Focus Media Witnesses a Decade of Mind-Share Battles From December 8-10, 36Kr held the "WISE2020 New Economy King Conference - Rise and Return" at the Beijing International Convention Center. This was the eighth WISE conference, and 2020 also marked the tenth anniversary of 36Kr's founding. At the main venue of the New Economy King, the organizers invited innovators who have ridden the waves over the past decade, connecting startups, internet giants, investment institutions, local governments, traditional enterprises, and other market participants to look back on the decade of rapid rise of China's new economy and look forward to the infinite possibilities of the next decade. At the WISE conference, Jiang Nanchun, Chairman of Focus Media; Chen Xiaohua, Chairman and CEO of天鹅到家 (Auntie's Home); and Bai Rubing, Co-founder of Chehaoduo, discussed under the theme "A Decade of Mind-Share Battles" how companies can achieve differentiated positioning and how brands can capture consumer mind-share. "If we go back ten years, when you couldn't use the internet to order food or hail a taxi, I believe everyone would find it hard to go back. The dramatic changes in consumers' lives over the past decade may seem small year by year, but accumulated over ten years, they are revolutionary. Over the decade, there have been many changes and many constants. Many heroes have risen amid the changes, and there are many internet stories. There are also many unchanged aspects; perhaps a place that has been continuously deepened for ten or twenty years has also created many opportunities," said Jiang Nanchun. Regarding the frequent traffic wars among internet companies, Jiang Nanchun commented, "Promotions and traffic are effective in the short term; they can boost volume temporarily, but later, without promotion, there is no sales, and even with promotion, sales may not follow. Traffic must accompany promotions, and the cost of traffic is rising. Many Chinese companies are trapped in a double squeeze: traffic costs keep rising, average order value keeps falling, and profits become thinner. Only by moving toward branding can they achieve a qualitative change from quantitative accumulation." On the difference between brand advertising and performance advertising, Jiang Nanchun gave an interesting analogy: "The advantage of performance advertising is that it can quickly produce a result, so you can see the effect immediately; because you see it, you believe it. Brand advertising often requires you to believe before you see. So, performance advertising is like a lover—is a lover good? Yes, but a lover's method is usually to stir your emotions and trigger a one-time action. Brand advertising is like your wife. Can you live with your wife? It depends on whether you share common values. So brand advertising shapes consumer perception, while traffic-based advertising stirs your emotions; within two or three seconds, you must click or it's gone. So I think the difference between the two is significant. On the internet, if you run the same performance ad, a brand with strong brand recognition will have a very different conversion rate." Chen Xiaohua, Chairman and CEO of天鹅到家, said that as consumers increasingly care about service and brand, brand advertising investment is a long-term value. Meanwhile, Bai Rubing, Co-founder of Chehaoduo, predicted that in the coming period, China will continue to see the rise of new niche brands, helping users reduce decision-making difficulty in different fields. The following is the transcript of the themed roundtable "A Decade of Mind-Share Battles," edited by 36Kr: Jiang Nanchun: I am deeply moved. Looking at the past decade, China's new economy wars have been one after another. The two people sitting next to me are representatives of unique major battles in certain years. Let's talk about what has changed and what hasn't changed over the decade. What is the underlying pattern? Let's start with Bai Rubing. Bai Rubing: Just watching the video, both President Chen and I participated in two transformations: one was 58 and Ganji, and the other was when we later founded Guazi Used Cars, and President Chen founded天鹅到家. Speaking of what hasn't changed, I have a feeling from the video: internet wars will not stop; they are inevitable. China's business wars are quite exciting. The market changes so much every year, and China's economic market is highly active. Internet people are used to wars; they will always exist. The second constant: from the user's perspective, consumers' basic needs will not change. Users' demand for more, faster, better, and cheaper, and their demand for brands, will not change. For brands, the mind-share they can capture is limited. After these wars, only a few brands survive because users' minds cannot accommodate too much. These two points will not change. From the perspective of change: First, we just talked about the changes in industrial internet. Many people are working on industrial internet, and internet people are