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More and more traditional enterprises are beginning to plan transformation. All traditional enterprises have a very serious sense of crisis—everyone suddenly cannot find the road signs! They don't know how to transform in the Internet era, or how to walk the future path. Enterprises with good profits are worried, and those with poor profits are even more worried.
The biggest crisis for an enterprise is not the current profit level, but whether it can clearly grasp the future.
First: The momentum of traditional marketing is gone
No matter the industry, traditional marketing cannot find its "momentum" anymore, mainly reflected in the capital market. If your business model is still the old routine—production, processing, products, franchising, advertising—this set has long become the standard practice for traditional enterprises, especially large ones, which can do it with their eyes closed.
Everyone suddenly feels fatigued and finds it hard to get excited. No matter what success training, it's difficult to inspire the team's fighting spirit. This is the biggest problem, and it is a sign of the dead end for traditional industries.
Second: Not transforming means waiting to die, but transforming risks death
The word "transformation" was already overused in 2013, but it truly concerns the life and death of enterprises. Especially for large enterprises with annual sales exceeding 1 billion yuan, they rely on traditional channels and teams, so transformation is easier said than done. Can they transform? It's very difficult. Nokia's corporate culture, management standards, and patent innovation were all world-class, so why did it disappear? The answer is simple: Nokia was eliminated along with the era that made it successful.
Third: Executives in traditional enterprises are aging
The average age of bosses in traditional Chinese enterprises is over 40, and executives are over 35. These people have rich experience in traditional marketing, but the accompanying problem is that they are not proficient in the Internet. The biggest obstacle to corporate reform lies with these two groups; the bottom-level employees are young, so there is no problem there.
For newly emerging Internet enterprises, they have no historical baggage and can travel light, but traditional enterprises cannot. They carry hundreds of channel distributors nationwide on their shoulders. What should they do? This is the most painful part.
Fourth: Traditional entrepreneurs lack confidence in online marketing
Traditional entrepreneurs are uncertain about the Internet. Many bosses don't even have WeChat or Weibo on their phones, and they don't feel a sense of achievement from these things. There is a wall between them and new things.
Actually, traditional entrepreneurs are not wrong. So far, Internet e-commerce has not yet produced a 10-billion-yuan entity group; only a few new companies have achieved this, such as Lei Jun's Xiaomi. The enterprises on Tmall and Taobao are mainly individual businesses. If you want a 10-billion-yuan enterprise like Luhua to transform, you must show them a 10-billion-yuan Internet operation model; otherwise, small-scale online marketing won't spark their interest.
Fifth: Mistaking the Internet as just another sales channel
When we talk to many traditional enterprise executives about the Internet, a large portion of them treat it as a channel. For example, Bull Socket went from 300 million to over 3 billion in 4 years, following the traditional distribution route. Is it safe? Not at all. Although the "safe socket concept" works well in the traditional market, today's era has already made Bull dangerous.
For instance, if Lei Jun discovered the high profit of small sockets and created a more beautifully designed product priced at factory cost as retail price, Bull's distribution channels would be in chaos. This means the Internet is a sales channel, but Internet thinking is a new business model.
Sixth: Traditional marketing thinking is deeply rooted
Facing the future, we want to advise all traditional enterprise people: Don't use the known to deny the unknown.
For example, in traditional marketing, products need slogans and unique selling propositions, which have become fixed thinking, especially in graphic design theory. But we find that slogans are becoming less effective in promoting products. Can you recall Xiaomi's slogan? Can you remember Apple's slogan? Yet both brands have achieved great success.
Seventh: Products are increasingly hard to sell
Search online and you'll see that Three Squirrels snack food is selling very well, with anime-style packaging and sales language, full of Internet-era innovation. Actually, the nuts inside are no different from those sold on the street. So why are consumers flocking to it? Because today's young generation is not buying the product; they are buying a spirit or fun.
Baijiu is a typical seller of traditional culture. What happened? Baijiu stocks were all halved in the market, not because of the drinking ban, but because the road of selling traditional culture has come to an end. Jiangxiaobai created a fashionable baijiu concept, cutting ties with traditional culture, speaking only to young people, and sold hundreds of millions, leaving traditional baijiu companies puzzled.
The future will definitely be about creative culture, not traditional culture. Products must be full of human touch, not self-exaggeration and packaging. Products must become the consumer's inner voice to succeed.
Eighth: Five-year strategic planning loses meaning
VANCL's Chen Nian said, "I never know what will happen on the Internet tomorrow." He was right. In the Internet era, making 3-5 year strategic plans is meaningless and self-deceiving.
Ninth: Can't understand business model creativity
Because the Internet world is flat, there is no regional market. In the traditional era, you could be the regional brand leader, but on the Internet, there is no such opportunity. So, a business model can only support one enterprise. That's why Tencent failed to imitate Alibaba, and conversely, Alibaba's imitation of WeChat with Laiwang, I don't think it will succeed either.
Tenth: The time to test traditional enterprise bosses
In 2013, specifically the second half, many traditional Chinese enterprises woke up, started to panic, and began to hesitate, because we have no precedent to refer to, only past experience that no longer works. An enterprise's success is 99% attributed to the boss; an enterprise's failure is 99% blamed on the boss. Now, it's the boss being tested. The times will mercilessly eliminate those so-called traditional entrepreneur stars, constantly spawning novel and even strange business models, and grassroots entrepreneurial heroes will rise.
In the Internet era, no industry can stay out of it; all must transform. Whether you want to or not, forced transformation will exert its power, regardless of human will.
(This article is from Zhidao.com)
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