Editor's Note: On May 10, New Distribution hosted the first episode of its live series 'Growth in the Fight Against the Epidemic' —how FMCG manufacturers and distributors can achieve counter-trend growth during the pandemic. This article is based on the remarks of Teacher Liu Chunxiong during the live broadcast, edited and approved by the author.

Since the Spring Festival, the pandemic has had both positive and negative impacts on marketing. Positively, leading companies in baijiu and beer are growing, the dairy industry is growing rapidly, and even electric vehicles are selling out. But the negative impacts may be more numerous.

After the pandemic became severe in March, we studied how to do marketing under pandemic conditions, and the companies we guided achieved unexpectedly high growth. We summarized a marketing system for the pandemic: new concepts, new organization, new opportunities, and new tactics.

New Concepts Initially, we thought the pandemic was an abnormal state that would pass if we just waited. But in March, we began guiding companies to change: the pandemic is a long-term abnormal state. So our first concept is that the abnormal is the new normal. Don't wait or rely on others; marketing work must be carried out in adaptation to the pandemic environment.

The abnormal is short-lived; the normal is long-term. So we must treat it as a long-term matter. Nationwide outbreaks are now sporadic, so this first concept is very important.

New Organization In pandemic management, there is an important term called static management, which has put much of our marketing in a static state. Under social static management, some say they are powerless and can do nothing. Teacher Fang Gang's survey in the group showed that more than half were 'lying flat at home' or 'lying flat at the company.' I think that's abnormal and wrong.

First, our organizational system must change. Originally, each marketer had their own area, called a 'defense zone,' and worked within it. When the pandemic hits, some places are under static management, but others are normal. At this time, we must shift from 'positional warfare' to 'mobile warfare.' Transfer personnel from one 'defense zone' to another.

Personnel's defense zones and positions are all disrupted, with cross-county, cross-province, and cross-region transfers within the province. Personnel must be ready to move at any time. We call this the new organization. In internet terms, it's also called an 'agile organization,' that is, an organization that responds quickly, rather than fixed personnel, fixed defense zones, and fixed positions.

But there are two prerequisites: First, comply with epidemic prevention rules; no violations. Second, study the epidemic prevention measures in different regions. After the outbreak, differences between regions are huge. Some implement full static management at the first sign without any symptoms, while others manage in an orderly and calm manner.

Therefore, studying management measures in different regions is very useful for personnel transfers. Under these two prerequisites, personnel transfers are not after static management; the occurrence of outbreaks, controls, and lifting of controls all have signals, and they are public signals. Make precise predictions and quickly mobilize personnel. Sometimes a day or two makes a difference.

Second, shifting from positional warfare to mobile warfare also changes the organizational approach.

First, the market for mobile warfare must be one with opportunities. Just like Su Yu in the Huaihai Campaign, quickly mobilize troops. In the Liaoshen Campaign, the unit structure was disrupted, and the commander gave a simple military order: 'Each column need not find its division, division need not find its regiment, regiment need not find its battalion; everyone just find Liao Yaoxiang.'

Second, it must be an 'offensive battle' and 'annihilation battle.' When others 'lie flat,' you must attack. When you encounter market opportunities or weak markets, you must quickly 'annihilate' them.

After rapid concentration and mobilization, the local personnel density is several times the usual, allowing local sales to 'skip grades,' possibly jumping from first grade directly to third or fourth grade. This achieves major breakthroughs in local markets, with growth of 1x or 2x. This was impossible before.

In the past, personnel were spread thin in fixed markets, e.g., one person managed one county or ten counties. Now it might be ten people attacking one county. In the past, concentrating personnel was difficult; the pandemic has given us a method to concentrate forces for mobile warfare.

Some ask if we should fight guerrilla warfare. No, it must be mobile warfare. Guerrilla warfare disperses forces; mobile warfare concentrates forces to rapidly improve opportunistic and weak markets. This is what we call the new organization.

The new organization brings great management challenges.