continuously going deep into various industries, possibly transforming each other. This is a process of continuous advancement and deepening. From our own perspective, the proportion of online car purchases in China is increasing. For used cars, in the past year, nearly 10% of cars can be sold purely online. We believe that one day, whether used or new cars, online sales will exceed offline. This is the trend of onlineization. Second, users' final choices will change. In each category, some leading brands will eventually emerge. In the coming period, China will continue to see the rise of new niche brands, helping users reduce decision-making difficulty in different fields. For example, in used cars, making used cars equal to Guazi, and new cars equal to Maodou, is a possible future change. Thank you. Chen Xiaohua: Ten years ago was 2010. The advertising war was fierce, and the local life services war was surging. Later, I started my own business, and in 2015, I experienced the intense O2O war. Summarizing this decade, three things have not changed. First, brand advertising has not changed. Just mentioned the advertising war; most brands advertise on Focus Media. This is not flattery but a reflection. Just look at the elevators during commutes to know what's popular in the internet economy. Everyone starts with ground subsidy wars and traffic wars, but eventually, they inevitably fight brand wars. Second, competition has never changed. No internet war has been won without bloodshed or a fight. Third, the internet is increasingly penetrating people's lives, and the combination of mobile internet and industry is getting tighter, bringing more changes to people's lifestyles. From initially just searching for information, to group buying, food delivery, then home services, buying used cars, and buying groceries, the internet has gradually descended from the cloud, integrating with industries and people's lives, becoming more down-to-earth. This has indeed not changed. These are the three biggest takeaways for me. Jiang Nanchun: Let me also share from our industry's perspective. We have witnessed various wars in the internet new economy, and we have also seen consumers' aspirations for a better life. During the evolution of the internet, many changes in lifestyles and consumption concepts have occurred amid these wars. If we go back ten years, when you couldn't use the internet to order food or hail a taxi, I believe everyone would find it hard to go back. The dramatic changes in consumers' lives over the past decade may seem small year by year, but accumulated over ten years, they are revolutionary. From our industry's perspective, what has changed is the dramatic shift in information consumption patterns. Ten years ago, television was most important. Since 2015, internet viewing time has exceeded the total viewing time of traditional media. The information function of traditional media has been replaced by Weibo and WeChat, and the entertainment function has been replaced by video. This is a major change; information consumption patterns are in upheaval. After the change in information patterns, you can see that living spaces have not changed. Ten years ago, you went home, to work, to the cinema; living spaces have not changed. Now, mainstream audiences watch less TV; they buy memberships to skip ads on video platforms. On Weibo and WeChat, people consume content, and there are many feed ads, but you are close to your phone, not to phone ads. The ads you remember on your phone in a month are very limited. This change is in information patterns, not that advertising has become more effective. The effect of advertising has become fragmented compared to ten years ago. Ten years ago, there were few media, and advertising effects were concentrated. Today, we see advertising forms fragmented and dust-like, and the power of advertising is declining. I have always insisted that despite the changes, living spaces remain unchanged. I prefer to bet on the unchanged parts. Because you can't keep up with those changes, but living spaces don't change. Eighteen years ago, during the SARS outbreak in 2003, I founded Focus Media. My biggest insight was China's urbanization—building buildings, and after buildings are built, they need elevators. What changed? Urbanization transformed the cityscape. Elevators were installed one by one; without elevators, cities couldn't function. Today, the more high-rises, the more elevators are infrastructure. On this infrastructure, I also saw an important point: no one wants to watch ads. This hasn't changed. When you watch TV or your phone, you watch content, not ads. When do consumers watch ads? I found it's in the unique scenario of waiting for the elevator; people watch ads. For example, if I'm in an elevator with a woman, I can't stare at her; I'm a moral person, so I'd rather watch ads. Is it better to look at stainless steel or ads? So this hasn't changed; in this scenario, consumers are more likely to actively watch ads. Looking