Why build an integrated circle and channel relationship? Because the business environment has changed. Most liquor industry marketing models rely on traditional deep distribution, but now we need to build a circle-based deep distribution model around users, which is the integration of circles and channels, i.e., B2C integrated operations. First, look at traffic: online traffic comes from platform influencers and streamers, often one-time, and its logic cannot be replicated. If someone becomes an influencer, can you replicate their model? No. So it's very difficult to find a model that surpasses theirs, and it cannot be copied. Offline traffic comes from social relationships, where life and business circles largely overlap. A store owner's business often comes from social relationships in their life circle. So, in summary: online traffic is about emotional value, while offline traffic is about human favor consumption. Those who win the circles win the market. Now, liquor manufacturers face two challenges: 1) Only doing channels is a shrinking pie; cigarette and liquor stores are declining, and group buying channels have surpassed them to become the first channel. 2) Only doing circles is a beautiful trap; some treat circles as a private domain of relationships and quickly hit a ceiling. Currently, most manufacturers haven't found the path to integrate circles and channels, which is also the challenge China Resources faces in its next liquor venture. What is the essence of liquor consumption? It's structural consumption. From top to bottom, it follows the "1990 rule": 1% are KOLs, who drink your liquor and endorse it, passing value from top to bottom; 9% are KOCs, who transmit the KOL's value to those around them; 90% are ordinary users. This structure is like the seating on a high-speed train: 1% business class, 9% first class, 90% second class. Liquor value has two dimensions: social value and circulation value, which are the circles. We must first build circles, first build consumer awareness. The structure of circle users is roughly divided into 4 layers: KOL, KOC, big C, and small C. Today's channels have also changed; there are super stores, core stores, and ordinary stores. All terminals must be classified. In the early stage, our circles and channels were not mainly about selling goods, but about building relationships through personal endorsement, favor transfer, and acquaintance trust. Relying solely on the small B's own ability cannot win over their customers, because customers naturally distrust, meaning buying and selling are not aligned. Why are circles so important? I summarize it in one sentence: Those who win the circles win the market. Previously, it was said that those who win the terminals win the world, or those who win group buying win the world. These sayings imply that behind group buying are opinion leaders. Today, we must win the entire circle structure. What are the types of circle structures? I divide circle structures into 4 types: First, KOL, whose role is default endorsement. They naturally have the brand's stance. If you invite them to sit in the main seat, they know what to say and do without being told; their presence creates word-of-mouth for the brand. Second, KOC, who not only consume but also recommend to friends. KOCs are the most active users. Third, big C, who are super users, buying in large quantities at once. Big C has the ability to influence a circle, but the influence is limited. Big C can drink themselves but generally don't recommend to others; they can be an individual or a unit system. Fourth, ordinary C, who are ordinary consumers. Ordinary consumers also advertise, like Moutai; although ordinary users can't afford to drink it, they let friends know its value, which is conspicuous consumption. These four types form the circle structure, complementing and achieving each other. What's the difference between KOL and KOC? KOC consumes autonomously, experiences themselves, and can influence friends. Advertising is weak now, but people trust friends, which is the value of KOC. KOC shares personal experiences. KOL has social influence. True word-of-mouth comes from KOL. Of course, some KOCs also play the role of KOL in small circles. Why simultaneously connect B and C ends? 1) What difficulties do manufacturers face in operations today? Distributors have inertial thinking, good at operating hard content like products, benefits, and channels, but circle operations require content, culture, and emotional expression. Jiangxiaobai and Lidu have done well in this regard and are worth referencing. Take the tasting session as an example: distributors want to focus on the brand for promotion, while participating users want to amplify their own value, like aesthetics or appearing professional, and express emotions when drinking. The two values are not aligned. How to solve this? I summarize the tasting session in 6 characters: Tasting session = body + emotion + thinking. That is, first use the body to perceive, then stimulate emotion. Because they have experienced it, emotions are aroused, and finally cognition is formed. But the traditional approach is to brainwash users first. In the end, brainwashing is ineffective because users don't accept it, generating negative emotions, and the experience is poor, not only ineffective but counterproductive. For example, tasting sessions, especially for liquor, are the most efficient means. Tasting sessions can also be iterated level by level: a one-table tasting session is about height, winning the user structure; a 3-5 table tasting session is about temperature, winning the friend circle of the user structure; a 10-table tasting session is about depth, emphasizing interconnection and building a larger circle; a 100-table tasting session is about breadth, connecting multiple circles, crossing boundaries, and breaking through circles. When the 100-table tasting session succeeds, the tasting session becomes a social media platform, with user density gradually increasing and developing in stages. 