The Legendary Lao Gan Ma: How Chili Sauce Billionaire Tao Huabi Became a ‘Chinese Dream’ Role Model

You might know the chili sauce Lao Gan Ma, a household name in China. But perhaps you’re less familiar with the story behind the sauce and its founder, which has inspired millions of people and has made ‘Old Godmother’ Tao Huabi a notable figure in Chinese contemporary culture today. For many, the successful businesswoman and ‘chili sauce queen’ is an embodiment of the ‘Chinese dream.’

 
This is the “WE…WEI…WHAT?” column by Manya Koetse, original publication in German by Goethe Institut China (forthcoming), visit Yi Magazin: WE…WEI…WHAT? Manya Koetse erklärt das chinesische Internet.
 

Lao Gan Ma t-shirts, Lao Gan Ma phone covers, Lao Gan Ma bracelets, and even Lao Gan Ma airpod cases – Lao Gan Ma is more fashionable than ever in China today.

The celebrated brand is one of the country’s most well-known chili sauce labels, and it pops up in Chinese media and online culture every single day; not just because of its tasty condiments and other food products, but also because of the company’s remarkable history and evolution.

Besides the popularity of Lao Gan Ma’s crispy chili oil, it is the story of founder Tao Huabi (陶华碧) that plays a crucial role in the brand’s contemporary success. It is her face you see on the recognizable packaging design that has become a household product and is now also famous in many countries outside of China.

The iconic Lao Gan Ma, image via www.szmtzc.com

The brand name ‘Lao Gan Ma’ (老干妈) literally means ‘Old Godmother’ and refers to Tao Huabi herself. She is the creator of the famous chili sauces who has, over time, become the embodiment of the ‘Chinese dream.’ By following her own path and relying on her business instinct, Tao rose from poverty and became one of China’s richest women.

In order to explain why Tao Huabi is such an iconic figure in China today, let’s look at this famous female entrepreneur by highlighting the different stages of her Lao Gan Ma journey.

 

1: The Young Tao Huabi: “If I Hadn’t Been Strong, I Would’ve Starved”

 

“There are many successful businesses entrepreneurs who have experienced hardships, but there are few whose starting point was as low as Tao’s.” These are the opening lines of a popular book about Tao Huabi, written by Zhang Nali (张丽娜), telling the story of her life.

Tao Huabi was born in 1947 in a small village in Meitan County, Guizhou, one of China’s poorest provinces. She was the eighth daughter in her family (her parents had actually hoped to finally have a son), and her parents struggled to feed and clothe their children, let alone give them proper education. Tao was not taught how to read and write.

The biography about Tao Huabi describes how Tao spent her younger years chopping wood, cooking and farming. The title of the book is If I Hadn’t Been Strong, I Would’ve Starved (我不坚强,就没得饭吃), and it is telling of how Tao’s younger years were all about being hungry and finding ways to keep on going.

Tao Huabi’s biography, written by Zhang Nali. Image via Shanghuibs.

During the Great Chinese Famine (1959-1961), Tao dug for wild vegetables and tried various ways to eat plant roots, using whatever she had to try and make the little food they had taste better. This is how poverty and hunger drove the young Tao to make her very first chili sauce. The natural sauce, made from medicinal plants from the mountains and home-grown chili peppers, was loved by the entire family.

When Tao was 20 years old, she married her husband, who worked as an accountant with the local geological team. They had two sons together. But the happy life of the young family did not last long as just a few years into their marriage, Tao’s husband became seriously ill with liver disease.

Tao now found herself in an incredibly difficult situation; she was uneducated, illiterate, and had no official working experience. But she needed to provide income for her family as they had no money to cover her husband’s medical costs and pay for the food and education of their two sons. The 30-yuan monthly income of her husband was nowhere near enough to help the family.

