch model know: Conch made a fortune in the Yangtze River Delta, relying on the classic Yangtze River T-shaped strategy.

The core logic is extremely simple: building factories along the Yangtze River, landing resources, exporting water transport, radiating the Yangtze River Delta market, and relying on the golden waterway to export at low cost, which is the most mature way Conch is best at.

But in Guangxi, there is no chance to reproduce this mature style of play.

The reason is very straightforward: China Resources entered Guangxi earlier than Conch, and in 2001, it was the first to lay out the main stream of the Xijiang River, completely replicating the T-shaped strategy of Conch in the Yangtze River Delta.

China Resources has taken the best riverside shoreline and wharf resources of Xijiang River, such as Hongshui River, Pingnan River and Guigang River, and has taken a pure layout along the river: the factory is on the riverside, the ship is in front of the factory, and the clinker goes straight down the river to the Pearl River Delta. By the time Conch officially entered Guangxi in 2002, the best water transport points and high-quality plots along the Xijiang River had been basically divided up by China Resources.

It is this pattern that completely forces Conch to adjust the overall strategy of Guangxi.

It needs to be explained here that Conch is not simply copying the T-shaped model of the Yangtze River. Almost at the same time, Yingde Conch laid out several production lines along the river in Guangdong to serve the Pearl River Delta market; but in Guangxi, Conch subjectively did not plan path of exporting Guangxi clinker to Guangdong on a large scale. Therefore, abandoning the riverside mode of "first channel, then market" and changing to the hinterland deep ploughing mode of "first market, then export" is the result of the interaction of external conditions and internal strategic orientation.

Therefore, we can clearly see the unique logic of the layout of Conch Guangxi:

not to grab the riverside, but to grab the population, consumption and core cities.

Xing'an: It is located in the core consumption circle of Guilin and southern Hunan, stabilizing the basic market of northern Guangxi;

Fusui: Although it is near the Zuojiang River, the factory is built first, and then the wharf is opened. In the early stage, the core is only to understand the large local market of Nanning and Chongzuo, and the water transportation is only the increment in the later stage;

Xingye and Beiliu: not relying on the river at all, taking root in Yulin, the most populous hinterland of Guangxi, and firmly locking up the border markets in southeastern Guangxi and western Guangdong.

Nanning, Yulin and Guilin are in the forefront of Guangxi's population, infrastructure and consumption.

Conch four bases, all located in the hinterland of Guangxi's strongest consumption, first thoroughly understand the local market, and then rely on tributary waterways, land logistics, homeopathic export to Guangdong and Guangxi.

This is the most special and local strategic adaptation of Conch in all provinces of the country.

Third, the second expansion: acquisition and integration to complete the global territory

. After the four self-built bases have completely stabilized the core market of Guangxi, Conch started the second stage of deep cultivation: stock mergers and acquisitions to complete the short board.

From 2011 to 2012, Conch precisely acquired two local clinker enterprises in stock:

Longan Conch (formerly Sihe Industry and Trade): to fill the market gap in the west of Nanning and the east of Baise;

Lingyun Tonghong Conch: to cultivate the mountain market in western Guangxi and fill the capacity gap in the west.

So far, Conch has formed a complete closed-loop of four self-built core bases and two M & a supplementary factories in Guangxi, covering the whole market of northern, western, southwestern and southeastern Guangxi.

Four, more than 20 years in the leading position: Why has Conch Guangxi's right to speak been extremely strong?

The fundamental reason is nothing more than four points:

First, the entry window period is unique, and it has seized the dividend of the times. The period

from 2002 to 2007 is the last golden construction period of Guangxi Cement, and high-quality mines, land and approval resources are all locked in at that stage.

Later, with the tightening of industrial policies, the upgrading of environmental protection and the strict control of mines, the latecomers had no chance to reproduce the layout cost and location advantages of Conch in that year. First mover advantage is permanent advantage.

Second: Early deep participation in urban construction, word of mouth depends on 20 years of precipitation. At the beginning of this century, the construction of high-speed, railway, municipal and new districts

in Guangxi was almost accompanied by the supply of Conch New Dry Cement. After more than

20 years of construction, the mixing station, the construction party and the traders have formed a deep-rooted understanding that the conch quality is stable, the supply is stable, and the fluctuation is small.

This kind of trust precipitated at the engineering end is a brand premium that can not be replaced by any late-developing brand by low price.

Third: Global multi-point layout, strong cycle risk resistance. The

six global factories are scattered and do not rely on a single region or a single market. When the

market is rising, the supply is guaranteed in the whole area and the profit is seized; when the market is declining, the peak-staggering production, flexible kiln shutdown and regional allocation are far superior to the single-point small factory in compression resistance. Especially around 2013, the three major plates of Nanbaiwan, Guibei and Yuzhanmao were operated separately, and each plate implemented differentiated tactics, which further enlarged this advantage. Different plates can flexibly carry out market games according to the situation of the surrounding rivals.

Fourth: attach great importance to the bagged market, channel sinking to lay a deep foundation for folk brands.

Conch has just entered the Guangxi stage, bulk promotion is still in the early stage, bagged cement accounts for 70% of the sales of subsidiaries, and the civil housing market is very heavy, so the company puts the bagged market expansion in a very high strategic position. In that year, Conch issued a detailed guidance on the development of the bagged market, which is the top-level program document for the development of the civil market in the region, with strong guidance. When I wrote my graduation thesis in 2007, I started my research with reference to this internal program document.

Relying on this program, the company vigorously promotes direct channel sales and deep market sinking, and does a lot of brand publicity and promotion work for masons and civil construction teams. Although the proportion of bagged cement has shrunk dramatically up to now, a series of actions taken in the early years to penetrate into villages and towns and folk terminals have made the brand of conch deeply rooted in the hearts of the people in Nanning, Yulin, Guilin and other core areas, and precipitated the recognition of ordinary users, which has become an invisible bottom advantage in the market competition. At the same time, Conch has developed a number of localized channels along with the industry cycle, with long-term stable cooperation, standardized settlement and transparent policies, and the penetration rate of city and county terminals is far ahead.

Writing in the end

, looking at the development of conch in Guangxi for more than 20 years, it is extremely interesting.

It should have reproduced the classic T-shaped method of water intake along the Yangtze River Delta, but because China Resources locked the Xijiang waterway ahead of time, it turned to plough the hinterland, eat the market first, and then talk about export.

Do not follow the trend, do not roll, dislocation competition, rooted in the local. Before and after 2013, the three major market sectors were divided into Nanbaiwan to promote peace through war, North Guangxi to promote talks through war, and Yuzhanmao to develop both volume and price. The idea of the regional management in that year was the embodiment of the actual combat after the maturity of the hinterland strategy.

This is why, after more than 20 years of industry shuffling and the elimination of many new and old brands, Conch is still the most stable and influential cement market in Guangxi.