back, this hasn't changed either. When the elevator door closes, there's no phone signal, so ads help pass the time and handle awkwardness. With phones, there are some changes at elevator entrances. More people look at their phones now. Originally, 60 out of 100 people watched Focus Media ads; now only 40% do. Phones have had some impact on us. But from another angle, people know it's an ad; if 40 out of 100 passersby watch, that's not bad. Essentially, there hasn't been a big change; elevators are still a place where people actively watch ads. Over the decade, there have been many changes and many constants. Many heroes have risen amid the changes, and there are many internet stories. There are also many unchanged aspects; perhaps a place that has been continuously deepened for ten or twenty years has also created many opportunities. Let me ask you both: Now China's advertising is divided into two methods. First, brand advertising as the core. Second, performance advertising as the core. Platforms like Douyin, Kuaishou, and Alibaba focus on performance advertising, while Focus Media represents brand advertising. How do you view performance advertising and brand advertising? Chen Xiaohua: First, brand advertising and performance advertising are not opposites. Every successful company in the world has a different initial path: some excel in products, some in traffic, relying on platforms to quickly master operational capabilities, and some in offline promotion. But successful companies end up similar; they must excel in both brand and performance. So these two are not opposed. Second, it's important to note that today, the vast majority of entrepreneurs have traffic hunger, hoping to have more traffic. You must know that the cost of precise internet traffic is extremely high, much higher than ten years ago. Ten years ago, traffic costs were cheaper. The reason is simple: all economies are digitizing, all platforms are upgrading their business models, and they have huge revenues. So the cost of precise traffic has risen much faster than brand advertising, from my perspective. Because traffic in any industry faces greater competition. When you buy precise traffic, you compete, and it's priced per click. In some industries, a valid lead can cost thousands of yuan. The cost of precise traffic is rising. When a company is just starting, it often lacks sufficient funds for long-term planning. It can start with its own private domain traffic, community traffic, and then acquire precise traffic. That's understandable. But at a certain point, you must use the power of brand. Third, brand advertising.天鹅到家 also launched a large-scale brand advertising campaign in September. At that time, many said that if you spent the ad budget on traffic, you'd get 100% growth. But brand advertising is like losing weight: some choose to drink less water or fast for a few days, thinking it's effective, but why do others choose to run? Because you need long-term, sustained, healthy influence. So it's rare that investing in brand ads today leads to a surge in orders tomorrow. Of course, it's possible if the product has no service barriers, low entry barriers, and low price; then brand ads can have immediate results. Today, as consumers increasingly care about service and brand, brand advertising investment is a long-term value. In games, it's like a multiplier for all attributes, not just increasing one attack ability; it increases all attributes of the hero, whether intelligence or agility. Why do we still use brand advertising? For example, with the same service, consumers choose天鹅到家 because they believe it's China's largest and best company, and they trust our service. This trust brings brand and service credibility. When funds lack long-term patience, there will be short-term survival pressure. At that time, you can first focus on private domain traffic and precise traffic to improve performance. If you have a little extra, you must consider brand, which includes not only brand advertising but also PR and service positioning. Don't simply equate mind-share influence with simply placing ads. Bai Rubing: Brand advertising and performance advertising are not contradictory in daily work; we do both simultaneously. For a company, there should be no shortcomings in any aspect; any shortcoming is a problem. The two always complement each other in specific processes. If brand advertising is done well, traffic conversion rates and performance advertising returns are higher. When performance advertising is heavy, such as feed content, it also helps the brand; they promote each other. Second, about brand. Whether at Ganji, Guazi, or Maodou, we are a company that believes in brands. In the past few years, we think we did well. When we first entered the used car industry, we invested heavily in brand awareness and spending. We hoped to shorten the war as much as possible, not to drag it out too long. An important way to shorten the battle was to bet heavily on the brand, including