Jifeng Agricultural Machinery: Successful Samples of Agricultural Machinery Circulation

Jifeng Agricultural Machinery Chain Co., Ltd.'s 2008 compound operating income growth rate reached 55.41%, much higher than the average of 34.03% of 28 GEM companies. In 2009, it reached a record high, achieving a total operating income of 1.6 billion yuan, an increase of 105.22% over the same period of last year.

From the beginning of 2005, Jifeng started its agricultural chain operation model and quickly entered markets such as Sichuan, Chongqing, Guizhou, Guangxi, Guangdong, Shaanxi, Yunnan, Jilin, Gansu, Fujian, Zhejiang and Hunan. In winter and spring this time, it has successively developed large-scale directly-operated stores in Ningxia, Jilin and other places. It has entered the third-step development strategy three years in advance and has now radiated to 15 provinces (cities, districts) in the country and developed into nearly 100 straight Camp chain stores, nearly 700 township-level distribution agencies for large agricultural machinery distribution companies.

Wang Xinming, chairman of Jifeng Agricultural Machinery Chain Co., Ltd., has become a well-known and well-known entrepreneur in the agricultural machinery industry due to his agricultural machinery. What does Wang Xinming rely on to build an undisclosed small enterprise into a well-known aircraft carrier for agricultural machinery in China? What is the significance of Wang Xinming's entrepreneurial experience to the future development and innovation of China's agricultural machinery circulation?

Wang Xinming experienced the road of life development from the director of agricultural machinery promotion to entrepreneurs. In 1985, Wang Xinming worked in the Sichuan Provincial Bureau of Agricultural Machinery and served as the director of the Sichuan Agricultural Machinery Extension Center. In 1994, he participated in the formation of the predecessor of Jifeng Agricultural Machinery, Jifeng Agricultural Engineering Co., Ltd. of Sichuan Province. In 1998, he officially took over the full operation of Jifeng Agricultural Machinery. Wang Xinming’s success in entrepreneurship actually originated from a seemingly trivial matter. At the beginning of the business, there was a farmer who had returned from the field and returned to his hometown. In order to purchase a farm machinery, consultation was started at the farm machinery station and the province, city, and county agricultural machinery departments were taken over. It took nearly a week to find the Jifeng Farm Machinery. This matter deeply touched him. How to reduce the customer's search cost? How to increase the total value of the customer's purchase? Jifeng has tried traditional wholesale and retail, established branch offices, but the effect is not good. In addition, the rural market is sparsely populated, and the willingness of many users to purchase is mainly reflected in difficulty in purchasing, difficulty in use, difficulty in maintenance, and difficulty in buying. This kind of demand exists, but it needs to be accepted by the rural market. Ways to solve product after-sales service, spare parts supply, follow-up demand and other issues. As a result, Wang Xinming began the innovation journey of Jifeng Agricultural Machinery.

Innovation

The biggest hidden danger of a company is the demise of the spirit of innovation. Innovation is the result of hard work for entrepreneurs. At the beginning of the venture, Wang Xinming was determined to make a difference, and he must drag all the staff into the wave of reform to inspire everyone's sense of innovation. Wang Xinming and his partners carried out comprehensive and even "disruptive" innovations and innovations in the company.

Innovative business model. They broke the existing business model and positioned it as a “chain + stock market”. They interpreted it as relying on the stock market to rapidly accumulate the capital required for development to ensure the continued expansion of the company; to form a large circulation industry with the chain model and to enhance the competitiveness.

Innovation strategy model. Wang Xinming has drawn a grand blueprint for Jifeng's future development for Jifeng, namely the "three-step" strategy. That is, the first step is to quickly complete the layout of the Southwest in 2008; the second step is to rapidly radiate 15 provinces and cities south of the Yangtze River from 2009 to 2012; and the third step is to complete the nationwide layout by 2013. In fact, with the rapid development and changes in the entrepreneurial situation and the rapid improvement in performance, they have already revised the original strategy and marked the advancement of the third-step strategy by signifying the acquisition of two companies, Jilin and Ningxia.

Innovative service model. Adhere to and deepen the core concept of “service creation of new value”, build a unified service platform, implement a service chain guarantee service of a chain network, form a rapid-response chain service system, and introduce a 4S shop service quality control system.

Innovative organizational model. To establish the management structure of “seven centers and two departments”: strategic development center, procurement and sales center, customer service center, regional management center, financial management center, administrative personnel center, business and information management center, supervision and audit department, and certification劵 Investment Department. This provided strong organizational support for the rapid development of Jifeng's agricultural machinery.

This innovation has won three firsts for them in the field of agricultural machinery circulation in China: the first listed agricultural machinery chain enterprise, the first cross-provincial agricultural machinery chain enterprise, and the first high-speed agricultural machinery chain enterprise.

adventure

Without adventurism, there is no innovation. In a sense, innovation itself is an adventure. Because every step is unprecedented. It is impossible to become an entrepreneur without taking risks and taking risks. The 3M company in the United States has a valuable slogan: "In order to discover the prince, you must kiss with countless frogs." Similarly, there was no one for many companies such as Hewlett-Packard founded in 1939 in Silicon Valley, Sony in Tokyo in 1946, Acer in Taiwan in 1976, and Lenovo and Haier established in 1984 in Beijing and Qingdao respectively. The exceptions are those who dare to take the lead when the conditions are extremely immature and the external environment is unclear. The first one is to eat crabs. Wang Xinming has striking similarities.

