A Traditional Marketer's Thoughts and Explorations in the Internet Age

Introduction

The difficulties faced by Chinese enterprises today would have arrived on schedule even without the impact of the new economy. The Internet is not the cause of Chinese enterprises' problems; rather, it is an opportunity to solve them.

For some time, I have written many articles criticizing 'e-commerce,' earning me the label of 'conservative' or 'skeptical of e-commerce's prospects.' Readers are not at fault; it is my problem.

Below, I use cases to illustrate my views on the real economy and e-commerce, hoping to clarify what I mean. To avoid tiring readers, I will split this into two parts. The first part focuses on the traditional economy, analyzing the causes of problems; the second part focuses on the new economy, analyzing where it is headed. Here is the first part.

Case 1: The Thesis on 'Competitive Stalemate' In 2004, as a senior researcher for Sales and Marketing magazine, I published a cover feature and series of articles titled 'Breaking the Competitive Stalemate,' primarily based on my own articles.

The core argument was that due to common learning and imitation processes, more and more industries are entering overall homogenization, resulting in a 'competitive stalemate.' The consequence of this stalemate is that in fierce competition, there are no winners, only scarred survivors. I analyzed the causes, trends, and a framework for solving the problem. To be honest, that feature and series did not resonate; apart from my articles, there were almost no follow-up articles. To understand this issue, one must have a theoretical foundation in economic cycles, industry cycles, and market cycles; otherwise, it may seem incomprehensible.

When China's economy began to decline and Chinese enterprises generally faced difficulties, I wrote several articles viewing the Chinese economy from a marketing perspective, published in the theory section of Economic Information Daily. Almost all were reposted by Xinhua Net, People's Daily Online, Strong Nation Forum, and several provincial and municipal government websites, and were also fully reproduced by more than one core Chinese journal.

Not everyone cares about macro issues, but if one cannot understand them from a macro perspective, it is difficult for today's large and medium-sized enterprises to find a way out. Although we all know that when studying corporate direction and strategy (including annual planning, which is a strategic issue), one must understand the macro national economic environment and the meso industry environment, Chinese enterprises are encountering this hurdle for the first time: previously, they basically did not need to, or did not particularly need to, understand these issues. But even among marketing experts, how many can actually care about and understand this issue?

I continue to study the issue of competitive stalemate, and my articles revolve around it. Logically, the current Chinese economy is still in a state of competitive stalemate overall. Mass entrepreneurship, 'Internet+', and supply-side reform are also aimed at breaking this stalemate.

For example, I say (and many others say) that having distinctive products with excellent quality is one of the keys for enterprises to escape difficulties, but how to achieve it? The measures given are often clichés. Once, during a casual chat with Teacher Liu Chunxiong, he shared some viewpoints. I told him to quickly write these into a series of articles; this is typical supply-side economics. China has proposed supply-side reform, but there is no follow-up on how to establish a professional supply-side system. As the world's factory, China has built the material foundation of the supply side, but in managing, perfecting, and innovating the supply side, it is far from advanced and professional. How to solve these problems is the focus of research. Because this research is too demanding, few are willing to engage in it.

If you can view my articles and viewpoints from this perspective, they will be easier to understand and accept.

Case 2: The Fate of My Disciples Around 2004, I began to give earnest advice to my disciples who still came to me for guidance. I warned them that if they did not transform from field-type (relying on experience) to staff-type (relying on professionalism), their careers might come to an end. The reason was that all industries would move toward competitive stalemate, and future executives would need entirely new thinking and skills. More importantly, 'professionalism' would truly become the foundation of a career—you don't necessarily have to achieve outstanding results, but you must have the potential to do so through professionalism; without professionalism, you certainly won't have that potential. In fact, these executives I trained did not care about the macroeconomic environment or even industry trends, let alone understand them. They could do industry five-force analysis and SWOT analysis, but those were superficial tricks: they did not know the professional procedures, lacked sufficient and detailed information support, and were unable to discover new insights from analysis; they merely used these tools to dress up their own understanding in professional clothing.

Only a few listened and are still in executive positions, having made new achievements. But most have left executive positions, still addressed as 'Mr./Ms. [Surname]' by their former subordinates. Some of them even successfully helped their bosses bring their companies to an end.

As for myself, from that time on, I also left my former profession and went to teach at a university. But this transition was not successful; I felt out of place in academia and achieved little, but at least I did not die in my old profession. Why didn't I stay in my original profession to find micro-level methods to break the competitive stalemate? On one hand, I believed that most enterprises would inevitably die, and they were beyond saving or not worth saving; on the other hand, going against the trend would inevitably lead to fierce conflicts with everyone from bosses to employees. A systematic transformation in thinking, behavior, and systems is not something a consultant should or can do. Moreover, I did not have the ability to solve those problems. It was also from that time that I often said: I don't know how to help enterprises escape difficulties, but I know which measures are insufficient to do so.

Knowing one's shortcomings leads to progress. Recognizing one's shortcomings is more difficult than improving them.

The above two cases illustrate the value and role of viewing problems from a macro perspective. When facing cyclical problems and environments, a macro or overall perspective is indispensable.

