Formerly known as "FMCG Distributor Professional Management Consulting," now renamed to New Distribution Long press the QR code or click "Read Original" to register. 30+ industry experts, 100+ B2B platform founders, 800+ manufacturer and distributor friends, gather in Fuzhou to jointly explore the path of Internet transformation for the FMCG industry. If you don't do e-commerce today, tomorrow you may have no business to do. However, currently few traditional retail enterprises succeed in transforming to e-commerce. So the question arises: Why do traditional retail enterprises fail? How can they avoid falling into various pitfalls of e-commerce operations? Traditional enterprises' transformation to e-commerce is blind, anxious, and hasty 1. Blind: They don't understand what e-commerce is. Traditional enterprises are used to street ads, vehicle ads, and store placement. Suddenly they need to switch to online promotion, and they feel completely lost. 2. Anxious: The price impact and business model impact on their original business. When products sold online become cheaper, it affects their business system. 3. Hasty: The rapid development of e-commerce brings pressure. Many enterprises launch e-commerce projects without fully considering why they are doing it, even establishing subsidiaries to operate, including some listed or pre-IPO companies. Due to lack of understanding of the Internet, their first choice is usually to add a new sales channel. Eventually, traditional enterprises find that what truly impacts their business model is their own traditional retail operations. Because they have shifted their original user experience and purchasing habits online, sending users to Taobao and Tmall, thereby undermining their own business system and causing even greater impact on offline business. The sky pit, ground pit, and human pit of e-commerce operations 1. Sky pit – Market trap: Traditional enterprises new to e-commerce focus on two issues: the market price on the Internet and the gross margin they can earn. They find that the exact same product they sell online may be priced at only 5 yuan, but the cost is 4 yuan, and after adding logistics costs, they incur losses. But they don't know there are many marketing tricks and techniques: free shipping for orders over a certain amount, gifts, related recommendations, bundle promotions, etc., which not only cover costs but also include all traffic expenses, and still yield some profit. 2. Ground pit – Cost trap: The service providers we usually encounter fall into three categories: operations service providers, system service providers, and promotion service providers. But in previous years when I worked at Lai Yifen, I found that many service providers were lacking in professionalism. For example, doing SEM without data reports, operations service providers sending only two people to manage, and single technology development accounting for more than half of total investment, making costs very easy to lose control. 3. Human pit – Talent trap: In the early days, e-commerce talent was scarce. When e-commerce just started, many people came from Taobao sellers, TP (Taobao Partner) agencies, and comprehensive websites. At that time, the professional capabilities of these specialists were lacking, leading to chaotic methods, unclear trial angles, and high trial-and-error costs. Many operations used only three tactics on Taobao: low-price promotions, 9.9 yuan free shipping, and event registrations. Speaking of 9.9 yuan free shipping, although the operation's goal was to speed up warehouse turnover, the result was that it boosted sales but also damaged product quality, with complaint rates being the highest in the entire brand service system. Three false demands of traditional enterprises doing e-commerce The three most unreliable sources of demand in the e-commerce world: 1. "A big shot said" I once served as an e-commerce consultant for a tea brand for a month. At that time, I gave them the most sincere advice they ever had: don't hire external e-commerce consultants. Because they aren't in your company every day, they cannot understand the details of operations and the core problems. The ones who truly understand the enterprise are its internal staff: operations understand the business system, management understands the personnel structure, and customer service understands all customer complaints and needs. 2. "We need to learn from a certain brand" There is a phenomenon called the "herd effect." When a brand successfully creates a sales miracle with a marketing approach or an operations system, countless merchants rush to imitate. In a category, the ones that succeed with a particular method are usually the top 1-3 with the most advantages. As market competition intensifies, it's basically the first and second, and even the third has no chance. What we really need to focus on is what method suits us, not learning from that brand. 