Core Insights - The article highlights the resurgence of Lao Gan Ma, a leading Chinese chili sauce brand, which has recently returned to high revenue levels, reflecting a struggle between nostalgic taste memories and current business realities [1][7]. Company Background - Lao Gan Ma was founded in 1989 by Tao Huabi, who initially opened a small restaurant in Guiyang, where her homemade chili sauce gained popularity, leading her to pivot to chili sauce production [2]. - The brand is characterized by its low-key marketing approach and a focus on maintaining product quality, with a strong presence in both domestic and international markets [2][10]. Recent Performance - Lao Gan Ma's sales reached 5.391 billion yuan in 2024, nearing its peak sales of 5.403 billion yuan in 2020, indicating a recovery in performance [7]. - The company has adopted a more refined distribution strategy by dividing provinces into smaller regions for better market penetration, supported by strong cash flow and an efficient distributor network [4]. Challenges and Changes - The brand faced significant challenges after Tao Huabi's retirement in 2014, leading to a decline in product quality and sales due to changes in management and sourcing practices [8][9]. - The shift to lower-cost chili peppers and mechanized production methods led to consumer complaints about the loss of the original flavor, resulting in a decline in revenue from 2016 to 2018 [9]. Recovery and Future Outlook - After Tao Huabi's return in 2019, the company reinstated its original recipe and halted diversions from its core business, which contributed to its recent sales recovery [9][10]. - The brand's long-term success relies on establishing a sustainable management system that does not depend solely on its founder, while balancing innovation with traditional values [10][11].

Core Viewpoint - Lao Gan Ma has achieved a remarkable revenue recovery, reaching 5.391 billion yuan in 2024, nearly matching its historical peak of 5.403 billion yuan in 2020, despite minimal engagement in social media and live streaming marketing [2][18]. Revenue Recovery - In 2020, Lao Gan Ma's revenue peaked at 5.403 billion yuan, but fell by 20% to 4.201 billion yuan in 2021 due to the pandemic's impact on offline consumption [18]. - From 2022 to 2024, the company's revenue steadily increased from 5.26 billion yuan to 5.391 billion yuan, alleviating market concerns [21]. Marketing Strategy - Lao Gan Ma has adopted a "lying flat" strategy, avoiding regular live streaming and social media updates, relying instead on natural consumer repurchase to maintain online sales [2][24]. - The company has ceased regular updates on its social media accounts since early 2022, with no live streaming activity recorded for over a year [23]. Product Development and Innovation - Despite the lack of marketing noise, Lao Gan Ma continues to develop new products and expand into overseas markets, with a reported 30% growth in its international market in 2023 [24][25]. - The company has introduced over 20 new products since 2020, including various types of chili sauces, while maintaining a focus on its core offerings [27]. Competitive Landscape - In comparison, other brands like Fuling Mustard and Zhongjing Foods have faced challenges in maintaining revenue growth post-pandemic, highlighting the competitive pressures in the condiment market [20][21]. - The emergence of new brands in the low-fat and health-oriented condiment segment poses a challenge for traditional brands like Lao Gan Ma, which have not yet adapted their product lines to these trends [29]. Distribution and Sales Model - Lao Gan Ma employs a large distributor model, allowing regional managers to develop their own distribution channels, which can lead to issues like product "trespassing" [28]. - The company's pricing strategy and low profit margins for distributors necessitate high sales volumes to maintain distributor interest, emphasizing the importance of product demand over marketing efforts [28].

Core Viewpoint - The article discusses how Lao Gan Ma, a well-known Chinese chili sauce brand, has managed to achieve significant revenue growth without engaging in typical marketing strategies like social media operations and live streaming, contrasting with other brands that are heavily investing in these areas [4][5][29]. Revenue Recovery - Lao Gan Ma's sales revenue reached 5.391 billion yuan in 2024, nearing its historical peak of 5.403 billion yuan in 2020 [5][12]. - The brand experienced a revenue drop of 20% in 2021, falling to 4.201 billion yuan, attributed to the pandemic's impact on offline consumption [7][9]. - From 2022 to 2024, Lao Gan Ma's revenue steadily increased from 5.26 billion yuan to 5.391 billion yuan, alleviating market concerns [12]. Marketing Strategy - Unlike many brands that focus on live streaming and social media marketing, Lao Gan Ma has adopted a "laid-back" approach, relying on natural consumer repurchase for online sales [5][14]. - The brand has ceased regular updates on its social media accounts, with the last posts dating back to March 2022 for WeChat and February 2025 for Douyin [15][16]. - The decision to minimize marketing efforts may stem from the high costs and low returns associated with live streaming and e-commerce channels [17]. Product Development and Innovation - Despite the lack of marketing noise, Lao Gan Ma continues to develop new products and expand into overseas markets, with significant growth in international sales [6][18]. - The brand has successfully entered 160 countries by 2024, with a 30% year-on-year growth in overseas markets [18][19]. - Lao Gan Ma has introduced over 20 new products since 2020, including various chili sauces, although its product innovation has not aligned with the rising demand for healthier options in the domestic market [25][28]. Competitive Landscape - Other brands like Fuling Mustard and Zhongjing Foods have faced challenges in maintaining revenue growth post-pandemic, highlighting the competitive pressures in the condiment market [10][11]. - The pricing strategy for Lao Gan Ma's products is constrained by competition, with many brands operating within a similar price range, necessitating a focus on volume sales [26][27]. - The emergence of new brands in the chili sauce category has led to a diversification of product offerings, but Lao Gan Ma remains a leading name internationally [19][24].

