Click to read the original article for details Text | Shengchu Consulting Yang Dayu Opening with a joke: Xiao Wang's boss is usually serious and full of officialese, often lecturing Xiao Wang to focus on work. Their only common hobby is watching Douyin. Xiao Wang's Douyin feed looks like this: Xiao Wang's boss's Douyin feed, swiping up and down, looks like this: Why does Douyin know Xiao Wang likes watching pets? Why does Douyin know the boss likes watching beautiful women? Behind this is the credit of big data. Douyin analyzes consumer behavior through big data, tags their preferences, and makes personalized recommendations based on that. The success of Douyin and Toutiao cannot be separated from the technological progress of the digital era, especially personalized recommendations based on big data analysis. Currently, all industries are embracing digitalization, and leading companies in the baijiu industry are no exception. 01 Four Cases of Digital Transformation in Baijiu Companies Moutai's Digital Transformation In October 2017, Moutai Group held a special informatization work meeting and made the decision to achieve the "Smart Moutai" project goal as soon as possible and comprehensively promote the enterprise's digital transformation. On July 17, 2018, Chairman Li Baofang raised a series of questions at the expert review meeting for the "Smart Moutai" Project Top-Level Design Plan: "Our products launched to the market each year, including Moutai liquor and sauce-flavored series, number in the hundreds of millions of bottles. Are they in the distribution channel or in supermarkets? Have they entered households or restaurants? What regions is consumption mainly concentrated in? What age group are consumers in? Over a certain period, is total consumption stable or fluctuating sharply?" To this end, Moutai invested 104 million yuan in the first phase, hoping to find answers in digital transformation. Currently, Moutai has outlined the core construction content centered on "MT1216," including a three-dimensional network, two major support centers, a big data platform, and six smart applications. Leaders at all levels can view big data and analysis reports on the Moutai Group big data platform dashboard according to their authorization: base liquor production, warehouse inventory, packaging production, logistics distribution, marketing analysis, financial analysis, anti-counterfeiting verification, store terminals, etc. On the Moutai Cloud Business big data dashboard, we can see that the number of orders is 100,255, with a cumulative transaction amount of 4.31 billion yuan. Based on user registration information and other consumer data, user portraits are drawn, and continuously improving tags based on user portraits is a long-term and valuable project. We can also see the national service outlet sales ranking, hot product ranking, today's index, national regional heat map, average customer transaction value, and other data. Yanghe's Digital Transformation In January 2018, Yanghe renamed its Internet Center to Digital Operations Center to comprehensively promote consumer-centric user operations and achieve the company's digital transformation. Yanghe's full marketing network system project is positioned as the digitalization of "sales," comprehensively controlling product flow and expense flow. Through data analysis and resource integration of modules such as order management, expense supervision, sales business, and expense savings, it relies on the data application platform for mining, improving data application analysis capabilities, and enhancing Yanghe's digital driving capability. Yanghe's consumer data system project is positioned as the digitalization of "marketing." Currently, it has accumulated nearly 50 million consumer data points. Among them, Yanghe's bottle-scanning red envelope activity, implemented for nearly four years, is a massive entry point for its consumer data. In the next 3-5 years, Yanghe's digital transformation will focus on "completing informatization → basically completing digitalization → digital Yanghe." Digitalization will help Yanghe become a data-driven company, thereby achieving the goal of data-driven business. Wuliangye's Digital Transformation In April 2018, Wuliangye held a kickoff meeting for its digital transformation project, strategically cooperating with IBM to carry out digital transformation based on "one center, six capabilities" to create a digital Wuliangye for the new era. The "one center" is centered on "user experience," using digital technology to provide differentiated, higher-quality experiences for Wuliangye's end users, distributors, partners, and employees, promoting improvements in work methods and efficiency from aspects such as personnel, processes, and technology. The "six capabilities" are to comprehensively build Wuliangye's digital transformation capability system in six areas: business model innovation, market activation, precise action, agile operations, ecosystem collaboration, and organizational innovation. In 2017, Wuliangye issued an announcement to raise 1.8 billion yuan for the construction of informatization, marketing centers, and a service-oriented e-commerce platform. By May 