From November 3 to 5, 2022, the 7th China FMCG Channel Innovation Conference, hosted by New Distribution, a professional new media platform for FMCG, was successfully held in Chengdu. This article is based on the keynote speech by Mr. Li De, General Manager of New E-commerce at Gold Hongye Paper Group, at the sub-forum "Short Video Live Streaming and Private Domain" during the conference, organized and published with authorization. Organized by Kang Zhiqiang. 01 Where are the traffic ports? Among the top 100 traffic sources on the entire network, which ones have achieved co-construction? Among the top 100 traffic sources, which ones have already achieved co-construction and co-creation? Have suppliers and third parties found business opportunities? For example, WeChat's payment platform, with over 700 million daily active users, makes it difficult to monetize traffic on WeChat, but there are still opportunities for co-creation and co-construction, which is a future growth point. Second is Douyin, where we have performed very well, especially this year. Douyin offers many opportunities, such as its supply chain, Douyin Mall, and Douyin Supermarket. In addition, there are many other traffic ports. Taobao is already very mature and also an opportunity, as are Baidu, Pinduoduo, JD.com, Taoke, and Vipshop. Among these traffic ports, there is a lot of traffic. If you find good products, co-build channels with platforms, and adopt good cooperation methods, you will be pleasantly surprised, but if your operations are mediocre, it will be hard to find opportunities. We have been in the tissue paper business for fifteen or sixteen years, and this industry is highly competitive. In the past, our costs were low, but now costs are rising rapidly while product prices have not increased. Even so, we still achieved nearly double-digit growth this year. Now we all face the problems of scarce traffic and rising operating costs, which require us to take a step forward, jointly find traffic ports, co-create, and find a new environment. With so many traffic ports amid changes, what other opportunities and breakthroughs are there? 02 Rules have changed, how should suppliers respond? Take us as an example: Double 11 has already started. When everyone was doing it on the night of November 1, we chose to do it on the 2nd or 3rd and achieved very good results. We will find that many traffic ports have changed the original historical rules. Everyone thinks that the traffic port on November 1 is good, so everyone squeezes into that day because it has the most traffic, but if 100 people all do it on November 1, it will be very painful. On the night of November 2, our expectations were low, but the results far exceeded expectations. This story tells everyone that traffic ports are not what we thought in the past. Many historical experiences are no longer valid and can lead us into an abyss or misunderstanding. We need to keep trying and not be bound by historical experience. Many play methods also need to be created. Many rules have changed: what was right before may be wrong today, and what was wrong before may be right today. Our entire account performed very well during 618, with rapid growth, but data is just a number. We should see that we broke many original practices to achieve this data, and many things can be co-built with the platform. As suppliers, what we can do is to make products closer to consumers, give consumers more choices, and then co-build with the platform. There are essentially three things: people, goods, and scenes. First, we need to study the new changes in consumer behavior at traffic ports. New changes refer to whether the time points for average order value, conversion, and click-through rate are correct and suitable for consumers. Second is the scene. We need to co-build with the platform. We will find that during this year's 618, the battle reports of the two major e-commerce platforms basically disappeared. During this year's Double 11, our account's traffic port was relatively low. Under the premise that no one has traffic dividends, how do we monetize? Our brand owners and third parties all need to work together with the platform. With so much traffic, we need to find what kind of brand owners, what products, what transaction scenes, and what operational methods can make traffic satisfy our consumers and channel partners, thereby achieving win-win. Take tissue paper as an example. In an industry that is highly competitive with little growth, we find that many series of customers and tracks perform very well. For example, P&G, and cotton-soft tissue. Cotton-soft tissue has no first-tier brand operation on Douyin; everyone buys their own, and they all achieve good results. As long as consumers feel satisfied in a certain consumer product, a certain transaction product, or a certain traffic port, platform operators are very willing to give traffic. Douyin Mall made a budget this year, and the supply chain has just started. Next year will definitely be a big explosion point, and Kuaishou is the same. So there is a lot of traffic on many live streaming platforms, and everyone can find a point to play, but remember that our products must satisfy consumers, be