Connect with us

China Food & Drinks

Lao Gan Ma: The Story of China’s Most Spicy Godmother Tao Huabi

China’s ‘Old Godmother’ Tao Huabi, creator of Lao Gan Ma, is China’s hottest businesswoman.

Manya Koetse

Published

on

She is China’s ‘Old Godmother’: Tao Huabi (陶华碧) is the creator of one of China’s most famous chili sauces and is the embodiment of the ‘Chinese dream.’ By following her own path and relying on her business instinct, Tao rose from poverty and became a multi-billionaire. China’s spiciest businesswomen has now quietly retired.

‘Old Godmother’ (Lao Gan Ma) is a household name in China. Anyone who frequents Chinese restaurants or supermarkets is familiar with the brand of chili sauces that is made in China since the 1990s – known for the little portrait of a Chinese woman on its label.

That woman is Tao Huabi (陶华碧), who did not only develop the famous chili sauce, but also became the founder and CEO of the privately owned ‘Lao Gan Ma Foodstuff Company’ (老干妈风味食品有限责任公司). The company was established in south-central China’s Guiyang, Guizhou Province, in 1997.

On February 14 2017, Tao Huabi hit the top trending lists on Chinese social media with the hashtag “The Spiciest [Feistiest] Woman of China” (#曾经中国最火辣的女人), when several Chinese media reported that Tao Huabi had already quietly retired from her company in 2014 and that she is no longer a stockholder of the Lao Gan Ma brand.

 

ROUGH START IN LIFE

“The noodle shop business soon flourished – but not because of her noodles.”

 

With her journey from extreme poverty to ultimate wealth (she is even included in the Forbes list of China’s richest), Tao Huabi’s story reads like a novel.

Tao was born in 1947 in a remote mountain village in Zun’yi, Guizhou province. Since her family was too poor to send her to school, Tao was not taught how to read and write. When Tao was 20 years old, she married a local geologist and had two sons.

When her husband fell ill, Tao Huabi unexpectedly became widowed within a few years after she got married. She was forced to work outside the village to provide for her family; Tao worked around the clock to make rice tofu at night, which she sold at schools during the day.

In 1989, Tao set up a small noodle shop in the Nanming District of Guiyang. Although she just served simple noodles, she mixed them with her own spicy hot sauce with soybeans (豆豉麻辣酱). Tao was beloved in the neighborhood, where she became a ‘godmother’ to poor students which she would always give discount and some extra food.

With many local students and patrons visiting her little diner, the noodle shop business soon flourished – but not because of her noodles.

Tao Huabi discovered the popularity of her condiment when customers came in to purchase the sauce without the noodles. One day, when her sauce had sold out, she found that customers would not even eat her noodles without her special sauce.

When Tao learned that other noodle shops in the neighborhood were all doing good business by using her home-made sauce in their noodles, she realized the potential of her product.

 

FROM NOODLE SHOP TO CHILI SAUCE FACTORY

“At the age of 49, Tao took the plunge and set up her own sauce factory called ‘Old Godmother.'”

 

By the early 1990s, more truck drivers passed by Tao’s shop due to the construction of a new highway in the area. Tao took this as a chance to promote her condiments outside the realm of her own neighborhood and started giving out her sauces for free for the truckers to take home.

This form of word-of-mouth marketing soon paid off when people from outside the city district came to visit Tao’s shop to buy her chili sauces and other condiments.

By 1994, she had stopped selling noodles and had turned her little restaurant into a sauce shop. Two years later, at the age of 49, Tao took the plunge to rent a house in Guiyang, recruited 40 workers, and set up her own sauce factory called ‘Old Godmother’: ‘Lao Gan Ma‘ (老干妈). In 1997, the company was officially listed and open for business.

Although the Lao Gan Ma brand became successful almost immediately, Tao Huabi still struggled for years as a handful of competitors launched fake Lao Gan Ma sauces with similar packaging, and nearly ruined her business.

In 2001, when Tao Huabi was 54, the high court in Beijing finally ruled that other similar products could not use the “Lao Gan Ma” name nor imitate her packages. She received 400,000 RMB in compensation (±60,000$). Twelve years later, her company had an annual sales volume of 540 million US$ (3.7 billion RMB).

 

“THE MIRACLE OF GUIZHOU”

“Tao was included in the Forbes list richest families in China with an estimated worth of $1.05 billion.”

 

By now, Tao’s ‘chili empire’ has gone international, as her condiments are sold from the USA to Africa. She is known as the “Miracle of Guizhou.” Despite the many offers she had throughout her career to set up her business elsewhere, she always stayed true to her home-province – much to the delight of local government officials who have continuously shown their support for Tao.

The businesswoman is a true blessing for the province; not just because her brand has become known as a unique ‘product of Guizhou’, but mainly because she offers employment to 4100 people, and directly and indirectly generates income for ten-thousands of farmers.

Lao Gan Ma is by far the largest chili brand of China, with over 20 differently-flavored condiments.

In 2015, Tao was included in the Forbes list of richest families in China with an estimated worth of $1.05 billion.

