Three years of pandemic have finally been overcome. In January 2023, we were busy with the Spring Festival; in February, with internal meetings and plan implementation; and in March, frequent business trips and communication across regions began. Moments on social media are filled with "campaigns, meetings, traffic jams, first flights..." — bustling with people and traffic. For 2023, I believe every FMCG professional is full of expectations, ready to roll up their sleeves and get down to work. The three-year pandemic has brought earth-shaking changes to channels, from community group buying and private domain social e-commerce, to O2O instant retail, and then to short-video live streaming e-commerce on Douyin and Kuaishou. The pandemic catalyzed a flourishing of consumer retail formats. By the second half of 2022, the channel landscape had basically stabilized, with no major ups and downs. This is a good thing for FMCG manufacturers, especially the leading players, as they can settle down, study existing channel business, improve operational efficiency, and increase market share with more efficient tools and management. Regarding 2023, there are five topics worth attention from industry practitioners. B2B2C For FMCG, with over 70% of business offline, direct connection with consumers was previously impossible. "If they buy your product, that's already good. You want to contact me anytime? How could that be?" But now, with the popularization and application of new technologies, this is basically achievable. Besides improving overall channel efficiency, it also enables direct consumer connection. Of course, each company has different application methods and purposes, and there are significant differences across categories. For example, the cooperation between Tencent Youma and Luzhou Laojiao, and between Cainiao and Mengniu. Some are for membership, some for retail, and some for management. B2B2C is actually a business model where the relationships and interests of each role differ, and the logic is different. In 2023, this remains a key focus for FMCG manufacturers. It is not a short-term project, nor is there a standard paradigm. Leading companies need to continuously explore and optimize based on their own strategies and category characteristics. Digitalization The B2B2C just mentioned is a business model. Digitalization, on the other hand, uses tools to effectively solve management efficiency issues inside and outside the enterprise. On the topic of digitalization, Ren Wenqing, head of the New Distribution Academy, explained it well:

  1. The entry point of digitalization should be oriented by specific business problems;
  2. The productization of digitalization should be experience-centered, making tools that users can use, find easy, and are willing to use;
  3. The focus of digitalization should be driven by increment; if it doesn't bring increment or profit, no one will persistently promote it. Currently, our understanding of digitalization still comes from practice. For FMCG, with its multi-link, multi-angle, and multi-format scenarios, digitalization requires long-term practice and iteration. Premiumization Premiumization has shown signs in the past two years. It is an indisputable fact that industry stock has peaked. Quantitative growth is gone, so we can only pursue structural growth. In simple terms, launch more and more expensive products. Premiumization also meets the needs of the entire chain, from brand owners to distributors, to retailers, and finally to consumers. Each level can gain more sales, higher gross margins, and better quality. In the past two years, the typical benchmark and initiator of premiumization have been new consumer entrepreneurs, because they have deeper insights into current consumer demands, and quality consumption is also the relatively easiest entry point. With the awakening of leading first-tier brands, more and more first-tier companies are starting to lay out premium products. The layout of first-tier brands is: regular single products achieve scale, innovative premium products drive profits. Premiumization has become an effective path for companies to solve business growth. As Mr. Liu Chunxiong said, "Structural adjustment is the biggest driver of growth; market performance is that profits from premium products support regular products in price wars." Near-field Retail Near-field retail was actually mentioned and valued by many as early as 2020 when the pandemic emerged. Why is it still being brought up in 2023? Because instant near-field retail, driven by major platforms (Meituan, JD Daojia, Ele.me, etc.), has gradually become mainstream, not just a new channel. In particular, we see more and more marketing cases, such as Meituan X Mars, Meituan X Unilever, JD Daojia X PepsiCo Foods, etc. Behind these cases, the attempt is to tell FMCG manufacturers that the value of near-field retail to the FMCG industry is far more than the growth brought by sales volume itself, but also includes channel sinking, brand communication, scenario marketing, and more. Of course, near-field retail is far more than these major platforms. In the near-field retail of baijiu and beer, as well as condiments and fresh food, there are vast differences. New Scenarios People haven't changed, and the basic functions under demand haven't changed either. What has changed is the external environment, bringing about changes in scenarios. The topics of product innovation, product sell-through, and packaging communication are all premised on scenarios. Standing today, the importance of scenarios is more critical than ever. Consumers' basic material needs are fully satisfied, and what they pursue now is diverse life experiences. Since it is a diverse lifestyle, it necessarily corresponds to diverse scenarios, as well as pain points and needs in different scenarios that need to be met. Zhao Bo, founder of New Distribution, said, "A purchase reason cannot be separated from three things: people, scenarios, and needs." In the past, FMCG manufacturers studied people and needs too much, but relatively little research on scenarios. This is because new scenarios are closely related to external business formats, and these formats are numerous and complex. Today, when we want to seek growth, the business channels under new scenarios and product matching under new scenarios are both breakthrough points we can explore. Regarding the five key topics for the FMCG industry in 2023 — B2B2C, digitalization, premiumization, near-field retail, and new scenarios — how should we think and practice? Listening to industry interpretations, seeing practical cases, and learning from firsthand experience is the most effective. From April 6th to 8th, during the Spring Sugar Fair in Chengdu, Sichuan, the 2023 (8th) China FMCG Innovation Conference hosted by New Distribution will focus on exploring new FMCG under the new world. For the above five topics, New Distribution has set up thematic forums and one-on-one discussions for each. 130+ big-name guests will share insights, gathering for the largest event in the FMCG industry in the first half of 2023!