The 6th China FMCG Channel Innovation Conference, hosted by New Distribution, a professional FMCG new media platform, was grandly held from April 1 to April 3 at Chengdu Ascott Hotel. The event attracted 3,000 industry professionals including distributors, community e-commerce platforms, brand owners, and internet companies from across the country, with a full house and unprecedented scale. On April 1, at the O2O Forum of the China FMCG Channel Innovation Conference, Bei Nianjun, founder of Shanghai Heyin Network, delivered a heavyweight sharing titled "O2O: Omni-Domain Attack". Bei Nianjun has over 20 years of experience as a professional manager in foreign FMCG companies, having served as Channel Director for Modern Trade at Mars China, Sales Director at Müller Dairy, and National Business Director at L'Oréal China. He has rich practical and management experience in key account marketing, channel development and management, market strategy and planning, and enterprise digital operation management. In the future, what direction will the overall O2O development extend? What is the concept of omni-domain? What role will new retail play for enterprises? New Distribution has carefully organized and excerpted the essence of Bei Nianjun's speech at the conference, and now publishes it for the benefit of New Distribution readers. Since 2018, new retail has gradually started, and brand owners have begun to make strategic layouts for new retail. However, in the early stages of new retail, because it is a new thing, almost all brand owners have many questions, mainly focusing on the following three points: 1. With so many platforms currently, how to formulate strategies? Currently, there are many mainstream O2O platforms in the market, such as O2O home delivery platforms like JD Daojia, Taoxianda, Meituan, Ele.me, Duodian, etc., retailer-owned platforms like Walmart Daojia, Yonghui Life, etc., and O2O to-store platforms like Dianping, Koubei, etc. Each platform has a different model, and the covered population, consumer behavior habits, consumption scenarios, etc., are all unknown. Facing such a situation, brand owners cannot formulate strategies uniformly; they need to develop differentiated strategies based on the characteristics of each platform to achieve the best results. 2. How to avoid duplicate investment online and offline? The issue of overlapping online and offline resources, for example, brand owners invest marketing expenses in offline KA, and when O2O does overall operations, they invest marketing expenses in KA again, possibly duplicating expenses, leading to resource waste. 3. Should online thinking or offline thinking dominate? In the current early stage of new retail O2O, major brand companies are not clear about what kind of people should lead or dominate such a new thing. Take the two brands I serve as examples: the new retail heads of Mars Food and PepsiCo Foods. Ms. Zuo Yi of Mars Food was originally from the e-commerce team, while Vincent of PepsiCo was originally from the offline KA team. The two companies used people from different departments to do O2O. In communication with them, I found that their focus points are quite different. Online thinking leans more towards traffic, bestsellers, and CP, while offline thinking places more emphasis on shelf availability, online listing rate, and which regional products perform well. In this year's latest O2O report by Kantar Consulting, there is a sentence: "In the future, O2O will no longer be a fragmented channel; it will become a testing ground for brands to develop towards an omni-domain strategy. The integration of online and offline will rapidly expand from O2O." It mentions a keyword "omni-domain". Facing the challenges of new retail, how should we think about omni-domain O2O? In the entire omni-domain O2O, we divide it into four major parts: First, omni-domain operations, from omni-domain traffic operations to omni-domain marketing operations; Second, omni-domain warehousing, "warehouse" is the largest channel asset in the future; Third, omni-domain scenarios, "scenario" is to maximize contact with consumers; Fourth, omni-domain system, there are many layouts to be done. Returning to the brand's internal, how to build an omni-domain system is the key point for brand owners to quickly embrace the new retail O2O wave. -01- Omni-Domain Operations First, omni-domain traffic operations. All traffic platforms are analyzed according to A-Awareness, I-Interest, P-Purchase, L-Loyalty. On the awareness side, external social platforms such as Xiaohongshu, Bilibili, Douyin, Kuaishou, etc., can be used for content seeding; on the interest side, platforms like Dianping, Meituan, etc., for to-store, which are the main content sites and also the main O2O sites, can deepen consumers' understanding of products. Purchase is when consumers transact in actual consumption scenarios, such as JD