2018, these funds had entered a third-party regulatory account, and Wuliangye began large-scale investment in digital transformation. Shede's Digital Transformation In August 2018, Shede Spirits reached strategic cooperation with Oracle and Beijing Tongda Weisi Digital Consulting, launching the "Marketing Cloud" digital transformation project. In fact, Shede Spirits had already begun planning the "Marketing Cloud" project in early 2018. After several months of in-depth research and analysis, it constructed a tailored set of project goals and methodologies. At the 2018 marketing management seminar, Shede Spirits proposed the direction of "based on long-term, sustainable, high-quality development." The "Marketing Cloud" project responded quickly and immediately announced its official launch. On August 1, General Manager Wu Jian, along with Shede Spirits' marketing team, Oracle China's Customer Experience Cloud General Manager Li Qiang, Oracle China's Marketing Cloud General Manager Yang Bo, and the Beijing Tongda Weisi digital consulting team, held a project kickoff meeting to officially promote Shede's consumer marketing cloud digital project. 02 Four Architectures of Digitalization in Baijiu Companies Digital transformation in leading industry companies mainly includes four aspects: production digitalization, sales digitalization, marketing digitalization, and management digitalization. Sales Digitalization One question: Where have my products been sold? How much inventory is in the channel? How effective are the actions? One model: Sales digitalization mainly involves three flows and four ends. The three flows are product flow, expense flow, and behavior flow. The four ends are the manufacturer end, merchant end, business end, and terminal end. Product Flow The main function of product flow is the visualization of the entire product flow direction and channel inventory. The prerequisite for realizing product flow is the application of one item, one code, requiring coding on bottles, boxes, and cartons. Through scanning, the quantity changes at each port are uploaded in real time. Step 1: After the distributor pays and places an order, the manufacturer scans the code for outbound delivery. For example, 1,000 boxes of Blue Classic are scanned out of the warehouse and shipped to the distributor's warehouse in Tongzhou, Beijing. Step 2: The distributor scans the code for inbound delivery or the system defaults to inbound. The manufacturer's backend shows the distributor's inventory change. For example, the Tongzhou distributor receives 1,000 boxes of Blue Classic. After unloading and scanning for inbound, the distributor's account shows an inventory increase of 1,000 boxes. Step 3: During terminal visits, if a terminal places an order, the salesperson places the order on the mobile app, scans the code to unload from the vehicle, or arranges separate delivery if the person and vehicle are separated. Step 4: After the terminal receives the goods, the terminal owner can scan the code on the WeChat official account or the manufacturer's app to earn points, which can be exchanged for gifts, etc. In the four steps of product flow, there are three key nodes: First, how to ensure the QR code is not damaged? Baijiu companies need to cooperate with cap suppliers to place the QR code inside the cap. During the coding process, the production line needs to be modified and optimized to a certain extent. Second, how to stimulate distributors to scan codes for inbound? Currently, the mainstream solution is to bundle distributor scanning for inbound and outbound with distributor rebates. For example, Blue Classic has a rebate of 5 yuan per box bundled with inbound and outbound. After the distributor scans for inbound, the system reminds them of the 5 yuan per box rebate. After the salesperson scans for outbound, the rebate per box is automatically credited to the distributor's cash account. Third, how to ensure the authenticity of salesperson delivery scanning? Currently, an effective solution is for the manufacturer to deploy local personnel or adopt an integrated manufacturer-merchant model, forming a "1+1" collaboration model with merchant salespeople. Salespeople use handheld terminal systems to scan for outbound delivery, ensuring products truly and effectively reach the terminal. Expense Flow The main function of expense flow is real-time monitoring of all actions and expense verification and control. There are two starting points for action expense flow: one is the terminal store, and the other is the salesperson. Common actions for baijiu companies include display, banquets, tasting events, etc. Taking display as an example: a salesperson visits a terminal store and carries out a counter display action. The salesperson initiates the activity on the handheld terminal and takes photos to keep records. The merchant and manufacturer backends can view the number of terminals carrying out the activity and the display expense payment in real time. For banquet actions, the terminal reports the banquet time and location to the salesperson, who reports the activity in the system. On the day of the event, the salesperson goes to the banquet hotel to give away liquor, takes photos and