Regarding channel transformation, there are many aspects where I need to learn from peers. I believe that post-pandemic channel transformation should not be viewed in isolation; we should not discuss channels just from a channel perspective. 4P is a synergistic process and cannot be separated. If only the channel is changed without adjusting the other 3Ps, it may bring about disasters. Mr. Wang Bin, Vice President of Chacha Food Besides sharing thoughts on channel transformation, I also want to exchange ideas on a series of considerations after the pandemic, including channel transformation. Actually, last year there was an exchange on New Distribution about breaking through the second curve. Previously, we had many product categories, but we have streamlined them. Now we focus on two business lines: the first is sunflower seeds, aiming for faster, higher, stronger, perfecting the entire industry chain, and accelerating internationalization; The second is nuts. Chacha is China's nut expert, bringing the world's best nuts to China to meet Chinese consumers' needs, focusing on the daily nuts category and enhancing the processing and manufacturing level of China's nut industry. It looks like two lines, but the underlying logic is still focus. Regarding the market, it is essentially driven by three forces, and the order of these forces differs for different companies! Chacha places product strength first. If product strength is not done well, everything else is zero. Product strength directly relates to category and quality choices. The second is channel strength. The pandemic accelerated many channel changes, especially new ones, which we must seize. The third is brand strength, including Chacha's positioning, content marketing, and consumer interaction. -01- Post-pandemic era: changes in people, goods, and scenes After the pandemic, how do people, goods, and scenes change? For traditional manufacturers and brands, the biggest change is in people, goods, and scenes. Previously, people, goods, and scenes were relatively independent; now they are gradually merging into one or two. The tools used in this era are different from before. Weapons have changed from cold weapons to hot weapons, so the internal capabilities of the organization must undergo significant changes. This is the core of whether these "weapons" can be effectively used. Second, consumer concepts have changed greatly, from cognition and purchase to consumption scenarios. Moreover, in different scenarios, the demands for the same category are different. For example, drinking beer in a nightclub versus at a street stall has different demands; the scene, product, and positioning are all different. Different consumption scenarios correspond to different consumer needs. O2O home delivery requires urgency and convenience, while group buying requires innovation, and live streaming content must be interesting. Consumers' needs vary in different scenarios, and so do the operating methods. For traditional enterprises, the biggest challenge is the decentralization of channels. Previously, channels were linear and non-dispersed, with deep distribution at various physical outlets. But now, as long as there is contact, transactions can occur, becoming increasingly fragmented, thanks to technological progress. Why mention new infrastructure? Digital new infrastructure. In the coming years, decentralized shopping scenarios will increase. Perhaps giving a speech here with a QR code can bring in several boxes of goods, which is quite a challenge to traditional channel thinking. In the so-called channel changes, the core challenge for enterprises lies in internal organization. There is much research on external changes; scenarios are everywhere, so we must ensure that for each scenario and channel, our positioning, product, price, and promotion match that channel, and whether channel traffic can generate benefits. Now is an era of "consumption upgrade with three waves overlapping." The first wave is traditional offline transactions; the second wave is online transactions; the third wave is "new retail." All three waves coexist, and different categories are at different stages. -02- Post-pandemic era: our thoughts? Since the year before last, we have also realized these new changes. Although the pandemic has brought some new impacts, the general direction has not changed. The trend hasn't changed; the pandemic is just a catalyst that accelerated the process. If you are not prepared, the impact will be significant; if you are prepared, there will be more opportunities, such as live streaming and O2O. The pandemic accelerated changes in five aspects: cognition, habits, technology, channels, and communication. First, consumer cognition is upgrading rapidly, requiring a healthy lifestyle, involving all aspects of clothing, food, housing, and transportation. Second, consumer shopping habits are changing rapidly, with users adapting to online life and different online shopping scenarios. Third, technological changes: digital technology is gradually penetrating consumers' daily lives. Fourth, channel changes: community transactions are rising, and new retail methods such as community group buying and community e-commerce are emerging. Fifth, communication changes: super communicators are increasing. For enterprises, it is essential to stick to the main business and not give up; have confidence in the main business. At the same time, online is particularly important; we should seize super individuals. Regarding future thinking, I believe there are three keywords: category, traffic, and scenario. In the future, some things we can grasp, some things remain unchanged, and some things need to change. Category is human nature, traffic is people's hearts, and scenario is shopping decisions. Why always emphasize category? Category is the anchor of all changes, the lifeblood of the enterprise. Category is actually the intersection of demand and cognition. If