Case 3: A Certain Food Company It was once a small, refined food processing enterprise. It had a stable market and stable profits. With industry consolidation, the company had in fact become 'excess capacity'—due to a lack of R&D capability, its products lacked distinctiveness, and its existing market was shrinking. It consulted me multiple times, and my opinion was clear: either switch production or close down. Sticking to the current industry offered no way out.

Later, we built a 'Maker Park.' The company seemed to see hope and actively requested to join. I asked him: What problem do you want to solve? If you can't find a new project, not to mention the Internet, even God can't help you.

For an enterprise, your products must have distinctiveness and pass quality standards to operate normally. If the market is large enough, the rest is just a marketing problem. If your will is strong enough, you can always find people and ways to open the market.

Products with distinctiveness and quality require R&D support, equipment and process support, management support, and human resources support. Of course, they also require financial support. If you want to make money, you need capital. A boss without money is like a fallen phoenix, worse than a chicken.

Today, only with these foundations can we talk about development, whether it's 'Internet+' or '+Internet'; it's very realistic. Otherwise, not to mention the Internet, even if God came, could he save it?

There are many such companies in various industries in China: products lack distinctiveness and quality is mediocre; no R&D capability; technology, processes, and equipment lag far behind industry leaders; human resources levels are below industry average; and due to incomplete capital accumulation, operating funds are tight.

So, these enterprises should prioritize solving these issues.

If they don't strive to solve the above problems, why should they '+Internet'? And how can the Internet '+' them?

In my interactions with some large and medium-sized enterprises, I found their leaders are very confused:

The market is so sluggish; is this 'new normal' the future norm?

R&D is important, but how to establish a company based on R&D?

The Internet is affecting and will more profoundly affect industries and markets in the future; how should we respond? After years of running a business, why do we suddenly feel like Granny Liu entering the Grand View Garden?

With mass entrepreneurship, 'Internet+', and supply-side reform, where is the direction for enterprises?

If these are not clarified, and with the difficulty of survival, the constant changes may lead to blind floundering.

When transitioning from one economic cycle to another, enterprises and industries face comprehensive changes; at this time, public opinion guidance and problem analysis are very important. Being a frog at the bottom of a well is bad, and being blinded by a leaf is also bad; it requires enterprises to have a macro vision. We often talk about strategy; at this time, without a clear or roughly clear strategy, it is difficult for enterprises to survive.

The difficulties faced by Chinese enterprises today would have arrived on schedule even without the impact of the new economy. We foresaw today (competitive stalemate) around 2004. The Internet is not the cause of Chinese enterprises' problems; rather, it is an opportunity to solve them, but relying solely on the Internet cannot solve the inherent problems of Chinese enterprises. This needs to be clearly understood.

The Internet cannot solve problems, but in the process of solving problems, we must firmly grasp the Internet. Grasping the Internet may not solve problems, but ignoring the Internet will certainly make it difficult to solve problems comprehensively. This also needs to be clearly understood.

Case 4: A Certain Clothing Wholesale Individual Business E-commerce for clothing is the most flourishing. A younger relative of mine in the clothing business, however, sticks to his store every day and shows no interest in starting e-commerce. Although I am an e-commerce novice, I am sure his products are very suitable for online sales.

I even consulted Teacher Liu Chunxiong on his behalf, and Teacher Liu gave a positive answer. I told him to come to our Maker Park and start a small micro-company to do e-commerce. I've been saying this for months, but this guy remains indifferent.

I can only say: you just keep struggling there and wait for the shop to close!

Undoubtedly, my younger relative, if he wants to sell products online, has a lot to learn and change, but no matter how much or how difficult, he should strive. Because that represents the development direction of his type of business; his current business model is gradually no longer accepted by the market. If a young person doesn't learn new things and doesn't accept new things, he can only wait to be eliminated.

Case 5: The Two Companies I Manage The two companies I manage are: one is a real estate company with assets of several hundred million yuan (with about 300 million yuan in inventory of properties and land each), and the other is a small loan company with nearly 300 million yuan in funds that are extremely difficult to recover.

Through taking over the management of these two companies, I finally deeply understood the dialectics between 'different industries are like different mountains' and 'different industries share the same principles.' Anyway, I can't handle it now. I thought through mass entrepreneurship, innovation, 'Internet+', supply-side reform, and all the marketing skills, but couldn't come up with a solution.

The only move left is transformation.

Is it easy to transform? We have to digest some inventory, recover some money, and wait for the right time! If we simply sell assets now, we would immediately go bankrupt.

All the aftermath work still relies on traditional means. And even those traditional means, due to the barrier of different industries, my colleagues and I have not truly mastered them.

At this point, if anyone mentions 'Internet thinking' to me, I get angry: first go and understand traditional thinking properly, then talk to me about Internet thinking.

But I invited Teacher Liu, and using my office building, which is first-class even in the county-level markets of the central and western regions, I established a Maker Park. This Maker Park, from concept to opening, is first-class in county-level markets.

If it can remain first-class, then my problems will be much easier to solve. Therefore, I am very concerned about how to ensure the Maker Park is run well, with distinctive features, and becomes a model, preferably a model for the central and western regions. Because this relates to the survival of my two enterprises. At the same time, we are also preparing to set up some entrepreneurial projects.

Although the Internet cannot directly solve the problems of my two enterprises, it provides possibilities for our transformation and creates conditions for solving problems.

See, I am not only actively participating in the new economy, but I also have high hopes for it!

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