Introduction: Exploring market opportunities, expanding into the northern market, joining forces to achieve complementarity, mutual benefit, and win-win outcomes. Author | Chen Haiwei Compiled by | New Distribution Reviewed by | He Wen Layout | Wang Hai
On December 6, 2023, the first China FMCG Hard Discount Conference, hosted by New Distribution, grandly opened in Zhengzhou! Over a thousand attendees from across the country, including entrepreneurs of hard discount chain brands, brand executives, investors, practitioners of hard discount, outstanding distributors in the FMCG industry, as well as industry service providers, consumer investors, and hard discount research experts, gathered in Zhengzhou!
Tangchen Jiesen Brand Strategy Consulting, as a special guest of the conference, was represented by co-founder Mr. Chen Haiwei, who delivered a speech titled "Combining Discount Strategy with Brand Value for Long-term Customer Acquisition," analyzing from multiple angles how to combine discount strategy with brand value to acquire customers while maintaining enduring brand value.
The development trends of the Chinese FMCG market are currently a topic of great concern to major enterprises. From a macro perspective, the Chinese FMCG market is slowly recovering.
Before 2020, the average price of Chinese FMCG products had been rising for 20 consecutive years, with an annual increase of about 3.5% compared to the previous year. However, due to macro factors such as the pandemic, this upward trend stalled in 2020.
From 2020 to 2022, the average price of Chinese FMCG products declined at an annual rate of -1.1% to -1.5%. However, in the first quarter of 2023, the average price reversed its decline and rose by 1.6%, indicating a recovery. As of March 2023, the Chinese FMCG market grew by 3% compared to the same period last year.
Benefiting from the growth of online channels, the continued release of consumption potential, and the emergence of high-growth categories, the FMCG market is further showing a steady growth trend. All signs indicate that the FMCG market is slowly recovering.
On the same day, Tangchen Jiesen and Henan Liangmi Group (hereinafter referred to as "Liangmi") entered into a strategic cooperation aimed at exploring market opportunities in the FMCG field, expanding into the northern market, achieving complementary customer resources, and mutual benefit and win-win outcomes.
Tangchen Jiesen is a new-generation brand strategy company dedicated to breaking through with "value anchors" to help Chinese enterprises gain category discourse power. Breaking away from traditional brand strategy positioning, it uses a precise "value anchor" to stand out, helping brands gain category discourse power, thereby capturing consumer mindshare, achieving business growth, and maintaining a leading market position.
Henan Liangmi Group (hereinafter referred to as "Liangmi") is an e-commerce service provider covering comprehensive e-commerce, interest e-commerce, and other channels. It is mainly committed to "generating GMV," serving the consumer goods industry, and providing brands with a full set of solutions including store operation agency, e-commerce distribution expansion, product planning, supply chain optimization and integration, and accompanying services.
After friendly negotiation between Party A and Party B, it was decided to establish a strategic cooperative relationship based on the principles of equality, mutual benefit, and complementary advantages. On the basis of mutual benefit, the two parties will form a long-term common development community with unified resource integration advantages to achieve good social and economic benefits. To this end, they have reached this strategic cooperation framework agreement through friendly consultation.
At the signing ceremony, Zhao Hongwei, Chairman of Liangmi Group, pointed out that with increasingly fierce market competition, going it alone can no longer meet development needs. On the contrary, through cooperation and accelerated resource integration, we will be able to better and faster respond to various market challenges, jointly embrace opportunities, and achieve the marketing effect of "cost leadership and efficiency first."
Liangmi and Tangchen Jiesen will rely on the FMCG field to carry out business expansion at both online and offline levels, as well as private and public domains. With the strong alliance of both parties, they will be better able to meet the ever-changing needs of customers while improving market competitiveness.
The Chairman of Tangchen Jiesen believes that strategy is the bridge connecting the current situation and the future of an enterprise. The purpose and significance of setting goals is to reach consensus, have unified thinking patterns, behavioral patterns, and expression patterns, focus on consensus, and generate synergy.
Many Chinese enterprises often exhibit a situation of "having tactics but no strategy" in strategic planning, fighting here and there, resulting in scattered strategic goals, being controlled by channels for profits, with high sales but extremely low gross margins.
Liu Wei, Chairman of Tangchen Jiesen Brand Strategy Consulting, drawing on academic exchanges with globally renowned institutions such as London Business School and Wharton School, has created a more practical and actionable strategic positioning model based on traditional strategic positioning theory.
Facing the major changes in business flow, brands and e-commerce platforms are competing for channel control. Therefore, Mr. Liu also hopes that through this cooperation, when suggesting enterprises make strategic choices, they can choose full-chain advantages or local advantages based on their own business models and resource allocation.