Cici, people in the FMCG industry, in the past two years, may have often heard phrases like poor market conditions, declining business, overall targets not being met, and sales performance not being achieved. These phenomena indicate that the era of rapid growth has passed, and the period of sales growth pressure has arrived. During sales growth, companies thrive, and employees receive promotions, raises, and bonuses, with a promising future. But under sales growth pressure, it is the stage of 'big fish eat small fish, fast fish eat slow fish.' To survive, companies set growth targets even when sales are hard to increase. This is why many frontline salespeople report: 'High performance pressure, targets are hard to achieve.' Current Situation | Layoffs and Salary Adjustments When performance is hard to achieve, companies face pressure. Many companies adopt layoffs and salary cuts to control costs. As of the end of 2023, Yanjing Beer had 21,405 employees, a decrease of 2,303 year-on-year. Yili had 64,305 employees at the end of 2023, a decrease of 2,894 year-on-year. Bestore had a total of 11,046 employees in 2023, a decrease of 586 year-on-year. Target sales are linked to income. Previously, there were many blank markets with large growth space. As long as the product and brand were fine and distribution was in place, distribution led to growth, and growth naturally brought considerable income to salespeople. Now, competition is fierce, penetration in mature categories is high, and growth space is small. To reduce costs while motivating employees to work hard for performance, companies typically lower base salaries and increase commissions. So now salespeople face overall income pressure, with flexible income growth. Current Situation | What to Do When Targets Are Not Met? Targets can help employees clarify work priorities, and reasonable targets can motivate employees. Targets are mainly classified into result targets, process targets, and behavior targets. Target setting should have priorities, with smaller ones giving way to larger ones. Previously, assessment was mainly result-oriented based on sales volume. During the era of easy sales growth, using sales results as assessment indicators benefited both the company and salespeople. But now goods are hard to sell. If assessment is based on sales results, salespeople put in effort but do not get corresponding rewards, which can easily lead to a 'lying flat' mentality. Many companies have shifted from result targets to result + process + behavior targets, with standardized management for the entire target management process. However, some salespeople report: 'Too many assessments prevent salespeople from focusing on key work. Process and behavior targets are too numerous and fragmented, occupying more of salespeople's time, adding to sales work without actually helping performance.' So, those who set targets need to think about which tasks help performance and which are unnecessary to include in the assessment, rather than including items that do not produce results. Targets should be reachable, and the past should give way to reality. Many companies set targets based on previous years' data, commonly using year-on-year growth. But the market changes constantly, and now it is a stock market. Setting targets only based on past data often does not match the actual market. For example, a salesperson once said: 'City A was not originally a key area, and this year competitors have taken market share, with team suppression almost forcing us to exit the local market.' But the overall target still includes sales targets for that area. Targets should be dynamic, adjusted according to reality, and should be within reach for salespeople, not so difficult that they are discouraged. Unrealistic targets will only make salespeople choose to lie flat. Current Situation | Salary Adjustment: How to Earn? Under sales growth pressure, management faces two difficulties: no performance and no team motivation. To stimulate team motivation, salary design is crucial. Generally, companies design tiered target incentives, typically 80%, 100%, and over 100% for excess rewards. The current problem is that 80-90% of salespeople can only achieve 80% of the target salary. So the salary structure salespeople often receive is base salary + reasonable target achievement. When sales growth is difficult and salespeople cannot complete tasks, management should think about how to let salespeople earn money, motivate them, and bring benefits to the company. The following is an example of a distributor's incentive measure change, shifting from sales volume assessment to terminal infrastructure construction assessment. This change not only improves the company's service quality but also gives salespeople hope for other income when they cannot complete performance. Current Situation | Insufficient Resources: How to Spend? Sales pressure, limited corporate resources: how to use resources better? When resources are insufficient, focus resources on key market segments to improve cost-effectiveness. To find key market segments, analyze from three dimensions: product, region, and channel. From sales data analysis, find markets with opportunities, such as those with large market capacity, high growth rates, and strong market share. Assess your own situation and choose one market as the key market. As FMCG Professionals How Should We Adapt to Changes? Stability: At this stage, good positions are scarce. In 2023, BOSS Zhipin added over 49 million new users. In the first quarter of 2024, BOSS Zhipin's average monthly active users were 46.6 million, an increase of 17.4% compared to the same period in 2023. The World Economic Forum recently released the 'Future of Jobs Report 2023,' predicting that over the next five years, 69 million new jobs will be created globally, while 83 million jobs will disappear, resulting in a net loss of 14 million jobs. Finding new employment after losing a job becomes more difficult. During economic recession, corporate recruitment demand drops significantly, and even if there are positions, competition is fierce. Once employees lose their jobs, they may face long periods of unemployment, unable to ensure normal life for themselves and their families. 'I will do this job well' was the campaign slogan of Hong Kong Chief Executive Donald Tsang, which was both a requirement for himself and for Hong Kong compatriots. In economic downturn, residents need to ensure a source of income to secure their livelihood. 'I will do this job well' means being responsible for one's work, not giving up easily, and keeping the job. Image source: Internet So, when you have a stable job, it is best to stay calm and maintain your stability. Professionalism: Behind professionalism is scarcity. Make yourself irreplaceable in the company, deepen your professional skills, and do things that are one meter wide and ten thousand meters deep. Find ways to become an industry expert and avoid the '35-year-old phenomenon.' The crisis at 35 stems from high replaceability. Focus on one industry, practice the 10,000-hour rule, and spend 10 years on the same thing to become an expert in the industry. But the premise is to master methods, not to repeat grassroots labor. Japanese hidden champion companies are the same. In Japan, they are also called 'global niche market leaders.' These companies focus on a single small global market, gain extremely high market share, and become an indispensable part of the world supply chain. Kitajima Kōsakusho's main business is spinning, stamping, and special shape forming of various metal plates. The company has only 20 employees. They excel in special metal forming that cannot be made without cutting-edge technology, such as parts for American aircraft and artificial satellites, and the top parts of Japan's H2 rocket. Moreover, these are made not by machinery but by the craftsmanship of artisans. Kitajima Kōsakusho has very strict requirements for craftsmanship. To become a qualified artisan at Kitajima Kōsakusho, one must judge the forming state from the sound of metal, which takes about ten years. Doing what others cannot do reflects your professionalism. Cross-functionality: Cross-functionality means taking on multiple functional roles. Professional ability solves deep professional problems, while cross-functional ability solves problems across multiple positions. Some say 'do as much as you are paid,' and cross-functionality means doing more work. But in essence, having cross-functional skills broadens our path and allows us to encounter more opportunities.