No digital path is wrong, but one must remember how high each path's ceiling is. From the magnitude of the ceiling, there are levels of 100 million, 1 billion, 10 billion, and 100 billion. Perhaps a digital path that delights a startup with 1 billion in revenue may not even be presentable to a company with 100 billion in revenue. Choosing a digital path is choosing the future scale of the company. -01- China's digitalization started with 2C, and 2C was once the main battlefield of digitalization. 2C digitalization is roughly divided into two categories: 1. Platform digitalization, such as Alibaba, JD.com, Pinduoduo, Meituan, etc.; 2. IP-based digital channels, including short video, live streaming, etc. After 2C digitalization peaked, 2B digitalization became hot. Now it seems that third-party 2B has come to an end, but brand owners and large distributors' B2B is very hot. In the FMCG field, 2C accounts for no more than 10%. Without digitalizing the remaining over 90% share, digitalization cannot be considered successful. Digitalization of traditional channels is divided into two major types: 1. Digitalization of traditional channels and stores, which is the mainstream of FMCG; 2. Circle-level deep distribution digitalization, such as for baijiu, tea, and craft beer. In summary, there are four digital channel routes for brand owners. An enterprise may choose all four paths, but it must grasp the main channel. The ceiling of enterprise scale is determined by the main channel.
-02-
Digital Channel One: IP Digitalization 2020 accelerated digitalization by 6 years, and it was a period of rapid progress. Affected by de-intermediation and influencer live streaming, the digitalization in 2020 had obvious B2C characteristics, such as short video and live streaming. Now, this has become a digital channel. The typical feature of this type of digital channel is the digital channel formed around IP fans. Its characteristics are: 1. IP-based influencers, products, or brands are the channel entities; 2. Fans are its users; 3. Live streaming and short video are technical means, and B2C is the channel path form. IP digitalization is suitable for influencer products, new consumer products, and personalized products. In short, it is for products with distinct labels. Although traditional products can also achieve partial sales through this method, especially discount sales, the influence is not significant. The natural defect of IP digitalization is the low ceiling, about 1 billion. For FMCG, rapid progress may have taken a narrow path. Teacher Fang Gang summarized the characteristics of IP digitalization: 10 million fans, 1 billion sales. 1 billion is the ceiling. The IP digitalization practice of traditional leading enterprises in 2020 shows that although it can increase sales by hundreds of millions or billions, the proportion is too small. According to platform statistics, the sales proportion of all digital channels of traditional leading enterprises does not exceed 10%.
-03-
Digital Channel Two: Circle-Level Deep Distribution Digital Channel Some categories, such as baijiu, craft beer, and tea, have high cognitive thresholds and long cognitive cycles, making it difficult to form cognition through short-term communication. Therefore, forming a combination of [strong relationships + strong cognition] through circle-level acquaintance endorsement becomes the main channel. This channel model is called circle-level marketing. Circle-level marketing is limited by Dunbar's number, so sales are limited. According to Dunbar's number, the limit of stable social relationships for a person is 148 people. Cognitive endorsement is difficult to exceed Dunbar's number. Therefore, to make circles a channel, it is necessary to break Dunbar's number. Our proposed solution is circle-level deep distribution. It can be said that circle-level deep distribution is as important as deep distribution in FMCG. In "New Marketing 2.0: Three-Dimensional Connection," we proposed a basic model for circle-level deep distribution: 1. First create scenario experiences to let KOCs form strong cognition. This is the premise of circle-level deep distribution, because circle-level deep distribution is deep distribution around KOCs; 2. Through the organizational system, deeply explore KOCs' social relationships, and continuously extend new relationships around social relationships, i.e., discover new KOCs; 3. Connect users developed by circle-level deep distribution through cloud stores. Because after multi-level circle-level deep distribution, a chain of acquaintances is formed, which may lose contact, so technical means are needed to connect. The model of circle-level deep distribution can be summarized in one sentence:
-04-
Digital Channel Three: Platform Digital Channel Trading platforms are channels. Platform digitalization refers to large internet platforms, including B2C platforms such as Alibaba, JD.com, and Pinduoduo; O2O platforms such as Meituan; and emerging community group buying platforms. Although community group buying platforms have group leaders, most will eventually remove group leaders and become distributed B2C. Platform digital channels are suitable for long-tail products, high-value products (such as home appliances), and high value-added products (such as cosmetics). They are currently the largest digital channel.
-05-
Digital Channel Four: Traditional Channel Digitalization This is the biggest battlefield for digital channels. Once traditional channels complete digital transformation, it means all channels are digital channels. Up to now, the digitalization model of FMCG channels has basically been finalized. I summarize it in four sentences: Channel modularization, full-link connection, full-scenario reach, and BC integrated operation. Channel modularization means that channels will become four major digital modules: operation module, order module, warehousing and distribution module, and financial module. Full-link connection refers to F2B2b2C, where all participants in the channel are connected online. Full-scenario reach refers to the scenarios where users are reached at the terminal, including things (such as one product one code), people (including store owners, clerks, shopping guides, etc.), and stores. The goal of traditional channel digitalization is: one million terminals and hundreds of millions of fans. One million terminals are small b stores, and hundreds of millions of fans are C-end users. Traditional channels have achieved "one million terminals, 10 billion or 100 billion revenue," while platform or IP digitalization has achieved "10 million fans, 1 billion revenue." From the perspective of brand owners, the largest sales volume is still in traditional channels, and the ceiling of platform or IP digital channels is very low. However, if the network influence of platform or IP digitalization is leveraged and extended to traditional channels, can revenue be amplified several times or dozens of times? We believe it can be fully achieved. After the digitalization of a single channel, the next step should be to connect different types of channels to achieve the penetration of influence across channels. This is more difficult than the digitalization of a single channel. It is equivalent to transforming from a single-event champion to an all-around champion. If a tip is adopted, a payment of 400-2000 yuan will be made.