Click to read the original article for details. In the traditional FMCG industry, where 'embracing new retail' is increasingly emphasized, some distributors and manufacturers are being courted by numerous B2B internet companies, making it seem as though the topic of new retail must involve them. However, in the author's view, new retail represents a shift in operational thinking; while building on these platforms may offer a head start, the mindset of simply leveraging external support could be a potent dose for distributors—whether it leads to enlightenment or to drinking poison to quench thirst requires careful consideration. At this stage, there are more important things for distributors to figure out first: how have consumers changed, what should be grasped first under the trend, whether to build the subway or the highway first, and from which dimensions their core competitiveness needs to be enhanced. Insight into Consumption Trends, Leveraging Community Advantages Nielsen has provided some interpretations of China's consumption trends in 2018. Against the backdrop of consumption upgrading, consumers have become more self-focused and discerning, with rational consumption prevailing, especially in cautious product selection and multi-channel price comparison; they also pay more attention to product quality and purchase experience, and interests and acquaintances are reshaping social connections, becoming important factors influencing consumption choices... These signs indicate that the old way of distributors sitting back and selling goods, merely handling delivery, is no longer compatible with current consumer demands. Distributors must conduct self-assessment, clarify their core advantages in the regional market, improve efficiency and service quality across the supply chain, and increase the stickiness of terminals and consumers to the brands they operate. This is also the underlying logic behind what some new retail B2B internet companies advocate: using platform empowerment, collecting consumption data, optimizing supply chains, and innovating channel promotion methods. Analyzing changes in consumers and the characteristics of the channel types currently covered by distributors, it is not difficult to identify a channel type that deserves attention: community stores. These stores are more sensitive to changes in consumer shopping behavior, have a higher proportion of fixed consumer groups, can quickly adapt to changes in purchasing habits, and can influence consumer choices through the customer relationships formed by high-frequency communication. This is the community store. Strictly speaking, community stores cannot be called a channel type; they are a core type of outlet within the traditional channel. These outlets are generally located in areas with large-scale residential buildings and a relatively large number of residents, inside or around relatively closed and independent residential communities, and primarily sell beverages, food, and other fast-moving consumer goods. Due to their unique location characteristics, they better understand the spending power and preferences of surrounding consumers. More importantly, these outlets can grasp the purchasing needs of surrounding consumers on a household basis. For example, when we go to work on weekdays and take our children to the community supermarket on weekends to buy snacks, many cashiers or store owners greet us warmly, play with the kids, and even know what our children want every time, what brand of yogurt you like, or ask about the child's mother. Over time, you develop consumption stickiness with that store, which is high trust. Then, their product recommendations and other services have an advantage over other channels and outlets along your life path. Quality Service Front, Scene Promotion Frontier For these community stores that best understand consumers, what differentiated services should distributors provide? This also reflects the 'new retail' mindset. More timely product delivery, more frequent and regular visits by sales staff, reasonable suggested orders, professional in-store execution (product cleaning, shelf and freezer organization, first-in-first-out, visual merchandising), timely allocation of near-expiry products, priority payment of display fees, priority participation in promotions, and priority introduction of new products are the most basic services that need to be provided. Many distributors are already doing these services, but there is a two-character difference—'with heart.' The store owner's attitude toward your business is a score for your service. Only good service can earn you more care and honest advice from the store owner about your products. With good customer relationships, it is essential to fully utilize these outlets to boost sales. Make non-buyers buy, and make buyers buy more. These community stores are your best battlefield for market promotion, audience cultivation, and brand publicity. However, in implementation, it is crucial to grasp current consumer shopping habits, reflect quality differences, and focus on consumption scenarios. It can be said that promotions without scenario-based consumption guidance are all failures. For example, the well-known functional beverage brand Red Bull, when promoting in community stores, must first highlight the product's characteristics of refreshing and supplementing trace elements, then help consumers identify the most suitable scenarios for purchase and consumption: drink one can during fitness exercise to refresh daily energy; drink one can when working late to keep a clear mind and boost creativity... All these contents can be displayed on shelf price tags with eye-catching creative materials like wobblers, or set up a roll-up banner at the entrance of the community store with drinking scenario prompts that best match the lifestyle and work habits of the community's majority age group. Leverage Community Thinking, Innovate Business Models In new retail thinking, there is a high-frequency concept called 'community thinking.' In fact, almost all manufacturers are now using it: printing QR codes on product packaging, allowing consumers to scan and follow the manufacturer's official account, and regularly sending product promotion information and brand publicity to this group of people who share a common understanding of the product. This is a typical 'community thinking'—precise promotion and enhanced user stickiness. Distributors can use this thinking to operate community stores and uncover many market opportunities. Nowadays, many communities have their own community groups for