This article is a speech by Zhao Bo, founder of New Distribution, at the 2021 Huachuang Securities Mid-Year Strategy Meeting's Food & Beverage Forum. It systematically analyzes the past, present, and future transformation trends of FMCG marketing. ****-01-****China is a super-large, multi-tiered market China's market is large and multi-tiered. In the past, the sales of major brands were mainly supported by offline channel point-of-sale services, with the scale of sales points supporting corresponding sales volumes. The traditional sales logic was built on the monopoly of scarce resources, such as scarcity of quality, information, and convenience. To reduce consumers' choice and transaction costs, brand owners and distributors jointly built a "big brand + big media + big channel" deep distribution system, leveraging economies of scale to monopolize scarce resources and thus gain competitive barriers. However, the traditional deep distribution model also has limitations, mainly in overemphasizing offline while ignoring online, failing to support current innovative retail scenarios, niche long-tail distribution, and online-offline integration. The data feedback cycle is too long and feedback precision is insufficient, leading to low supply chain efficiency. The emergence of mobile internet has changed the way value connects with demand, bringing new market opportunities and problems: 1) New traffic: Users' attention is intercepted by various online apps, and cognition and transactions are integrated online. Changes in transaction structure lead to changes in the supply chain. Based on new technology infrastructure, social e-commerce and video e-commerce, which are individual retail based on KOLs, have emerged and risen. 2) New scenarios: The channel boundaries in the consumer goods sector are gradually expanding, and tradable scenarios are highly fragmented and decentralized, seriously affecting the interest chains of major brands. For example, pre-sale models have extremely compressed the sales chain, and the ultra-low prices of community group buying have completely broken the interest distribution pattern of traditional distribution chains, posing a great threat to the distribution networks of major brands, even pushing them to the brink of collapse. 3) New consumption: Infinite shelves greatly increase consumers' choices. The abundance of material goods has led consumers to rapidly leap to higher levels of Maslow's hierarchy of needs. Moreover, due to China's large population, market demand is rapidly differentiating, moving from a single super-large market to a three-dimensional, personalized, and diversified market structure. 4) New production: Infinite shelves bring infinite market segmentation, which leads to small-batch, small-scale production demands. Meanwhile, major brands with overcapacity are eager to digest capacity and gradually become OEM factories for innovative brands. The miniaturization of equipment has also significantly lowered production barriers, such as miniaturized brewing equipment in the beer industry, improved production processes for diapers, and the application of new additives. 5) New media: The rise of the internet has made everyone a media outlet, and various apps have brought diverse media presentation forms, seriously diverting traffic from single super-large media like CCTV. The scarce resource of big media has become an infinite resource. 6) New retail: The transaction logic has shifted from people moving while goods stay still to goods moving while people stay still. E-commerce plus logistics can achieve large-scale sales. However, the limitation of innovative brands is that they can only sell online and find it difficult to penetrate the larger-scale offline distribution market. As online traffic dividends peak, there is pressure on incremental growth. The current consumer market has four types of consumer sovereignty and three retail scenarios coexisting, with marketing focus shifting from traffic to retention: China's consumer goods market is gradually transitioning from the era of product sovereignty and brand sovereignty to the era of channel sovereignty and consumer sovereignty. Traditional retail, platform retail, and social retail coexist as three retail scenarios. Purchase decisions are influenced differently in these three spaces, and each consumer has different consumption paths. The internet has made everyone online. Essentially, traffic is now certain, but because sovereignty lies with consumers, you cannot determine their shopping paths. Therefore, the past traffic-oriented marketing logic must change to a retention-oriented marketing logic. Today, when we evaluate the success of a brand's marketing, the criteria are product power and whether it resonates with consumers. Product power includes not only physical goods but also the content that gives products stories. Marketing is more of a linking method, and the key is whether there is sufficient retention. ****-02-****Transform from selling to recommending, build deep connections with users From selling to recommending, the future focus of brand building lies in building deep relationships with users: 1) Brands must have the ability to create waves , to be noticed by consumers in an era of scarce attention and to generate positive interaction. 2) Be able to be recommended and endorsed by users , thereby saving consumers' cognitive and time costs. 3) Provide continuous value to users , building ongoing connections and emotional bonds. For super-large brands, obtaining user awareness through brand effects while establishing connections with consumers through industry leaders and professional users is the most efficient means. 4) Lego-style co-creation , not only providing users with uncertain product forms but also emotional value, thereby making the brand-user relationship closer. ****-03-****Enterprises should use digital technology to reconstruct distribution capabilities Based on full-scenario transaction logic, future marketing will place more emphasis on matching products with scenarios. Brand owners must continuously find scenarios and launch corresponding products to create and satisfy scenarios, while the entire supply chain system provides corresponding deep support around scenarios. On the sales side, strengthen and expand through digital transformation and upgrading, enabling distributors to achieve one-stop matching and delivery of people, goods, and stores, thereby building the infrastructure to support a ten-billion-yuan brand. On the channel side, fully utilize the rich online and offline channels, combine different channels based on different scenarios, and provide consumers with one-stop services and satisfaction. On the delivery side, separate commercial flow from logistics and build a flexible delivery system based on scenarios. ****-04-****The ultimate evolution of marketing is from "channel + communication" to "supply chain + relationships" Changes in civilization are not technological upgrades but transformations of civilizational eras. From industrial civilization to information civilization, the essence is the change from "channel + communication" to "supply chain + relationships." Fully satisfy consumers' true needs, shift from managing goods to managing people, and move efficiency from low cost to high flexibility and agility, thereby establishing the ultimate three-dimensional space. | Founder of New Distribution, an expert in FMCG industry channels, with over 400,000 words of original research articles on the FMCG industry. For communication, you can add WeChat by long-pressing. When adding, please indicate your company, position, and name. If a tip is adopted, a reward of 400-2000 yuan will be paid.