creating a completely new brand from the start, renaming it Guazi Used Cars, and also investing in major media. Including targeted placements on Focus Media, we wanted to quickly create an explosive impact on user perception. In fact, over the past few years, we invested a lot of capital in the Guazi brand, with a multiple-fold gap compared to competitors. So Guazi quickly established entry-level capabilities in the used car field. Today, looking at traffic in China's used car industry, whether buyers or sellers, most are concentrated on Guazi. This traffic hasn't stayed on other platforms. We see that today, Guazi's unaided first mention ratio has reached 60%. If you understand various industries, when unaided first mention reaches such a level, users basically regard you as the first choice on their shopping list. It can be considered achieving entry-level capability. Regarding investment, I think we have always been calculating a big picture, not caring about short-term gains and losses in one place. When building a brand, you can't expect that if you put up an ad this morning, the data team will review it at 7 or 8 in the evening. Even weekly is too short. Although we also look at it, we can't rely solely on this metric. In fact, many companies when they start building a brand cannot achieve a convergent ROI or positive cash flow. At the beginning, brand is not as cost-effective as traffic. For ourselves, we started advertising in September 2015. At that time, ROI accounted for a large cost; we earned only a little per car, but we spent so much on short-term customer acquisition. But at that time, we predicted where the convergence point of the future business model would be. We calculated the annual spending scale and that customer acquisition numbers would grow several times, and at a certain level, we predicted it would decline. So in 2016, 2017, and 2018, our customer acquisition costs kept declining, from over ten thousand initially, to a few thousand, and today we've reached a very low number. And today, we have a huge amount of our own traffic, which is free. Especially during the pandemic, we were quite emotional. The pandemic was a process where leading brands surfaced. Today, about 60% of our own traffic comes from ourselves, which relieves a lot of pressure for our future growth. I think the ultimate purpose of branding is to form an entry point. We treat it as an investment to help users shorten decision time. Today, when users consider used cars, they don't have to work hard; they directly think of Guazi. Ultimately, it's a process from brand customer acquisition to brand as an entry point, and finally to forming user habits. That's our long-term perspective on brand investment. Let me talk about traffic. From the perspective of brand and traffic, the market is sometimes like a shopping mall. What is brand? Brand is a tool for you, as a brand owner or enterprise, to negotiate with today's traffic platforms. If you don't have a brand, you're not Haidilao; you're an ordinary hotpot restaurant, and in the mall, you'll be suppressed by the mall. But if you are Haidilao, it's different. In the mall, you don't need to worry about the location of your shop, nor do you need to hand out flyers at the door every day, or intercept users at the stairs, or run daily promotions. Users will come to you actively. Of course, those actions are also needed, but only with a brand can you negotiate with today's traffic giants. Otherwise, in front of them, they keep raising prices, and it's hard to succeed. Traffic costs are indeed getting more expensive. But for us, traffic is more like a result of our own capabilities; it's not something you can do much about at the front end. Often, we see customer acquisition or traffic acquisition capability as a result of comprehensive capabilities, such as whether the chain cost is good, whether backend conversion efficiency is good, whether there is LTV value for users, repeat purchases, and referrals. Only after these comprehensive capabilities are in place can you provide users with attractive prices or other aspects at the front end. Then you can calculate: because the backend conversion chain is good, you can pay a higher price per click or impression than others, thereby strengthening your customer acquisition capability. Finally, from our perspective, we are constantly strengthening our capabilities to ultimately increase our competitiveness in acquiring traffic. Optimizing these things are short-term capabilities. Especially for internet companies today, it's hard to have extremely significant essential differences. The difference between good and bad is about 20% at most. But ultimately, traffic capability depends on the company's comprehensive strength and efficiency. Jiang Nanchun: Good, thank you! My own views: I have participated in many wars. I think traffic and effect ads have their own advantages in combination with brand ads. Traffic ads are very precise, while brand ads have broad