Besides that Tao, now 70 years old, allegedly loves driving cars (she owns two Rolls-Royces, a Mercedez-Benz and a BMW), she is also politically active and has become a committee member of the People’s Congress at the provincial level.

According to the latest Chinese media reports, Tao Huabi has quietly retired in 2014, which was unknown to the public. She and her youngest son Li Hui (李辉) are no longer on the list of shareholders. Her oldest son Li Guishan (李贵山), however, is still a company shareholder.

“Somehow this makes me a bit emotional,” some Weibo commenters said.

“I just hope the quality will remain as good as ever,” some netizens responded on Weibo. “As a kid I always thought there was drugs in this sauce because it was so addictive.”

Others praised her life story, saying: “Old Godmother is an example that you can still make it in life without any education.”

“We actually have a lot of women here in Guizhou who can make their own delicious chili sauce,” another netizen wrote: “But of course, Old Godmother’s hot sauce is delicious and has its own characteristics. And in the era of Old Godmother, there were very few people who would rely on chili sauce to make a living. She has persisted and kept her prices low.”

A bottle of Lao Gan Ma is generally sold at around 8-10 RMB (±1-1,5US$). Overseas, prices vary from 8$ to 15$.

“Every great business person has to retire one day,” one commenter writes: “That does not diminish her legendary successful career!”

Others are surprised to find such a life story behind the Lan Gao Ma product: “Who knew our Old Godmother was such a fascinating person?”

– By Manya Koetse
Follow on Twitter or Like on Facebook

Sources and Further Reading

Baidu Page Tao Huabi (in Chinese): http://baike.baidu.com/view/117848.htm#reference-[1]-117848-wrap.

Phoenix News (in Chinese) http://finance.ifeng.com/a/20151202/14103739_0.shtml

Sina News (in Chinese) https://zx.sina.cn/n/2017-02-14/zx-ifyamkzq1302308.d.html

Sina Video (in Chinese) http://video.sina.com.cn/p/news/o/doc/2017-02-13/112965694793.html?wm=3049_0022&from=qudao

What’s on Weibo is an independent blog. Want to donate? You can do so here.

©2017 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com

Manya Koetse is the editor-in-chief of www.whatsonweibo.com. She is a writer and consultant (Sinologist, MPhil) on social trends in China, with a focus on social media and digital developments, popular culture, and gender issues. Contact at manya@whatsonweibo.com, or follow on Twitter.

China Food & Drinks

Famous Goubuli Restaurant Calls Police for Getting Roasted Online, Gets Kicked Out of Franchise Group

Goubuli Wangfujing shows how NOT to address a social media crisis.

Manya Koetse

Published

on

The well-known Goubuli Wangfujing restaurant just got a bit more famous this week. The branch, which specializes in steamed buns, is now not just known as one of Beijing’s worst-rated restaurants, but also as a business that shot itself in the foot by handling a social media crisis the wrong way.

The famous Wangfujing main branch of Goubuli Steamed Buns (狗不理包子) is caught up in a social media storm since responding to a blogger’s negative video of their restaurant by contacting the police.

The video, Goubuli’s response to it, and the following consequences have hit the top trending topic lists on Weibo today.

Goubuli, sometimes transcribed as Go Believe, is a well-known franchise brand of steamed stuffed buns (baozi) from Tianjin that was founded in 1858. The brand now has more than 80 restaurants in mainland China, 12 of them in Beijing. Since Wangfujing is one of Beijing’s most famous streets, the Wangfujing branch is popular with both foreign and Chinese visitors.

 

Gu Yue’s “Visiting the Worst-Rated Restaurant” Video

 

The social media storm started on September 8, when Weibo blogger Gu Yue (谷岳) posted a video titled “Visiting the Worst-Rated Restaurant” (“探访评分最差餐厅”). Gu Yue is a travel blogger with over 1,7 million fans on Weibo.

Gu Yue in front of Gubouli.

In the video, Gu Yue starts by explaining he chose to visit Gubouli after searching for the restaurant that receives the lowest ratings in the Beijing Wangfujing and Dongdan areas on the super-popular Chinese mobile food app Dianping.

The blogger found that, out of the 1299 listed restaurants in the area, Wangfujing Goubuli Baozi was the worst-rated place. Ironically, the brand’s name Gǒubùlǐ (狗不理) literally means ‘dogs don’t pay attention,’ which makes the name ‘Goubuli Baozi’ sound like a place with stuffed buns that even dogs would not eat.

Complaining about the service, prices, and quality of food, many Dianping users rated the restaurant with just one out of five stars.

Gu Yue then sets out to visit the restaurant himself to see if Gubouli on Wangfujing really is as bad as Dianping users say. He orders some steamed braised pork dumplings, 60 yuan ($8.7) for 8, and regular pork dumplings, 38 yuan ($5.5) for 8.

The blogger concludes that Gubouli’s dumplings are not worth the money: the dumplings are greasy, the dough is too sticky, and they do not have enough filling. Gu Yue’s video also suggests that the restaurant’s hygienic standards are not up to par, with loud coughing coming from the kitchen.

