Click the image for details Text by Liu Chunxiong / Teacher Liu's Forum (ID: liuchunxiong1964) In the past, good products had little controversy; they were the greatest common denominator of society. Now, it seems that a good product isn't considered good unless it's controversial. Some people are fans, others strongly dislike it, with extreme polarization. The logic of good products is changing. 1 How many people choose it as their first choice? There's a classic case. A legendary figure in the American automotive industry (unfortunately, I can't recall the name...) told a story: consumers rated two cars, one scored 7 points, the other 5 points. After launching, which sold better? Most would say the 7-point car, of course. But this person said not necessarily, because the 7-point car might have all ratings at 7, while the 5-point car might have some rating it 10 and others 0. A car with an average rating of 7 is the consumer's second or third choice, and second or third choices don't matter. A car with an average rating of 5, if some rate it 10, it's their first choice; if some rate it 0, they hate it, so it's not considered. His conclusion: It's not the score that matters, but how many people consider it their first choice. What score does a first choice need? Above 8. So, 7 is meaningless. Some see it as their first choice, others may dismiss it—that's controversy. 2 Addictive things are the odd-tasting ones I've been in the food industry for over 20 years, and I've always spread a saying: "High-volume products are tasteless; addictive ones are odd-tasting." With a hundred people, you have all kinds. Everyone's taste differs greatly, so what's the greatest common denominator? It's tastelessness, like mineral water. Tasteless things don't cause addiction or aversion. Addictive products are usually odd-tasting, like tea, coffee, kvass, cola, betel nut, etc. These are all odd-tasting; people either strongly reject them or become addicted. Sweet, sour, bitter, spicy—except sweet, which is the common denominator, the rest are odd-tasting, with some loving and addicted, others hating. Odd-tasting things cause the most controversy. Last year, "White Flower Snake Grass Water" was voted the "worst-tasting drink" and took first place. I started drinking it many years ago. Initially, a friend gave it to me, and I couldn't get used to it. Over time, I became addicted, and many friends around me also became addicted. It wasn't until the distributor in Zhengzhou stopped carrying it that I couldn't get it anymore. But most friends spat it out at the first sip and didn't try a second. Actually, if you try three sips, most people would get used to it. 3 Controversy over LePur and Jiangxiaobai Not long ago, two products sparked heated debate in my group: one was LePur, the other Jiangxiaobai. Although the dairy industry hasn't been as easy as a few years ago, it's still growing overall. The major oligopolies focus on the highest-volume categories, but recently LePur emerged, quite niche. Many experts are spreading its marketing approach. I've also shared a few articles about LePur. Some group members bought and tried it; some were repulsed and cursed in the group, others loved it—polarized. Jiangxiaobai's products are similarly polarized: some love them, some hate them. I remember reading a public account article where the author said after tasting the first sip, "Pfft, what is this? It's more like a cooking wine." Actually, Jiangxiaobai's Mr. Tao pays great attention to quality. Those who can't drink it are simply not Jiangxiaobai's consumers. A few years ago, the liquor industry basically didn't think highly of Jiangxiaobai's products. Now it's a bit better, but they just don't say it publicly. If Jiangxiaobai had any negative news, someone would immediately step forward and say they never thought it would succeed. Starting with LePur and Jiangxiaobai, the era of good products being controversial has arrived. 4 Niche products need personality I've always said that China has no true niche products, and many disagree. In the past, Chinese consumer goods primarily aimed to satisfy the greatest common denominator, because before the quantity of consumers was met, differentiated demands, though present, weren't the main issue. 2013 was a watershed: most FMCG industries reached their historical peak in sales volume. It can be said that the historical mission of quantity satisfaction was completed. Only after satisfying quantity can we satisfy quality. Individual needs may not follow this, but societal total demand certainly does. Now we advocate for mainstream shifting, which has two directions: first, upgrading based on satisfying the greatest common denominator, so there are still big single products; second, satisfying truly emerging niche demands. Niche demand isn't about small sales volume. For example, don't think spicy is niche; it's the mainstream in Sichuan and Chongqing. Past segmentation easily mistook such demands as niche. Niche demands should be personalized demands; because they have personality, they are controversial. 5 The internet is the driver of niche products Demands with content, attitude, and personality were not prominent before, but their proportion will grow increasingly. Such demands are actually determined by lifestyle or work style. For example, Jiangxiaobai's "Shi Ren Yin" is a "team-building wine" for the post-90s generation, with 25% alcohol content. Most people can't accept such baijiu, but it's different for post-90s team-building activities. Such products had no way out in the past, because products had to go through distribution channels and retail terminals. Channels and terminals are niche killers. Going through terminals means elimination of the worst performers; niche products have low sales, so they get eliminated. Going through channels requires high distribution rates. Niche products are hard to distribute and have low shelf efficiency, so they're easily eliminated. The emergence of the internet has given Chinese niche products more opportunities. From a traditional perspective, niche products are more suitable for social media communication; from a channel perspective, they're more suitable for vertical B2C or community B2C. Some niche products still go through channels and terminals, but that's because social media communication has laid a foundation, providing enough sales support. The 3rd (CFIC) China FMCG + Internet Conference will be held in Chongqing in October 2017. At this conference, New Distribution has invited 1000+ distributors, 500+ brand owners, 200+ B2B platform founders, and 100+ investment and financing institutions to participate. The theme of this conference: New Forces, New Ecosystem. We will invite well-known domestic B2B industry experts, mentors, and B2B platform founders to discuss the following topics:

********How can the FMCG industry achieve new growth opportunities through B2B

********How to build the new supply chain behind new retail

********How can intra-city logistics help B2B achieve leapfrog development Highlights of this conference: The industry's first "2017 China FMCG B2B Industry Competitiveness White Paper"

B2B and investor project closed-door matchmaking meeting

********Conference site + exhibition center, dual internet technology exhibition

********Leaders from Alibaba, EAS, Best Store Plus, GLP, Unilever, Hd, Yunmei and other well-known enterprises will deliver speeches and share pioneering views. October 17-18, 2017 Chongqing Exhibition Center Registration is now open. Long press the QR code below or click "Read Original" to register. Early bird tickets before September 15 enjoy a 30% discount! Add friend and note "Conference Registration" Click the links below to review the highlights of the 1st and 2nd FMCG + Internet Conferences: 2016 "FMCG + Internet" Summit Forum -END-