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 discuss the internet transformation path of the FMCG industry. As doctors say: "If it's clear, it doesn't hurt; if it hurts, it's not clear." This is a universal truth. Of course, truth is often present but ignored, and only a few people always pay attention to it. Applied to the currently hot FMCG + internet, let's see whether it's "clear" or "hurting" for the giants. The essence of the internet is the improvement of the application level of energy that nature has given us. It is a higher-level application of natural things beyond our limbs, like stone tools and fire from the ape-man era. It is a more technological tool developed through human evolution. If compared to transportation, it has gone from not relying on legs, to taming animals, inventing wheeled tools, discovering wood can float, inventing boats, to wheelbarrows, bicycles, motorcycles, aircraft, submarines, space industry, etc. This is a typical process of humans continuously improving natural cognition, exploring the mysteries of the universe, and better application. If compared to weapons, it has gone through stone tools, wooden sticks, iron tools, water attacks, fire attacks, gunpowder, guns and machinery, biochemical weapons, missiles, and nuclear bombs. The internet is the crystallization of human physical exploration of nature, from electromagnetism to broader application of electronic technology, and the use and confirmation of quantum mechanics. In the future, humans will have more advanced natural applications, and our grandchildren will develop more advanced tools. Having said so much, it seems I haven't gotten to the point yet. Don't worry, here it comes. Like the weapons mentioned above, different battles and scenarios require different weapons. On the vast battlefield, mortars, anti-aircraft guns, and tanks are all useful, but when entering street fighting, it's a different story. The internet 1.0 and 2.0 eras are like agreeing to go out to the wilderness for a group fight. After countless battles on the grassland, a few tribes survived, named B, A, T, and more. Soldiers get tired and need to eat. Winning the battlefield is not enough; you must also win the city. The ultimate goal is to share the spoils and win beauties. After fighting for a long time, life must go on. When returning to the main urban area for street fighting, the traditional internet tactics and weapons need to be reconsidered. The FMCG industry has gone through production as king, channels as king, and brand as king. Many experts also summarize it as manufacturing as king, channels as king, and content as king. I want to say, no matter what products you produce, the essence of business is to make money, to sell. And the money must be shared. If the manufacturer takes it all, you'll have no friends, no allies, and ultimately you still have to sell the goods. Everyone says this is an era of group fights and decentralization. Which is right? I can't tell. But if all the money goes to you alone and others still help you do the work, sorry, I can't do that. So, channels! Channels! Channels! I've said it three times. You all understand. Since the internet entered China in 1994, from a very few people knowing and using it, from the high and mighty internet circle to every aspect of life, it has landed. It must follow the ground rules. The battlefield has changed, and concepts, tactics, and weapon applications must change accordingly. Even President Xi had to work hard to rebuild another channel in the face of TPP and TTIP. Why? Because channels are always king! Brand and channels are twins, born together from the mother. They are connected even if bones are broken. Can a brand that can't be found in many channels still be called a brand? Back to the point of "clear doesn't hurt": Many first-line FMCG brands are seeing declining performance because they were blinded by one leaf, didn't see the potential danger, and suffered from big company disease. Of course, my sales company also had this problem. As Mr. Ma said, everyone should repair the roof when the sun is shining. When it hurts and is blocked, then you panic, and you can't be calm. As the saying goes, a sick person will rush to any doctor. Recall when you had a stomachache, headache, or toothache. Were you calm? I wasn't. I didn't even think about "not fearing death is not a Communist Party member." Last summer in Beijing, a toothache at midnight almost made me jump from the 13th floor, abandoning the kingdom outside the window. So when the path of relying on continuous sales growth for enterprise growth and profit is blocked, and it's not clear, you feel the pain. Then you blame traditional e-commerce, curse Taobao and Mr. Ma. Is that the root cause? Without Taobao and Tmall, your trough would still come. If you don't believe it, try flying to the sky. "Oh, I'm old and like to ramble. Let me quickly explain why I question whether the 'new pain road' and 'retail pain' can renew their glory." When the economy is stable, everyone is celebrating