Core Insights - The article discusses the contrasting market performance of two Guizhou-based consumer brands, Moutai and Lao Gan Ma, highlighting Lao Gan Ma's revenue recovery amidst a consumer downgrade environment [4][5]. - Lao Gan Ma's sales reached 5.391 billion yuan in 2024, nearing its historical peak of 5.403 billion yuan in 2020, despite a previous decline due to the pandemic [4][6]. Revenue Recovery - In 2020, Lao Gan Ma's revenue peaked at 5.403 billion yuan but fell by 20% to 4.201 billion yuan in 2021, attributed to the pandemic's impact on offline consumption [6][8]. - From 2022 to 2024, Lao Gan Ma's revenue steadily increased from 5.26 billion yuan to 5.391 billion yuan, alleviating market concerns about its performance [11][12]. Marketing Strategy - Lao Gan Ma has adopted a unique approach by not engaging in regular live streaming or influencer marketing, relying instead on natural consumer repurchase [4][13]. - The brand's social media accounts have been inactive, with no significant online marketing efforts, which contrasts with competitors who heavily invest in e-commerce and live streaming [13][15]. International Expansion - Lao Gan Ma has significantly expanded its international presence, growing from 90 countries in 2019 to 160 countries by 2024, with a 30% increase in overseas market revenue in 2023 [15][16]. - The brand's popularity abroad has surged, particularly among non-Chinese consumers, aided by social media trends and endorsements from international celebrities [16][20]. Product Development - Despite perceptions of stagnation, Lao Gan Ma continues to innovate, developing new products and expanding its product line, which includes over 20 new items since 2020 [18][20]. - The brand's pricing strategy remains competitive, with most products priced around 10 yuan, focusing on volume sales to maintain profitability [20][21]. Market Challenges - The article notes that while Lao Gan Ma has found success, it faces challenges in adapting to changing consumer preferences, particularly the rising demand for healthier options in the condiment market [21]. - Competitors like Hu Bang and Chuan Wa Zi are introducing low-fat and zero-fat products, which Lao Gan Ma has yet to address in its product offerings [21].

Core Viewpoint - Lao Gan Ma has achieved a remarkable recovery in revenue, reaching 5.391 billion yuan in 2024, nearly matching its historical peak in 2020, despite a general trend of declining consumption and minimal online marketing efforts [5][13]. Revenue Performance - In 2020, Lao Gan Ma's revenue peaked at 5.403 billion yuan, but fell by 20% to 4.201 billion yuan in 2021 due to the pandemic's impact on offline consumption [8][10]. - From 2022 to 2024, Lao Gan Ma's revenue steadily increased from 5.26 billion yuan to 5.391 billion yuan, alleviating market concerns about its performance [13][14]. Marketing Strategy - Lao Gan Ma has adopted a "lying flat" strategy, avoiding regular live streaming and social media engagement, relying instead on natural consumer repurchase to maintain online sales [5][16]. - The company has ceased updates on its social media accounts since early 2022, indicating a significant shift in its marketing approach [16]. Product Development and Innovation - Despite the lack of marketing, Lao Gan Ma continues to develop new products and expand into overseas markets, with a reported 30% growth in international sales in 2023 [18][19]. - The company has introduced over 20 new products since 2020, including various types of chili sauces, although it has not adapted to the growing demand for healthier options in the market [22][25]. Competitive Landscape - Other brands like Fuling Mustard and Zhongjing Foods have faced challenges in maintaining revenue growth post-pandemic, highlighting the competitive pressures in the condiment market [11][22]. - The pricing strategy for Lao Gan Ma's products remains competitive, with a focus on maintaining high sales volume despite lower profit margins for distributors [24]. International Expansion - Lao Gan Ma has significantly increased its presence in international markets, expanding from 90 countries in 2019 to 160 countries by 2024, driven by growing popularity on social media [18][19]. - The brand's appeal in overseas markets is bolstered by its affordability and versatility, attracting a diverse consumer base, including international celebrities [19].