reach; they complement each other. Traffic ads: precision is good, but because of precision, you also miss many potential target customers. If you have 100 target audiences, with privacy protection, iPhone not allowing tracking, and many data you can't obtain, the money you spend based on data can reach about 30. The other 70 consumers are your potential customers, but you haven't reached them; you can't discover them. I think these are missed potential target consumers. Second, I have always believed that advertising should not only hit buyers but also relevant decision influencers and communicators. Many related people have an interactive effect on the final purchase. But because you use precise data forwarding, you often find the buyer. I remember clearly when I was doing the advertising planning for BYD Han. BYD precisely pushed an ad, got a customer who paid a 2,000 yuan deposit. But then that person came to refund. I asked why. He said he thought most of BYD Han's data were better than Model 3, but his wife disagreed. His wife said, "You're spending over 200,000 yuan; why not buy a Model 3?" What's the subtext? I understand: First, BYD Han's precise ad didn't effectively reach his wife; it reached the man, but his wife had veto power over the decision. Second, why did his wife have that idea? She probably was influenced by the opinions of people around her. So you can see BYD Han's Chinese confidence. After BYD Han did large-scale brand advertising, you can see its monthly sales have exceeded 10,000 units, directly challenging Model 3. I believe that in the next two months, BYD Han may surpass Model 3 in single-month single-model deliveries. Imagine adding another 3,000-4,000 units; it goes from 5,000 to 7,000 to 10,000. This is like Huawei's Mate7 at the time; it will change people's perception of BYD. When it tops the high-end market, it will break Tesla's so-called myth, and finally rebuild its own recognition. A good product, through extensive brand advertising, will eventually reshape. Everyone remembers Huawei was once a budget phone brand; today, Huawei is a symbol of high-end phones. Coincidentally, I was chatting with Vice President Wang Qiang that day, saying that your Mate7 was made by you. Essentially, today's BYD Han is a Mate7. This may be BYD's most important turning point. Its brand, through this product and extensive advertising, may undergo a major change. Third, I think advertising needs a field energy. It's not just limited to search data buyers; it should hit buyers, influencers, and communicators, forming a field in society. In fact, brand advertising can create an explosive feeling, while precise advertising, in my experience, is like two people interacting privately; only the two of us know, and once we go out, no one recognizes us. It's like a private engagement. Brand advertising is like proposing in a public square. After bombing the square, everyone sees it, there's competition, and finally it becomes a social consensus, forming a field energy. Many people spend 500 million on Douyin ads; it's traffic distribution, hard to create this field energy explosion. My own experience of the advantage of performance ads: they can quickly produce a result, so you can see the effect immediately; because you see it, you believe it. Brand advertising often requires you to believe before you see. So, performance advertising is like a lover—is a lover good? Yes, but a lover's method is usually to stir your emotions and trigger a one-time action. Brand advertising is like your wife. Can you live with your wife? It depends on whether you share common values. So brand advertising shapes consumer perception, while traffic-based advertising stirs your emotions; within two or three seconds, you must click or it's gone. So I think the difference between the two is significant. On the internet, if you run the same performance ad, a brand with strong brand recognition will have a very different conversion rate. So in the past, on Double 11, who topped the charts? Traffic players. Now, on Double 11, it's basically brand companies, traditional big brands. Why? Not because they are traditional brand companies with better traffic tactics, but because their brand recognition is stronger, so traffic conversion comes naturally. So I have a big insight. I often see an e-commerce formula: GMV = Traffic × Conversion Rate × Average Order Value × Repurchase Rate. I think this is a traffic formula. Traffic has precise distribution, fission, private domain, and can create traffic troughs and dividends. This is traffic operation. Does traffic operation need improvement? Of course, it's called optimization. You optimize, others optimize too; there's no secret. Everyone competes in optimization. But can companies make money on e-commerce platforms? The core depends on the proportion of traffic brought by the brand itself. Just now, Bai Rubing mentioned that Guazi Used Cars' brand brings 60% of its traffic. When your brand is thoroughly established, entering