Lu Guanqiu And Liu Yonghao: Tales Of Legendary Entrepreneurship From Peasants To Billionaires

Lu Guanqiu, with a heavy accent of Zhejiang old man, has dropped out of school at the age of 15, worked as a blacksmith, and worked as a blacksmith for 3 years, making Lu Guanqiu passionate about mechanical farm implements.

He made a small agricultural machinery workshop to become a leader in China's township enterprises, and steadily forward the steering wheel of the Wanxiang Group.

Liu Yonghao likes to eat Mapo Tofu and twice cooked pork. The main meal on weekdays is a box lunch. He eats fast and there is not a grain left in the lunch box.

He doesn't like to wear a suit, T - shirts and pants on his body add up to only a few dozen dollars.

Lu Guanqiu, 58, and Liu Yonghao, 55, occupy fourth, fifth of the rich list respectively. As the most respected leader of the first generation of business in China, they have shown a farmer's legend to the world.

Lu Guanqiu was born in ningwei Township, Xiaoshan City, Zhejiang province.

Lu Guanqiu's father worked in a pharmaceutical factory in Shanghai, earning a small salary. He and his mother had a hard time in the poor countryside.

After graduating from junior high school and being helped by others, Lu Guanqiu was introduced to the Xiaoshan Iron Industry Association as a primary school student.

3 years of iron and steel industry's apprenticeship made Lu Guanqiu very familiar with machinery and agricultural implements, and made him have a special feeling for mechanical equipment.

At that time, farmers in ningwei Township had to walk seven or eight miles to the market town to mill rice noodles, which was very inconvenient.

Lu Guanqiu thought that if a rice flour processing plant was set up in this village, it would be very popular.

Relatives and friends learned that Lu Guanqiu's ideas were very supportive, and they spent 3000 yuan together.

Lu Guanqiu bought a flour mill and a rice mill, and built a rice noodle processing factory that he did not dare to list.

It was forbidden to run privately in that era. Lu Guanqiu's rice noodle factory was forced to close.

Before long, Lu Guanqiu received 5 apprentice and opened a blacksmith shop in the name of the farm machinery repair group. He made shovels, sickle and bicycle repair for nearby villagers.

In 1969, Lu Guanqiu, the leader of ningwai commune, asked him to take over the agricultural machinery repair plant of ningwai commune.

This is a mess of only 84 square meters of broken factory buildings. There is a large backlog of factory products, no sales, and wages have been broken for half a year.

Lu Guanqiu sold all his belongings and materials for his own house, and put all his money into the factory.

He has organized more than 30 business backbone. He has divided into several ways to investigate the production and sales of the automobile universal joint, and to find a way to find products between the local auto parts companies.

That year, the national auto parts ordering will be held in Jiaonan County, Shandong.

After getting the news, Lu Guanqiu rented two cars, took the chief of sales, and ran to Jiaonan with full load of products.

Because it is a township enterprise, unable to enter the field to discuss business, Lu Guanqiu set up a stall outside the field.

He and the chief of supply and marketing put out the universal joints, spread them out with plastic sheets, and put them all in one place for 3 days in a row.

Lu Guanqiu thought to himself, if the price of the product is 20%, there is still a profit, so we may as well reduce the price.

When the price dropped, the customers came in a rush, and they ordered 2 million 100 thousand yuan.

In March 1983, in order to gain the right to start businesses and operate independently, Lu Guanqiu contracted the factory with 20 thousand yuan of seedlings at home.

Facts have proved that Lu Guanqiu's vision and boldness were not wrong. The first year of the contract was over 1 million 540 thousand yuan.

Once, Lu Guanqiu received a return letter from a Anhui customer. The letter said that there was a split in the universal joint.

Related to the quality of products, Lu Guanqiu immediately found the chief of supply and marketing, and asked him to deliver the qualified products overnight and return the defective products.

From this, Lu Guanqiu also thinks that the products that are sent to other places will have similar situations.

Therefore, he immediately organized personnel to visit all parts of the country. Any unqualified product, whether it is the quality of the product itself, or the bad user's safekeeping, will recall the manufacturer and replace the new product free of charge.

More than 30 thousand pieces of defective products were called back. Lu Guanqiu stacked them in the middle of the factory and held a factory worker's meeting.

The factory lost 430 thousand yuan.

Some workers suggested that the factory director should be reused after maintenance. Lu Guanqiu firmly opposed it. He thought that producing such a defective product was a damage to the credibility, and stipulated that no matter which link would be defective in the future, all heavy penalties would be imposed.

From then on, no one dares to be careless about the product.

Lu Guanqiu, while vigorously pursuing product quality, worked hard on improving equipment.

He changed the depreciation system of the equipment in the factory from 15 years to 5 years, and the depreciation rate was changed to 20%, and 80% of the after tax profits were used to update the equipment. He introduced the most advanced testing equipment and sophisticated machine tools from abroad.

