The era of low prices as king is gone Young consumers neither look at brands nor prices, only at feelings... In today's market, where the post-90s and post-00s generations have become the new consumer主力, the strategies of FMCG companies are changing. The era of channel as king and low prices as king is long gone. These companies face consumers from the post-90s generation or even younger, who neither look at brands nor prices, but only at feelings. The rise of this new generation of consumers has led FMCG companies to change their strategies, competing to please the new consumer group.
1Price wars gradually lose effectiveness Since entering the Chinese market, price wars have been a constant in the battle between the two giants of the instant noodle industry, Master Kong and Uni-President, in the Chinese market. From the 1990s to 2014, these two competitors have been engaged in price wars. Even during the decline of the instant noodle industry, the price wars continued fiercely. As the pressure on profits from price wars became increasingly evident, under huge performance pressure, Master Kong and Uni-President began to signal a halt to the price wars, successively canceling promotional activities such as free ham sausages. The price wars that had run through the instant noodle industry for decades came to an end. According to industry insiders, the rise of the middle-income group and the new generation of consumers has made consumers less sensitive to prices. FMCG companies realized that price wars could not boost sales and turned their attention to other areas, such as emotional interaction with consumers and fans. 2The era of channel as king is fading For FMCG, the challenges brought by channel changes are enormous. The rise of e-commerce has made the channel networks that FMCG companies painstakingly built less important. The popularity of online shopping has gradually eroded the traditional channel advantages of FMCG, forcing FMCG companies to change their marketing strategies. For FMCG, the past was the era of channel as king, where displaying products in supermarkets and small shops nationwide meant guaranteed sales. Now, consumers quickly accept new products and brands. "The post-00s generation has become the mainstream consumer group. These consumers are willful; they neither look at brands nor prices, only at feelings," said Zhu Danpeng, a researcher at the China Brand Research Institute's Food and Beverage Industry. The younger generation has become the main consumer force with strong personalized consumption needs. This has led to a major reshuffling in the FMCG industry, with old channel-driven companies like Wahaha declining, while internet-based companies like Three Squirrels thrive. 3Brands are upgrading in droves Against the backdrop of consumption upgrading, a wave of companies has initiated brand and product upgrades. The cup noodle brand Xiangpiaopiao recently launched its first "pure milk and pure tea" new product on a large scale. This product, free of additives and preservatives, marks Xiangpiaopiao's transformation towards "healthier" options. According to Xiangpiaopiao's plan, the target consumers for "original milk tea" are high-end consumers in first- and second-tier cities who care about health and personalized experiences. Meanwhile, the meat product company Shuanghui, after acquiring the American meat brand Smithfield, officially introduced the Smithfield brand to the Chinese market this year, producing three categories of low-temperature products: American-style bacon, ham, and sausage. Song Baoguo, vice president of Henan Shuanghui Investment Development Co., Ltd., stated that China's economy is transitioning from investment-driven to consumption-driven, and consumption transformation, demand upgrading, intensified competition, and rising labor costs are common challenges for the entire meat industry. Product innovation and management model innovation are imperative. Another meat company, Delisi, is also upgrading its brand. Delisi recently announced a strategic cooperation agreement with ADK, one of Japan's three major comprehensive advertising companies, covering brand strategy, image upgrading, brand promotion, marketing planning, and product packaging. A Delisi spokesperson said that in response to changes in the market consumption environment and the upgrading of consumption structure under the new economy and new normal, the company has been actively exploring and responding, making it an important brand development strategy to build a large meat enterprise that adapts to current consumption changes and stimulates vitality. 