Click 'Read the original' for details. “ Marketers, planners, and SME owners—the backbone of traditional enterprises—are largely lost and anxious. ” 1 Introduction: Does the old 'low-level operations' approach in FMCG have a future? The question of 'confusion during the blending of new and old FMCG tactics in a new consumption environment' was first raised to me by a seasoned marketing consultant in China. With extensive frontline experience in marketing management and channel development, he is often invited by FMCG platforms to train small business owners and distributors. After several sessions, he found it 'boring.' Why? On site, he noticed that most SME owners still focus on topics like 'how to recruit distributors, how to distribute and drive sales, how to manage salespeople, and how to manage distributors'—issues he considers low-level operations. He believes that even if these are done well, they cannot guarantee healthy business growth in today's new market environment. So, in the mature FMCG market that is already oversupplied, do SME owners and their products/brands, still stuck at the operational level, really have no future? Under the impact of 'new markets, new models, new technologies, and new methods,' where is the future for marketing directors, regional managers, and sales representatives who rely on traditional tactics and channels? 2 Using 'channel operations' as an example, traditional tactics are indeed becoming harder By conventional definition, a channel is the path through which products reach consumers. More deeply, a channel is an integration of resources for product distribution, using scientific market planning and marketing management to mobilize distribution resources at all levels to work with manufacturers to realize the core value of product circulation. From the perspective of the 'Internet+' new economy, a channel is essentially effective management of commercial traffic—the right channel creates more effective 'business partner traffic,' which in turn creates smooth 'end-consumer frequency' traffic. Returning to the operational level, market planning, recruitment, distribution, and sales promotion remain key terms in 'channel operations.' But with changing times and consumption environments, are these tactics truly effective in the long run? In reality, we have moved from 'scarcity' to 'oversupply,' and some traditional tactics are indeed becoming harder. For example, in the early days, if I produced beverages or biscuits, I needed to recruit a sales management team, recruit distributors, distribute products, drive sales, build model markets, and service and maintain distributors. There are too many uncontrollable factors: the level and stability of the frontline team, the time and cost of recruitment, the quality and quantity of distributors, the implementation of channel management, and the challenges of end-market sales... But if we use new ideas and new channels—such as online e-commerce buzz, influencer media campaigns, WeChat community recruitment, offering equity to distributors to bind them, leveraging IP hotspots for brand exposure, crowdfunding recruitment—it seems there are more possibilities for product development in the market and channels. For example, recent internet-famous beverage brands like Genki Forest's Ran Tea, Youxiao Jun lactic acid bacteria drink, and George Patton baijiu all show traces of these emerging operational methods. 3 The change in 'tactics' has made older marketers anxious In recent years, I have witnessed many veteran FMCG marketers (including marketing directors) frequently moving between companies. Apart from 'philosophical differences' with bosses, most reasons are performance-related. From initially establishing leading products, to going through traditional recruitment steps like industry website recruitment, phone database recruitment, sugar and wine fair recruitment, and agent visits, actual performance is often mediocre. Both bosses and marketing teams go from 'high hopes' to 'great disappointment.' Traditional recruitment models essentially rely on marketers' energy and physical effort. But with many competing products, a weak economy, and increasingly cautious distributors, if the product itself lacks highlights, traditional recruitment becomes very difficult. Although poor performance is related to strategy, investment, management level, and execution, the sales team and marketing leaders are often the first to take responsibility. Some marketers continue to work steadily; many others are increasingly confused—their energy and stamina are waning, their experience is hard to leverage, and personal transformation is difficult. 4 The change in 'tactics' has also confused older planners Older planners, though no longer limited to the 'three axes' of product, advertising, and ordering meetings, are indeed caught off guard by the richness and variability of the 'Internet+' and mobile marketing era. Take media promotion channels, which planners often use. Older planners first encountered TV, newspapers, radio, and DM. Now, hot concepts include social media and feed ads, with a string of new terms like materials, targeting, and landing pages that may leave some planners over 35 bewildered and 'indigestible.' Even 'marketing consulting,' which we once thought rigorous, has become 'fast food'—once relying on chain systems and team warfare, now the shiny concepts are 'light consulting,' 'personal consulting,' 'one-on-one consulting,' and 'traffic and conversion consulting.' Part of the reason is industry competition; on the other hand, new things like 'light consulting' do have adaptability to the new market environment. Some older planners just got a handle on 'e-commerce strategy,' and big data tells you: 'The low-cost traffic dividend of e-commerce is over.' Just when they gained some insight into 'official account marketing,' reality tells you: The window for 'APP and official account marketing' is already an oligopoly era... Now, marketing tools, carriers, technologies, and concepts seem to be on a fast iteration track compared to the print media era of a decade ago, changing greatly every year, leaving older planners overwhelmed. The reasons are twofold: on one hand, the consumption views and tendencies of emerging consumer groups have changed; on the other hand, in the new marketing environment, emerging data marketing technologies make brand touchpoints and traffic control more traceable, but true proficiency and effective use of these new technologies are currently in the hands of only a few. Looking at older planners, their grasp of emerging consumer groups and new technologies is indeed relatively backward in some respects. If you are already a famous and successful star planner, this problem does not exist to some extent, because sufficient original accumulation can resolve many difficulties. But not every older planner can excel and accumulate like a sea; besides sighing, what can they do? 5 The change in 'tactics' has made SME owners the most anxious and confused For mature large enterprises, there is brand pull accumulated over years and a complete marketing management mechanism, while the vast number of small and