Gu Yue’s video received over 97,000 likes and thousands of responses on Weibo, with many fans praising the idea of the blogger checking out the worst-rated restaurants.

 

Goubuli’s Reaction Starts a Social Media Storm

 

The Wangfujing branch of Goubuli did not appreciate Gu Yue’s video.

In an online statement on September 11, the branch accused the blogger of spreading lies about their restaurant and harming their reputation, and demanded a public apology.

Goubuli Wangfujing called the video “vicious slander” and stated they had contacted the police in relation to the matter.

The hashtag “Wangfujing Goubuli Responds to Netizen’s Negative Video” (#王府井狗不理回应网友差评视频#) immediately went viral on Weibo, attracting some 430 million views.

Many Weibo users were outraged about the way the Goubuli branch handled the situation. “Aren’t we even allowed to say if something is tasty or not?!” many commenters wondered, with others writing: “You are harming your own reputation!”

“Let’s call the police over the quality of your food,” others suggested.

There were also many netizens who commented that some Chinese Time-Honored brands, such as Goubuli, often only survive because of their history and fame rather than actually delivering good quality to their customers.

Following the major online backlash on its statement, the restaurant soon removed their post again. But the social media storm did not end there.

On September 15, the Goubuli Group issued a statement saying that it would directly terminate its franchise cooperation with the Goubuli Wangfujing branch over the incident.

With over 280 million views on its hashtag page (#狗不理解除与王府井店加盟方合作#), news of the franchise termination blew up on Weibo.

According to the latest Weibo reports on September 15, the Wangfujing Goubuli branch was closed for business on Tuesday (#狗不理包子王府井店门店关闭#).

“This is the power of clout,” one person comments: “If it were not for the [Goubuli] restaurant’s flawed marketing department, this would not have led to their closure.”

“The restaurant has brought this on themselves. There’s nothing wrong with posting a bad review.”

Another person comments: “This is the first time I’ve seen a marketing department making something big out of something small, leading to their own closing.”

Meanwhile, blogger Gu Yue says that he was not contacted by Goubuli, nor by the police. The social media controversy has only made him more popular.

“Gue Yue single-handedly crushed this restaurant,” some say, appreciating how social media has increased the power of Chinese consumers to make or break a business.

 
Also read: Overview of the Dolce&Gabbana China Marketing Disaster Through Weibo Hashtags
 

By Manya Koetse

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2020 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

Continue Reading

China Food & Drinks

Tianjin Restaurant Introduces “Meal Boxes for Women”

The special lunch boxes for women were introduced after female customers had too much leftover rice.

Manya Koetse

Published

on

China’s anti food waste campaign, that was launched earlier this month, is still in full swing and noticeable on China’s social media where new iniatives to curb the problem of food loss are discussed every single day.

Today, the hashtag “Tianjin Restaurant Launches Special Female Meal Boxes” (#天津一饭店推出女版盒饭#) went trending with some 130 million views on Weibo, with many discussions on the phenomenon of gender-specific portions. The restaurant claims its special ‘female lunch boxes’ are just “more suitable for women.”

According to Tonight News Paper (今晚报), the only difference their reporter found between the “meals for women” and the regular meals, is the amount of rice served. Instead of 275 grams of rice, the ‘female edition’ of the restaurant’s meals contain 225 grams of rice.

The restaurant, located on Shuangfeng Road, decided to introduce special female lunch boxes after discovering that the female diners of the offices they serve usually leave behind much more rice than their male customers.

The restaurant now claims they expect to save approximately 10,000 kilograms of rice on an annual basis by serving their meals based on gender.

On Chinese social media, the initiative was heavily criticized. Weibo netizens wondered why the restaurant would not just offer “bigger” and “smaller” lunch boxes instead of introducing special meals based on gender.

“There are also women who like to eat more, what’s so difficult about changing your meals to ‘big’ and ‘small’ size?”, a typical comment said: “Some women eat a lot, some men don’t.”

Many people called the special meals for women sex discrimination and also wanted to know if there was a difference in price between the ‘female’ and ‘male’ lunch boxes.

There are also female commenters on Weibo who claim they can eat much more than their male colleagues. “Just give me the male version,” one female user wrote: “I’ll eat that meal instead.”

This is the second time this month that initiatives launched in relation to China’s anti food waste campaign receive online backlash.

A restaurant in Changsha triggered a storm of criticism earlier this month after placing two scales at its entrance and asking customers to to enter their measurements into an app that would then suggest menu items based on their weight. The restaurant later apologized for encouraging diners to weigh themselves.

By Manya Koetse

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2020 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

Continue Reading
Advertisement
Advertisement

Support What’s on Weibo

If you enjoy What’s on Weibo and support the way we report the latest trends in China, you could consider becoming a What's on Weibo patron:
Donate

Facebook

Instagram

Advertisement

Contribute

Got any tips? Or want to become a contributor or intern at What's on Weibo? Email us as at info@whatsonweibo.com.

Popular Reads