uploads them to the system, and records the quantity of gifted liquor and policy implementation. The merchant and manufacturer backends can view the progress of banquet actions in real time. Merchants can view cash expenses and product expenses in the system and submit them to the manufacturer for verification. The manufacturer backend can conduct on-site supervision based on the salesperson's action progress and perform online expense verification based on verification materials, improving the efficiency of action expense execution. Behavior Flow The main function of behavior flow is the management of salespeople's terminal route visits and attendance. Most baijiu companies have already implemented this function, but the level of user-friendly design varies among companies. Currently, mainstream baijiu companies are accelerating the implementation of sales digitalization. In comprehensive comparison, companies like Yanghe and Jiannanchun are at the forefront. Yanghe's full marketing system has been promoted comprehensively since 2017 and now basically covers Yanghe's major markets nationwide. The big data analysis established by the full marketing system helps Yanghe control the flow of major products and played a key role in the market introduction and quota implementation of the new Blue Classic and Sky Classic. In future marketing, Yanghe will rely on precise analysis from the big data system to continuously provide more accurate decision-making bases. Yanghe's full marketing system has also played a significant role in precise expense allocation and control. Taking banquets as an example, Yanghe's supervision department can, based on big data system analysis, focus on supervising regions, offices, and salespeople with more temporary reports, model and analyze high-frequency false situations, and through high-frequency suspected issues, focus supervision or directly conduct on-site supervision, truly using data to clarify supervision direction and improve action execution effects and expense efficiency. Marketing Digitalization One question: Who is drinking my product? Who are they? What are their hobbies? What activities are they interested in? One model: Marketing digitalization is a powerful tool for baijiu companies to operate core consumer groups in the future. The homogenization and intensification of channel competition have led to increasingly fragmented channels, indicating that the space for future channel innovation is shrinking. The efficiency of baijiu companies relying on channels to cultivate products is decreasing, forcing companies to directly face core consumer groups and communicate with them in ways and with content they are interested in, forming brand preference and consumption during the communication process. In the past two years, Guojiao 1573 and Dream of the Blue have been relatively successful brands in consumer operations. Guojiao 1573 is positioned as the national liquor of strong aroma and communicates with target consumers around this. In regional markets, Guojiao 1573 organizes target consumers through core terminals and distributors, establishing the consumer Guojiao Club. Through activities such as the Seven-Star Feast, private receptions, concerts, and golf tournaments, it activates members, allowing them to taste products during activities, forming brand goodwill and promoting continuous product sales. In key regions such as Hebei, Hunan, Sichuan, Shandong, and Henan, you will find that Guojiao sells faster than Wuliangye in tobacco and liquor stores. This is a typical case of improved consumer operation efficiency. The rapid growth of Yanghe's Dream of the Blue into a 10-billion-yuan phenomenal single product is a hot topic in the industry. Dream of the Blue's consumer operations over the past three years have been relatively solid. Yanghe has successively established Dream Gatherings and Public Welfare Research Institutes across the country. Through activities such as New National Liquor Night, public welfare activities, and Dream Building Lectures, members experience the warmth and height of the Dream of the Blue brand during participation, forming interaction between the brand and consumers, and ultimately driving sales. In the future, the industry's growth momentum lies in structural upgrading. Sub-high-end and high-end have become growth stars. The higher the price, the more necessary it is for companies like Moutai, Yanghe, and Luzhou Laojiao to community-ize core consumers in regional markets, persist in deep communication through activities they are interested in, and make them form brand preferences. Only by highly occupying consumers can they highly occupy market share. Digitalization will be a precise accelerator for baijiu companies to cultivate consumers. How to use digital tools to make communication between baijiu companies and core consumers more precise, faster, and more human is what marketing digitalization can help enterprises achieve. Marketing digitalization can achieve four goals: Currently, leading companies in various industries such as Huawei and Diageo have chosen strategic cooperation with Oracle for marketing digitalization. According to media reports, the top 150 consumer goods companies