The situation led Tao to head out of the countryside for the first time in her life to go to the city of Guangzhou to find a factory job as a migrant worker. She brought her own homemade chili sauce with her to the faraway city and used it to flavor her steamed buns when she couldn’t afford any other food. She also shared it with her co-workers, who found her chili sauce to be delicious.

Unfortunately, Tao’s efforts could not save her husband’s life. She soon became widowed and, heartbroken, had to return back to Guizhou to take care of her two young boys. Now that she had become the sole caregiver and provider of her family, she started selling rice curd and also set up a street stall selling vegetables at all hours of the day, often working until 4 in the morning.

Her passion for cooking kept following Tao wherever she went. One day, when Tao’s sons were already grown up, she visited a noodle shop after work and complained to the female shop owner that their cold noodles were not authentic enough. After Tao gave the lady her tips and tricks on how to improve the noodles using chili oil, she was offered a job at the noodle stall. The experience at the shop eventually gave Tao the idea to start her own business.

 

2: Inspirational Business Journey: “Selling the Flavor”

 

In 1989, when Tao was 42, she set up her own little “Economical Restaurant” (“实惠饭店”) in the Nanming District of Guiyang, Guizhou. Although she just served simple noodles, she mixed them with her own spicy hot sauce with soybeans. Tao was beloved in the neighborhood, where she became a ‘godmother’ to poor students whom she would always give discounts 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 – it was the chili sauce that kept people coming back for more.

Tao Huabi came to understand the popularity of her condiments when customers came in to purchase the sauce by itself, without the noodles. One day, when her sauce had sold out, she found that customers would not even eat her noodles without the chili. 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 finally realized the true potential of her product.

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 late 1994, Tao had stopped selling noodles and had turned her little restaurant into a specialty store called ‘Tao’s Guiyang Nanming Food Shop’ (“贵阳南明陶氏风味食品店”), with the chili oil sauce being the number one product.

Two years later, at the age of 49, Tao took the plunge to rent a house in Guiyang, recruited forty workers, and set up her own sauce factory called ‘Old Godmother’: ‘Lao Gan Ma‘ (老干妈). Since the factory initially had no machines, the chili chopping was all done manually. Tao herself, wearing her apron, would also cut chilis at the factory tables together with her workers.

In 1997, the company was officially listed and open for business. Although Tao never had any formal education, she turned out to have a natural talent for managing her flourishing company. Tao’s two sons later also joined the Lao Gan Ma company.

Although the Lao Gan Ma brand became successful almost immediately after its launch, 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).

Tao Huabi in her factory, image via Sohu.com.

Lao Gan Ma eventually employed over 2000 factory workers and became the largest producer and seller of chili products in China, reaching a point where the company produced 1.3 million bottles of chili sauce every day. Besides the iconic Fried Chili in Oil and Chili Crisp Sauce, Lao Gan Ma also produces Black Beans Chili Sauce, Tomato Chili Sauce, hot pot soup base, and other condiments.

By now, Tao’s ‘chili empire’ has gone international, as her condiments are sold from the USA to Africa. Tao Huabi once famously said that she does not know all the countries outside of China where Lao Gan Ma is sold, but that she does know that Lao Gan Ma is sold wherever there are Chinese people.

In 2019, Lao Gan Ma was selected as one of the top 100 brands in China, together with other famous national brands such as China Mobile, Huawei, Tik Tok, Tsingtao, and Alibaba.

Lao Gan Ma packaging, image via Taobao.

What is striking about the Lao Gan Ma business model is that it does not follow the usual marketing strategy tactics. The company rarely advertises, there are no celebrity endorsements, no social media accounts or campaigns, the website hasn’t been updated for years, and the Lao Gan Ma packaging has never modernized: it’s been the same old-fashioned logo for decades.

It is a marketing strategy that follows Tao’s no-nonsense line of thinking: if your product is good enough, people will buy it again. “We’re selling the flavor, not the packaging,” Tao herself once said.

