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 internet transformation path of the FMCG industry. Recently, instant coffee giant Maxwell House was reported to have closed factories and halted production, which immediately provided news media with "new evidence" of the decline of fast-moving consumer goods. Combined with previous data on declining sales of instant noodles and beer for years, it seems to confirm their viewpoint: with consumption upgrading, low-end FMCG and beverages represented by instant noodles and beer are bound to decline! Their views are almost identical: consumption is upgrading, consumers prefer high-end, high-quality products, cola and instant noodles have become synonymous with unhealthy, and they also link this to China's aging population and industrial structure upgrading, so a decline is inevitable. This time, the closure and production halt of Maxwell House coffee happened to coincide with this point, naturally being categorized as inconsistent with the trend. Even Wahaha's significant performance decline is attributed to this: consumption trends, product aging... Does consumption upgrading mean people stop drinking beer? Does it mean they stop drinking instant coffee? These are all assumptions. The former will be analyzed separately another day; the latter is the focus today. In essence, the question is: Is Maxwell House coffee's problem caused by instant coffee? For instant coffee as a whole, the Chinese market is around 50 billion yuan, which is still considerable, but it is an oligopoly, with Nestlé alone holding over 70% market share. Maxwell House coffee, within Mondelez International's portfolio, is in an awkward position of being a side business. I am not a coffee industry expert, but I will share a few viewpoints from a brand marketing perspective. First, don't abandon the current business for the sake of trends. What is a healthy lifestyle? Starbucks' coffee chain model is good and healthy, but there are also formats like 85°C that combine coffee, bread, and cake, which can also survive and develop. Are they unhealthy? It's just different demographics, not comparable. Cola is unhealthy, but its total volume is huge, and while it seems to be declining, it's still easier than cultivating a small niche or niche market. This is a practical issue. When an industry reaches absolute monopoly, like Nestlé instant coffee, there are more options, such as launching new brands (sub-brands) or flanker brands to enter broader business areas. Other brands can also enter mid-to-high-end segments, mainly depending on how they do it. If they just try without clear strategy and tactics, they will definitely not succeed. Second, is instant coffee necessarily declining? Why have FMCG products declined so sharply in recent years? Some say it's macroeconomic factors. I wonder, has the Chinese people's poverty reached a point where they can't afford a bottle of beer, a drink, or a cup of coffee? Others say weather affects beer sales; some say the decline in China's labor force means fewer migrant workers, who mainly eat instant noodles and drink beer. I want to say, you underestimate migrant workers; their income might be much higher than yours. Instant coffee definitely has a huge market and will see even greater growth. The absolute number of coffee consumers and per capita consumption in China are very low, only about one-tenth of the average in Europe and America; products with functional benefits and unique selling points have become favorites in the beverage market in recent years; giving products experience and emotional appeal is key. In fact, Maxwell House had a winning hand but failed to play it well. Third, insufficient focus, unscientific, unsystematic, and inconsistent. Mondelez International's main business is not coffee but biscuits and snacks, accounting for over 80% of its revenue. Maxwell House coffee accounts for a very low proportion within its business system, marginalized. Although Maxwell House is a famous coffee giant internationally, its awareness and influence among Chinese consumers are very limited. In fact, Maxwell House has many original concepts, such as "3-in-1" coffee, but these have been imitated and overshadowed by upstarts. Before it could even make a move, it was already exhausted. Now, Maxwell House has been divested from Mondelez International, with factories moved to Thailand, which is not good news for developing the Chinese market. But from the perspective of focusing on coffee brand operations, it could be considered positive. However, it will not be easy to gain a share from a market where Nestlé holds over 70%. On the product front, a major breakthrough is needed. Maxwell House itself has few products, so improvement and optimization are relatively easy. For example, from positioning, concept, packaging, and selling points, create a big single product and combination with sufficient appeal; on the brand front, strengthen consumer experience and feelings. "Good to the last drop," this timeless advertising slogan elevated Maxwell House coffee to the height of a world-class brand. This phrase originated from Theodore Roosevelt, who, after first tasting Maxwell House coffee, was amazed by its deliciousness: "Good to the last drop." It was discovered by advertising master David Ogilvy and used as the brand slogan, with tremendous impact and worldwide renown. Originally, Maxwell House had plenty of opportunities, but it did very little on the brand front. There were sporadic product placements, but neither systematic nor continuous, failing to drive brand pull, let alone sales. Therefore, I say it had a good hand but played it poorly. Fourth, if I must give advice, it's just one point! Reposition and repackage to launch high-end instant coffee, and learn to tell stories, emphasize experience, and taste. Häagen-Dazs told a love story, sold at a premium, and became the luxury of ice cream; De Beers also linked diamonds to love, turning them into a high-end jewelry brand with "A diamond is forever." These ordinary products were thus transformed from the mundane to the magical. Some say diamonds are the world's biggest conspiracy and lie; I wouldn't dare say that. Actually, is love? If it is, it's a lie for a while; if not, it's a lie for a lifetime! Hehe. Play your winning hand: presidential endorsement, masterful advertising, there is so much content to explore. Make it a high-end brand. Aren't we all talking about consumption upgrading? This is the perfect alignment. Most importantly, Maxwell House is fully worthy of such a high-end positioning! Summary Consumption trends are just trends; we must return to the immediate, realistic business. Instant coffee is not a dead end; it requires focused, scientific, systematic, and continuous effort. How? Reposition and repackage, go high-end, with stories, experience, and taste, a true 3-in-1. That is what Maxwell House should be. Maxwell House needs to play a winning hand! New Food Era · New Distribution —— 2016 China "FMCG + Internet" Summit Forum —— This is a grand event focused on how the FMCG industry's channels will transform under the trend of Internet+ transformation 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 from FMCG Channel Reform — Liu Zhao, CEO of Waiqin365 10:35-11:05 Reconstructing Distribution Channel System to Promote Urban Retail Upgrade — Tian Yuan, General Manager of Alibaba Retail Link's Backend 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: Urban Distribution Trends — Wang Qi, CEO of Weijie City Distribution 13:50-14:20 Roundtable Forum — Why Should Distributors Transform into 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 Boosts FMCG Supply Chain Upgrade — Yang Lixiang, CEO of Zhanghe Tianxia 16:00-16:30 Integrating Small and Micro Retail to Reconstruct Business Ecosystem — Miao Dong, Vice President of Quanshi 16:30-16:50 B2B Investment Principles and Thinking — Zhao Mingwei, Vice President of Legend 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 manufacturers and distributors looking to transform, this 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]