3. "Eliminate intermediaries" E-commerce once advocated direct connection between users and manufacturers, i.e., "de-intermediation." But I think this is also a false demand. Many well-known brands, such as Three Squirrels, all companies under Xiaomi's ecosystem, and Huawei, use contract manufacturing. We have warehousing but no distribution, we have industrial design but no processing chain. How can these intermediaries be eliminated? This year, many fresh food O2O companies died or faced financial difficulties and closure. But the actual situation is that enterprises stretched their fixed assets and supply chain system too long, turning a light commercial model into a heavy one, leading to insufficient capital and eventually breaking the capital chain. How not to die in a deadly environment Doing e-commerce is like being a person: how to let people who like you understand you, tell others how I make you like me, let users feel that feeling, and e-commerce will be done well: 1. Clearly analyze the purpose of transforming to e-commerce: Why do traditional enterprises do e-commerce? Is it to give users a new experience? Or is it the more convenient use brought by your product? 2. Conduct thorough and in-depth research: Marketing and promotion cannot be separated from your users; the most important thing is to learn to integrate with them. Before launching a new product, spend a lot of time interacting with users, so that when you promote it, it will receive great acclaim. 3. Gather a group of people who recognize you: Including your employees and users. 4. Focus on doing one right thing: In the entire kitchen appliance sector, everyone sells hardware. For us, we are committed to making cooking simpler. 5. Don't rush to make a 5-year plan; first implement a 3-month plan: I think this is the most important thing for small and medium-sized enterprises, because the Internet changes too fast. 6. Profit is more important than revenue Successful example of traditional retail transformation to e-commerce – Bestore (Liangpin Shop) Bestore started doing snack retail much later than Lai Yifen. From the initial 800 stores to now over 3,000 stores, from a purely offline sales enterprise to using offline stores for services and online channels for promotion and branding. Starting in Hubei, it has now expanded to Hunan, Sichuan, Zhejiang, and Anhui. Last year, online sales reached 1.2 billion yuan, and offline sales reached 3.7 billion yuan, showing remarkable development. I summarized four points for them: 1. Understand your goal: How to embed into the Internet industry; 2. Clearly recognize the advantages of traditional retail enterprises: The hardest part for online-only brands is how to land offline; the biggest advantage of traditional enterprises is offline resources; 3. Use the right people; 4. Trust and communication: The boss's trust and communication with management are the foundation of all the above. Source: Tiaoxi E-commerce New Era · New Distribution —— 2016 China "FMCG + Internet" Summit Forum —— This is a grand event focused on how the FMCG industry channels will transform under the general trend of Internet+ transformation Conference Agenda 08:00-09:00 Registration 09:00-09:05 Host opening 09:05-09:35 2016 China FMCG Industry Trend Analysis Report – Zhao Bo 09:35-10:05 FMCG Enterprise Transformation Strategy and Path – Liu Chunxiong 10:05-10:35 Opportunities and Challenges Brought by FMCG Channel Transformation – Liu Zhao, CEO of Waiqin 365 10:35-11:05 Alibaba Retail Link All-round Empowerment – Guo Kunkun, Alibaba Retail Link 11:05-11:25 Channel Efficiency in the Internet Era – Fu Xiaoyun, Vice President of Benlai Holding 11:25-12:00 Roundtable Forum – Brand Transformation: Improvement vs. Reconstruction? Guests: Liu Zhao, Liu Chunxiong, Fang Gang, Chen Feng, Shi Zhengchuan, Deng Xia 12:00-13:30 Lunch 13:30-13:50 Distributor Transformation: City Distribution Trend Development – Wang Qi, CEO of Weijie City Distribution 13:50-14:20 Roundtable Forum – Why Should Distributors Transform to Logistics? Guests: Zhao Bo, Wang Qi, Liu Zhongmin, Tang Guangliang, Wang Cheng, Sheng Yan 14:20-14:40 How FMCG Enterprises Leverage the Internet to Take Off – Wang Hui, E-commerce Operations Director of Xijiu 14:40-15:00 Detailed Explanation of Zhongshang Huimin's "One Machine, Two Wings" Strategy – Su Xiaoxin, Vice President of Zhongshang Huimin 15:00-15:20 Category Value and B2B E-commerce Development Strategy – Wang Chaocheng, CEO of Yijiupi 15:20-15:40 Supply Chain Finance as a Lubricant for B2B to Drive Traditional Business – Chen Xian, CEO of 51 Order 15:40-16:00 Zhanghe Cloud Factory Helps Upgrade FMCG Supply Chain – Yang Lixiang, CEO of Zhanghe Tianxia 16:00-16:30 Integrating Small and Micro Retail, Reconstructing Business Ecosystem – Miao Dong, Vice President of Quanshi 16:30-16:50 The Next Decade: B2B is the Main Investment Battlefield – Zhao Mingwei, Vice President of Junlian Capital 17:00-17:30 Roundtable Forum – Who is the King of FMCG B2B Models? Guests: Fu Xiaoyun, Zhuang Jianzhong, Jiang Tao, Zeng Weiqin 17:30-19:30 Dinner For manufacturer and distributor friends who want to transform, this grand event is not to be missed. Interested friends can long press the QR code below or click "Read Original" to register. Registration: Long press the QR code below or click "Read Original" ↓↓↓ Click "Read Original" [Register] ↓↓↓