4Focus on studying the post-90s and post-00s generations "The main reason is consumption upgrading. Kids have money in their pockets, and consumers are more willing to spend on high-quality products," Zhu Danpeng pointed out. The rise of new consumer groups like the post-90s and post-00s has changed the marketing models of FMCG companies. "The new generation of consumers is willful; they neither look at brands nor prices, only at feelings. Triggering emotional resonance with the mainstream consumer group is more important than anything else," Zhu Danpeng noted. These new consumer groups are not interested in traditional advertising. This has made social media and new media important platforms for FMCG brands to interact with consumers. Mengniu, Hongkun, and Kunlun Fight jointly hosted the Kunlun Fight 53 - Battle of the Kings in Beijing recently. This is the first substantive action since Mengniu and Kunlun Fight began strategic cooperation in August this year. Operating the Kunlun Fight sports IP is Mengniu's best way to get close to young consumers through sports marketing. From traditional sponsorship to deep involvement in the operation of sports event brands, this reveals a shift in Mengniu's marketing approach, all aimed at triggering emotional resonance with the new generation of consumers. A food company executive told Beijing Morning Post reporters that his daily task is to study the post-90s and post-00s generations. "They don't save money; they spend as much as they earn. They are willing to spend lavishly on their favorite movies, TV dramas, and stars. They love ACG and danmaku, and they buy merchandise without hesitation," the executive said. Although he feels far from the world of the post-90s and post-00s, he must continue researching their consumption patterns. Winning over the new generation of consumers means winning the future. ■News Link 01
How long can Beibingyang's nostalgia card last? The slogan "You're just drinking soda, I'm drinking Beibingyang" has made Beibingyang, which heavily plays the "nostalgia card," a hit in the soda world. Beibingyang soda has also used this to conquer the streets of Beijing. After tasting the sweetness of the nostalgia card, Beijing Yiqing Food Group began replicating this model. This summer, Beijing Yiqing Food Group announced the comeback of Shuangbang and Xiaodou ice pops, and classic products like Dailing and soy milk will be launched one after another. Although the Xiaodou ice pops that old Beijingers have been longing for have returned, the high price has been frequently criticized. Consumers have mixed feelings about the comeback. "The current price of Xiaodou ice pops is 4.5 yuan, which is 90 times the price when I was a child. Might as well make it 100 times," some consumers said, not wanting to exchange money for a lost childhood. Others said, "Considering the current housing prices, this price is acceptable." "Beibingyang is also adopting more proactive marketing methods and more flexible distribution cooperation, deepening cooperation with Internet+ and e-commerce platforms, and starting the layout of the national market," said Li Qi, chairman and general manager of Beijing Yiqing Food Group. He said they strive to make Beibingyang a leading domestic beverage brand and industry leader within five years. The wish is beautiful, but starting the long journey of reviving an old brand cannot rely solely on nostalgia. "The positioning of a 4.5-yuan Xiaodou ice pop is too high, as similar products are priced around 2 yuan," Zhu Danpeng pointed out. 02
Can Uni-President's innovation card continue to turn the tide? Strong innovation has allowed Uni-President to make a stunning turnaround in the past two years, from huge losses to positive growth. The industry has always regarded "Xiaoming Classmate" and "Hai Zhi Yan" as Uni-President's magic weapons for turning the tide, but the most important factors for Uni-President's success are its innovation and insight into consumers. Besides Uni-President's strong brand and channel advantages, what makes "Xiaoming Classmate" stand out among many tea drinks is not the taste, but the "personalized" packaging and marketing. Both online and offline activities of "Xiaoming Classmate" convey the concept of "having an attitude," which resonates with young consumers who like to try new things, pursue individuality, and have their own opinions. Against the backdrop of consumption upgrading, Uni-President has been launching new products in both the beverage and instant noodle sectors this year. Whether Uni-President's innovation card can lead it through the winter of instant noodles remains to be seen. -END- ★ Click the blue text below to view this month's popular articles ★ Click the blue text below to view this month's original articles FMCG industry's most professional and practical knowledge base 【 Reply with the yellow number in the background to view the corresponding keywords 】 | **001 **Excellent article selection | 002 Dealer market operations | **0****03 **Terminal visit management | **004 **Sales supervisor skills | ** 005 **Sales improvement techniques | **006 **Channel expansion | 007 Managing dealers | **008 **Dealer development | 009 Dealer internal operations management | **010 **Team management | **011 **Efficient distribution techniques | **012 **Sales manager's eighteen skills | **013 **KA operation methods and strategies | 014 Sales novice's first lesson | **015 **Internet, brand | 016 Dealer B2B transformation |