Daojia, Ele.me, Meituan, etc. Finally, loyalty is actually the platform's private traffic, such as JD Daojia's mini-program, Meituan, Duodian all have brand pavilions, which are well-operated. Of course, this is only online traffic operations. Now we need to combine offline and online for traffic operations. For example, offline store posters are also touchpoints for building awareness. Alipay and WeChat are also O2O to-store models. Before O2O developed, to-store was far greater than to-home, but due to the catalysis of the epidemic, consumers' to-home mindset has become more mature. Offline traffic has multiple touchpoints, from shelves to promoters, to ground promotion, to smart screens. All offline traffic can interact with consumers. **Of course, there can also be channel private traffic, such as Duodian's brand management, Carrefour's mini-program. All channels are building their private traffic positions. Second, omni-domain marketing operations. O2O operations iterate very quickly. A single online marketing method is no longer sufficient to support consumer behavior education. Building a systematic omni-domain marketing operation is the trend for future new retail development. Take a specific marketing case we cooperated on: starting from the search end, we did a large amount of content and operation seeding on Xiaohongshu and Douyin, while simultaneously planning marketing activities on the platform's main site and private traffic, including offline displays, and unified content for advertising and CP marketing. We unified all communication content, achieving content resonance. It was not just one platform, but multiple platforms, multiple traffic positions, including offline display props, forming a complete set of systematic communication, completing a whole omni-domain marketing operation. The final results were very obvious: during the promotion period, O2O all-platform sales achieved triple-digit growth. Another specific case: when a brand did a major activity with Meituan, a channel and brand made a 360-degree connection, such as in the Carrefour channel platform, including its channel live streaming, channel social, smart screens, smart shelf displays, smart promoters, etc. During this promotion, the brand, Carrefour, and Meituan completed a good connection. After the connection, all in-site strong exposure, offline and out-of-site coordinated traffic diversion, the brand's sales during the promotion period increased by 76% year-on-year in that channel. Everyone should have a concept: within O2O platforms, brands invest a lot of resources, collectively referred to as public resources. Making good use of public resources, allowing channels and platforms to interact, co-create, and resonate well, will maximize the improvement of all offline sales in the channel. Therefore, O2O is an offline empowerment platform. -02- Omni-Domain Warehousing On the left side of the figure below is a store-based warehouse of a certain channel. The space of the store-based warehouse is limited, and the products placed are limited. On the right side is a solution for a certain platform's future combined flow wall and store-based smart warehouse. This is a future development of "warehouse" layout. In the entire "warehouse" layout diagram, there is such a thought: there is channel-to-home O2O and life-to-home O2O. Channel-to-home should focus more on large supermarkets, covering 4,000 warehouses. Life-to-home covers large supermarkets and small convenience stores through head products and mid-waist products. Community group buying is a hot topic. Which warehouse should it combine with in the future? More likely, it will be future traditional small stores. Of course, Local KA will also be a very important warehouse construction for future community group buying. So there are two sentences here, which are also thoughts on future "warehouse" operations. First, "warehouse" will become the most important channel resource for brands in the future. Second, within "warehouse", especially large supermarkets, a test was conducted on a platform, completing negotiations for a "warehouse" contract and a "store" contract in a certain channel. -03- Omni-Domain Scenarios Omni-domain scenarios focus more on cross-scenario marketing, which will maximize consumer touchpoints in scenarios. Under omni-domain channels, there are four consumer motivations: stockpiling, replenishing, browsing, and deals. These are consumer motivations that occur in a regular sales scenario. To create more consumer motivations, more scenario combinations are needed. Let's take a case: during Qixi Festival, chocolate and flowers are definitely the best match. We combined a certain brand's chocolate with a flower scenario. Through this scenario marketing, on the day of Qixi Festival, the brand's chocolate sales reached the platform's annual sales peak. Generally, August (Qixi) is the off-season for chocolate