globally use Oracle's digital products. Its marketing digitalization system is relatively mature and has a high degree of localization in China, with comprehensive integration with WeChat. Marketing digitalization mainly includes consumer data acquisition, consumer data integration and database establishment, consumer tagging, consumer reach, consumer profiling, and long-term consumer care plans. First, Consumer Data Assets and Database Establishment Consumer data acquisition channels are multi-type and multi-dimensional. Currently, mainstream consumer data acquisition channels in the industry include promotional scanning, e-commerce order data, WeChat official account followers, and consumer data from offline activities. For example, one of Yanghe's channels for accumulating consumer data assets is the bottle cap scanning red envelope activity, which sets a 100% winning rate. After consumers scan the code and win a red envelope, they follow the official account and withdraw cash, thereby retaining relevant data. Consumer data from various channels needs to be centralized and deduplicated by setting a unified identification number for data comparison. Currently, in European and American markets, email is mainly used, while in China, mobile phone numbers are the unified identification. After a long period of data accumulation, a consumer database of a certain scale can be established, which is the core asset for deep consumer operations. Second, Consumer Tagging and Profiling Consumer tags are divided into static tags and dynamic tags. Static tags mainly refer to basic demographic attributes, such as gender, age, region, and channel source. Static data tags can help companies identify target consumer groups. Dynamic tags mainly refer to consumer behaviors such as browsing, clicking, purchasing, and participation. Dynamic data tags can help companies understand consumer interests and hobbies. Currently, consumer tags in the baijiu industry number over a hundred. Each company needs to optimize its tag system according to its own needs. Consumer profiles are divided into individual customer profiles and group consumption profiles. For example, in Oracle's system, an individual customer profile is shown in the figure below, clearly analyzing each customer's touchpoints with the brand and product. Individual customer profiles will effectively guide deep consumer operations in regional markets. Group consumption profiles mainly refer to the common tag characteristics of consumers of a certain product or price point. For example, Nielsen's big data analysis of typical tags and characteristics of high-end baijiu consumer groups is shown in the figure below: Tagging the consumer database will better analyze consumer data, continuously enrich individual and group consumer profiles, and more precisely guide corporate marketing activities. Third, Consumer Reach and Loyalty Management Consumer reach, traditionally mainly through advertising, cannot monitor whether the reach occurred or its effect. The marketing cloud provides its own, monitorable reach paths, making reach more precise and effective. For example, taking the factory visit as an example, as shown in the figure below, the marketing cloud can optimize the consumer experience through three links and four touchpoints. (1) Recommended list based on tags: The marketing cloud system can recommend a list of consumers for factory visits based on regional consumer data and tags, combined with offline review in the regional market, to finalize the list. (2) Personalized electronic invitation: The system can send electronic invitations to target consumers, and consumers can register to participate. (3) Warm reminder before departure: A departure reminder can be set in the system to give consumers a personalized service experience. (4) Scan-code interaction during factory tour: Choose interactive links suitable for consumers in the factory area, embed QR codes or other forms, allowing consumers to interact and leave information, deepening the experience. (5) Sharing wonderful moments on WeChat: During the return trip, collect wonderful moments of visitors, use the system's factory visit custom template to generate customized content, recommend it to factory visit consumers on the official account, let them feel personalized service, and share it on Moments to form secondary dissemination. Traditional marketing actions such as factory visits, tasting events, event marketing, and banquets can all be upgraded through marketing digitalization systems, collecting consumer data assets during the process, enhancing consumer experience, and increasing brand warmth. For example, the operation of consumer clubs can carry out consumer loyalty management through the marketing cloud system. As shown in the figure below, the marketing cloud can improve the operational efficiency of consumer club members through daily maintenance, improving tags and grouping, and precise interaction with personalized activities. Conclusion In the digital era, everything is interconnected. From the huge success of "Douyin," we can see the power of big data analysis and personalized recommendations. It is foreseeable that digitalization in all industries