In 2015, in a heavy-tasting American drama, Hannibal raised his knife to cut meat, and the words " Xiaoquan " flashed by on the knife. This was not something Zhang Xiaoquan took the initiative to implant, but he made a lot of money for the company.
7 years later, a head of garlic was slapped by the treasure knife, and the world was in an uproar. Zhang Xiaoquan's time-honored brand faced a public relations crisis...
Author | Gao Yuanshan
Edited by Cai Zhen
Source | Wild Horse Finance
As of press time, Wang Mazi Caidao's Douyin live broadcast room is still "shooting garlic".
Since his rival Zhang Xiaoquan fell into the "Broken Knife Gate", Wang Mazi restarted the live broadcast room that was suspended for one month, and made high-intensity live broadcasts "shooting garlic". Several kitchen knives at the top of the store’s products, all say “Don’t worry about taking garlic”. While introducing the product, the female anchor of interacted with netizens: "Don't be anxious. I just finished filming. Let me shoot the product and then shoot it for you to show it."
Zhang Xiaoquan doesn't seem to have many ways to fight back for the opportunity marketing of his peers. , a 400-year-old Chinese brand, is facing the worst public relations crisis in recent years.
On July 6, some consumers reported that they purchased Zhang Xiaoquan's "Dragon Bird Cutting Knife" in September 2020. When they were using it to pat the garlic, the kitchen knife broke. "After the consumer contacted the customer service, Zhang Xiaoquan's customer service directly informed that "it is not recommended to shoot garlic", which caused heated discussion in the society.
"Cooking knife cannot shoot garlic" is inconsistent with the common sense of life of Chinese people. On the evening of July 15, Zhang Xiaoquan's official WeChat official account issued a statement saying that the product purchased by consumers in this incident was "Dragon Bird-Use Knife", which is characterized by high sharpness, good durability, and longer than the ingredients of slices and knives. This product has been launched in 2018. As of the end of June 2022, the sales volume exceeded 60,000. Since its launch, it has received 11 official customer complaints from consumers, with a customer complaint rate of about 0.0183%. " Zhang Xiaoquan said that the customer service has contacted the consumer to apologize and gave a new knife.
But the event fermented further. On July 15, the edited clips of the interview with General Manager Zhang Xiaoquan Xia Qianliang in 2011 began to circulate. It said that "You have learned to cut vegetables for decades" , and then took Michelin chef as an example. The "consumer education" and "comparing domestic brands with Michelin" made many netizens unhappy and flocked to Zhang Xiaoquan's official and Xia Qianliang's Weibo, "Michelin educates Chinese people to cook?" "The history of China's thousands of years and major cuisines, is it wrong to cut vegetables?"
Source: Weibo
Xia Qianliang apologized on the evening of July 18, "The online video is not the whole of the video. The current video is not described based on the situation and context at that time, which leads to great misunderstandings for everyone. As we all know, when Zhang Xiaoquan was founded, Michelin did not appear, but I also express my sincere apology for the wrong guidance caused by my own inappropriate remarks to consumers' understanding."
According to public information, Xia Qianliang is 38 years old this year and has served as the company's director and general manager since May 2018. Last year, his pre-tax remuneration was 1.3654 million yuan, the highest among the company's directors, senior managers and supervisors.
Xia Qianliang mentioned, "Zhang Xiaoquan will officially issue the 'Blade Breaking Call' to consumers. html knives that have a knife cut accident within 35 years, regardless of the brand (specified brand), Zhang Xiaoquan will reissue the new knife according to similar styles and values. "
However, the specific details of the "Blade Breaking Call" are not introduced. has a customer service response. The company has not issued a handling plan yet. Please wait patiently for the specific implementation details.
"There is Zhang Xiaoquan in the south and Wang Mazi in the north." A head of garlic and a broken knife made the world of kitchen knife that had been calm for a long time be paid attention to again. However, even if you try hard to sell garlic, the sales converted from Wang Mazi's live broadcast room is actually limited. The live broadcast sales on July 14 were less than 1,000 pieces, with sales of more than 80,000 yuan. After the
incident, Zhang Xiaoquan's share price dropped from 17.24 yuan/share on July 6 to 17.07 yuan/share on July 19, with little change.
A kitchen knife cost less than ten yuan
Zhang Xiaoquan, who started with scissors, started in , was founded in 1628 and has a history of nearly 400 years. In 2006, Zhang Xiaoquan was recognized by the Ministry of Commerce as one of the first batch of time-honored Chinese brands. In 2003, Zhang Xiaoquan filed for bankruptcy as an old state-owned enterprise. In 2007, the private enterprise Fuchun Holding Group took it under its jurisdiction.
On September 7, 2021, Zhang Xiaoquan landed on the Shenzhen Stock Exchange as the "first stock of knife and scissors". The stock price of fell 7.04% on the day of listing, closing at 31.6 yuan per share. As of July 19, the price was 17.07 yuan per share, which was almost halfway compared with the issue price.