First, rapid personnel transfers have no warning. We don't know where the opportunity markets are or where the lockdowns will be. So all personnel must not be overly concentrated; they must be dispersed, at least across five or six regions, to avoid being caught all at once. Monthly meetings should be moved online as much as possible, and no offline centralized meetings. This is an important management measure.

Second, regardless of where personnel originally were, all is disrupted; they are in temporary areas. You might be in one area this week and transferred to another province next week. With areas and positions disrupted, after concentration, original positions disappear, and new positions may not quickly overlap or align with old ones.

Third, assessment. We used to have sales assessments and process assessments. Now sales assessments are gone; only process assessments remain. But assessment is essential, even if only for a week, otherwise there is insufficient discipline.

This new organization—the agile organization—I believe will be very useful in the future. It can both disperse for defense and concentrate for attack. The organizational system trained in this state is highly combat-effective.

In our pilot, it took a month to adjust this organization, and we quickly found the pattern. Now no one knows where they'll go next, but everyone knows there are tasks wherever they go, and they are always ready. There are advance teams, assault teams, and mop-up teams, with very good rhythm.

New Opportunities The pandemic has indeed caused many difficulties, but since I started in marketing, I've always held the belief: 'Seeing difficulties doesn't solve them; seeing problems doesn't solve them; seizing opportunities solves problems.' The pandemic has a big impact on sales, and most people describe it negatively, not positively, i.e., from the perspective of opportunity.

Why can mobile warfare capture markets? Because normally you can't, even with the same force. But when opportunities arise, we might. There are several reasons:

First, everyone's problems are our opportunities. Because when you treat it as a problem, you try to solve it, rather than seizing the opportunity. Opportunity is the driving force for work.

Second, most people are passive in the face of problems. This passivity is normal. Some say that under the pandemic, 80% 'lie flat,' and the remaining 20% have opportunities.

Third, the pandemic disrupts rhythm. Most people can't adapt to the new rhythm, let alone master it, but the opportunities brought by rhythm are fleeting. During the pandemic after the 2020 Spring Festival, I was also guiding companies. We basically discussed daily what opportunities existed and what to do that day. At first, just delivering goods was seizing the opportunity. No one was delivering, so anyone could deliver, not just delivery personnel. That's an opportunity.

There are two opportunity points in lockdown and lifting: First, before lockdown, there is usually hoarding. Before the lockdown signal, you generally have a sense. Usually, from the announcement to actual lockdown is about 12 hours, and you can fully replenish stock in those 12 hours.

Similarly, when the lockdown is lifted, it's also an opportunity for concentrated replenishment. This disrupts our rhythm, so the opportunity is whether we can respond quickly within 12 hours.

Second, logistics will also be disrupted. After logistics disruption, do our warehouses have safety stock? This safety stock is different from the usual safety stock in normal times.

For example, due to the pandemic, we might need to ship from headquarters directly, bypassing distributors and warehouses. That's adaptation. Regarding these opportunities, most people's instinct when facing difficulties is to lie flat.

I believe a professional's reaction is that when a problem occurs, they quickly think professionally, and professional thinking is 'What is the opportunity for us?'

So, we say 'grab both ends of the pandemic.' Check local epidemic updates daily, then seize the interval, and quickly move after finishing. For example, Zhengzhou today (May 10) is studying whether to lift the seven-day management. This is important; once announced, you can quickly mobilize personnel. Most companies don't have this idea.

The fourth opportunity point is that 'demand does not disappear, but consumption scenarios shift.'

For example, I used to drink in restaurants, now I drink at home or in a static-managed community. So the consumption scenario changes, and the purchase form changes. For instance, beer is not bought bottle by bottle, nor case by case. Recently, a company launched a set of three cases because purchase frequency is lower, so it must be bulk buying.

Another example: Uni-President made an anti-epidemic package in Shanghai with instant noodles, Kaixiaozao, beverages, etc. This anti-epidemic package is a shift in consumption scenario. When consumption scenarios shift, sales methods completely change, totally different from KA store methods.

