Introduction The difficulties facing Chinese enterprises today would have arrived on schedule even without the impact of the new economy. The Internet is not the cause of Chinese enterprises' problems; rather, it is an opportunity to solve them. For some time, I have written many articles criticizing "e-commerce," and thus have earned the labels of "conservative" or "skeptical about e-commerce's prospects." Readers are not at fault; it is my problem. Below, I will use cases to "see the big from the small," summarizing my views on the real economy and e-commerce over a period, combined with cases, to try to make clear what I am saying. To avoid tiring readers, I will split this into two parts. The first part covers the traditional economy, analyzing the causes of problems; the second part covers the new economy, analyzing where it is headed. The following is the first part. Case 1: The Thesis on "Competitive Stalemate" In 2004, as a senior researcher for Sales and Marketing magazine, I launched the cover feature and series of articles "Breaking the Competitive Stalemate," based mainly on my own articles. The core argument was that due to common learning and imitation processes, more and more industries were entering overall homogenization, resulting in a "competitive stalemate." The consequence of a competitive stalemate is that in fierce competition there are no winners, only scarred survivors. I analyzed the causes, trends, and a framework for solving the problem. To be honest, that feature and series did not resonate; apart from my articles, there were almost no follow-up articles. To understand this issue, one must have a theoretical foundation in economic cycles, industry cycles, and market cycles; otherwise, it may be incomprehensible. When the Chinese economy began to decline and Chinese enterprises generally encountered difficulties, I wrote several articles viewing the Chinese economy from a marketing perspective, published in the theory section of Economic Information Daily. Almost all were reposted by Xinhua Net, People's Net, Strong Nation Forum, and several provincial and municipal government websites, and were also fully reprinted by more than one Chinese core journal. Not everyone cares about macro issues, but if one cannot understand them from a macro perspective, it is difficult for today's large and medium-sized enterprises to find a way out. Although we all know that when studying corporate direction and strategy (including annual planning, which is a strategic topic), one must understand the macro national economic environment and the meso industry environment, Chinese enterprises are encountering this hurdle for the first time: previously, they basically did not need to, or did not particularly need to, understand these issues. But even among various marketing experts, how many can care about and understand this issue? I am still continuously researching the issue of competitive stalemate, and my articles all revolve around this issue. Because logically, the current Chinese economy is still in a competitive stalemate overall. Mass innovation, "Internet+", and supply-side reform also target the competitive stalemate. For example, I say (and many others say) that products with distinctive features and reliable quality are one of the keys for enterprises to escape difficulties, but how to achieve this? The measures given are clichés. Once, while chatting with Teacher Liu Chunxiong, he shared some viewpoints. I said, you should quickly write these into a series of articles; this is typical supply-side economics. China has proposed supply-side reform, but there is no follow-up on how to establish a professional supply-side system. As the world's factory, China has established the material foundation of the supply side, but in managing, perfecting, and innovating the supply side, it is far from advanced and professional. How to solve these problems is the focus of research. Because researching this is too laborious, few are willing to engage. If one can view my articles and viewpoints from this perspective, they will be easier to understand and accept. Case 2: The Fate of My Disciples Around 2004, I began to give earnest advice to my disciples who still came to me for guidance. I warned them that if they did not transition from field-type (relying on experience) to staff-type (relying on professionalism), their careers might end. The reason was that all industries would move toward competitive stalemate, and future executives would need entirely new thinking and skills. More importantly, "professionalism" would truly become the foundation of a career—you don't necessarily have to achieve outstanding results, but from a professional standpoint, you must have the potential; if you are not professional, you definitely won't have that potential. The executives I trained were in fact indifferent to the macroeconomic environment and even industry trends, let alone understanding them. They could do industry five-force analysis and SWOT analysis, but those were superficial tricks: they did not know the professional procedures, lacked sufficient and detailed information support, and were unable to discover new things from analysis; they merely used these tools to dress up their own understanding in professional clothing. Only a few listened and are still in executive positions, having made new achievements. But most have left executive positions, still addressed as "Mr./Ms. [Surname]" by their former subordinates. Some of them even successfully helped their bosses bring their companies to an end. Since that time, I also left my former profession and went to teach at a university. But this transition was also unsuccessful; I was out of place in the university and achieved nothing, but at least I did not die in my original profession. Why didn't I stay in my original profession to find micro-level methods to break the competitive stalemate? On one hand, I believed that most enterprises would inevitably die, could not be saved, and were not worth saving; on the other hand, going against the trend would inevitably cause fierce conflicts with everyone from the boss to employees. A systematic transformation in thought, behavior, and system is not something a consultant should or can do. Moreover, I did not have the ability to solve those problems. It was also from that time that I often said: I don't know how to help enterprises escape difficulties, but I know which measures are insufficient to do so. Knowing one's shortcomings leads to progress. Recognizing one's shortcomings is more difficult than improving them. The above two cases illustrate the value and role of viewing problems from a macro perspective. Facing cyclical problems and environments, a macro or overall perspective is an indispensable viewpoint. Case 3: A Certain Food Company It was once a small, delicate food processing enterprise. It had a stable market and stable profits. With industry consolidation, the enterprise had in fact become "excess capacity"—due to lack of R&D capability, products had no distinctive features, and the existing market was shrinking. It consulted me multiple times, and my opinion was clear: either switch production or close down. Sticking to the current industry