The national agricultural machinery market has a market size of more than 200 billion yuan, but it has not formed a well-known circulation brand enterprise. The current situation of "small, scattered, chaotic, weak, and lacking" agricultural machinery has severely restricted its continued development. This caused Wang Xinming to think once and for all, how to introduce a new model to the agricultural machinery circulation industry to make it stronger and bigger? In December 2005, Wang Xinming changed the name of the company to “Sichuan Jifeng Agricultural Machinery Chain Co., Ltd.” and took the lead in the practice of chained direct sales stores. Sales of farm machinery and business models for service delivery. In 2007, he again produced a bold idea that Jifeng Agricultural Machinery went public.

Every step of Wang Xinming is on the verge of abyss and trembling. Will the turbulent performance of the GEM ensure the rapid expansion of Jifeng Agricultural Machinery Funding support? Can organizations, funds, human resources, etc. support rapid expansion? Can the resistance of the agricultural machinery flow pattern formed under the subsidy policy break through? Can the team implement power and create vitality? Support the rapid growth of Jifeng agricultural machinery? Can we break the regional agency system of agricultural machinery production enterprises now? If there is no good business brand, can the agricultural machinery chain operation be bigger and stronger?...... Each problem has a lot of variables and not Certainty is full of risks and crises. However, Wang Xinming resolutely decided to drag the Jifeng Agricultural Machinery into a risky innovation.

Win-win

Win-win is the essence of entrepreneurship. Wang Xinming, as an entrepreneur, has a very strong sense of "web" awareness and ability. In the process of promoting chain operations, he proposed and adhered to the “win-win” concept and continued to integrate and reorganize. Realize the simultaneous integration of human resources, equity and high-quality network resources. Based on extensive communication and coordination, it has boldly absorbed outstanding distribution companies in Sichuan, Chongqing, and neighboring provinces (cities, districts) and secondary cities. Through mergers, acquisitions, reorganizations, and strategic synergies, the overall value of “joint enterprises” has been greatly improved, and The degree of concentration and organization of regional markets extends the value chain of traditional agricultural machinery circulation enterprises with a single function, and gradually realizes the display of new machinery equipment of modern agricultural circulation enterprises—experimental demonstration—experiential marketing—full training—follow-up service As a new model.

Inside the company, he upholds the concept of employees as "enterprise entrepreneurs" and develops the potential of employees. In this process, he acts as a coach, allows employees to cooperate, and guides the implementation of their reasonable goals. At the same time, he gives him enough room for development and encourages them in a timely manner. The spirit of cooperation that Wang Xinming advocated and practiced puts a strong wing on the take-off of Jifeng's agricultural machinery.

Practice

Wang Xinming believes that “the most important factor of production” determines social power transfer and the evolution of social institutions. In order to obtain richer experience in corporate governance, he has studied MBAs and EMBAs for three times at various prestigious universities in China and has written hundreds of thousands of words. This has become a theoretical blueprint for him to practice later. Through theoretical learning and model learning, he successfully solved the contradiction between centralization and decentralization in chain operations and the growth and shortage of human resources. The organic combination of the chain operation mode and the characteristics of rural production and operation has innovated the new model of chain farm machinery sales in China. Learning has become a key word in the development of Jifeng's agricultural machinery, and it has also laid strong knowledge support for the rapid expansion of Jifeng's agricultural machinery.

Persistent

Persistence is the true nature of entrepreneurship. Intel CEO Glov has a famous saying: "Only paranoid can survive." This means that only perseverance and continuous innovation can be successful. In the process of rapid expansion of Jifeng's agricultural machinery, the most important thing is how to solve the talent shortage.

Wang Xinming is thirsty and thinks that in order to recruit more mature talents in the industry, it is often necessary to “take care of everything”. In 2001, he hired a former vice president of a state-owned company to serve in Jifeng and personally found him 4 times. He last communicated for more than 10 hours. He was finally touched by Wang Xinming's dedication. Wang Xinming is proud and gratified that currently the company has a lot of talented people and elites converge. 80% of middle and senior core personnel have rich experience in the agricultural machinery industry.

responsibility

Veblen pointed out in his famous book "Corporate Theory" that forward-looking entrepreneurs attach great importance to goodwill including good faith. Nobel Prize-winning economist Freman clearly stated: "An entrepreneur has only one responsibility, which is to use the production resources to engage in profit activities in accordance with the rules of the game. That is, it must engage in open and free competition and must not be bullied and “Fraud.” The Jifeng Farm Machinery Chain Business Model can effectively improve the industry's competition in the areas of agricultural circulation, such as disorder, the proliferation of counterfeit and inferior products, low sales service levels, and poor post-sale protection. Because they are agents selling all types of agricultural machinery and related agricultural machinery products, with centralized procurement, unified distribution, standard services and other characteristics.

The development of a retail terminal network to enhance service levels in all directions is yet another embodiment of Wang Xinming's performance on user integrity. On this basis, we will increase input in after-sales services and extended service products, improve existing service products, develop new service products, improve service quality, and provide users with more value-added services, so that “buy and rest assured that agricultural machinery will be the best choice for Jifeng. The brand connotation of the chain has been further sublimated.

Although the market share of Jifeng's agricultural machinery in the national market is less than 1%, it is undoubted that it has a strong vitality. With the implementation of the nationwide strategy, increasing market share, and gradual realization of brand strategy, perhaps three to five years later, a mantra will be born: “Buy agricultural machinery, look for the best!” At that time, “Jifeng Agricultural Machinery” will become the market for agricultural machinery in China. One of the most valuable commercial brands.