liked by consumers in consumption scenes, and be monetizable in transaction scenes. Let me give a specific case: our Black Gold (one of the Qingfeng series products) is a very high-end product besides Gold. Many people think it is too black and heavy, not suitable for the office, and too dark for home, but when it sells well, these problems disappear, and you see everything as good. So whether a product is good or not should not be judged subjectively. We need to find transaction products that consumers like in consumption scenes. So what is the purpose of a product? It needs to meet the needs of consumers in various scenes, whether at home, in the office, or for gifting. Every consumer product needs to be studied. But when doing it, consumer products should feed back: in what scene is the transaction made, is there potential for additional added value, and has the product not yet been monetized under the platform's traffic port? Then you can find the platform to co-build. 03 FMCG has no winter: Find traffic ports from consumption scenes After discussing consumer needs and scenes, let's look at what changes have occurred on the internet. Many internet products have an average daily usage time of over two hours per person, and the number of live streaming sessions in the first half of the year reached 10 million, all very large numbers. I have always felt that FMCG and many industries have no winter. Sometimes the colder the winter, the more money brand owners can make. So for a winter market or a declining market, as long as you find your proper position in specific scenes, there will definitely be profits. It just requires us to work harder than before, make products more suitable for consumers, more suitable consumption and transaction scenes, and more suitable traffic ports. In the internet world, every number can make a company successful, so don't complain about social injustice or the current traffic ports, but find the proper co-construction points. As a brand owner, you need to solve repurchase. Consumer repurchase represents trust in you. If this problem is solved, it means consumers are satisfied with the product. Packaging, product value, and many points can earn consumer trust. In the content consumption market, co-create and win-win: how to make content more interesting, how to make short videos more effective, and how to make people stay in the live streaming room. For example, in a live streaming room with 450,000 viewers, how do you make people stop? As I said, it's nothing more than people, goods, and scenes. As a brand owner, you need to solve the product, and the product should fit the consumption scene. Once you have the product, you need to spend time studying in what scene and at what time the product is consumed, and then put the product on the internet. It will be very successful, resonate, easily become a transaction, and turn into conversion. If you can achieve transactions and conversions, you win consumer trust and will have repurchase. After getting good conversion examples, go to the platform and co-build together. Douyin, Kuaishou, Baidu, and even Alipay are not short of traffic; they lack monetization. So in today's internet, there are many opportunities. Offline, you need to supply goods to distributors, wholesalers, and terminals, and then repurchase, which takes at least 3 to 6 months. But online, the effect is very good, and every number can be presented and studied. Let me specifically mention that the next windfall may be Video Account, and next year is an opportunity. Based on my experience, the two categories that perform well on Video Account are clothing and cosmetics. Those who monetize well are not big names; many big names hope to grab a share on Video Account, but Video Account's rules are different from Douyin. Douyin focuses on public domain traffic; once traffic comes, you harvest it. Video Account is private domain. With millions or hundreds of thousands of fans, doing a small special session among effective fans can have good results. We once tried a session where cosmetics performed very well on Video Account. Douyin first did content, then live streaming e-commerce, then influencers. Consumers buying Qingfeng products on Douyin started moving from JD.com to Douyin. Douyin started doing mall this year. Why do a mall? Because consumers hope brand owners invest in Douyin for search traffic, just like Tmall. Video Account is the same: first let big brands come in and be willing to invest, and everyone can try. Back to the beginning, we need to find brand owners, find consumption scenes, and we must find consumption scenes. Traffic is available every year. After finding consumption scenes, study under what circumstances transactions occur, whether consumers are willing to pay added value in transaction scenes, and then find what traffic ports the trading platform has, ultimately achieving co-construction and win-win. PS: Friends interested in the on-site speech content can follow the recent push of the WeChat official account of New Distribution. We will organize and publish all guests' speeches for readers. Click Read Original to see more highlights of the 7th China FMCG Channel Innovation Conference..._