and reluctant to prepare for winter. But there are always peaks and troughs. This is a social law, no need to debate. It's just a matter of who prepares in advance and who doesn't. The most basic economic law is that the FMCG industry also follows this. FMCG products are instant consumption products, with increasing demands for time, efficiency, convenience, and speed. As we said, brand manufacturers can no longer be individual heroes, which violates the law of social development. The future division of labor will only become more refined. Adam Smith, the founder of management theory, said: Division of labor is the source of national wealth. Darwin said: The general law of evolution is increasing complexity. As individuals, we cannot handle increasingly complex evolution alone, and it doesn't conform to social laws. Division of labor is an inevitable law of social development. Production is just production, logistics is just logistics, sales is just sales, marketing is just marketing, and finance is just finance. So, channels are channels. If you value them, they exist. If you ignore them, they still exist. The demand for FMCG originally came from social interaction. In the process of self-sufficiency and mutual exchange, people discovered that you farm, he cuts wood, and I spin yarn. Many things don't need to be done by yourself. Just do your own thing best and exchange for others' good products. So barter continued for many years. Even for unified exchange, gold and silver became the unified currency of ancestors. This first reflects the unlimited rise of human desires and needs, and the increasing diversity of daily necessities, which embodies the essence of social division of labor. No one can say they make all their daily necessities themselves. If you can, congratulations on successfully returning to primitive society. I'll call you "Ancient Tomb Sect." Driven by better and more social and living needs, people gradually evolved FMCG from the earliest festivals, weddings, and funerals. With the improvement of living standards and the complexity of demand scenarios, channels have become more diverse. For example, wine was originally brewed at home and drunk at home, or with friends, or given as gifts. Later, specialized taverns and bars appeared. People drink alone, in groups, at banquets, when happy, when sad, when having a child, when building a house. They drink everywhere, so wine producers must be everywhere. After the founding of the PRC, people had no nightlife for a while, just stayed home making babies (laugh). So festival consumption was the majority. After reform and opening up, there were places called Guangdong and Fujian. These two, relying on proximity to Hong Kong and Taiwan, later had a place to drink called nightclubs (actually this channel existed 3000 years ago, wasn't it just brothels?). If a wine seller says they don't need this channel, I'd laugh. Back in the day, to complete contracts, I first thought of guiding consumption. I invited those reception directors with strong three-public consumption ability to drink two meals a day. After half a year, I calculated that I drank a truckload myself, basically confused every day. Of course, I also sold dozens of truckloads (laugh). So, channels will become more diverse and scenario-based. FMCG channel distributors will need to be more professional. Producers should not say they manage channels themselves, but think about how to cooperate with excellent channel distributors. Channel distributors should not boast about being great, but focus on channel management, choosing and applying the best channel management tools, and fighting their own battles well. What do Alibaba and JD do? It's just old wine in new bottles. Many categories that were not competitive offline, or small brands suppressed and monopolized by category giants in channels, even high imitations and fakes, can come to a new channel. This is a matter of national policy. Like when nightclubs were allowed, big brands held back, so small brands and fakes went first. Customers came for the boobs, not the authentic wine. If it were just about tasting wine, anywhere would do, right? And the environment matters. So, the earliest online shoppers had various mindsets. The main need was to try something new, feel the thrill of choosing and buying cheap. The highlight was enjoying the feeling of being online. Everyone loves novelty and has curiosity. Online shopping hadn't been done in decades. Ask those who first went online and first shopped online how they felt. Wasn't it exciting? As the saying goes: Wife is not as good as concubine, concubine is not as good as stealing, stealing is not as good as not being able to steal. Humans often like to be cheap, have a desire to pry, and seek excitement. But this is also a strength. Without this spirit, there would be no endless exploration and social progress. Thousands of years ago, tomatoes were so delicious but were doubted as poisonous fruits. So traditional e-commerce first earned the earliest dividends of