Click to read the original article for details. After 2013, the logic of product development changed, both in terms of new product R&D and new product promotion. Why 2013? Because in that year, industry sales peaked, shifting from quantity growth to quality growth, and China truly entered a middle-class society. Entering a middle-class society, consumer psychology changed. One important change is that all products are first and foremost psychological products. When products have similar functions, demand shifts to psychological satisfaction. Mass-market psychological products generally follow the laws of fashion and trends. They originate in niche markets, explode through communication, and spread to the masses. This is the law of fashion. Before 2013, the FMCG industry was in an era of quantity growth. In the quantity growth era, although there was a consumption structure, overall consumption was at the bottom, mass consumption. I call it "double-low products": quality at the bottom line, price at the bottom. In 2014, price bands in almost all FMCG industries began to move up. For example, from 2013 to 2017, beer sales volume fell by 11%, but sales revenue rose by 21%. The upward shift in price bands does not mean all products move up collectively, but rather that the price band is stretched. For example, bottled water was originally in the 1 yuan and 2 yuan price bands, but now it has stretched to include 1, 2, 3, 4, and 5 yuan coexisting. Higher prices exist but with lower sales volumes. Now, the 2 yuan price band is mass demand, while 3, 4, and 5 yuan are not yet mass demand. If it's not mass demand, large-scale distribution will definitely cause sales problems. I have always criticized Evergrande Spring Water. Originally at the 4 yuan price band, it should not have been widely distributed. Unfortunately, at that time, the entire Chinese marketing community was immersed in the traditional distribution model of "distribution + promotion." It can even be said that many good upgraded products died this way. Let's review the scenario of new product promotion under the traditional deep distribution model. Whether or not to do brand advertising for new products is one thing, but "distribution + promotion" was a must. At that time, the "Eight-Step Terminal Visit Method" was popular, considered the bible of deep distribution. What does assessing distribution rate mean? It means that even new products must be mass-priced and mass-market; otherwise, they cannot be widely distributed. Promotion means sell-through, which implies that consumers are quite sensitive to promotional policies (actually disguised price policies), with a prominent "getting a bargain" psychology. The scenario at that time was: as long as you put mass products in front of consumers (distribution), supplemented by price policies (bargains), they would sell. Does this scenario still exist now? If the traditional scenario no longer exists, what should we do? There are two products that, although upgraded, have done relatively well. One is Tang Daren (Instant Noodles). Launched in 2008, its price band was around 7 yuan, double the mainstream price band at the time. If such a product had followed the model of large-scale distribution + promotion, it would have died long ago. At that time, Tang Daren could only be sold through special channels, and it sold quite well. By 2015, when the instant noodle price band shifted upward significantly, Tang Daren suddenly became popular and moved to mass channels, and then distribution rate could be discussed. Another product is Baishuishan (Mineral Water), with a price band of 3 yuan. Even now, 3 yuan is not the mainstream price band. A few years ago, how could 3 yuan bottled water survive? Of course, it couldn't be widely distributed; it had to find special channels, such as high-speed rail stations, or distribute in first-tier cities. Now, promoting new products faces a dilemma. If it's a traditional mainstream price band, there may be sales, but the track is crowded, and it's hard for new products to squeeze in. Even with high distribution rates, sell-through is difficult because the era of promotion equaling sell-through is over. If it's not a mainstream price band, then large-scale distribution is definitely not possible, and sell-through is also difficult. Even if it sells, the volume is small, and you must wait. Now, new product promotion seems to be only strategic promotion. It's impossible to achieve immediate volume. Strategic promotion means first laying out, first occupying a position in the price band, and first doing special channels. Then wait for the price band to gradually shift upward, turning non-mainstream price bands into mainstream ones. Without patience, new product promotion is hard to succeed. I summarize the new strategic promotion model in three sentences. "Originate in niche, explode through communication, harvest from the masses." This can also be seen as the three steps of new product promotion. Strategic new products, of course, are first laid out. How to lay out? First, regional layout. From the price band perspective, it must be higher than the mainstream price band. Different cities have different price bands, so regional layout is needed. For example, 4 yuan bottled water is close to the mainstream price band in first-tier cities and can be widely distributed. Second, channel layout. Channel layout is also consumer group layout. In the same city, different channels have different price acceptance levels. Similarly, 4 yuan bottled water in second, third, and fourth-tier cities can only be distributed through special channels. Special regions and special cities actually target niche markets. Strategic new product promotion must have niche awareness. Niche awareness means not pursuing satisfaction for everyone, but pursuing first choice for a minority, cultivating enthusiasts and fans among a small group. In the past, new product R&D had to pursue the greatest common divisor of society. If new product promotion seeks the greatest common divisor, the product becomes mediocre. If a product is considered "not bad" by everyone, it may fail. This is not only related to the product but also to the Internet era. In the Internet era, those with the most communication energy are not those with the most spending power, but those who are relatively obsessive. Relatively obsessive people hold the discourse power in the Internet era. Exploding communication is not about everyone accepting it, but about a minority being particularly fond of it. Enthusiasts and fans have the most communication energy. Don't overestimate consumers' insistence on individual needs; most people will give up their individuality under environmental influence and be guided by those who insist most on their individuality. Under communication energy, the masses will follow the crowd. Trends, in fact, are the masses following the niche. In the traditional marketing era, whose voice was the loudest? Who had the most communication energy? Teacher Shi Wei said that traditional communication was just "loudspeakers" shouting, like on CCTV. Who had the most communication energy? Whoever had the most money and dared to bet on communication had the most energy. At that time, communication was about constant repetition to strengthen memory, repeating until you couldn't forget even if you wanted to. In the Internet era, who has the most communication energy? No extremes, no communication; no obsession, no communication; no fans, no communication. Except for central figures like Jack Ma who still have communication energy, relying on throwing money can hardly gather communication energy. Discover those niche groups with communication energy, satisfy their individual needs, and trigger mass attention. The masses are not persuaded; they are conquered. Some niche groups are just niche and cannot be extended. Some niche groups can be transformed into the masses. Some can be extended to the masses. Trends are the transformation between niche and mass. Originating in niche actually aims at the masses. Originating in niche gains preference and harvests fans. Through niche, gather communication energy; this is the transition. The ultimate goal is to conquer the masses through communication.