will further accelerate, and digitalization in the baijiu industry will be unstoppable. Especially leading companies such as Moutai, Yanghe, Wuliangye, and Shede have invested heavily in digital transformation. In the next 3-5 years, digitalization will more deeply and comprehensively rewrite the marketing landscape of the baijiu industry. Sales digitalization empowers enterprises' channel control, greatly improving traditional channel efficiency. Channel competition will shift from tactical bloodbath competition to operational system efficiency competition. Marketing digitalization empowers enterprises' consumer control, greatly improving the efficiency of consumer cultivation for baijiu companies. The competition for consumers will shift from vague high-altitude bombing to precise sniper-style winning. We look forward to the digital exploration and transformation of leading industry companies, allowing the industry to move from tradition to rebirth! Note: The images and data in the article are from public sources on the Internet. Source: Micro Wine (zgweijiu) ************On October 23-24, during the Autumn Sugar and Wine Fair, the "2018 FMCG City Distribution Logistics Conference" hosted by New Distribution will be held. New Distribution will invite industry experts, FMCG warehousing and distribution specialists, and distributors who have transformed to unified warehousing and distribution platforms to discuss and answer questions around the theme of "New Distribution, New City Distribution," focusing on the future development trends of FMCG city distribution logistics and practical cases of distributor transformation to unified warehousing and distribution. We hope it will bring you different inspiration and thinking! The specific meeting topics are as follows: List of Participating Companies In no particular order Hunan Zonglan Diandan Network Technology Co., Ltd. Jingbang (Wuhan) International Freight Forwarding Co., Ltd. Mengniu Dairy Qinghai Hanxiang E-commerce Co., Ltd. Unilever Services (Hefei) Co., Ltd. Shanghai Branch Huicong Hunan Xuan'ang Food Co., Ltd. Guangzhou Tongdaoren Information Technology Co., Ltd. Qingdao 888 Trading Co., Ltd. Uni-President Enterprises (China) Investment Co., Ltd. Hunan Province Zhongxiang Gongpei Logistics Co., Ltd. Shenglong Ingredients COSCO Shipping Logistics Warehousing and Distribution Co., Ltd. Guangxi Yongpai Liquor Co., Ltd. Shangqiu Kangrong Trading Co., Ltd. Jinan Dingzhong Economic and Trade Co., Ltd. Liaoning Bimai Agricultural Technology Co., Ltd. Kunming Xiongjia Trading Co., Ltd. Shaanxi Houheng Trading Co., Ltd. Guangzhou Dingwo Enterprise Information Consulting Co., Ltd. Shaodong Jiajiale Trading Firm Boda Trading Industrial Bank Changsha Branch Wuhan Muchen Convenience Store Chain Co., Ltd. Fujian Fuxing Yuncang Logistics Co., Ltd. Guizhou Yilimi E-commerce Co., Ltd. Jiangxi Xiao Laoer E-commerce Co., Ltd. Jinshan Koufu Shanxi Taihang Yuanjing Supply Chain Management Co., Ltd. Shanxi Dezhun Supply Chain Management Co., Ltd. Shaoyang Tongdeli Trading (Xiangbang Logistics) Huanfu Tongda Express City Distribution Beijing Xinjingxiang Food Co., Ltd. Wuhan Huizhong Tianhong Liquor Co., Ltd. Changsha Paide Biotechnology Co., Ltd. Chao'an Tuqiang Guizhou Yihe Bopin Supply Chain Management Co., Ltd. Jiangxi Kang'en Industrial Co., Ltd. Xiangtan County Yisuhe Town Yuhua Paper Store Luoyang Yuanlang Trading Co., Ltd. Tongchuan Yaozhou District Huayuan Supermarket Co., Ltd. Hunan Yongfu Jiujiu Trading Co., Ltd. Zhejiang Chengchengtong Logistics Co., Ltd. Chongqing Kaiguo Materials Trading Co., Ltd. Beijing Xianmaixianmai Data Technology Co., Ltd. Hanchuan Qixing Trading Co., Ltd. Tongxin Jiuzhiru Trading Co., Ltd. Guizhou Meiguo Guoguo Network Technology Co., Ltd. Hubei Anjie Logistics Co., Ltd. Hubei Kuaixiao Hulian Technology Development Co., Ltd. ...... Representatives of Distributor Transformation (Proposed) In no particular order Jiangsu Huashang City Distribution Network Co., Ltd. Chairman, Rong Jun Hubei Yijiaren Logistics Co., Ltd. Chairman, Wang Bo Sichuan Chengdu Xingrenxing Trading Co., Ltd. General Manager, Jiang Shuming Shandong Yunbang Warehousing and Logistics Co., Ltd. Chairman, Liu Jichen Chongqing Lingyu Consumer Goods Supply Chain Management Co., Ltd. Chairman, Tu Mingyu Guangzhou Zhongshan Wanrong Marketing Co., Ltd. Chairman, Yang Su Sichuan Bajie Supply Chain Management Co., Ltd. Chairman, Yuan Xia Hubei Pengdun Meiyitian Supply Chain Management Co., Ltd. Co-founder, Li Qiangyun Henan Xuchang Jiulegou E-commerce Co., Ltd. Chairman, Zhang Jianyong Hebei Changyi Logistics Co., Ltd. Founder, Ma Haichao Hebei (Chengde) Wulian Yuncang Co., Ltd. General Manager, Meng Yucun Xinjiang Urumqi Su'an Jinchi Logistics Co., Ltd. Chairman, Zhang Xun Jilin Sansheng Lianggou Chairman, Zhang Hailing Hebei Dunjie Supply Chain Management Co., Ltd. Founder, Qiang Huitao Hunan Damei Supply Chain Management Co., Ltd. General Manager, Liao Lei ...... On October 23-24, the 2018 China FMCG City Distribution Logistics Conference hosted by New Distribution will be held in Changsha. Industry experts have sent their blessings for the conference. Click the video to watch; see below for more conference details. -END-