Nien Group Chairman Chen Feilong once said that companies facing market changes must have the courage to change.
October 14, 2024 / Economic Daily News Reporter Huang Shu-hui
The outside world describes Namchow (1702), an established enterprise, as changing every ten years. Chen Fei-lung, Chairman of the Namchow Group, once said that businesses must have the courage to change when facing market fluctuations. Currently, Namchow's three major business units each have their own expertise, presenting a three-legged situation with Taiwan, mainland China, and Thailand, allowing Namchow to move more steadily into the future.
Fear not change, embrace trends.
Nanchiao Food Group (Shanghai) was listed on the Shanghai A-share market in May 2021, becoming the first listed food industry company to be listed in mainland China. This year, Nanchiao's IPO has added another member, with its invested subsidiary Royal KOUKOU submitting an application in October to be listed on the emerging stock market. Nanchiao's other profitable subsidiary, Nanchiao Thailand, is also evaluating entry into the capital markets.
Chen Feilong believes that a diversification strategy cannot be separated from the four key elements (raw materials, technology, distribution channels, and culture), and that trends and market dynamics are also crucial. With the precise implementation of its development strategy, Nan Chiao Group’s revenue and profits have continued to rise in recent years;In the first eight months of 2024, self-reported profits reached NT$720 million, representing a year-over-year increase of 36.891%. Earnings per share (EPS) stood at NT$2.90, an increase of NT$0.78 compared to the NT$2.12 EPS reported in the same period last year.
Chen Feilong took over as chairman in 1974. Today, Nanchiao Industrial has expanded into a group that includes a household goods division, a fats and oils division, as well as frozen dough, ice cream, slow-cook noodles, restaurants, and more. He believes that in the face of new environmental changes, it is best for the company if it is advantageous, and if the overall environment is unfavorable, one must strive to adapt to the changes.
Chen Feilong shared his secrets for entrepreneurship, saying, "I came to Taiwan early on without any geographical advantage. To start a business, I had to gain everyone's recognition and support, so I needed to integrate into the local culture even more." The crystal soap he launched at the age of 26 is still a bestseller. Because he loves to eat, understands food, and is good at promoting it, he decided to open Dian Shui Lou, a restaurant that incorporates Taiwanese ingredients into Jiangzhe cuisine.
Chen Feilong said that in the face of market changes, one must have the courage to change. Currently, Nanqiao's three major business units each have their own expertise, presenting a three-legged stance that allows Nanqiao's long-term development to be more stable.
Seize new business opportunities that replace old ones
A constantly changing business environment has become the new normal for corporate operations. Just as during the oil crisis, some businesses inevitably disappear while new business models emerge;Over its 69-year history, Nan Chiao has strived to turn crises into opportunities. Since making a name for itself in the market with Crystal Soap in the 1960s, the company has solidified its position in the domestic edible oils and frozen dough markets amidst a constantly changing environment.In recent years, the company has expanded into the food service, ice cream, and frozen instant noodle markets, successfully entering the ASEAN market. Its rice cracker snacks and Little Chef instant noodles have both received positive feedback. By diversifying from its core business, Nan Chiao’s various business units are working together to write a new chapter in the company’s history.
Chen Feilong recalled his entrepreneurial journey, and despite various twists and turns, he never considered the word "difficult." If one thinks it's difficult, they won't want to start a business. He only focused on how to do things well. For example, many people are in the soap business, but Nan Qiao's mission is to extend the life of old products even as a new era of laundry detergent arrives; that's the real challenge.
Royal Taste, a subsidiary of Nien Chiang, manufactures Doulaya ice cream, whose quality in taste and other aspects has reached international standards in recent years.
Under the Nanqiao Group, Royal Cookie is producing Duruoye ice cream. In recent years, its taste and overall quality have reached international standards. Chocolate and vanilla flavored ice creams have undergone blind testing and fully meet international ice cream standards. Because of this recognition of quality, Duruoye ice cream's super-exclusive collaboration series is constantly being released. They also produce ice cream bars for the global top chocolate brand Godiva, exclusively sold at 7-ELEVEN, and their ice cream cones are also popular products.