Image source: Oriental Fortune Network
Annual report shows that from 2019 to 2021, Zhang Xiaoquan's revenue continued to rise by 484 million yuan, 572 million yuan and 760 million yuan, with limited net profit growth, of 72.3 million yuan, 77.21 million yuan and 78.73 million yuan respectively. Knife and scissors are also Zhang Xiaoquan's main source of revenue. In 2021, knife and scissors account for 69.22%, kitchen utensils and kitchen appliances are 19.56%, and home hardware is 10.35%. A total of 55.66 million daily hardware products were sold in 2021.
In addition, Zhang Xiaoquan also disclosed the unit material cost. From 2017 to 2019, Zhang Xiaoquan's unit material costs were RMB 7.58, RMB 7.59, and RMB 7.56, respectively. Among them, the material cost of a shear tool in 2019 was only 3.35 yuan, and the cost of a cutter was only 6.02 yuan.
Zhang Xiaoquan’s official flagship store shows that the best-selling knife and scissor package with is between 59 yuan and 189 yuan, with a monthly sales of more than 10,000 yuan. The highest price is a "Japanese Damascus Steel Knife", which costs 1,569 yuan per hand. According to the "Prospectus", as of June 30, Zhang Xiaoquan's trading range was 100-500 yuan, accounting for the highest proportion, at 58.28%.
Image source: Taobao screenshot
Zhang Xiaoquan used many of the money he earned for advertising.
The company's R&D investment in in 2020 and 2021 was RMB 20.06 million and RMB 22.87 million, respectively, and sales expenses were RMB 83.13 million and RMB 117 million, respectively. In the 2021 annual report, Zhang Xiaoquan said, "The total exposure of the company's online platforms (WeChat, Douyin , Weibo , Xiaohongshu, and Guanbang) exceeded 209 million people, and increased by 523 times year-on-year; the total interaction volume was 290,000 people, a year-on-year increase of 42 times; the cumulative cooperation of expert promotion was 317 people, and the exposure volume exceeded 6.61 million people; the offline promotion exposure volume was 1.028 billion people."
From the perspective of market share, from 2017 to 2019, Zhang Xiaoquan's products remained at 0.5% in the kitchen market. Because the threshold for the knife and shear manufacturing industry is relatively low, there are many knife and shear manufacturing enterprises in my country. The repurchase rate of shearing tools, knives or knife-scissor combinations is low. In addition to the tool business, Zhang Xiaoquan also operates pots, pans, and various hardware.
leads the big boss of Zhejiang businessmen, and also involves Fosun system , Jun Yao system
. Behind the time-honored brands, there is usually a family.
However, Zhang Xiaoquan is different. Due to historical reasons, after public-private partnership, multiple reforms and capital increase transfers, Zhang Xiaoquan has long become a local state-owned enterprise, and the two Zhang Xiaoquan brands in Hangzhou and Shanghai have appeared.
, which started with building materials, Zhang Guoba is a famous Zhejiang businessman and one of the initiators of " Cainiao Network ". In 2007, Zhang Guobiao invested stake in Hangzhou Zhang Xiaoquan through Fuchun Holdings Group for 76.66 million yuan in cash, accounting for 51%. In 2014, Fuchun Holdings Group acquired the controlling stake in Shanghai Zhang Xiaoquan, and the two Zhang Xiaoquans in Hangzhou and Shanghai were combined into one.
Source: official website
According to the "Prospectus", Zhang Xiaoquan's largest shareholder is Zhang Xiaoquan Group , holding 64.96% of the shares, of which Chairman Zhang Guobiao indirectly holds 51.96% of the company through Zhang Xiaoquan Group; his brother Zhang Zhangsheng indirectly holds 13.12%; his son Zhang Xincheng indirectly holds 6.75%. The three were jointly identified as the actual controllers of the company.
Although the actual controller is still surnamed Zhang, it has long had nothing to do with the original Zhang Xiaoquan family.
In addition to owning a knife and scissors enterprise, the Zhang family also has a wide capital territory. At present, Fuchun Holdings Group's industries involve supply chain, intelligent manufacturing, medical care, finance and other fields , and has more than 10 brands including Zhang Xiaoquan, Hangzhou Jia New Materials, Internet of Things, Ruyi Cang, Yuntong Net City, Fuchun Mountain Residence, Zhejiang University Rehabilitation Hospital, Gongwang Health, Gongwang Renya, Oriental Mao, etc. In addition to Zhang Xiaoquan's listing in A-share , its subsidiary "Entong Netcheng Real Estate Trust (ECWorld REIT)" (stock code: BWCU) is also listed on Singapore main board.
"2021 Hurun Rich List", Zhang Guobiao and his son Zhang Xincheng ranked 647th with a net worth of 11 billion. In addition to Zhang Guofa, Zhang Xiaoquan also brought together many big shots. In 2017, Zhang Xiaoquan increased his capital in the second time, with Junyao Group , Shentong Chairman Chen Dejun , and Yabeichen Venture Capital Co., Ltd. (a company under Fosun Group ) each investing 2 million yuan, holding 1.71% of the shares. Among the executives of , Yao Yu, one of the directors, worked in Fosun Group, Qingdao Beer , Jinhui Liquor and other companies.
A garlic has successfully resolved the 400-year-old brand? Welcome to leave a message below for discussion.
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