△Master Kong Holdings China Chairman Yang Qianhui
The advent of internet technology has transitioned people from industrial civilization to information civilization, and the business environment has changed accordingly. Internet giants, backed by capital, are continuously penetrating offline. With consumption upgrades, evolving demands, and fragmented multi-channel retail, the traditional FMCG industry faces unprecedented challenges. In response, Master Kong, the industry leader, is actively embracing these changes.
On November 8, at the World Internet Conference's Cross-Strait Development Forum, Master Kong Holdings China Chairman Yang Qianhui announced the construction of a new smart business ecosystem;
On November 7, Master Kong's Hanyang Spring fully supported the "Digital Supply Chain" theme forum at the CIIE;
On November 2, Master Kong announced a strategic cooperation agreement with Alibaba's Retail Link.
Within just one week, Master Kong has frequently embraced the internet, launching a smart business strategy. What does this signify? Beyond the objective environment and industry trends, what is Master Kong planning?
In short, Master Kong's strategic intent is reflected in three aspects: First, smart channels, achieving responsive distribution; Second, smart marketing, leveraging the internet for precise and personalized marketing; Third, smart manufacturing, with leading aerospace quality and digital upgrades to launch more and better products.
01 Second Channel Marketing Revolution
Historically, Master Kong's channel strategy has been intensive distribution. In the early stages of industry development, "intensive distribution" successfully propelled Master Kong to the forefront of the market, securing its top position in beverages and instant noodles. Now, Master Kong has partnered with Alibaba's Retail Link and announced a full embrace of the internet, clearly indicating that Master Kong is officially upgrading its channels, using internet tools to reshape channel structure and achieve digitalization of distribution.
With channels fully digitalized, one might wonder: what about the thousands of distributors who were the unsung heroes behind Master Kong's "intensive distribution" strategy? Will they be abandoned?
△Master Kong Holdings Customer Director Chen Huangshu (left) and Alibaba Retail Link General Manager Lin Xiaohai (right)
Quite the opposite. It is understood that Master Kong's partnership with Alibaba's Retail Link not only achieves online product distribution and rapid market response but also leverages Retail Link's technological advantages to empower distributors, guiding them through digital transformation.
Of course, this is not just a slogan; Master Kong is actively practicing it. According to a distributor in Wuchang, in 2017, after integrating digital tools into his traditional business, his sales time extended from 8 hours to a full 24 hours, and he also began receiving orders from previously uncovered or neglected "corner" stores. Additionally, sales statistics have become more comprehensive and clear, and many tedious daily management tasks have become easier, allowing him more energy and time for sales, greatly improving the success rate of Master Kong's new product launches. In June of last year alone, his sales business grew sevenfold.
Efficiency defeats inefficiency—this is the iron law of business, and distribution is no exception. In my view, Master Kong's embrace of the internet brings even more benefits to distributors than these.
02 Distribution Upgrade, Expanding Scale
As is well known, FMCG distributors run a labor-intensive business; they are both bosses and employees. Due to limited energy and time, they often face the following issues:
1. Non-standardized business processes, inefficient operation
Distributors' daily operations involve not only sales but also numerous trivial tasks such as paper order taking, inventory management, vehicle scheduling, and policy formulation. These are all done manually and based on experience, with no standardized system or complete set of process norms, resulting in 2 out of 8 working hours spent on administrative tasks.
2. Chaotic account management, overwhelming
Beyond operations, there are also issues in finance, such as account reconciliation, order verification, and cash storage. Additionally, with multiple product lines and varying accounting methods, financial management complexity increases. I have seen a distributor with annual sales of 20 million yuan who hired four people just for finance and sometimes had to handle it himself. Even so, accounts were difficult to keep accurate and error-free.
In addition to the above, there are also problems like difficulty in managing personnel and high turnover. If distributors cannot devote more energy to promoting new products with higher margins, they cannot achieve growth breakthroughs. In contrast, Master Kong's digital distribution allows distributors to manage their business through digital tools, reducing trivial matters and freeing up time to focus on market sales.
In my view, Master Kong's move not only aligns with trends but also recognizes that retail and distribution are rapidly iterating in the digital age. Only by combining past experience and accelerating channel upgrades can they maintain their foothold and even lead industry transformation. It is no exaggeration to say this is Master Kong's second marketing revolution after the intensive distribution strategy.
03 The Confidence in Smart Manufacturing Comes from Aerospace Quality
In fact, before announcing the digital channel upgrade, Master Kong had already been actively aligning with "aerospace standards" in food safety. On October 22, the Aerospace Spirit China Tour and Master Kong Food Safety Science Exhibition launched its first stop in Xi'an. At the exhibition, Master Kong used high-tech to vividly recreate the instant noodle production process, allowing visitors to experience "aerospace-grade" product quality through interactive exhibits.
△Aerospace Spirit China Tour and Master Kong Food Safety Science Exhibition · Xi'an Station
It is understood that the exhibition subsequently moved to Yulin, Ankang, Datong, Taiyuan, and other cities. This Aerospace Spirit China Tour and Master Kong Food Safety Science Exhibition will last three years and be held in multiple locations nationwide.
△Aerospace Spirit China Tour and Master Kong Food Safety Science Exhibition · Taiyuan Station
From an observer's perspective, this exhibition not only enhances Master Kong's brand influence and boosts regional distributor sales but, more deeply, marks the debut of Master Kong's product technology, which can effectively invigorate the market and boost distributor confidence.
It is understood that in 2015, Master Kong invested 300 million yuan to build a large-scale FD freeze-drying plant, using aerospace technology to lock in the nutrition of vegetables and meat. Prior to this, Master Kong had also introduced the HACCP food safety management system used by NASA to provide food for astronauts, setting aerospace-level safeguards for product safety and quality throughout the entire process. In my view, the partnership between the aerospace industry and Master Kong is strong evidence of Master Kong's efforts in food safety and food research and development.
Embracing the internet and launching a smart manufacturing strategy requires supporting infrastructure, and this confidence comes from Master Kong's relentless dedication to research and development.
A distributor from Xi'an remarked after visiting the aerospace science exhibition: "I've been a Master Kong distributor for over six years. The quality is unquestionable, no need for promotion. But this event with the aerospace industry is very positive. Aerospace represents the nation's cutting-edge technology. Master Kong's use of the aerospace science exhibition to promote food safety and health will undoubtedly strengthen the name 'Master Kong' in the minds of customers and consumers."
With digital channels and aerospace-quality products as two wings, and with internet technology driving smart marketing, Master Kong is fully equipped.
Diverse retail scenarios and diverse consumer demands require every FMCG brand to upgrade accordingly. Of course, while adapting to changes, it also tests each brand's product innovation and quality capabilities.
Master Kong has long seen these market changes and is actively positioning itself. Whether it's the partnership with Retail Link or the collaboration with the aerospace industry and the aerospace science exhibition, these are showcases of Master Kong's years of silent, dedicated research and development.
Frankly, in the internet era, whether in products or manufacturing, Master Kong has once again taken the lead in the industry. Of course, for Master Kong's distributors, they will also benefit from this channel upgrade and the debut of aerospace technology.
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