sales, indicating that this cross-scenario marketing method can greatly promote brand sales growth. For example, beer brands cooperating with catering stores for cross-scenario marketing. O2O can play more cross-scenario combinations to better reach consumers. In addition to consumption scenarios, we should also create usage scenarios. Usage scenarios rely on a large amount of content to create and shape a new usage scenario, attracting consumers to imitate and share. Recently, if you scroll through Douyin, you'll find that Oreo cakes are particularly popular. Many bloggers and KOLs are promoting them, causing Oreo sales to surge on the platform during that period. In fact, this is a test we are doing: using sales content to seed usage scenarios, forming a new scenario. For consumers, it's not just about eating cookies, but also about playing with cookies. -04- Omni-Domain System O2O is not an independent operation. It cannot be done by just a team with a budget. It requires systematic support. So we have built the entire system into such a system, called the resource control circle. Each O2O team controls how many resources they have and how much they can invest, which is what they actually control. But what really needs to form a system behind it is one is the resource coordination circle, guiding resource allocation and doing online-offline linkage. For example, whether KA investment is needed, or when doing Bilibili or Xiaohongshu investment, whether marketing resources are needed, whether customized products are needed on O2O platforms to meet all new consumer demands, whether more O2O-specific advertising is needed to complete a closed loop of content matrix, etc. Of course, there is also a circle called the resource influence circle. The resource influence circle needs to expand more stores, do more offline marketing, and do more regional marketing. In the future, there will be a strategy in a certain brand called "big city breakout". Current O2O operations are still at a very early stage. Activities are basically national, without any regional or city-level considerations. These require regional resources and offline resources for influence and assistance. My suggestion is that in the future overall company plan, after the company budget plan, first add the platform budget plan. Why add the platform budget plan first? Because all platform budget plans are not a channel; they are public resources. With this public resource, all channels and regions will complete their own execution plans and execution budgets based on this resource. With money and budget, knowing the three circles, how to establish the three major operations? Since O2O operations are called omni-domain operations, how can one team do omni-domain operations? For the future overall O2O team, we can use an internal-external combination strategy, completing the construction of three middle offices through external forces. First, the platform middle office, including online middle office and offline middle office. The online middle office is easier to understand. It needs people who handle platform operations and marketing resource connections. They are the windows for all marketing resource connections. The offline middle office is also an important measure for future O2O. They need to do a lot of empowerment for large KAs, expand regional "warehouses", and serve as a good interface for channel and regional resource connections. Second, the content middle office. Everyone should have a feeling that all O2O touchpoints are brand content. Graphics and text are content; videos and live streaming are also content. So, when all content contacts consumers, what content each brand uses to face consumers needs deep consideration. What content suits each platform, what story should be told, whether all content only talks about one point, and what the overall strategy is. Third, the data middle office. Data will be the end of everything. We need an omni-domain digital middle office to empower, allowing the data from so many omni-domain channels to eventually return to a digital middle office, helping brands make better decisions in the future. Tips will be paid 400-2000 yuan once adopted.
E-commerce & Instant Retail · Management & Methods
FMCG O2O Strategy: Omni-Domain Operations, Omni-Domain Warehousing, Omni-Domain Scenarios, Omni-Domain System
The 6th China FMCG Channel Innovation Conference, hosted by New Distribution, a professional FMCG new media platform, was grandly held from April 1 to April 3 at Chengdu Ascott Hotel. The event attracted 3,000 industry professionals including distributors, community e-commerce platforms, brand owners, and internet companies from across the country, with a full house and unprecedented scale. On April 1, at the O2O Forum of the conference, Bei Nianjun, founder of Shanghai Heyin Network, delivered a keynote speech titled "O2O: Omni-Domain Attack".