Since then, Lu Guanqiu's products have occupied over 60% of the country's market.

Lu Guanqiu saw a broader international market. After a few years, he led the Wanxiang Group finally to open the door of General Company.

Liu Yonghao: quail eggs hatch hundreds of millions of men and women. In 1966, Liu Yonghao, 15 years old, was inspected by Chairman Mao in Beijing.

At that time, Liu Yonghao was eager to enter communism.

In his mind, once a week, once again, the ideal life of eating Mapo Tofu two days is communism.

Two years later, Liu Yonghao, 17, jumped into the ancient village of Xinjin County in the outskirts of Chengdu, where there was no water, no electricity, no medicine, no even a complete road. His work day was 1 cents and 4 cents.

During the Spring Festival in 1980, Liu Yonghao's second brother set up a stall for repairing TV and radio on the roadside.

7 days earned 300 yuan.

The whole family was in an uproar, and the four brothers decided to start an electronic factory.

When Liu Yonghao came to the production team with his stereo, he was refused by the Secretary of the commune.

Although the sound has not been made, the desire to start business is still strong.

After discussion, Liu Yonghao and his brothers raised quails.

Quail raises more and more eggs.

Once the brothers negotiate, they decide to run a good seed farm.

The four brothers changed the valuable items in the seller and collected 1000 yuan.

The main business of the "good seed farm" is to hatch chickens, raise quails and cultivate vegetables.

No incubator, they went to the stalls to buy scrap steel to do it themselves.

In order to build a factory building, several people built it up one brick at a time.

At the end of 1983, 50 thousand chickens were hatched and 10 thousand quail were hatched.

In the past year, a "disaster" suddenly arrived.

One day in April 1984, a specialist ordered 100 thousand chicks. The big deal made Liu brothers overjoyed, and borrowed 100 thousand giant eggs immediately.

Unexpectedly, 20 thousand chicks were handed over to the specialized households, but the man ran away.

Tens of thousands of chickens will hatch immediately, but there is no feed, and the borrowed money should be returned immediately. At that time, Liu Yonghao and others were desperate.

Four brothers set up bamboo baskets all night.

Liu Yonghao took the chick to the farmer's market and sold it for more than ten days. Every morning he got up in the morning. In the rain or shine, he peddled a bicycle for 3 hours and reached the farmer's market 20 kilometers away.

Even they did not think that 80 thousand chickens were sold out!

The brothers are determined to raise "small" quails.

Not long after, they began to deploy feed and breeding samples with electronic computers, and found out an economical and practical ecological cycle feeding method: raising pigs with quail dung, raising fish with pig manure, and raising quail with fish dung, so that the cost of quail eggs reduced to almost the same as that of eggs.

By 1986, the new breeding farm had produced 150 thousand quails annually.

All these quails were sold by Liu Yonghao.

In 1987, Liu brothers moved to the pig feed market.

The company hopes that the feed company has bought 10 mu of land in the ancient village, invested 4 million yuan, established the hope science and Technology Research Institute and feed factory, and invested 4 million yuan as a research fund, and found a group of experts at home and abroad for research and development.

Two years later, the "hope card" 1 baby pig whole grain pellet feed to the market. Liu Yonghao, who specializes in sales and marketing, began to play his own sales and advertising.

In the hope of "feed", Liu Yonghao immediately went to the countryside with his little advertisement.

Advertisements for new hope (000876, stock bar) have been put on the pigsty of every household.

In only three months, the sales volume of "Hope" brand feed was comparable to that of the "Zhengda" feed that was the most popular at that time.

In the face of the constant encroachment of "Hope", the "Zhengda" is anxious.

A price slaughter started between two companies.

"Zhengda" cut 20 yuan per ton, "Hope" also dropped 20 yuan; "Zhengda" drop 100 yuan again!

"Hope" simply cut down 120 yuan!

For a time, the sales volume of "Hope" brand feed increased by 3 times.

Liu Yonghao's marketing strategy is "right" and has no power to resist and no return.

Finally, Zhengda withdrew from the Chengdu market.

In 1992, the hope group was founded.

Liu Yonghao and his second brother Liu Yonghang hope that the cooperation of the group is the most perfect combination.

Liu Yonghang is good at internal management, and Liu Yonghao is good at public relations and negotiation.

In May 1993, only 7 days later, the brothers crossed the three provinces of Hunan, Jiangxi and Hubei, and signed an agreement to establish 4 feed farms.

This year, we hope that the group has established 10 feed farms, all of which are profitable.

By the end of 1994, the hope group's branch offices had developed to 27.

In May 15, 1995, Liu Yonghang and Liu Yonghao officially separated.

Liu Yonghao sits in the southwest and Liu Yonghang controls the northeast.

Liu Yongyan, the founder of the mainland, founded the mainland hope company, the second Liu Yonghang set up the Oriental hope company, the third Liu Yongyan set up Huaxi hope company, and the fourth Liu Yonghao set up the South hope company.