Scan the QR code in the image to register -01- It's time to attend this 'Hongmen Banquet' As of yesterday, over 2,000 people have purchased tickets for the '6th China FMCG Channel Innovation Conference' and 'China Community Group Buying Conference' to be held in Chengdu from April 1-3. This is expected to be the largest single event during the Chengdu Sugar and Wine Fair, and the only ticketed conference. Tickets are not cheap, yet participation is so enthusiastic. What does this mean? It means that 'channel innovation,' a classic issue, has once again become the most headache-inducing, most concerning, and most urgent problem for manufacturers and distributors. It means that 'community group buying,' as the biggest FMCG 'channel innovation' in recent years, has reached a point where you must face it, study it, and attend this 'Hongmen Banquet.' The penetration of traditional industries by the internet began over a decade ago. For ease of understanding and communication, we can call the internet world the 'new world' and the traditional industry world the 'old world.' There is no praise or blame implied; the new world also has many problems. Through long-term observation, you can sense that internet people and industry chain people are completely different in cognition, values, behavioral habits, capability boundaries, and even language systems. This is a huge difference between two worlds, not something that can be easily glossed over with a simple 'seek common ground while reserving differences.' For example, in the old world, brand owners and distributors consider brand, price system, and agency rights as absolute core, building a value ecosystem around them. Even old-world retailers may slash prices or engage in cross-regional selling, but they still internally recognize the core value system of the old world. But in the eyes of the new world, terms like 'cross-regional selling' and 'price slashing' are outdated concepts that should be buried. They cannot understand and absolutely do not agree with them. If they temporarily agree, it's only because they are not yet strong enough or don't need to sacrifice you to gain traffic. This is an irreconcilable long-term contradiction. Completely inconsistent value judgment systems make reaching consensus between the old and new worlds as difficult and long-term as Sino-US negotiations. The internet's 'attack' on traditional industry value chains started with clothing, then cosmetics, and finally reached FMCG. From B2C to O2O, B2b, M2C, C2M, there have been multiple rounds of confrontation, but they can only be described as broad intersections, not a true full-scale clash. Entering 2021, due to the influx of giants into community group buying, the situation has changed. Massive and extremely cheap offline traffic has finally opened a gap for internet giants suffering from traffic anxiety, and they absolutely will not let it go. Community group buying is the first full-scale clash between the old and new worlds! From this perspective, this war will have far-reaching impacts on both worlds. The community group buying feast is about to begin. Some guests have already sat down and are feasting on capital subsidies, some are hesitating at the table, and others are cursing at the door, hoping to smash the banquet if possible. They may be smiling, frowning, hesitating, or anxious. And you, will you attend this feast? -02- Community Group Buying: Joy and Anger of Different Groups In a March 23 article by New Distribution titled 'Community Group Buying Supply Chain: A Wave of 'Barbarians' Is Coming,' it was mentioned that traditional e-commerce TP providers, Jingpaidang, and live-stream shopping suppliers—a wave of supply chain companies surviving in the internet world—are aggressively entering community group buying. Therefore, the answer to who is joyful and who is angry is clear. The internet world's joy comes from discovering another traffic depression. Opportunity lies here, and traffic anxiety is alleviated. The traditional world's anger, the distributor's anger: 'If I lose to a peer, so be it; it's just a lack of skill. But now, this group of strongmen from who-knows-where forcibly take the stage, and their first moves are all eye-gouging and groin-kicking, completely disregarding martial ethics. Who wouldn't be angry?' From a God's-eye view, these conflicts and emotions are understandable. But standing in the midst of it, who can remain detached and unruffled? To fundamentally understand the essence of the conflict and hope to find the future direction of the old and new worlds, we must deeply understand the characteristics of these two groups. Internet people and industry chain people essentially belong to two different tribes and civilizations. The tribal characteristic of internet people is nomadic civilization. They move with water and grass (traffic), only herding (harvesting) and never cultivating (brand building). Wherever there is grass, they go; after grazing one patch, they move to another. Nomads whose pasture is taken do not get angry; they either continue on their way to find new pasture or willingly become servants of the new master. They rarely get angry. The hunting-gathering mindset is hard to change. That's why decades after the Yuan Dynasty took over the Central Plains, they still considered turning Beijing and the northern regions into a vast pasture. Getting internet people to have a brand mindset is truly difficult. The tribal characteristic of industry chain people is agrarian civilization. Whether brand owners, traditional distributors, or traditional retailers, they all uphold brand value. Agrarian civilization is characterized by diligently working one's own small plot, rarely wandering around seeking opportunities. But if an uninvited guest comes to steal the harvest, they will wield their hoes to fight desperately. If you deeply understand the characteristics of these two worlds, then all their behavioral traits, all conflicts and anger, have a reasonable explanation. If in the past, our FMCG industry had offline mountains and rivers as barriers, allowing us to live in peace, then today, through the 'community group buying' model, the internet tribe has crossed the Great Wall. What should we do? -03- Manufacturers and Distributors Join Hands, Bring Guns to the Hongmen Banquet Business is like war; the battlefield is set. Since we can't avoid it, let's fight. First, distributors must clarify who is our enemy and who is our partner; relationships must not be mistaken. The community group buying platforms of internet giants cannot be your own people. To go to the battlefield, manufacturers and distributors are one family. So, I particularly appreciate the attitude and sixteen-character policy of Uni-President Group when facing internet giants, and I'd like to share it with you: 'Harmony without conformity; struggle without rupture; self-centered; each takes what they need.' Second, distributors should throw away their hoes and bring guns to the battlefield. What are these guns? One is mindset and model; the other is tools and methods. Third, distributors must never give up their original small plot of land. This is your property and your rear base. Only when you have fought well and defended this can you qualify to sit at the table with a gun, and even have the right to flip the table at any time. Where are the guns? How can distributors achieve 'bringing guns to the table'? Distributors should first maximize unity with members of the industry chain, especially brand owners. With mindset and rules, tell the brands you represent how you will fight and cooperate with community group buying in your region, and how to protect the price system and brand while achieving incremental growth. Obtain exclusive authorization for that brand in the community group buying channel within your region. With manufacturer support, if the supply source is stable, prices will be hard to disrupt. Of course, many giants will source goods from various places to smash the market. At this time, distributors should know to consult professional legal experts. The state has issued the 'Nine National Regulations' to regulate community group buying development, each of which is significant. Know how to collect evidence and negotiate with platforms. At the same time, strengthen your internal capabilities, defend your rear, and build a fulfillment capability system that adapts to the internet world. If you achieve this, the market and business are yours. How easy is it for a small program to snatch it away? By doing the above, with exclusive good products, manufacturer-hosted supply rules, and strong, high-quality fulfillment guarantees, distributors can truly be considered 'bringing guns to the table.' Whether the gun is tucked in your pocket or placed on the table doesn't matter; it depends on the negotiation effect. The key is that you gain the qualification for equal negotiation. You can understand the platform's demands and then combine your own resources to formulate rules acceptable to both parties. With a gun, you can speak, and people will listen. The logic is that simple and direct. But how do you get a gun? How do you obtain these mindsets, tools, and methods? If you want to have a gun in the face of community group buying, you must come to this China Community Group Buying Conference held in Chengdu from April 1-3. A ticket costing a few hundred yuan may give you a weapon to escape your predicament and find the opportunity and model for cooperating with community group buying. Believe in yourself; it's worth it!