2) What is the difference in operational logic between circles and channels? C-end recommends, B-end sells. C-end recommendation is mobilization, can be group buying, and it mobilizes users from the user's perspective. From the C-end operation perspective, if you want to win a new user, it generally takes 7 times, and sometimes you can't use interest as a lure, but because it's meaningful. If you use interest to buy users, they won't play with you. If you try to turn them into consumer merchants, they'll label you negatively, thinking it's direct selling, pyramid schemes, or micro-marketing. So in operating C-end users, we've copied many micro-marketing and direct selling methods, but later found it wrong and off track. B-end is about interests and games; we need multiple transformations of B-end, not one step. Transform cigarette and liquor stores into internet-famous stores, providing empowerment according to market development stages, achieving the goal of achieving others and incidentally achieving ourselves. Only doing B-end is also difficult now because the relationship between users and B-end is not fully trusted, and relying on one's own strength cannot win the user structure. Therefore, brand owners need to connect both B and C ends. How to build an integrated circle and channel? 1) User density: Brand awareness requires user density. Internet celebrities won't work because their users are highly dispersed and cannot form scale. To achieve user density, we need to use multiple small Bs as leverage. Win over the small B's friend circle, which has three layers: the first is the inner circle, where they confide in each other. If you win the inner circle, even if your liquor is not good, they'll buy out of face because of their relationship. The second is the acquaintance circle, where there may be interest exchanges with the store owner, like the owner helping a user's child get into school, and in gratitude, the user buys several cases of liquor. The third is the outer circle, because good store owners actively network and build relationships. User density equals the number of small Bs multiplied by their quality, which is B2C integration. Without a certain number of small Bs, it won't work, but if they lack user quality, there's also a problem. 2) Avoid only doing B-end or C-end: What are common mistakes in circle and channel integration? Only doing B-end or only doing C-end. Let's break down the B-end structure. Most people's view of B-end is like blind men touching an elephant, seeing only a part. We see that B-end quality is not high, but they are closest to users; they focus on immediate gains, but they can monetize; they are short-sighted, but they can make quick decisions. We can break it down: 10% are influential, called super terminals. 20% have momentum, belonging to core terminals. The remaining 70% are followers. We think these are the true users, but our needs can never be fully met, and we cannot provide personalized services. Only a few C-ends have recommendation ability; most ordinary users only care about immediate interests. Direct selling is hard now because it applies one logic to all users, not seeing the structure. Especially for social products, there is a structure, and these structures form user stratification. To build a B2C integrated operation system, only when B and C interact and undergo chemical reactions can new value be generated. When operating C-end and B-end, we are not operating individual B or C, but their relationships, allowing their relationships to undergo chemical reactions in social interactions. Only when B and C undergo chemical reactions do they become super aggregates, no longer their original selves. Take ordinary cigarette and liquor stores: through empowerment, they become internet-famous stores. C gains fans, connections, and social chains in the process, becoming inner-circle micro-IPs. From a standard perspective, use strategic resources to exchange for strategic partners. If you are a super core small B, you need special policies and treat them as strategic partners. From a depth perspective, they are willing to contribute network resources, which truly builds a store. From an attitude perspective, they treat it as their own business, making your product their first recommendation, willing to invest time and energy, and psychologically becoming family. 3) Specific methods: What are the specific methods for building B2C integration? Use three rounds of tasting to exchange for three rounds of restocking. Help the small B sell goods three times. The first time may have policies, using policy as a fulcrum and the small B store owner as leverage to achieve cooperation, stocking with policies. The second time uses the tasting session as a fulcrum, where the store owner's inner circle gains user word-of-mouth, saying the product is good. The third time uses the friend circle of quality users as a fulcrum, using strong relationships to achieve circle socializing and build closer relationships with users. You become a community of interests, progressing and growing together, achieving win-win cooperation. The logic of this method is leverage on leverage: the first time uses the "store owner" as leverage, the second uses the "store owner's inner circle" as leverage, and the third uses the "friend circle of the store owner's inner circle" as leverage. After B2C integration is achieved, timely advancement is the key. The above is the first stage's tactics. In subsequent stages, this method won't apply. Because tactics are only effective at certain stages, and each stage has matching tactics. Once you enter the next stage, you must upgrade your tactics in time. The era of "one trick works everywhere" is over; you must switch rhythms according to market development stages. On April 7th, Niu Enkun, Chairman of Liangjian Consulting and founder of the Circle Deep Distribution System, will participate in the 8th China FMCG Innovation Conference and attend the [B2C Integration] forum, sharing the theme "How to Build an Integrated Circle and Channel Relationship" on site. If you have this confusion, we strongly recommend you come to the conference and interact with Teacher Niu Enkun!