Core Viewpoint - The article discusses the contrasting performance of two Guizhou-based consumer brands, Moutai and Lao Gan Ma, highlighting how Lao Gan Ma has successfully navigated a challenging market environment to achieve a revenue rebound, while Moutai has faced price declines [5][6]. Revenue Recovery - Lao Gan Ma's sales reached 5.391 billion yuan in 2024, nearing its historical peak of 5.403 billion yuan in 2020 [5][8]. - The brand experienced a significant revenue drop of 20% to 4.201 billion yuan in 2021, attributed to the pandemic's impact on offline consumption [8]. - Despite a decline in revenue growth rates from 14.23% in 2020 to 1.18% in 2022, Lao Gan Ma's revenue has been on the rise again, with figures of 5.26 billion yuan in 2022 and 5.381 billion yuan in 2023 [11][12]. Marketing Strategy - Lao Gan Ma has adopted a "laid-back" marketing strategy, avoiding regular live streaming and influencer promotions, relying instead on natural consumer repurchase [5][14]. - The brand's social media accounts have not been updated regularly, with the last post on WeChat in March 2022 and no live streams recorded in the past year [14][15]. - The decision to minimize investment in live streaming and online marketing is seen as a response to the high costs and low returns associated with these channels [16]. Product Development and International Expansion - Despite the perception of inactivity, Lao Gan Ma continues to develop new products and expand into overseas markets, with a reported 30% growth in international sales in 2023 [12][17]. - The brand has increased its global presence from 90 countries in 2019 to 160 countries by 2024, indicating a strong international strategy [17]. - Lao Gan Ma's products are gaining popularity among foreign consumers, with social media trends contributing to its recognition outside China [17]. Competitive Landscape - The article notes that while Lao Gan Ma maintains a strong position in the domestic market, it faces competition from emerging brands in the condiment sector that are adapting to new consumer preferences, such as low-fat options [21][22]. - The brand's innovation in product offerings has not yet aligned with the growing demand for healthier alternatives in the market [22]. - The pricing strategy for Lao Gan Ma's products remains competitive, but the brand must navigate the challenges of maintaining market share amid evolving consumer tastes [21].

Core Viewpoint - The article discusses the contrasting strategies of two Guizhou-based consumer brands, Laoganma and Moutai, in the context of market dynamics and consumer behavior, highlighting Laoganma's return to peak revenue despite a seemingly passive approach [6][22]. Revenue Recovery - Laoganma's sales reached 5.391 billion yuan in 2024, nearing its historical peak of 5.403 billion yuan in 2020 [6][12]. - After a significant drop in revenue to 4.201 billion yuan in 2021, attributed to the pandemic's impact on offline consumption, Laoganma has seen a steady recovery in revenue since 2022 [9][12]. Market Positioning - Laoganma has adopted a low-key marketing strategy, with minimal engagement in live streaming and social media, relying instead on natural consumer repurchase [6][14]. - Despite the lack of marketing noise, Laoganma's revenue has continued to grow, indicating a strong brand loyalty and market presence [12][22]. Product Development and Innovation - The company has not ceased product development; it continues to innovate and expand its product line, launching over 20 new products since 2020 [20]. - Laoganma has shifted its focus to overseas markets, expanding its presence from 90 countries in 2019 to 160 countries by 2024, with a 30% year-on-year growth in overseas sales in 2023 [16][17]. Competitive Landscape - Other brands like Fuling Mustard and Zhongjing Foods have faced challenges in maintaining growth, with Fuling's revenue growth slowing from 14.23% in 2020 to 1.18% in 2022 [10]. - The article notes that the condiment market is evolving, with new entrants like Hubang Sauce adopting different marketing strategies compared to traditional brands like Laoganma and Zhongjing [19][20]. Consumer Trends - The article highlights a shift in consumer preferences towards healthier options, with competitors introducing low-fat products, while Laoganma has not yet adapted its offerings to align with these trends [21][22]. - Despite criticism regarding changes in taste, Laoganma's brand recognition and pricing strategy have allowed it to maintain a strong market position both domestically and internationally [12][17].

Core Viewpoint - The article discusses the contrasting performance of two consumer brands from Guizhou, Moutai and Lao Gan Ma, highlighting Lao Gan Ma's revenue recovery amidst a consumer downgrade environment, while Moutai experiences price declines. Group 1: Lao Gan Ma's Revenue Performance - Lao Gan Ma's sales in 2024 reached 5.391 billion yuan, nearing its historical peak of 5.403 billion yuan in 2020 [2] - After a significant revenue drop of 20% in 2021 to 4.201 billion yuan, attributed to the pandemic's impact on offline consumption, Lao Gan Ma's revenue has been on the rise since 2022 [3][4][7] - The company has maintained a steady revenue recovery from 5.26 billion yuan in 2022 to 5.391 billion yuan in 2024, alleviating market concerns [7] Group 2: Marketing Strategy and Consumer Engagement - Lao Gan Ma has adopted a "laid-back" marketing strategy, with minimal engagement on social media and no regular live streaming, relying instead on natural consumer repurchase [2][9] - Despite the lack of marketing activity, Lao Gan Ma's revenue growth continues, indicating a strong brand loyalty among consumers [8][11] - The company has shifted focus to overseas markets, expanding from 90 countries in 2019 to 160 countries by 2024, with a 30% growth in overseas market sales in 2023 [11][12] Group 3: Product Development and Market Position - Lao Gan Ma has not ceased product development, with ongoing efforts to innovate and expand its product line, including over 20 new products by 2020 [6][15] - The brand remains a leading Chinese condiment in international markets, benefiting from social media popularity and diverse usage among foreign consumers [12][13] - Despite the emergence of new brands in the domestic market, Lao Gan Ma's established presence and product familiarity continue to drive its sales [16][17]