medium-sized enterprises, after trial and error, have just become familiar with the old path, and are now pushed onto a new journey in confusion. These SME owners are far more anxious and confused than the marketing and planning teams who are employees. Recently, on a well-known national recruitment website, I saw a vivid and interesting recruitment ad, as follows: “Desperately seeking talent, who can dance with me in life —Chairman's Message I, humble, came from a poor family in childhood. After 16 years of hard work, I have achieved some success. I own five companies, four in food sales and one in food production. I originally wanted to settle down and live peacefully. But considering the future of my brothers who have followed me through hardships, I cannot stop, or perhaps it is driven by my life values. Due to the complexity of various company affairs, I cannot be everywhere at once, and I feel exhausted. I am urgently seeking a senior expert in the industry to join hands with me, to create value together, share value together, and only seek a true partner to go forward together...” To others, it might seem like the boss's humor or a sincere recruitment effort. What I see is the anxiety and uncertainty of SME owners in the new market environment. The market is hard to navigate and shrinking; the boss is cautious and conflicted in confusion; the old brothers who fought to build the business may at best 'maintain the status quo'; and suitable talent for the new market environment is indeed hard to find. Even if the key elements of human resources and business strategy are in place, achieving results also tests the courage and decisiveness of the operator. For example, Zhejiang Little Prince Food Company, with a 20-year history, has an aging middle and senior management team. Traditional marketing ideas and models caused it to lose ground repeatedly under the impact of the Internet. Finally, in 2014, the leader and operator overrode objections and used the IP-based product 'Miss Dong' baked potato chips to test the waters online, turning the tide. Through combined online and offline operations, this single product achieved sales of over 360 million yuan in three years. 6 Are some emerging 'internet-famous' brands 'adapting to the new market' or just a flash in the pan? In the new market environment, business owners and think tanks are keen to create 'internet-famous products' and 'explosive IPs' with Internet genes. The idea is good, but lacking professional and effective operational methods, they often 'get the form but not the spirit.' Take a certain hawthorn juice brand as an example. It claims: 'Closely targeting the young generation of consumers, creating an interesting and novel juice beverage brand with Internet tone, opening a new era for hawthorn drinks.' If you only look at the target audience positioning and promotional slogans, it does have some Internet flavor, but looking at its product connotation, communication methods, and recruitment channels, it still cannot escape the 'traditional' routine. In fact, its market feedback and sales have always been mediocre. Here, for industry professionals, let's also talk about the 'star newcomers' in the new market environment. We can see under the spotlight are 'post-90s' marketing vice presidents, 'post-85s' internet-famous entrepreneurs, and 'post-85s' channel innovators. Now, star newcomers take turns on stage to 'teach and enlighten' industry newcomers and veterans. On one hand, they align with the market environment, continuously strengthen their core technical advantages, and quickly monetize their personal knowledge; on the other hand, it also reflects the impatience of the market and audience, not escaping the social ill of 'pulling up seedlings to help them grow.' 7 Conclusion: Preserve the fundamentals, embrace the new, value experience, and treat your life well ◎ Conclusion 1: The marketing 4Ps—product, price, place, and promotion—always have core value for FMCG operations! These 4Ps are essentially 'traditional,' and the 'ever-changing' in the new environment does not deviate from their essence. And when it comes to 'human nature' and 'product nature' related to consumption, they have never changed. ◎ Conclusion 2: Learning is a lifelong process! For learning about the new market and new consumption environment, I advocate Lu Xun's 'take-ism'—adopt an inclusive, use-for-my-own-purpose attitude to learn and apply, gaining from use. How to learn? Learn from practice, from others, from new things, and even from outside the industry. If you truly learn, you will surely gain. ◎ Conclusion 3: Business owners and marketers with practical experience, please cherish your traditional experience! In the new environment, 'experience' seems to be synonymous with 'old-fashioned' and 'arrogant,' making many shy away from talking about it. But the effective grafting of old and new to create value is closely related to your experience. Effective experience allows you to discern effectively in the face of the 'new,' not to follow the crowd blindly, and not to drift with the tide in confusion. ◎ Conclusion 4: The industry is tough; be kind to yourself; treat your time and life well. Source: Sales and Market (cnmarket) From August 22-24, the '2018 China Digital Innovation Conference (2018FDIC)' with the theme 'Finding New Engines for Growth' will be held in Shanghai, hosted by the China FMCG Industry Association and organized by New Distribution. The conference will last 3 days, focusing on two main themes: marketing and supply chain, with six parallel forums on brand, distribution, communication, B2B, local logistics, and innovative retail. We will invite industry experts, CEOs, and brand executives to deeply interpret the trends and drivers of digital transformation in the FMCG industry. We will invite over 500 FMCG enterprise executives, 200+ B2B industry CEOs, and 1000+ major FMCG distributors to gather and discuss how the FMCG industry can use digital tools to achieve rapid growth again in the digital era. This conference will build a bridge for brand owners, distributors, retail enterprises, and marketing agencies, helping FMCG manufacturers get the latest information, understand best practices, and master more practical transformation skills. Proposed invited companies Conference time August 22-24, 2018 Conference location Shanghai Baohua Marriott Hotel Conference content 8.22 Full-day check-in Afternoon 14:00—17:30 Distributor local logistics parallel forum Evening 18:30—21:00 New Distribution Night Gala Dinner 8.23 Theme: Marketing Digital Innovation Morning 9:00—12:00 Marketing Digital Innovation Main Forum Afternoon 14:00—17:30 Brand, Distribution, Communication Parallel Forums 8.24 Theme: FMCG Supply Chain Digital Upgrade Full day: FMCG Supply Chain Conference Registration method Registration is now open. Long press the QR code below or click 'Read the original' to register. Limited-time special group purchase prices are hot! Registration consultation Ticket inquiries: Media cooperation inquiries: New Distribution previous conference highlights Click the link below to review the first, second, third, and fourth FMCG + Internet conferences: -END-