As one of the famous brand of instant food on China’s mainland, “Long Feng” Foods are well-known among the majority of people for its series of products including delicious dumplings, rice balls and hot pot ingredients. Few people, however, know about the foundation of its brand, its development as well as its management philosophy. The beginning of this story dates from 26 years before… Start from scratch, doing business in the spirit of industry. Mr. Ye, the director of “Long Feng” Foods, started his business tediously with a total sum of 60,000 Taiwan dollars in 1977. The factory was right in his living room where he made dumplings during night time and sold them during the day. In this way, the company was growing day by day. After seven years of hard work, the first factory was build in Taiwan and the small-scale dumpling restaurant was no longer operating in the way of homemaking. In the wake of 1987 when the frozen foods manufactured by its factory began to sell in Japan and US, another factory was set up in Taiwan in 1989. Seize the market of Shanghai while seeking global opportunities. In the early 1990s, the economic development in Tainwan saw a decline and the market was shrinking with the increasingly fierce competition. President Ye, with a keen sense of sales orientation, was well aware that conditions in Tainwan could no longer afford a large expansion of his business. He left for China’s mainland, a gathering place where people love to eat dumplings. It impressed him deeply as a promising land for his future business. President Ye once said, “Mainland China strikes me most with four reasons: We are of the same ancestors and origins in the first place. In addition, we follow the similar diet pattern. Thirdly, there’s a large population of 1.3 billion people. Last but not least, at that moment China has just launched its opening policy and Chinese future market will be so dynamic and prosperous that it wrings my heart.” It was on November 1991 that President Ye came to visit China mainland for the first time. The year after, Shanghai was promoting the ideas of “Make a small change in a year; make a big change in three years” and “Development is everything.” following President Deng Xiaoping’s inspection of Southern China. The hustle and bustle of Shanghai local residents reminded President Ye of those prosperous years when he developed his frozen foods business in Taiwan. Thereafter, with a total sum of $3.3 million as the initial capital, he came to Shanghai. With full support from Shanghai municipal government, he embarked upon his career in Shanghai, setting up his first factory. To show his strong commitment to investing in Shanghai, he had the construction of his factory started on October 1992 and the first batches of products manufactured and sold on September 18, 1993. The year 1994 saw the spreading of his products from Shanghai to Beijing while in 1995 the second factory on China mainland was set up in Tianjin, aiming mainly at the market of Northern China, including Beijing, Tianjin, Shandong Province, etc. President Ye said that China is gigantic market with its vast territory. Five factories have been built in succession in Shanghai, Tianjin, Chengdu and Guangzhou. Spreading to all over China mainland are 34 branch offices of our company, offering sales management. In recent years, we remain on the top of market share. At present, the sixth factory has been set up on China mainland. The new plant at Jiashan, Zhejiang Province covers a total area of over 100 hectors, with 25,000 square kilometers being devoted to the construction in the first stage. With self-contained workshops, all the designs and conditions here have measured up to international standard and JAS of Japan. This export-oriented factory is a key step to expand the lines of “Long Feng” foods as well as its output. In 2002, the amount of export of “Long Feng” doubled. At present, the monthly export to Japan, US, Singapore, UK and Canada has reached over ten containers. On August 2001, “Long Feng” registering in Shanghai was established as a cooperation limited. Meanwhile, it became the first enterprise of frozen foods that has passed HACCP and IS09001. In 2002, ERP was introduced into our company. In 2003, “Long Feng” was awarded the title of “well-known trademark in China”. “Long Feng” has a philosophy of management—set an example. The three key ingredients contributing to the success of an enterprise are as follows: to seize opportunity; to have a vision; to promote innovation. In such an environment full of competition in Shanghai, there is no way out but patent innovations. Considering the increasingly busy urban life, “Long Feng” is planning to develop Chinese snack with a view to saving people from tedious housework. Many cities in China have had facilities for take-away food. By enlarging the population of take-away food consumers, we can create a value-added profit through the innovation, i.e. “fish furong soup” and “green beans shrimp ball”. Meanwhile, good reputation is another key factor to the success of our cooperation. During so many years ever since it was founded, “Long Feng” ranks high in its contribution to our national taxation. Paying tax honestly is key to the establishment of a good reputation. Marking strategies that help to market our cooperation culture is yet another key factor to our success. An enterprise belongs to the public and to its employees. Up to now, the 99% of “Long Feng” has been localized, with a moderate number of fourteen managers coming from Taiwan. President Ye has a strong conviction that the effort and suggestion of every employee constitutes the constant motivation of our enterprise. He attributed the stay of 36 employees who were recruited as the first batches of employees in Shanghai to the good cooperation culture. We offer regular training to our employees at all levels and at all dimensions in order to develop our enterprise along with the enhancement of their competence. Pursue new innovations and challenge the market. “Long Feng” takes some new measures this year, placing emphasis on helping the retired people who are well in their forties or fifties to set up Chinese fast food restaurant in all communities as an important project in Shanghai. In these chain restaurants, a variety of “Long Feng” foods such as lightly fried dumplings, noodles, soup will be offered as take-away foods. These restaurants feature low price and good commodities, constraining the total price of each take-away to the range between 5 and 10 yuan. At this point, a team for doing research and development has been organized to make preparations. It is estimated that such chain restaurants are going to open to the public in Shanghai by October. In spite of the keen competition in the market, only through our teamwork can we cultivate a potential market and develop our enterprise along with the enlargement of our market share. |