residents to communicate. Distributors can 'lurk' in these groups to understand the content of residents' exchanges, become more familiar with the consumption and living needs of the community they serve, and thus make product marketing more precise. While lurking, find the KOL (Key Opinion Leader), who might be the group owner or the person who speaks the most and gains the most recognition. Then, through offline communication, get them to represent your products and regularly help with promotions. Group buying models similar to Pinduoduo can also be tried, initiated by the KOL, where relatively familiar people in the community pool orders to reach a certain quantity and enjoy the most favorable price directly supplied by the distributor. Each community has differentiated consumption performance based on attributes such as location and price. For example, high-end community stores may be keen on imported foods, while resettlement housing communities may have relatively weaker spending power, with high demand for essential household products, and new product consumption may need time to cultivate. Therefore, when setting promotional products, it is essential to combine the characteristics of community consumers, classify and grade the products you represent, and ensure product combinations meet the daily needs of households, while also combining new and old products to leverage exposure for new items. Festival Promotions to Drive Sales, Deep Integration of Promotions In community store marketing, be more sensitive to changes in annual festivals and holidays, and plan ahead for themed promotions such as Spring Festival, back-to-school season, spring outing season, Children's Day, National Day holiday, Mid-Autumn Festival, Christmas, etc. Have a unified theme that communicates consumption scenarios, eye-catching visual merchandising designs, product package combinations that match seasonal consumption characteristics, and push activities in online WeChat groups and official accounts. Let these marketing points echo each other to form a promotional synergy. Be sure to act ahead of similar competitors, making consumers feel that your product is the leader, always experiencing changes at these key times, and carefully crafting the best product purchase experience for consumers. Promotions can only achieve maximum effect when deeply integrated with consumers' inner needs. The above methods are static ways to influence consumers' eyes. In addition, dynamic promotional methods that interact with consumers can be used, such as setting up booths at the most consumption-potential community store entrances, hiring promoters for personal selling, conducting activities like collecting likes for gifts, scanning codes to grab red envelopes, or organizing fun and highly participatory mini-games to attract traffic, setting up prizes, giving away couplets and lanterns during Spring Festival, and pencil cases and backpacks during back-to-school season. Another way to reach the hearts of community consumers is to seek cooperation with community street offices or property management companies. These institutions have the responsibility to provide quality living services to residents, and distributors also hope their products gain recognition from residents. Therefore, there are many cooperation opportunities between them. Through cooperation, distributors can gain more promotional positions for their products and publicity within the community. For example, under the guise of the community street office sending warmth to residents, distribute product coupons; provide energy-boosting activities for high school students taking the college entrance exam; on March 8th Women's Day, tie red roses to products and include a caring letter to the goddesses of the community signed by the street office. This satisfies the street office's desire to provide heartfelt services to residents and helps distributors increase product exposure, achieving a win-win for both parties. If there are kindergartens, gyms, internet cafes, restaurants, or other channels within the community, as long as there are consumption scenarios for your products, you can follow the community store development approach, creating an atmosphere of immediate consumption around these scenarios. However, pay attention to the precision of product placement in these channels, gradually control the volume of distribution, and avoid overstocking that could lead to poor dates and affect consumers' perception of the brand in the region. The advantages and potential for improvement of community stores are significant. Distributors should start with the details of daily operations to seek change and improvement, leverage internet tools, and after establishing high trust with core terminals and consumers, moderately introduce B2B cooperation models to achieve a leap in operational efficiency. The new retail concept of cooperating with e-commerce is more like using a smart production line to quickly solve pain points in data collection, product circulation efficiency, and diversified promotions. However, the insight into consumer needs and the penetration of core channels and core terminal outlets within the operating area are the true standards for measuring a distributor's core competitiveness. Only by strengthening their own advantages can they attract more advantageous brands. Soft power is what brand owners care most about: the thinking mode of keenly perceiving consumption changes and rapidly improving user experience in all aspects represents calmness and composure after careful planning, and represents stable and lasting development momentum. New Distribution will hold the 2019 (5th) FMCG + Internet Conference during the Chengdu Spring Sugar and Wine Fair from March 15 to March 18. This conference will focus on the topic of 'Breaking the Game' and conduct in-depth discussions with numerous brand owners, supply chain service providers, distributors, and retailers. Compared to previous conferences, this summit will be fully upgraded. In addition to original topics such as channel innovation, city logistics, and distributor transformation, it will add multiple parallel forums on new marketing cases, IP + FMCG empowerment, community group buying, and innovative retail. Through three days of ten high-density, high-quality expert sharing and exchanges, we believe every brand owner and distributor can learn the latest business models, expert opinions, and practical methods, finding new tools and methods for their own breakthrough in 2019 and returning to the track of rapid growth. Review of Previous Conferences -END-