{"id":1613,"date":"2018-12-10T06:51:17","date_gmt":"2018-12-09T22:51:17","guid":{"rendered":"https:\/\/www.hiredchina.com\/articles\/2018\/12\/10\/this-uneducated-chinese-man-made-rmb-60-billion-with\/"},"modified":"2024-12-19T20:47:13","modified_gmt":"2024-12-19T12:47:13","slug":"this-uneducated-chinese-man-made-rmb-60-billion-with","status":"publish","type":"post","link":"https:\/\/www.hiredchina.com\/articles\/this-uneducated-chinese-man-made-rmb-60-billion-with\/","title":{"rendered":"This Uneducated Chinese Man Made RMB 60 Billion With…"},"content":{"rendered":"

I think everyone in China must know Haidilao. Am I right? Haidilao hot pot (\u6d77\u5e95\u635eh\u01cei d\u01d0 l\u0101o) just had its IPO (initial public offering) and is finally on the market<\/a> as of 9:30 am on September 26, 2018. It lasted 24 years from its inception in 1994 before it<\/p><\/blockquote>\n

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I think everyone in China must know Haidilao. Am I right?<\/span><\/p>\n

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Haidilao hot pot (\u6d77\u5e95\u635eh\u01cei d\u01d0 l\u0101o) just had its IPO (initial public offering) and is finally on the market as of 9:30 am on September 26, 2018.<\/span><\/p>\n

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It lasted 24 years from its inception in 1994 before it became a public company.<\/span><\/p>\n

Haidilao opened its shares and the company’s market value topped HK $100 billion, surpassing the US $12.1 billion domino’s pizza and becoming the <\/strong>world’s fifth-largest restaurant company.<\/strong><\/span><\/p>\n


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                                                     Three startups failed<\/span><\/strong><\/span><\/p>\n

What’s the path from technical school to a billionaire?<\/strong><\/span><\/p>\n

Haidilao founder Zhang Yong was born in Sichuan in 1971. His father was a cook in a factory. His mother was a primary school teacher. He brings the typical founder story: no background, no degree, no money.<\/strong><\/span><\/p>\n


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All he could do was work hard on his own and have full control over his fate.<\/span><\/p>\n


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01<\/strong><\/span><\/p>\n

Poker machine game<\/strong><\/span><\/p>\n

When he went to Chengdu, he saw many people playing a poker machine game. Zhang Yong felt extremely excited about it: “I should get a machine like this, then money will come!\u201d he thought.<\/span><\/p>\n


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Zhang began to turn over the news<\/a>paper. He found an advertisement for a poker machine.<\/span><\/p>\n


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The only problem was\u2026 the price tag was RMB 6000! The Fujian seller saw his hesitation and told Zhang Yong something that he would remember for more than 20 years: \u201cYoung man, I think you\u2019ll be able to achieve great work in the future. <\/strong>So I\u2019m gonna sell it to you for RMB 5000!\u201d<\/span><\/p>\n


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Zhang Yong excitedly went home to save up and collect RMB 5000.<\/span><\/p>\n

Unfortunately, the appearance of a fake gold watch cheater led Zhang Yong to lose most of his money. This marked his first business failure.<\/span><\/p>\n

02<\/strong><\/span><\/p>\n

selling oil tickets<\/strong><\/span><\/p>\n

Zhang soon began thinking about other businesses he could start. Back in those days, gasoline was still a planned commodity in China and had been supplied with an oil ticket, which was issued only for drivers of government and state-owned enterprises.<\/span><\/p>\n

“If I can get the tickets from the government drivers and resell them to private drivers, I can make money,” Zhang thought.<\/span><\/p>\n

Zhang found a piece of cardboard and looked for a property along the road where he could set himself up. But t<\/span>hings did not turn out so well for Zhang, as after several days of patient waiting, no cards stopped. No orders were placed.<\/span><\/p>\n

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Zhang went home disappointed\u2026 His second business plan fell short.<\/span><\/p>\n


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03<\/strong><\/span><\/p>\n

Little hot pot<\/strong><\/span><\/p>\n

After two unsuccessful ventures, Zhang Yong began to understand that he could make money if he did a good job in a business that satisfied people’s appetite.<\/strong><\/span><\/p>\n

He has previously found out about a small popular hot pot in Chengdu, where restaurants burn the spicy hot pot in a string, and customers cook it themselves.<\/span><\/p>\n

Zhang Yong felt optimistic about this business opportunity. He found a more than 10 square meters of the street shop and with RMB 180 per month as rent, he started his third business.<\/span><\/p>\n


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After half a year, a string of 20 cents of spicy hot pot brought RMB 200,000 in revenue, and Zhang Yong cashed in RMB 10,000 in net profit!<\/span><\/p>\n

However, love would soon fail him again and have him close down his small hot pot restaurant. But on the bright side, the woman he had met eventually became Mrs. Yong.\"a.png\"<\/strong><\/span><\/p>\n

04<\/strong><\/span><\/p>\n

Haidilao<\/strong><\/span><\/p>\n

After the small hotpot shop closed, Zhang Yong thought: I didn\u2019t go to university, I have no experienced background, so there\u2019s really only one way to go: work hard!<\/strong> And with that in mind, Zhang Yong was ready to reopen his shortly successful hot pot restaurant!<\/span><\/p>\n


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Zhang Yong’s girlfriend, his classmate and classmate’s girlfriend showed their full support and helped to collect RMB 8,000 to open a shop together.  Four people, each owning a 25% share of the hot pot restaurant.<\/span><\/p>\n


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Haidilao was formally established in 1994 when Zhang Yong was only 24.<\/strong><\/span><\/p>\n