internet socialization and commercialization. Their success is based on the diversification and gradual change of various groups' needs in social development, on categories that can be sold across the country, on categories that are not immediate needs, and on purchases that are not unit-level with credit and verification. Statistics also tell us that traditional e-commerce has developed for over a decade and accounted for 12% of total social retail sales, but growth has slowed, and they have long started attacking offline, once manifested as O2O, which was beautified and then vilified. Or let's say, when buying and consuming, what do people care about most? I think: cheap, convenient, professional, experiential, and efficient. Shopping from different channels and drinking in different scenarios are definitely different. You can't feel like you're in "Heaven on Earth" in a security booth, right? If so, you must be drunk (laugh). So, for the consumer groups who like online shopping, Taobao, Tmall, and JD are considered cheap, but in fact, cheapness is increasingly not the decisive factor for online shopping. But I'm more curious whether the post-00s generation will, due to information explosion, be too lazy to search and compare prices, only care about whether they like it, and prefer offline direct experience and purchase as the first choice, gradually giving up much traditional online shopping? Because the real world around them is novel and curious. Often, the offline world is more novel to them. Moreover, it has the advantages of convenience, professionalism, efficiency, and better experience, especially for FMCG. So, in the future, traditional online shopping may not be novel for the post-90s and post-00s. Instead, they might be ridiculed by peers as old-fashioned, like old people who like traditional online shopping, and be seen as outliers. As internet natives, will they in the future instead prefer more convenient chain convenience stores and community supermarkets, more professional category stores, more efficient hypermarkets, and better experiential shopping malls? And FMCG, due to its industry and product characteristics, must rely on channel diversification to ensure it's available anytime, anywhere, and adapt to the ubiquitous needs of complex offline scenarios. Mobile internet can precisely achieve data management in increasingly complex and diverse demands, providing producers with accurate channel information and real-time consumer demand analysis. Mobile internet is also a better helper and more precise tool for the new round of industry development. Like the "Kuaixiao Bang" tech company I founded with a group of brothers, it is committed to serving FMCG channel distributors, upgrading physical channel distributors in the FMCG industry, serving their business electronification, and doing more advanced channel fine management, making FMCG business also technological. As for the two traditional e-commerce giants that will eventually enter street fighting and whether they can adapt to different tactics, will they become the "retail pain" and "new pain road" of their respective groups? Let's wait and see. Source: Kuaixiao Bang New Food 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 internet+ trend 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 Reform - Field 365 CEO Liu Zhao 10:35-11:05 Alibaba Retail Link All-round Empowerment - Alibaba Retail Link Guo Kunkun 11:05-11:25 Channel Efficiency in the Internet Era - Benlai Holding VP Fu Xiaoyun 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 Dealer Transformation: City Distribution Trends - Weijie City Distribution CEO Wang Qi 13:50-14:20 Roundtable Forum - Why Dealers Should Do Logistics in Transformation Guests: Zhao Bo, Wang Qi, Liu Zhongmin, Tang Guangliang, Wang Cheng, Sheng Yan 14:20-14:40 How FMCG Enterprises Can Leverage the Internet to Take Off - Xijiu E-commerce Operations Director Wang Hui 14:40-15:00 Detailed Explanation of Zhongshang Huimin's One Machine Two Wings Strategy - Zhongshang Huimin VP Su Xiaoxin 15:00-15:20 Category Value and B2B E-commerce Development Strategy - Yijiupi CEO Wang Chaocheng 15:20-15:40 Supply Chain Finance as Lubricant for B2B Driving Traditional Business - 51 Order CEO Chen Xian 15:40-16:00 Zhanghe Cloud Factory Helps Upgrade FMCG Supply Chain - Zhanghe Tianxia CEO Yang Lixiang 16:00-16:30 Integrating Small and Micro Retail, Reconstructing Business Ecology - Quanshi VP Miao Dong 16:30-16:50 Next Decade, B2B is the Main Investment Battlefield - Well-known Investor (TBD) 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 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]
Is FMCG the Dish for JD and Alibaba to Renew Their Glory?
This article questions whether traditional e-commerce giants like Alibaba and JD can succeed in the FMCG sector, arguing that the industry's need for convenience, efficiency, and offline presence means they may face challenges. It emphasizes the importance of channels and suggests that mobile internet can help upgrade traditional distribution.