the consumer's blood-brain barrier, like "Nongfu Spring is a bit sweet" spent 2 billion to plant it, today you'd need 20 billion to pull it out, and you still can't. So a brand becomes continuous free traffic, a conditioned reflex in consumer minds. Why does L'Oréal easily make money on e-commerce platforms, while many brands don't? Because L'Oréal has a high proportion of self-generated traffic, maybe 50-60%. The remaining 40% may rely on ads and traffic advertising, but when it runs traffic ads, its conversion rate is three times yours. Why? Because its awareness and recognition are high. For the same promotion, others need 10% or 20% discounts; Estée Lauder can go crazy with just a 10% discount. So at this point, you can see a core feature: your conversion power depends on brand power, brand awareness, and recognition. Finally, what does average order value depend on? It depends on the brand's premium capability. Is your brand momentum high? If your brand momentum is high, your premium capability is high. Just mentioned Model 3; because it launched a satellite, its brand momentum is relatively high, and its premium capability is stronger, even if its configuration might not be as good as yours. So fundamentally, from the first generation to the eighth generation of Estée Lauder, the price of each generation of the Little Brown Bottle has been rising. Consumers have more recognition. Although I occasionally promote during 6.18 and Double 11, Estée Lauder's momentum in consumers' minds is high. Domestic cosmetics may promote every day or every month, but they might only promote once or twice. Second, you can see that while it promotes, when it launches new products, prices rise generation by generation, giving it more room. Ping An Insurance and Yong'an Insurance offer the same coverage, but Ping An sells for 2,800 yuan, while Yong'an sells for 2,400. The 400 yuan difference might be profit. In this case, consumers are more likely to buy Ping An. This is what I call the brand's premium capability; it ultimately determines whether you can be profitable in the market. This is a big insight for me. We have 12 minutes left. I'd also like to ask you both: What trends do you see in the advertising, brand, or marketing industries in the future? Whoever can leverage these trends will achieve better development. I'd like to hear your thoughts. Bai Rubing: I think in the next decade, leading brands will continue to emerge in major consumer segments in China, and the head effect of brands will become more obvious. Like mature markets, eventually, in every field—clothing, food, housing, transportation, life services, consumer goods—there will be a leading brand that is easy for users to choose. This process is both an opportunity and a challenge for Chinese entrepreneurs. If you become a head player and become a fixed perception in users' minds for major consumer categories, you win. If not, even if you have a large market share, it's not safe. That's the first point: the head brand effect will be more pronounced. Second, in the future, head channels for brand media should be scarce. Having worked in this industry for many years, I feel this trend is increasingly obvious. I remember in 2003, building a brand in China was simple: just do CCTV ads, or a CCTV media plan, and it would definitely be effective. Today, within companies, doing brand and advertising faces more challenges. We also find that head media is increasingly important, and the scarcity of head media is also increasingly important. Third, brand capability. Besides advertising, recently we've been focusing on comprehensive brand value. In addition to the brand's influence, there's the value drive behind the brand—whether it helps customers establish value. In the process of building brand value, advertising is an accelerator. Behind it, there must be product and service strength—whether you provide users with good service and experience, forming a positive word-of-mouth cycle. In the past year, we've invested a lot in this area, even dividing our sales into two categories: positive word-of-mouth sales and negative word-of-mouth sales. We constantly pursue positive word-of-mouth sales. Chen Xiaohua: We should seize the past 20 years. China has been connected to the internet for nearly 30 years. The first 20 years were mainly consumer internet; in the last 10 years, it's gradually moving toward industrial internet. The biggest difference between consumer and industrial is that industrial internet must change the supply side of services. So my judgment is that if you completely stick to the past consumer internet playbook, you'll encounter more and more difficulties. One common feature of internet companies that have risen in the past five or six years is that they are all moving toward industrial internet and changing the supply side. Including today's vegetable selling: if it's still like traditional internet, just price wars, many companies will die because they lack competitiveness. If