The following is the speech delivered by Mr. Guo Junfeng, founder of Commander Guo WeChat Business Consulting, at the 5th FMCG + Internet Conference hosted by New Distribution, organized and published for readers. Every change brings new opportunities. Since entering the WeChat business field in 2013, we have cooperated deeply with many enterprises, including listed companies, and have gained valuable experience. This is a treasure. In fact, whether it's WeChat business or social e-commerce, everyone may have their own understanding and terminology, but ultimately it's about selling goods. In the process of selling, we have focused on two areas: first, maternal and infant products; second, baijiu (Chinese liquor). Last year, we participated in the Chengdu Sugar and Wine Fair for the first time. At that time, we had only three liquor clients: Wuliangye's Mijian, Yanghe's Wuji, and Shandong Jingzhi's Lingjie. In one year, we gained a lot. As the saying goes, one gives birth to two, two to three, and three to many. So far, we have cooperated with dozens of liquor companies. The ones you see are part of our clients, but there are many more. Today, I want to talk about two main points: first, share our experiences, lessons, and feelings, hoping to inspire you. Second, the operational thinking and experience of social e-commerce: how to sell products and how to spread them. These are the two key parts. Why did social e-commerce emerge? Why social e-commerce? Let me briefly introduce. How did traditional channels work? Brand owners found distributors, who then found wholesalers, and finally reached the terminal. But now, traditional distributors have been disrupted by internet B2B platforms. The entire consumption structure has changed, and you no longer have the opportunity to sell through traditional channels as in the past. This is especially true for new brand owners; selling through agents is no longer feasible. With social e-commerce channels, we can directly reach C-end consumers. Although there were also direct-to-C channels and methods in the past, they are now basically unrealistic because traffic costs are too high. For example, in the past, you could spend 20 yuan to buy 100 yuan worth of traffic online, but now, spending 20 yuan might not sell a single item. Recently, I heard that P&G is about to delist, which means P&G will return to its state ten years ago. Traditional enterprises will find it very difficult to connect with C-end consumers; they don't know where to invest or how much. So, in traditional sales channels, when B channels are unusable and C channels are also unusable, social e-commerce emerges as the trend. This is a result of social development and a product of the times. Never has an era focused so much on people themselves; transactions facilitated through social interactions between people are precisely social e-commerce. With continuous technological development, more business formats may emerge, and this will be the time for social e-commerce to shine. Based on our years of experience, I tell you: if you are a business owner, you must try it; if you are not, you must learn to cooperate with brands. Because times have changed, today you need to know how to communicate and interact with consumers. In the past, you were just a consumer; today, you are not only a consumer but also a fan or an agent. The relationship between you and the product has changed, and the consumer's identity has also changed. At the same time, brands are changing: in the past, it was hard promotion; today, it's proactive communication and creating opportunities for exchange. When serving the liquor industry, we noticed that Moutai has the Maofen Club, and Yanghe has the Dream Club. Why do they build these clubs? Because they understand the need to communicate with loyal fans. Operational thinking and experience of social e-commerce (1) Perfect breakthrough with natural social advantages In our traditional thinking, we used to aim to be the world's number one, selling as many products as possible, and planners would devise various strategies accordingly. Today is different; consumers no longer care who you are, but who I am and what relationship I have with you. These changes have brought about today's social e-commerce, where the relationship between people is particularly important. Of course, the emergence of social e-commerce also requires several key conditions: the right time, the right place, and the right people. With the advent of social platforms, we can connect with all Chinese people from Chengdu, even the whole world. Coupled with national policies, people's enthusiasm for entrepreneurship, government support and encouragement, and the availability of time and the urge to make money, we have the right time, place, and people, leading to today's social e-commerce. Let me give another example, which is factual. Yesterday, I met some diaper brand owners in Fujian. There are about 200 diaper brands in Jinjiang, and several have revenue exceeding 100 million. You know, China's social paper products are mainly produced in Jinjiang. They sell over 30 billion yuan worth of diapers a year. You'll find that more than 200 individuals are making diapers, which was impossible in the past. If you've been in traditional business, you know that in the past, it took at least three to five years to establish a brand. Today, they have the opportunity to create brands with annual revenue exceeding 100 million. Opportunities that didn't exist before now exist. (2) Brand logic under social relationships So how can we make products sell better? I think there are three main points: First, functionality. Functionality has three elements. The first is solving pain points; solving pain points is the most important. My parents told me to grab red envelopes in our relatives' group. I find it boring, and they think I'm silly. Many people wouldn't pick up 5 mao from the ground, but they are very happy to grab 2 fen in a group. Some people are thrilled to earn 50 gold coins by browsing Toutiao all day, and they share it daily because Toutiao meets their needs. The most discussed aspect of our products is whether they solve pain points and whether they offer value for money. The second element of functionality is cost-performance ratio, which includes whether the product is truly good. For example, Moutai. Why do you bring Moutai when drinking? Bringing Moutai expresses sincerity and enthusiasm; the price of 1000 or 2000 yuan proves your sincerity and enthusiasm. That's cost-performance; you don't need to explain much. Why do you buy名牌? To prove your status. That's cost-performance. Cost-performance also includes whether the product is truly easy to use. Many people talk about Pinduoduo. Are