 

3: The Old Godmother: “Labor Builds the Chinese Dream”

 

In the eyes of many, Tao Huabi is an embodiment of the ‘Chinese dream.’ A few years ago, Chinese state broadcaster CCTV produced a TV series titled “Labor Builds the Chinese Dream” (劳动铸就中国梦), and one of its episodes featured Tao Huabi, who is now 74 years old.

The main narrative of the documentary is that all people built on a country’s wealth together with each other as a collective goal – not an individual one. The idea of the ‘China Dream’ has been especially ubiquitous in Chinese official media since Xi Jinping became president in 2013. The concept refers to “the great rejuvenation of the Chinese nation.” In his first address to the nation in March of 2013, Xi emphasized that in order to realise the “Chinese road”: “(..) we must spread the Chinese spirit, which combines the spirit of the nation with patriotism as the core and the spirit of the time with reform and innovation as the core.”

Tao’s story fits this idea of the Chinese shared ‘road to prosperity’ dream. She started out poor but created her own business in spite of all obstacles. Along the way, she was always prepared to help out others while she herself rarely relied on her network or other people’s money to reach her goals.

Throughout her business journey, Tao has stayed true to her province, earning her the “Miracle of Guizhou” nickname. Despite the many offers she had throughout her career to set up her business elsewhere, she always refused to leave her home base – much to the delight of local government officials who have continuously shown their support for Tao. The businesswoman is a 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 nearly 5000 staff members, and directly and indirectly generates income for ten-thousands of local farmers.

Tao is also a Party member, and she is politically active as, among others, a representative of the Standing Committee of the Guizhou Provincial People’s Congress. She attended the National People’s Congress in Beijing multiple times.

Tao Huabi at the Two Sessions, photo via Sohu.com.

While Lao Gan Ma is one of China’s national brands, Tao Huabi is often also seen as a patriotic entrepreneur. Lao Gan Ma’s condiments are much more expensive outside in foreign countries than in China. While a two-pack of Lao Gan Ma is sold for only 9.9 yuan ($1.5) on Chinese e-commerce platform Taobao, the same pack is sold in the US for 13 up to 18 dollars on the American Amazon: eight to twelve times more expensive than the Chinese price. When asked about the enormous Lao Gan Ma price difference between China and other countries, Tao said: “I’m Chinese. I don’t make money off of Chinese people. I want to sell Lao Gan Ma to foreign countries and make money off of foreigners.”

Lao Gan Ma’s popularity outside of China has risen over the past decade. On Facebook, there is even a public group called “The Lao Gan Ma (老干妈) Appreciation Society,” where the group members (over 4000!) share their love for the brand.

Examples of Tao Huabi featured in fashion and accessories. Tao Huabi as a fashion icon?!

Meanwhile, on Chinese social media platform Weibo, Lao Gan Ma and Tao Huabi’s story often pop up in people’s posts: “Old Godmother is an example that you can still make it in life without any education.”

Perhaps there is no better person to embody the Chinese dream than Tao Huabi, who has experienced life in China from so many different angles. A poor farmer’s daughter, a young struggling window, a migrant factory worker, a loving mother, a roadside peddler, a business manager, a loyal Party member, and even an unexpected fashion icon – Tao Huabi has seen and been it all. There is one thing she will always be: China’s chili sauce queen.

 

By Manya Koetse
Follow @whatsonweibo

Zhang Nali 张丽娜. 2019 (2016). Tao Huabi, Founder of Lao Gan Ma: If I Wouldn’t Have Been Strong, I Would’ve Starved [老干妈创始人陶华碧 我不坚强就没得饭吃] (in Chinese). Beijing: Chinese Publishing House. ISBN 978-7-5075-4451-0.

Featured image by Ama for Yi Magazin.

This text was written for Goethe-Institut China under a CC-BY-NC-ND-4.0-DE license (Creative Commons) as part of a monthly column in collaboration with What’s On Weibo.

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