Lao Gan Ma is a popular chili crisp sauce brand in China that was started by Tao Bihua and has grown significantly over the years. It sells over 2 million bottles per day and had $655 million in revenue in 2016. While it faces competition from other brands, Lao Gan Ma has been able to maintain its number one position in the market through its focus on quality and secret sauce recipe, as well as through its debt-free and family-managed business model. If it can continue replicating the secret sauce, the brand is predicted to remain successful for many years to come while potentially expanding internationally.

1. L AO GAN MA CHILI
CRISP SAUCE
P R E S E N T E D B Y
T I A N Y U E Z H A N G

2. THE HISTORY OF LAO GAN MA
• Lao Gan Ma ---- the story of Tao Bihua
• The begun of the business
• The development

3. PRODUCT

4. CHALLENGE
• Fake “Lao Gan Ma”
• Price war
• Single raw material/ strong supplier power

5. BUSINESS MODEL
• Debt-Free
• Not going public
• Consumer Psychology
• Family-based management
• Enterprise---base---farming
• Human resource management
Lao gan ma:The hottest woman in China

6. FINANCIAL INFO
• 750 factory and about 5000 employees
• Sell more than 2 million bottles/day
• $655 million in revenue in 2016, earn $0.15/bottle
• Pay Tax: $0.3 billion value of $1.14 billion in 3 years
(2014)

7. COMPETITON
Lao Gan Ma Lee Kum Kee Douban
Sales/year 730 million bottles 600,000 tons 50,000 tons
Revenue/year $655 million $250 million $40 million
Brand reputation 1 3 2

8. THE SECRETE SAUCE
• The secrete sauce!
• The secrete person!
• Quality focus
• Brand-built

9. PREDICTION
• Will success in many years as long
as the secret sauce is the same.
• Not likely to become much larger
• Will try to sell products at different
countries.

11. Q&A