Scan the QR code in the image to register Changes in the FMCG industry, whether from the real market or related media reports, are already perceived by business managers. In this context, many experts and scholars constantly emphasize the need to actively embrace change, or fall behind. Although 'embracing' is proposed, how exactly to embrace it has never been clearly explained. I find that more and more traditional FMCG professionals are gradually becoming confused and panicked in the process of embracing. Some even create anxiety, shouting 'escape your comfort zone quickly, or you'll lose your job.' Therefore, before discussing how business managers should specifically respond to changes, we must first establish a correct concept of embracing. First, it must be emphasized that the emergence of new retail and new scenarios indeed requires our attention, but it does not mean our past skills are useless. I believe many FMCG practitioners who have climbed to manager positions have done so through hard work—walking the streets, working from 8 AM to 9 PM, then doing PPTs and replying to emails after work, fighting every day, and achieving results. This is how they eventually earned a monthly income of 10,000-20,000 RMB and the ability to manage the market. Business managers worry that their ability to manage the market over the past decade or more will become useless due to new retail and digital channel platforms, leading to unemployment. I think this is completely unnecessary, and we should not believe in the so-called 'escape from the comfort zone.' My view is: in the new era, business managers should not escape their comfort zone, but rather expand it. The new changes in channels are not about starting from scratch, but about building muscle on the existing capability system. What does that mean? Currently, 80% of sales still come from traditional channels, while various new retail and online e-commerce account for less than 20%. So existing capabilities cannot be discarded, nor should we escape. The correct approach is to learn new skills under the new business format while maintaining the existing capability system. Continue doing what you should: visual merchandising, key sales days. At the same time, learn new retail business, such as understanding how JD Daojia, Taoxianda, and Puyi Supermarket work, how to negotiate for listing, and how to increase sales. So business managers should not fear new retail. Simply put, new retail has arrived, and the sales skills required now are more than before. Don't panic; just learn! Of course, besides some overly pessimistic people, there are also overly optimistic ones who always think 'e-commerce can only sell a few dollars,' like a frog in warm water, underestimating new retail. I believe this is also a wrong perception. As frontline commanders, if you use an old map, you will never find a new continent. In summary, as business managers, we should neither underestimate the enemy nor be anxious, and we should not listen to the so-called 'escape from the comfort zone.' Respond calmly and actively overcome challenges—this is the correct concept we should establish. -01- How should business managers embrace new changes? Returning to the simple truth of sales for business managers: Wherever the business is, we go! If part of the business leaves the main battlefield, no matter how hard you try, it won't work. A category with 1 million in sales used to be distributed across 3 channels. We had a 300,000 share, and competitors had 200,000. We kept pushing hard, increasing our sales to 350,000, while competitors dropped to 150,000, and we won in the end. But now there are 10 channels. Our competitors are not in the old 3 channels but elsewhere. Capacity is always limited. If we continue to fight on the original battlefield, no matter how hard we try, sales will still decline. For example, community group buying might currently account for only 1% of category sales, but in the future it could be 5%. If we don't pay attention now, we will lose sales. The simplest understanding for business managers is: existing business and incremental business. How to understand the existing market? In one sentence—old scenarios, old retail. The 'old' in old scenarios and old retail does not mean outdated, but rather it means remembered sales and core sales. It is what business managers have been good at in the past, and it is also business that is within their capabilities and continuously improving. This part still accounts for about 80% of the overall share and is the true core business. In the existing market, it can be divided into direct coverage and indirect coverage. Direct coverage includes various modern channels like hypermarkets, which FMCG manufacturers cooperate with directly; indirect coverage includes various wholesale markets, which are difficult to control but can achieve rapid cash flow for enterprises. How to understand the incremental market? In one sentence—new scenarios, new retail. JD Daojia, Taoxianda are new scenarios, various community group buying are new scenarios, Alibaba Retail Link is a new scenario... They are all new retail. In addition, for a beverage brand, compared to traditional circulation, catering outlets are also new scenarios and new retail; for a grain and oil brand, compared to past channels, corporate group purchase benefits are also new scenarios and new retail. We don't need to stand from the perspective of experts and scholars to define the boundary between new and old retail, nor should we be rigid or copy mechanically. Dividing by these two dimensions is just to help business managers respond to and understand the increasingly changing market more calmly. At the same time, it makes it easier for business managers to control when commanding operations in local markets. Once defined clearly, the next strategy becomes relatively easy. For the existing market, we should use new tools to improve the efficiency of distribution and sell-through. For example, for route visits and sales management, we should fully leverage digital tool systems to help us analyze, improve visit efficiency, and increase the return on investment for promotional spending. For the incremental market, we should use new methods to increase more business opportunities. For example, if traditional mom-and-pop stores are under-covered, we can 'borrow a boat to go to sea' by using platforms like Alibaba Retail Link and JD New Channel to help us cover them. If we do it ourselves, the maintenance cost is high and the input-output ratio may not be proportional. For various new retail platforms, regardless of the volume, we should personally get involved, proactively engage, and first practice then summarize. In practice and summary, find patterns and master methods. Only then can we truly understand how to learn and what to do in the face of new retail! -02- Wherever the business is, we go! The reason for omni-channel distribution is that there are more channels, which divert existing sales and create some incremental sales. So our underlying logic is: Wherever the business is, we go! As frontline business managers rooted in the market, we should not be obsessed with or lost in the fancy words of the internet. Returning to the essence of business is coverage and selling. It's just that coverage is now online + offline, but the fundamental nature of FMCG will not change—selling in and selling out! As the highest commander of a market, the most important thing for a business manager is to remain calm and objective. We must know that the market has always been changing, and every year there are new species. The only difference is that in the past, information was not as massive, communication costs were not as low, and anxiety-selling and internet platforms were not as fierce. That's all. Our value is reflected in growth; growth is the only hard truth! The era of omni-channel distribution has arrived. What frontline city managers need to do is open their arms and embrace it steadily!
E-commerce & Instant Retail · Management & Methods
Frontline Business Managers Facing New Retail Changes: Embrace, But Don't Be Confused or Panic!
Scan the QR code in the image to register. Changes in the FMCG industry are already perceived by business managers, whether from the real market or related media reports. In this context, many experts and scholars constantly emphasize the need to actively embrace change, or fall behind. Although 'embracing' is proposed, how exactly to embrace it has never been clearly explained. I find that more and more traditional FMCG professionals are becoming confused and panicked in the process of embracing. Some even create anxiety, shouting 'escape your comfort zone quickly, or you'll lose your job.' Therefore...