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But the competition for hotpot cooking in Sichuan is so fierce that he thought the road to success could be reached in only one way: t<\/strong>o attract customers with an impeccable customer service and experience that would go beyond the ordinary person\u2019s imagination.<\/strong><\/span><\/p>\n


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How do you do that? When a dinner guest complained about his stomach hurting from the night before, Zhang Yong served him a pot of millet gruel. When a customer complimented their chili sauce, Zhang Yong offered him several cans to take home.<\/span><\/p>\n

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It\u2019s the little things that make the biggest difference. And it\u2019s this kind of service that made Haidilao so successful and reputable.<\/span><\/p>\n

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But as the company grew, one big question arose: how could Zhang make tens of thousands of employees buy into his vision and ensure that each of them would provide the best customer service possible?<\/strong><\/span><\/p>\n

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Talking about money is the best respect for employees<\/strong><\/span><\/p>\n

The hot pot business is very (very) competitive and isn\u2019t very tech-heavy. Anyone can do it.<\/span><\/p>\n


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So why is Haidilao so unique?<\/span><\/p>\n


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Haidilao has a term, “dowry”<\/strong>. As long as a store manager<\/a> has been in his position for more than one year, he or she will give a dowry of RMB 80,000<\/strong>. (many of Haidilao’s store managers are women in their 20s.)<\/span><\/p>\n


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Zhang Yong said that because the Haidilao workload is too tiring if you can work above the store manager, it all contributes to Haidilao. Everyone has a share of the credit and hard work, so whatever the reason they quit, we should give what they deserve. <\/strong><\/span><\/p>\n


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If the community manager (about 5 branches) leaves, pay RMB 200,000<\/strong>. If the regional manager quit, they will give a hotpot restaurant to the manager which is about RMB 8 million<\/strong>.<\/span><\/p>\n

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A
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An enterprise that truly guides its employees to fight for the enterprise’s ideal is sure to first address their money needs.<\/span><\/span><\/strong><\/p>\n

How much can a manager at Haidilao earn? From RMB 20,000 to 80,000 a month, even tens of thousands of yuan depending on how successful their branches are.<\/span><\/p>\n


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Haidilao has designed a perfect rising channel and salary system.<\/span><\/p>\n

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Let the employee live with dignity first, then pursue happiness.<\/strong><\/span><\/p>\n

Haidilao treats its employees as real brothers and sisters. Waiters live in regular homes with nice facilities, and the dormitories must be within 20 minutes of walking to work.<\/span><\/p>\n


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Haidilao\u2019s training not only covers work content but also general life skills. <\/strong>This company is helping its employees blend in with the rest of society in the cities it operates in.<\/strong><\/span><\/p>\n


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Another manifestation of Haidilao’s respect for its employees is Zhang Yong’s bold authorization.<\/strong><\/span><\/p>\n


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Zhang Yong’s signature in Haidilao is more than RMB 1 million; The deputy general manager, chief financial officer, and the regional manager shall be responsible for the amount below RMB 1 million; The minister of bulk purchase, the minister of engineering and the manager of the community have the signature right of RMB 300,000; The store manager has the right to sign for RMB 30,000.<\/span><\/p>\n

The most junior waiters are given the biggest authority: no matter what the reason is, as long as the employees think it is necessary, they can give the guests a free meal.<\/strong><\/span><\/p>\n

For a career person, this lifetime, encounter high salary, encounter high position, it is not uncommon, the strange is to encounter the boss’s respect and understanding.<\/span><\/p>\n

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one person can make money look very desirable, but a group of people can truly go anywhere with it. Therefore, he is also willing to share profits with his own employees.<\/span><\/strong><\/span><\/p>\n

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Congratulations to Zhang Yong and the Haidilao family for going public!\"b.png\"<\/span><\/p>\n


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Anything can happen once your employees believe in your mission and are treated with the utmost respect.<\/span><\/strong>\"c.png\"<\/p>\n


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Often times, business owners become too greedy and aren\u2019t the happiest about sharing their money with the rest of their company fairly. <\/span><\/p>\n


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But Haidilao has operated differently ever since its inception in 1994, and it\u2019s all the more gratifying to see Zhang Yong\u2019s generous efforts pay off.<\/span><\/p>\n

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At last, this business venture is guaranteed to continue on its successful path for a long time.\"d.png\"\"GIC<\/span><\/p>\n

\"GIC<\/p>\n","protected":false},"excerpt":{"rendered":"I think everyone in China must know Haidilao. Am I right? Haidilao hot pot (\u6d77\u5e95\u635eh\u01cei d\u01d0 l\u0101o) just had its IPO (initial public offering) and is finally on the market …","protected":false},"author":1,"featured_media":25033,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,41,21],"tags":[1948,60,353,306,29,34,3283,1209,27,1968,3434,214],"class_list":["post-1613","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-eat","category-china-jobs","category-hot-jobs","tag-business","tag-china","tag-e-china-cities","tag-hiredchina","tag-jobs","tag-jobs-in-china","tag-manager","tag-market","tag-news","tag-opportunities","tag-this-uneducated-chinese-man-made-rmb-60-billion-with","tag-travel"],"_links":{"self":[{"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/posts\/1613","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/comments?post=1613"}],"version-history":[{"count":1,"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/posts\/1613\/revisions"}],"predecessor-version":[{"id":25039,"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/posts\/1613\/revisions\/25039"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/media\/25033"}],"wp:attachment":[{"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/media?parent=1613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/categories?post=1613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/tags?post=1613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}

In July 1988, at 17-year-old, he graduated from a technical school and entered the factory as a worker, which was considered a good job at the time due to its stability. During the 6 years working at the factory, he often used his spare time to travel<\/a> across China, inspecting the market and looking for business<\/a> opportunities<\/a>.<\/span><\/p>\n