Effectual Entrepreneurship, Third Edition

           

          Practically Speaking

          Old Godmother Spices Things Up

          A street vendor’s chili sauce is so popular it makes her one of the richest women in China.

          Entrepreneur: Tao Huabi

          Entity: Lao Gan Ma

          Country: China

          Page 22 in

          Chapter 2 Good Ideas Are Everywhere (pp. 15-27)

          "Tao Huabi's remarkable story began in an unremarkable rural village in the Chinese province of Guizhou with an everyday product (chili sauce). Simply by doing normal things—taking action, experimenting, and integrating customer feedback—today, Tao Huabi is one of the richest women in China, thanks to her famous Lao Gan Ma ("Old Godmother") chili sauce.

          A Hot Opportunity!
          In 1989, Tao was a widow selling rice, tofu, and cold noodles as a street vendor to provide for her two sons. Over time she noticed that customers really enjoyed her chili sauce, which she served to spice up the bland noodles and tofu. This led her to launching the Lao Gan Ma branded chili sauce in 1996. Tao turned watchful observation of customer preferences into a business opportunity."

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