had no way out. Later, we built a "Maker Park." He seemed to see hope and actively requested to enter. I asked him: What problem do you want to solve? If you can't find a new project, don't mention the Internet; even God can't help you. An enterprise must have products with distinctive features and reliable quality to operate normally. If the market is large enough, the rest is just a marketing problem. If your will is strong enough, you can always find people and ways to open the market. Products with distinctive features and reliable quality require R&D support, equipment and process support, management support, and human resources support. Of course, they also require financial support. To make money, you need capital. A boss without money is like a phoenix that has fallen to the ground, inferior to a chicken. Today, only with these foundations can one talk about development, whether it is "Internet+" or "+Internet," which are very realistic; otherwise, don't mention the Internet; even if God came, could He save it? There are large numbers of such companies in various industries in China: products lack distinctive features and are of average quality; no R&D capability; technology, processes, and equipment far behind industry leaders; human resources levels below industry average; and due to incomplete capital accumulation, operating funds are stretched. So, these enterprises should prioritize solving these issues. If they don't strive to solve the above problems, why should they "+Internet"? How can the Internet "+" them? In interactions with some large and medium-sized enterprises, I found their leaders are all confused: The market is so sluggish; is this "new normal" the future norm? R&D is important, but how to build a company on R&D? The Internet is affecting and will more profoundly affect industries and markets in the future; how should we respond? After running a business for many years, why do we suddenly feel like Granny Liu entering the Grand View Garden? With mass entrepreneurship and innovation, "Internet+", and supply-side reform, where is the direction for enterprises? Without clarifying these, under the premise that enterprise survival is already difficult, this constant shifting winds and rains may lead to a state of blind floundering. When transitioning from one economic cycle to another, enterprises and industries face comprehensive changes; at this time, public opinion guidance and problem analysis are very important. Looking at the sky from the bottom of a well is bad, and a leaf blocking the view of Mount Tai is also bad; it requires enterprises to have a macro vision. We often talk about strategy; at this time, without a clear or roughly clear strategy, it is difficult for enterprises to survive. The difficulties facing Chinese enterprises today would have arrived on schedule even without the impact of the new economy. We foresaw today (competitive stalemate) as early as around 2004. The Internet is not the cause of Chinese enterprises' problems; rather, it is an opportunity to solve them, but relying solely on the Internet cannot solve the inherent problems of Chinese enterprises. This needs to be clearly understood. The Internet cannot solve problems, but in the process of solving problems, we must firmly grasp the Internet. Grasping the Internet may not solve problems, but ignoring the Internet will definitely make it difficult to solve problems comprehensively. This also needs to be clearly understood. Case 4: A Certain Clothing Wholesale Individual Business E-commerce in clothing is the most flourishing. A younger relative of mine in the clothing industry guards his store every day, indifferent to starting e-commerce. Although I am an e-commerce illiterate, I am sure his products are very suitable for online business. I even specifically consulted Teacher Liu Chunxiong on his behalf, and Teacher Liu gave a positive answer. I told him to come to our Maker Park to start a small micro-company to conduct e-commerce; I've been saying this for months, but this kid remains unmoved. I can only say: You just stay there struggling and wait to close down! Undoubtedly, my younger relative, thinking about selling products online, needs to learn and change a lot, but no matter how much or how difficult, he should strive. Because that represents the development direction of his type of business; his business model is gradually no longer accepted by the market. Young as he is, if he doesn't learn new things and accept new things, he can only wait to be eliminated. Case 5: The Two Companies I Manage I manage two companies: one is a real estate company with assets of several hundred million yuan (with inventory of real estate and land of about 300 million yuan each), and the other is a small loan company with nearly 300 million yuan in funds that are extremely difficult to recover. Through taking over the management of these two companies, I finally deeply understood the dialectic between "different industries are like different mountains" and "different industries share the same principles." Anyway, I can't manage them now. I thought through mass entrepreneurship, innovation, "Internet+", supply-side reform, and all the eighteen martial arts of marketing, but couldn't figure out a solution. The only move left is transformation. Is it easy to transform? I have to digest some inventory, recover some money, and wait for the right time! If I simply sell assets at this point, I would immediately go bankrupt. All the aftermath work still relies on traditional means. And even those traditional means, due to the barrier of different industries, my colleagues and I have not truly mastered them. At this time, whoever mentions Internet thinking to me, I get anxious: Go figure out traditional thinking first, then talk to me about Internet thinking. But I invited Teacher Liu, and using my office building, which is first-class even among county-level markets in the central and western regions, I established a Maker Park. This Maker Park, from concept to opening, is first-class in county-level markets. If it can remain first-class, then solving my difficult problems will be much easier. Therefore, I am very concerned about how to ensure the Maker Park is run well, with distinctive features, and made a model, preferably a model for the central and western regions. Because this concerns the survival of my two enterprises. At the same time, we are also preparing to set up some entrepreneurial projects. Although the Internet cannot directly solve the problems of my two enterprises, it provides possibilities for our transformation and creates conditions for solving problems. See, I am not only actively participating in the new economy, but also placing high hopes on it! -END- The best FMCG distributor learning platform in China Dedicated to providing professional, practical, and applicable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operations | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operations management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's eighteen skills | 013 KA operation methods and strategies | 014 First lesson for new salespeople | 015 Internet, brands | 016 Distributor B2B transformation | [Long press QR code to follow]