those 400 million people stupid? Surely they can buy good products on Pinduoduo. And it's highly likely they'll get good products; otherwise, they wouldn't buy. Many products sold in county towns are similar to those on Pinduoduo, but Pinduoduo sells them cheaper. The third element of functionality is safety assurance. In the rapid economic development, safety is the most important. We are recently working on milk powder. There are many milk powder brands, and safety was the most important factor in our decision to cooperate with Beingmate. Second, image. The first aspect of image is differentiation: how are you different from others? The second is showing personality. The third is competing on appearance, because with the same education and ability, would you hire the pretty one or the not-so-pretty one? So being attractive is useful. Third, sharing. The first aspect of sharing is product design. Today's Jiangxiaobai is a good product with self-propagation capability. The second is that it must be social capital. The third is a sense of participation: interact with consumers, make them willing to do such things, and willing to interact and communicate with you. I remind everyone to pay attention to two points: first, the frequency of interaction; second, the quality of interaction. So under this logic, we should design products with this mindset. Let me show you some cases we've done. This is a liquor we cooperated with Yanghe—Yanghe Wuji. Yanghe Wuji is a micro-molecular liquor that helps you sober up quickly. The packaging is very simple—a square bottle. Behind each label is a cartoon. A box contains six bottles, forming three pairs: close relatives, respect, and close friends. We defined these three scenarios: drinking with friends, with family, and with work partners. This product meets the three major functions I mentioned earlier. The second case is a sauce-flavored liquor. For this one, we emphasized two points: first, it's a good sauce-flavored liquor; second, we emphasized its cost-performance. You can see the bottle of Laojiang Dong, with a thumbs-up fingerprint in the middle. We had many ideas, such as "brewed by six masters jointly," and "if you don't love liquor, you don't enter the sauce-flavored door." The next case is oranges. This professor is an expert in tangerines at Jiangxi University of Finance and Economics. He grows oranges on two mountains. Our idea was to put a graduation certificate in each orange, named "Professor He." The big oranges are called "Career Success," and the small ones "Academic Success." Each orange has a label, such as "The professor doesn't allow makeup" and "Meeting the professor is our luck" and "Because we only have sweet and sour, no bitter or spicy." When you receive these, you'll want to share them. Today's packaging is not just packaging; you should treat packaging costs as advertising expenses. (3) Operational logic under social relationships When we interact with traditional brand owners, they like to boast that they have very good relationships with their distributors. Often, it's when the relationship is poor that they boast. If you have a good relationship with your parents or children, would you boast about it? No. So why is the relationship between brand owners and distributors like this? Because distributors don't want to stock up, but brands want them to order more. In social e-commerce channels, there is only one relationship between you and your agents: an empowerment relationship. Because what you need is not big B, but small B. These small Bs are relatively weaker in capability, awareness, and other aspects compared to large distributors. You need to help them grow and help them make money. Selling better is more important than selling well; small B selling well is more important than the brand selling well, because the cost for small B to give up is very low. For example, Yanghe has hundreds of thousands of distributors, they are close to customers, and sales are stable, but their income is not necessarily low. When traditional brands work with distributors, they focus on acquiring new customers and closing deals. Traditional distributors also do these two things when selling products. Now, there's an additional focus on membership. What does social e-commerce do? It adds two more: nurturing and fission. Nurturing means making them understand these things and know each other, so the brand has opportunities. Today, in the social context, large and small enterprises have equal opportunities; your operational capability with small B is the same. No one is more brilliant than another. With communities, you gather people, and after getting familiar with each other, you make the sale, and they become loyal consumers. The other is fission. In the past, traffic was cheap, so you didn't need to do this. Today, traffic is expensive, so you need to create self-propagation and automatic fission. Give them tools to achieve large-scale fission. Only then will your team continue to grow, and distributors increase. First, they help you sell products; second, they serve the C-end. If they do these two things, the most important function is to understand C-end needs through them and feed that back to you. So the future is the era of S2B2C. It's unlikely for a single brand to make products alone; it must be a super supply chain facing products. In the past, we served some small Bs, like those who only sold facial masks. Because small Bs only have 500 friends, selling masks alone can't support them. If you sell diapers along with masks, but you can't make small Bs put in more effort, because if they post every day, they'll become a general store. Let me talk about cases again, because practice is the sole criterion for testing truth. To let others know about Yanghe Wuji, we held round-table tastings, where agents invited others to meals. We did 4,000 tables in a year. We also invited agents to visit the distillery and receive training. Only when you make money and also become social capital for others will your agents be willing to do these things. In fact, the core of social e-commerce operations is empowering agents. To summarize, there are four main things: acquiring new customers, nurturing, fission, and closing deals. In fact, each of us is a peddler, whether you sell services or goods. When I first got into WeChat business, it was crazy. At that time, I proposed selling good products and selling them well. I believe that in the next few years, more people will be willing to believe this. Opportunities from dividends never wait for anyone. The earlier you act, the greater your chance of success. I suggest you must get involved, whether cooperating with platforms or supplying to platforms, you need to take action.