Click to read the original article for details Preface: In 2020, the pandemic impacted many industries, with offline consumption bearing the brunt. Scenarios such as visiting relatives and friends, dining together, and public entertainment were greatly affected. The small-bottle baijiu category was hit hardest, with market sales nearly at a standstill. As a leader in the small-bottle segment, Jiang Xiaobai also suffered severely initially, as a significant portion of its restaurant channel was cut off overnight. However, in 2020, Jiang Xiaobai not only withstood the test of the pandemic overall but also completed a C-round financing of over 1 billion yuan in the third quarter. At the same time, despite severe disruptions to international trade and exchanges, Jiang Xiaobai became one of the most popular baijiu brands in bars in Japan and South Korea. On many professional liquor recommendation lists in these countries, Jiang Xiaobai ranked second only to Moutai among Chinese baijiu brands. Moving swiftly without haste, based on long-term accumulation, the company made significant breakthroughs in developing a second growth curve. Meijian plum wine became the top-selling fruit wine category on Tmall during the 618 and Double 11 shopping festivals, establishing itself as a leading brand in the plum wine market. This once again demonstrated the company's innovative capabilities in R&D, production, and brand creation. This makes one curious: How did Jiang Xiaobai fight the pandemic in 2020? What is the strategic focus for next year? Will it bring a new wave of wealth opportunities for distributors? On December 31, 2020, during New Distribution's 2021 New Year's Eve live broadcast, Jiang Xiaobai's founder Tao Shiquan sincerely shared his insights with distributors nationwide. The following is a compiled version of Tao's sharing for readers. After Experiencing 2020, I Have 'Three Beliefs' to Share with You Narrated by Tao Shiquan, Compiled by Chen Feng It's New Year's Eve, and many are out celebrating, but we in the consumer goods industry gather in New Distribution's live stream, still busy and learning. We've worked so hard; I believe the future will reward us. Both manufacturers and distributors felt the impact of sudden environmental changes in 2020. But we should not 'waste' any crisis; every crisis brings change and transformation. As the old saying goes, heroes emerge in troubled times. Every company that ultimately grows to excellence or greatness is born in such complex and changing environments. Distributors are also a group of heroes; excellent distributors are surely tempered by trials. In good times, your efforts may be overshadowed because growth in favorable conditions doesn't necessarily reflect your ability. In the past, we enjoyed the dividends of China's economic development for two or three decades, and many distributors grew and expanded thanks to these dividends. But we must have a clear understanding and view things rationally: your efforts are important, but not everything. After the historic year of 2020, if there is any gain, I have gained 'three beliefs' that I am willing to share with distributor friends.
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Believe That Things Will Get Better In 2020, Jiang Xiaobai's biggest gain and change was that the entire company, including all distributors, learned to face change head-on. Having the courage to face and embrace change requires a crucial prerequisite: whether we truly believe tomorrow will be better. Believing it will get better makes us willing to change, which is important and fitting for 2020. Everyone wants to be in a safe, certain, and unchanging environment for comfort. But today, technology and information change at an accelerating pace. If we cannot believe the future will be better, we won't have the determination to change. Of course, I must emphasize that a company's innovation and growth must be in sync with environmental changes. Being too far ahead is also dangerous. Conversely, falling too far behind leads to elimination. In general, change is good. If one day I feel my company cannot become better, I might make two decisions: one is to sell or part ways in another manner; the other is that if my age and cognition can no longer lead the company to improvement, I would find a suitable person to succeed me, someone younger to drive the next phase of growth. So, why should we believe tomorrow will be better? My judgment is that in 2021 and 2022, as long as we have correct cognition and sustained effort, we will inevitably do better. Just like the changing seasons, some old things will die, but new things will surely grow. New categories, new brands, new models, new channels, and especially new consumer groups will rise. Uncertainty is the norm; that's how the market is. But if we look objectively and dialectically, it's fair for everyone. An uncertain environment actually brings us more opportunities. This year, in the consumer goods sector, both primary and secondary markets have shown particularly strong confidence. I believe this confidence is not solely due to capital but more because, globally, China's economy stands out, domestic demand continues to drive consumption upgrades, and many categories are re-emerging with innovative opportunities. So I am long-term bullish on the consumer goods sector. Compared to other industries, ours is generally better, and we have no reason not to believe there will be more new opportunities for improvement. Of course, these opportunities are not for everyone; they belong to the foresighted and those willing to actively embrace change. From the inception of the Jiang Xiaobai brand, I saw opportunities in the young demographic, where consumption for small gatherings and casual drinking was not fully met. Today, consumption upgrades and diversity still hold numerous opportunities. In summary, after 2020, we must still believe: first, believe in the nation's fortune, as China's economy stands out; second, in the face of uncertainty, everyone is equal, and uncertainty contains opportunities; believe that change is good.
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Believe in Innovation In today's environment, it's easy to see that innovation is justified and brings opportunities. Whether it's digital innovation for distributors, new categories, new brand opportunities, or the chance for companies to create a second curve, innovation can continuously bring growth points. I feel this deeply. Although Jiang Xiaobai was greatly affected by the pandemic in the first half of 2020, overall, we did particularly well because we had prepared early, achieving our goals in new categories, brands, and growth points. I think it's crucial to look at things over a longer time horizon. Sometimes we care too much about monthly or quarterly data changes. In reality, many companies or distributors in 2020 may not have achieved growth; some stabilized, some even declined, which is normal. When we truly understand the internal logic of business development, extending the time dimension slightly may help us make better decisions. In a sense, if we want to seize innovation and understand it, we must extend short-term perspectives appropriately. For distributors to achieve next-step innovation, such as digital innovation, patience is essential. Any distributor hoping to achieve digital innovation cannot do it quickly in the short term, say half a year, a year, or even longer. It may take two, three years, or even longer to see changes. The same applies to organizational transformation and innovation.
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Believe in Our Team Lastly, we must believe in the team. In the coming years, innovation will continue to emerge, but it will not be driven solely by founders or bosses. Innovation is a holistic issue that relies on the team, so we must believe in our team. For companies, we should uphold the principle of manufacturer-dealer integration, meaning distributors are also part of our team; we are one whole. Shifting focus from external sales and profit growth to internal customer satisfaction, user satisfaction, and the intrinsic growth of business innovation is worth pondering. I also think we should leverage the innovative changes of recent years to cultivate internal strength and seek each company's second growth curve. I believe the emergence of new channels, innovations, and online/digital trends can help many distributors find a second growth curve. Today's scale and business are not the most important; what deserves our attention is the longer term—the next 3, 5, or 10 years—which is where deep thinking is needed. I wish all distributor friends who follow New Distribution a new year where you can truly face environmental changes, drive your own innovation, and seek second-curve growth. Major Conference Announcement! January 19-20, Wuxi, Jiangsu New Distribution will bring together 500+ FMCG distributors from five provinces in East China in Wuxi, Jiangsu, for a conference aimed at product selection and cooperation exchange between brand owners and distributors. Plan before the year ends, start after the New Year! Don't wait until after the Spring Festival to plan! Interested brand owners or distributors are welcome to contact us. Please scan the WeChat QR code below to register for attendance or exhibition. Exhibition Contact: Tips will be paid 400-2000 yuan upon adoption.