The fifth opportunity point: the value of big single products emerges during the pandemic. Because people's choices become simpler and decisions faster, this is the best time to promote big single products. Recently, many companies' big single product sales have expanded rapidly, and the explosion of big single products provides opportunities. At this time, one big single product can solve the problems of a bunch of small products.

So, if you have an opportunity mindset and think from the opportunity angle, things are very easy. In the past, pushing inventory was a bit weak, and terminals had strong immunity. Now pushing inventory is relatively easier. Increasing safety stock is something many companies haven't realized. Whoever fires the first shot benefits!

When we discover why companies can achieve 1x or 2x growth this way, we find there are many opportunities. So, beyond organization, we emphasize opportunity. Of course, without organization, you can't seize opportunities.

New Tactics Currently, most FMCG categories use a deep distribution model, but this model is now facing difficulties, especially in static-managed areas where the B-to-b offline connection is interrupted. At this time, our marketing cannot stop. The bC integration we proposed in 2019 is now being used by many companies.

In the past, we didn't use bC integration because offline worked. But when offline doesn't work, we find that no matter how static management is implemented, two lines are not broken. First, the WeChat connection between manufacturers or distributors and terminals is not broken; this communication is high-frequency. Second, the WeChat relationship between terminals and consumers is not broken.

bC integration means the manufacturer can link the b-end and C-end, and that's when it works.

For example, Coca-Cola in Zhengzhou cooperated with JD.com and Dennis (a large Henan chain). Customers order on JD or Dennis platforms, but the manufacturer does contactless delivery. This is a typical bC integration concept.

Uni-President in Shanghai is similar: as long as group buying reaches a certain sales amount, delivery is available. Because Uni-President is also a guaranteed supplier, delivery is not a problem. If delivery isn't a problem, bC integration can still transact and deliver even if stores are closed.

So, if 2020 was channel digitalization, this pandemic I believe is offline digitalization, typically bC integration. For example, Taishan Raw Pulp, recently popular in Henan, is also bC integration. The manufacturer cooperates with stores for contactless delivery. Customers order via mini-program, and stores and manufacturers combine for online orders and contactless delivery.

Summary New concepts are the guiding principle. With that, new organization, new opportunities, and new tactics are not problems.

The abnormal is the new normal. This was proposed by community marketing expert Chen Haichao in my WeChat group.

New organization is key. Without organizational strength, individuals cannot solve the problems the pandemic poses. Once we discover the agile organization for mobile warfare, we find it is very efficient.

So after the pandemic, I will still adhere to the 'agile organization' because the agile organization system is not only effective during the pandemic, but it is also the most efficient form of organization, able to adapt. It's like Transformers; modules can be recombined to form new combinations.

When I first read the book on agile organizations, I found it hard to understand, but after using it, it's easy to grasp. First, rapid assembly; second, insist on mobile warfare; third, insist on offensive battles. Agile organizations must fight offensive battles; sales growth comes from offense, not defense.

New opportunities are a way of thinking. As long as you think from the opportunity angle, you will find many opportunities. I have always believed in the words of American futurist Naisbitt: 'Success comes not from solving problems, but from seizing opportunities.'

Opportunities are like a window left open in a storm; you don't know when it opens or closes. But if you maintain attention to the front line and an opportunity-oriented mindset, you will find countless opportunities.

Fourth, bC integration. bC integration means even in the hardest times, you can connect the b-end and c-end.

New concepts, new organization, new opportunities, and new tactics ultimately aim to achieve new goals. What are the new goals? Sales may decline, but when the pandemic ends, our industry ranking and position must rise, and rise significantly.

For small companies, sales may be important, but after this stage, industry position and regional sales ranking are most important. That is our new goal.

I'll briefly share my thoughts since the Spring Festival and some ideas from guiding corporate practice. Thank you!

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