there is cognition but no demand, it is not a category; if there is demand but no cognition, it is also not enough. Category must be the intersection of the two, the power of human nature. For enterprises, category is the "buying power" that customers pursue. Traffic is a kind of "selling power" we pursue. Everyone's attention and focus change in different periods. For example, during the pandemic, I might pay attention to community platforms; after the pandemic, I might go to supermarkets; during the New Year, I might visit wholesale markets. In different periods, consumers' attention changes. What enterprises need to do is to capture attention. This is the "selling power" that enterprises pursue. The last is scenario, which is the decision-making motivation of people. Consumption scenario is the positioning behind positioning, clarifying under what circumstances customers use our products and where they buy our products. In wholesale markets, hypermarkets, convenience stores, communities, O2O, and platform e-commerce like Pinduoduo, JD.com, and Tmall, purchase decisions are different. Without clear consumption scenarios, customer acquisition is just luck, and the brand is just a castle in the air. Even for the same category, the form may be different in different scenarios. That's why 4P synergy is needed. Category, traffic, and scenario: every enterprise must think through these three issues clearly; they will definitely be useful in the future. So for us, the core is still focus, category focus, including brand positioning, operational configuration, etc. Many enterprises expanded many categories after the pandemic, trying to do everything, but they may end up doing nothing because your business model determines what you can do. For Chacha, what we need to do is to deepen the category. Chacha aims to be China's nut expert and a world-renowned Chinese sunflower seed brand. If potato chips represent European and American snack foods, we hope that one day sunflower seeds can represent Chinese snack foods. If milk is now accepted by every Chinese consumer for daily drinking, then one day every Chinese consumer will also eat nuts daily, supplementing unsaturated fatty acids, which is beneficial to health. In the sunflower seed category, we expand the category, improve the product matrix, and capture young consumers. Communicate with young people, offer different flavors in the sunflower seed category, and capture consumers with different preferences. We hope to take sunflower seeds abroad, and also do many crossovers. Last year, Chacha cooperated with Tsingtao Beer to launch a beer-flavored sunflower seed, combining strengths, cross-category traffic, and breaking through circles! At the same time, continue to communicate with young consumers, using hot topics and quality content to resonate. Through online interaction, make consumers feel happy. Explore scenarios, communicate with consumers, and expand the value of the category. Actually, eating sunflower seeds is truly happy. We conducted a scientific study "Analysis of Functional Active Ingredients in Sunflower Seeds and Research on Antidepressant Activity," using animal behavior analysis, biochemical analysis, gut microbiota analysis, and gut metabolomics analysis, proving that sunflower seed protein contains antidepressant active ingredients. If you have sunflower seeds on your desk and haven't eaten them, you must eat them; otherwise, you'll feel uncomfortable. Eating other things doesn't give that feeling. Nuts are different from sunflower seeds. Chacha does nuts; we are nut experts. We want to do nuts like sunflower seeds, from raw materials to distribution to products, digging deep into the underlying logic, consumer pain points, and value. Chacha masters key freshness preservation technology. In fact, the nutrition of nuts is the same as deep-sea fish oil; both are rich in high-quality unsaturated fatty acids. In the Chinese Dietary Pagoda, there is a recommendation to eat nuts, so nuts are actually a grain crop. But unsaturated fatty acids are easily oxidized when exposed to oxygen, and freshness preservation is the biggest pain point in the industry. Therefore, there must be enterprises dedicated to researching and investing in nut freshness preservation technology. The core of the market is still good products. Consumers are not fools. If the product is not good, everything else is zero. Chacha has always insisted on direct sourcing from production areas. Even in uncertain times with trade wars and price wars, enterprises must withstand it. The tariffs on nuts are very high, so we must cooperate with farms, explore high-quality production areas globally, and ensure we provide the best to consumers. Finally, let me share a thought, which only represents my understanding: Building a brand is going upward; it may be slow at first. If you just promote and buy traffic, it may be fast in the short term, but it will get lower and lower, possibly killing the category. It's not about who is good or bad. Building a brand is like drinking alcohol; the more you drink, the warmer you get, but you can't drink too much. Promoting is like drinking water; the more you drink, the colder you get, but you can't not drink. So there is no absolute, but there is an organic combination. Let's talk about channels again. Talking about channels alone is at the tactical level. Channels require 4P synergy. Sometimes there are many temptations from new channels. If 4P is not synergistic, it may bring many negative effects. After 4P synergy, this thing can become big. In this channel scenario, the category and brand will be strong. Enterprises must pursue valuable growth. If value does not grow and only revenue increases, it may be futile. Short-term profits may lead to big troubles in a few years. Therefore, we must pursue valuable growth. Tips will be paid 400-2000 yuan once adopted. If you like this article, click [Watching] and share it with friends.