-01- Why counterattack online? Because offline channels are losing too much sales. Let's look at the primary data. In 2018, total retail sales of consumer goods reached 38 trillion yuan, with online retail at 9 trillion, accounting for 23.9%. Online sales already account for about a quarter of total sales, and online sales of physical goods account for 18%. If these sales had remained offline, traditional channels would be in a much better position. The growth rate of total retail sales of consumer goods declined from 17% in 2011 to 10% in 2017, and further to 9% in 2018. What does this data indicate? It indicates that the growth rate of total sales is rapidly declining, having halved from 2011 to 2018. It may continue to decline in the future. In 2018, the growth rate of total retail sales was 9%, while offline growth was less than 6%, but online growth was as high as 24%. Online growth is more than four times that of offline. These data points reveal a common issue: First, the growth rate of total retail sales is declining; second, a large portion of sales is shifting from offline to online; third, online growth far exceeds offline growth. If this trend continues, offline channels will face even tougher times. -02- If online sales were merely a natural shift by consumers, then the rise of community group buying in 2018 was a direct move by online to grab traffic from offline! In its early stages, community group buying focused on fresh produce, but now it covers almost every category, including low-frequency products that small stores previously did not carry. In the past, online and offline were two independent sales systems. Community group buying has connected online and offline, directly grabbing traffic from offline! Can traditional deep distribution suppress online's move to grab offline traffic? No. Deep distribution is like a pawn crossing the river, losing its power. Some companies have used SaaS tools, such as Jinmailang, to improve the efficiency of deep distribution, squeeze competitors' sales, and achieve counter-trend growth during a downturn. However, overall, traditional channels have no incremental growth. Traditional channels have no way out within a closed system. The way out is to break the closure of channels, start from the terminal, use communities as a connection tool, enter the C-end, and capture incremental growth from the C-end. This is the idea of offline counterattack. Teacher Shi Wei's trinity of cognition, transaction, and relationship, as well as the integration of three dimensions—offline, community, and network—tells us that from any point in the three-dimensional space, one can enter the other two dimensions. Therefore, initiating from the terminal, completing cognition and transaction online, and harvesting offline is feasible. -03- What gives offline the right to counterattack online? In the early days of the internet, there was a saying that the online experience was better. Actually, that was just the novelty. Gradually, users realized that the online experience is merely "looking at photos," except that the interactive language is more suitable for young people. The offline counterattack relies primarily on the advantages of offline scenarios, creating scenarios that are real. Relying on offline scenarios, we can deliver excellent user experiences. Experience is the most efficient form of cognition, far surpassing internet communication. Scenarios plus experience create virality. By using community tools to connect with the C-end, incremental growth can be achieved. Why emphasize connecting with the C-end through community tools? First, terminal communities are strong offline relationships; second, communities are the router that connects the three-dimensional space and also the funnel for transactions. Therefore, the three major weapons of the offline counterattack are: terminal scenario creation, user experience, and connecting with the C-end. Connecting with the C-end can attract new customers; good experiences can lead to repeat purchases. Attracting new customers and repeat purchases bring incremental growth to offline. -04- During the era of deep distribution, salespeople had two types of work: one was relationship management, aimed at rent-seeking; the other was terminal image work, such as distribution, shelf management, and merchandising. Occasionally, there were promotions and marketing activities. These tasks were useful when channels had incremental growth. The offline counterattack can package the above tasks and upgrade them into scenario creation. If "merchandising" is satisfaction, then "scenarioization" is preference. When I talk about new marketing, I always say that scenario is the product logic. Consumption happens within scenarios. Scenarios can awaken users' desires. Therefore, the premise of the offline counterattack is that offline scenarios surpass the past "merchandising." With terminal scenarios, there will be better user experiences. Especially for new products, experience must be used to deepen user cognition. Deep experience, strong cognition, high virality. High virality leads to entering the online space. Without virality, forcibly entering online is meaningless. So, scenario creation, user experience, and connecting with the C-end are a set of basic actions. The above ideas have determined the path for channels to counterattack online. There are roughly three aspects: first, create terminal scenarios to make terminals more attractive than online; second, user experience based on scenarios; third, connect with the C-end to find incremental growth from the C-end. The first item is B-end work (offline); the second is BC-end combined work, where online traffic comes to offline for experience; the third is C-end work, through community and mini-program fission. -05- Re-cognize offline advantages and reconstruct offline advantages. This is the premise of the offline counterattack. Offline advantages are twofold: first, offline scenarios and experiences are far more real than online. Therefore, it is inevitable for offline stores to recreate scenarios; second, the advantage of strong offline relationships, with offline social communities, is far more valuable than communities that just pull people in. The advantage of online is internet tools, which are now widespread. For example, communities and mini-programs can be even more powerful when used offline. Community group buying entering offline leverages offline advantages—strong relationships—and mini-programs. These are things that offline should have done better, but online got there first. -06- Deep distribution starts with distributors and ends at terminal stores. The offline counterattack starts at terminal stores and ends at the C-end. The original terminal is now just the starting point. This is a deepening of channel work. Accordingly, the tasks, responsibilities, and KPIs of salespeople must change. Any transformation inevitably brings difficulties. Given the difficult situation in channels, there will certainly be many terminal stores willing to cooperate if it brings incremental growth. Expecting all terminals to cooperate unconditionally and expecting salespeople to transform quickly is unrealistic. Just like the pace of new product promotion, starting with early adopters, then late adopters, and then explosive growth; the pace of advancing new marketing practices is the same. Source: Teacher Liu's New Marketing If a tip is adopted, a reward of 400-2000 yuan will be paid.