Click 'Read Original' for details 0****1 Traditional enterprises have a foundation, at least a home market. Industry leaders always have connected home markets or national home markets. Without a foundation, they can only become wandering rebels. Small enterprises are small not because of scale, but because they lack a foundation, so their scale never grows. Large enterprises are large; scale is the result, and having an unshakable foundation is a key reason. The 10-year e-commerce boom made many enterprises doubt: has the foundation shifted from offline to online? In 2022, we observed the major trend of 'returning offline.' The performance of new consumer brands also made us realize that without capital support, pure online enterprises may not even qualify as wandering rebels. This is a major trend that can affect enterprises for 10 years. However, returning offline is not going back to the past. The channel pattern with deep distribution as the basic model and home markets as the traditional foundation no longer exists. Returning offline requires building a new foundation. 02 Returning offline has several basic connotations. Returning offline First, the main market for FMCG is offline, so marketing focus remains offline. Second, traditional systems are still important support points offline, such as deep distribution; traditional enterprises need not worry about losing everything and starting from scratch. Third, it is necessary to integrate new skills, especially internet skills. Fourth, it is necessary to rebuild the foundation. Successful enterprises in every marketing era have a foundation. The more an enterprise focuses offline, the more building a foundation is a basic skill. 03 There is no foundation online. This is a profound reflection on the 10-year online boom. Enterprises with only traditional offline foundations are unstable. This is also a reflection on the internet nightmare of traditional enterprises in the past 10 years. The new foundation must be based offline, using internet connections with users as a means. Generally, it includes three aspects:

  • First, use traditional deep distribution to reach KA and second-tier distributors.
  • Second, use alliance with second-tier distributors to reach small b at scale.
  • Third, use bC integration to reach C-end with scale and density. **** Whether for traditional enterprises or online-rising enterprises, this is a new challenge. For traditional enterprises, reaching C-end is a challenge. For online enterprises, reaching B-end is a challenge. Since it is a challenge, some enterprises will succeed and enter a new era, while others will lag or even disappear. 04 The new foundation is a new model combining online and offline. Without offline basic skills, there can be no new foundation. The concept of the new foundation inherits the B-end pattern of the traditional foundation.** Without online skills, it is impossible to transition from the traditional foundation to the new foundation. Understanding this, one can see why pure online new consumer brands disappear after burning through money. Understanding this, one can see why it is difficult for new brands to rise with pure offline models. Not only traditional enterprises need to build a new foundation, but online enterprises migrating offline also need to build a new foundation. In the future, there will be no purely traditional enterprises, nor purely online enterprises. Unless enterprises do not want to grow. 05 What kind of market has the characteristics of a foundation? From a sales perspective, a traditional foundation has relatively large sales. This is result-oriented. From a process perspective, it has high terminal density and leading products. Terminal density plays a leading role. The value of a foundation is stable sales. Where do stable sales come from? It is that the foundation can withstand market tug-of-war. In market competition, some enterprises always hope to quickly turn the tables through market raids.** Market raids mean high investment and high personnel density in the short term, such as short-term high-density distribution and heavy promotions. At worst, they disrupt the rhythm of market leaders; at worst, they shake the market foundation. A foundation is one that can withstand repeated impacts from competitors without wavering. Sales may decline during competitor raids, but rebound immediately when competitors retreat.** The reason a foundation becomes a foundation is that density comes first, then ecology. First, there is density in terminals. Because of terminal density, competitors can squeeze but cannot squeeze out. Thus, a terminal ecology forms. Second, there is user density. Because of user density, users may buy temporarily during promotions, but they will return under normal circumstances. Therefore, the traditional foundation forms a terminal and user ecology. Ecology is interdependence, where no one can do without the other, and finally symbiosis. So, what are the characteristics of the new foundation? It is a tighter channel ecology. **First, the ecological chain of distributors, second-tier distributors, terminals, and users is longer; second, the ecology of terminals and users is connected through three-dimensional space, making it tighter. 06 Whenever a new era arrives, enterprises have three choices to enter the new era: First, become an innovator of the new model. We greatly appreciate those enterprises that are not afraid of failure and innovate bravely. Whether they are pioneers or martyrs. Second, join a successful innovation system and directly inherit others' innovation results, such as being acquired. This is also a courageous act. Third, become a fast follower of the new model. Wherever there are innovators, go there to learn. Innovate further based on others' innovations, or improve efficiency. Even become a master of innovation. Observe, learn, and then imitate innovation. This is the path to becoming a fast follower. Who to learn from? Where to learn? 2022 (7th) China FMCG Channel Innovation Conference 'Seize the Opportunity, Stabilize the Market,' countdown 12 days! Held in Chengdu from July 20-22. Listen to industry interpretations, see practical cases firsthand, the most effective. This is a concentrated learning opportunity. The first largest industry conference during the 2022 epidemic recovery period, discussing the latest industry trends. 3 days, 75 distinguished guests, focusing on the theme 'Seize the Opportunity, Stabilize the Market,' presenting a feast of ideas for the industry! 3 closed-door salon seminars, 2 main forums, 8 thematic forums, 3 special trainings. Covering channel digitalization, digital business empowerment, new retail and omni-channel operations, short video live streaming and private domain, distributor model transformation, distributor business growth, new consumption and offline breakthrough, digital supply chain, offline foundation rebuilding, deep distribution evolution... Operators in various segments bring the latest practical cases. Some of the confirmed heavyweight guests include: Boston Consulting Group Managing Director & Global Partner Ding Jiachuan, Meiyijia General Manager & Caihua (Yueheji) General Manager Yao Xuhong, China Resources Snow Breweries (China) Co., Ltd. National Marketing Center General Manager Song Zhanmin, OATLY Asia President David Zhang, Uni-President China Dairy & Beverage Circulation Group General Manager Deng Gang, JD Daojia General Manager of FMCG Yang Wenqi, KMG China Managing Partner Qiao Lin, Dongpeng Beverage Chief Information Officer Zhang Le... The first peak conference in the industry during the 2022 epidemic recovery period, the annual gathering for FMCG professionals, we look forward to your arrival!