they rebuild logistics systems, vegetable operations, management, and planting, and improve the experience of selling vegetables in China, it's not just connecting platforms. For example, food delivery changes the supply side, helping restaurants solve supply-side problems, making the ordering experience different. It's not just like group buying, booking a standard service. I call this industrial internet: to change traditional industries, to use previous playbooks to transform the supply side of industries. So the supply side is both an internet company and a service provider. For example, users go to天鹅到家 to find a nanny through the platform. At the same time,天鹅到家 also provides training and employment services for nannies. This upgrade is an inevitable trend. Today's education companies and new consumer brands are all providing services and rebuilding infrastructure.天鹅到家 is doing this. In terms of development trends, I think two points are most important. First, service, because services need to be rebuilt. Second, brand power. Internet is product, internet is service. The new generation of internet consumer brands must have leading enterprises. Worldwide, there are century-old brands. Brands entering China today were accumulated many years ago. I hope China also produces many long-term brands that can last long and have enduring vitality. Jiang Nanchun: In the decade of the new economy, my biggest insight is a pattern. The birth of a new economy brand must open a category or create a feature, so it must create differentiated value for society. Second, it must seize a time window. Later entrants may also do well, but China's first astronaut is Yang Liwei; the second and third are not remembered. In the time window, it uses brand saturation attack to be first in consumer minds. Whether it's Guazi Used Cars or天鹅到家, you can see they are in their fields. First, they onlineized the thing, transforming an industry. Second, they seized a time window to be first, owning the mind-share property of consumers. So creating differentiated value, seizing the time window, brand saturation attack, drawing an equal sign in consumer minds, and owning mind-share property are very important. A new species, from birth to owning mind-share property, must achieve a "thrilling leap." This leap has three solidifications. The first is capital solidification. The second is scale solidification: quickly ramping up volume to gain scale advantage. Capital pours in; major capital providers are here. Third, mind-share solidification. Like jelly: you eat Xizhilang. Later, even if others make a healthier, tastier jelly, in consumers' minds, jelly equals Xizhilang. This equal sign closes the door for competitors to enter consumer minds. Once you own mind-share property, it's hard for later entrants. Even a better herbal tea, one that reduces heat more, cannot change Wanglaoji's position in consumers' minds. This is a very important insight for me. Promotions and traffic are effective in the short term; they can boost volume temporarily, but over-reliance on traffic leads to no sales without promotion, and even with promotion, sales may not follow. Traffic must accompany promotions, and the cost of traffic is rising. Many Chinese companies are trapped in a double squeeze: traffic costs keep rising, average order value keeps falling, and profits become thinner. Only by moving toward branding can they achieve a qualitative change from quantitative accumulation. Feihe is more suitable for Chinese babies' constitution. It was seventh in China's milk powder market, but five years later, revenue grew from 3.5 billion to 13.7 billion, and this year it's aiming for 20 billion. Genki Forest went from 260 million revenue last year to several billion this year. It created the 0-calorie, 0-sugar, 0-fat category and then did a brand saturation attack. You can see many others have started making sugar-free drinks, but it's hard to change the perception already formed in consumers' minds. Even if you are the pioneer, whether you can hold the first position and become the standard, common sense, and an unthinking choice in consumers' minds depends on whether you can seize the time window and capture mind-share property. If not, your position will be shaken, or you'll fall into promotion wars and traffic wars. Third, precise distribution. Previously, we only knew products were sold in Carrefour, so we advertised within 3 kilometers around Carrefour. What we did was based on property. Today, we know the consumption labels of each community, such as which communities have a high probability of buying milk powder. We can know the purchase trends and probabilities of 200 categories. At this time, we can help users reach more precisely. Branding is an important trend for future development, and digitalization's improvement of communication efficiency is also a direction we have been pursuing. Time is up. Thank you to the audience present. Thank you all. Tips will be paid 400-2000 yuan upon adoption.