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Yunnan Baiyao Group is poised to start out

By : | Published: 2011-12-05

On October 26, He Haiming, Deputy Director of CCTV Advertisement Operaing and Management Center and others arrived at Yunnan Baiyao Industrial District in Chenggong New Area, Kunming. Despite its reputation, Yunnan Baiyao Group did not go smoothly until 1999 when Wang Minghui was transferred from Kunming Pharmaceutical Factory to the Group. The 100-year-old brand at that time was in deficit. But ten years later, good performance was achieved by Wang: proceeds of business increased by 24.6 times and profits 13.6 times, both of which ranked the first in China. During this period, the share price of the Group rose by 17 times.

“Innovation is the trump of success.” – Wang Minghui

When he took the position of the Group’s Board Chairman in 1999, Wang Minghui made the development strategy of “keeping main products and developing supplementary ones”. Thus, Yunnan Baiyao Group expanded in 2000 its single product to multiple ones and from oral administration to external use. As its products were increasingly plentiful in the drug field, it further promoted the stickers whose core value surpassed band-aid and once impacted the latter’s sales. Since 2004, the Group has maintained a high growth for six consecutive years thanks to a critical decision of Wang: apply the hemostasis of its products into daily necessities, i.e., the Yunnan Baiyao toothpaste, and take the high-end market of toothpaste. Now the sales volume of toothpaste is the largest among the seven products of over 100 million sales, taking up nearly half of the sales of entire product series. Hu Jiqiang, Board Chairman of CONBA commented: “It’s successful because it adopts reasonable extension of the brand’s core value.”

Read books while sipping Pu’er tea

The building of Yunnan Baiyao Group is permeated with the fragrance of books and tea. On the first floor, a wall is completely turned into a bookcase. Wang said that he asked the staff to place three of their favorite books in the bookcase with their reading reflections on the books. To the edge of the bookcase is a black tea house named Hong Rui Lai (good luck). It’s the best-loved public place for the staff and a good venue for meetings for many departments. Huang Weidong, once in charge of the brand communication of Health Department, is the General Manager of Tianyi Tea Company now. Speaking of tea culture, he is very familiar, Yunnan black tea and Pu’er tea in particular.

 
 
 
 

When talking about the management and employment philosophy, Wang Minghui said that he put devolution of powers in a full wing. That’s the most special part. Deputy General Manger Qin Wanmin followed, “His devolution of powers imposed both pressure and impulse as we have to undertake the results on our own, good or bad.” Qin Wanmin and Wang Jin were under the command of Wang Minghui in the Kunming Pharmaceutical Factory years before as sales manager of the northern market and south market respectively. Especially, Wang Jin has been sales champion for many years. He Haiming said that he was very excited after visiting the new industrial park. The Group has displayed a modern trait of enterprises with appropriate facilities and humanities. We can also feel the confidence of the staff here.

“Enterprises bidding for CCTV advertisement should be a ‘national team’” – Wang Minghui

Yunnan Baiyao Group started cooperation with CCTV in 2000 and started releasing advertisement for the bidding time in 2006. Deputy General Manager Wang Jin said that the Group will continue to make breakthroughs in its main products and product structure by successively bringing out series of baiyao, health care products and non-baiyao. Such kind of product portfolio and extension mode requires dissemination by media. For that purpose, the Group selects to trust CCTV, its long-term partner and a national level medium with more development space and a deep foundation.

Director He indicated that years of cooperation with CCTV have shown noticeable effect as it safeguards the leading position of the Group from other clients of the industry. Meanwhile, the Group is the first major partner for CCTV’s advertisement on medicine. The visit also enables us to be more aware of the layout of the Group following its integration and our focus on the communication efficacy of the enterprise in the future.

By the end of the communications, Chairman Wang said to Deputy Director He: “Superior and leading enterprises of all sectors are highlighted under national policy adjustment. Most of the enterprises bidding for the CCTV advertisement are of such kind, which should be called ‘national teams’ since they are of strategic significance for the economic security of the state and embodiment of the strength of Chinese enterprises.”

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