---
title: "Unlocking the BbCc Link: New Product Hits the Market in 3 Months—Why Shahe Tequ's Digitalization Deserves FMCG Industry Attention?"
description: "This year, New Distribution has extensively covered bC integration and channel digitalization cases, mostly from leading brands. However, their methods may not suit smaller brands due to differences in scale and resources. In a recent in-depth exchange with Cao Jinqiang, Marketing Director of baijiu brand Shahe Tequ, we explored their innovative \"3 x 3\" model. Without any advertising spend, they leveraged 10 core terminal stores, 100 big C customers, and 1,000 precise users to achieve rapid market activation: 50 boxes per store monthly, 800 boxes per county, and market ignition within three months. This practice offers valuable insights for the entire FMCG industry."
author: "任文青Andy"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2022-04-22"
language: "en"
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---

# Unlocking the BbCc Link: New Product Hits the Market in 3 Months—Why Shahe Tequ's Digitalization Deserves FMCG Industry Attention?

> This year, New Distribution has extensively covered bC integration and channel digitalization cases, mostly from leading brands. However, their methods may not suit smaller brands due to differences in scale and resources. In a recent in-depth exchange with Cao Jinqiang, Marketing Director of baijiu brand Shahe Tequ, we explored their innovative "3 x 3" model. Without any advertising spend, they leveraged 10 core terminal stores, 100 big C customers, and 1,000 precise users to achieve rapid market activation: 50 boxes per store monthly, 800 boxes per county, and market ignition within three months. This practice offers valuable insights for the entire FMCG industry.

This year, New Distribution has extensively reported on bC integration and channel digitalization cases.
Most of these cases involve leading brands with successful practices, but their methods and models may not be universally applicable, as small and medium-sized brands cannot match the scale, resources, and error tolerance of industry giants.
Therefore, we have been seeking more valuable cases to share successful experiences and methods with the entire industry.
Recently, New Distribution had an in-depth exchange with Cao Jinqiang, Marketing Director of the baijiu brand Shahe Tequ.
Without any advertising investment, they relied on **10 core terminal stores, 100 big C customers, and 1,000 precise users** to quickly achieve **monthly sales of 50 boxes per store, 800 boxes per county, and ignite the market within three months!**
Although Shahe Tequ is a local baijiu brand, its digitalization practices, along with the underlying design and thinking, are not only innovative for baijiu digital marketing but also offer inspiration and reference for the entire FMCG industry!
How exactly did Shahe Tequ implement its digital marketing?
Today, I will share our exchange with you in this article.
This article is a bit long; read patiently, and I believe you will gain valuable insights!
**What is "Shahe Tequ 6"?**
#### First, I asked Mr. Cao: Can you summarize in one sentence what makes your Shahe Tequ digitalization different?
"We summarize what we do as: the '3 x 3' model for new product promotion and market ignition," Mr. Cao said.
Before explaining this model, let me first talk about our current product, "Shahe Tequ 6."
Shahe Tequ is a distillery in Fuyang, Anhui, quite famous in the 1990s, with sales once reaching 1 billion yuan. At that time, only Moutai and Wuliangye achieved such sales. We are doing a classic reproduction of an old famous liquor with its original bottle design.
Shahe products include both boxed and bottled (non-boxed) liquors. The regular bottled liquor sells for 38 yuan per bottle, while our new "Shahe Tequ 6" is positioned as a high-end bottled liquor with a retail price of 58 yuan per bottle. Both the taste and the label color design have been upgraded.
**How do we market and promote such a product?**
What is the traditional marketing approach?
Extensive recruitment of distributors, widespread distribution, and terminal visual merchandising are standard practices. Recently, a new tactic has been added: scanning the bottle cap for rewards.
Does this work?
**Frankly, the effect is very limited.**
On one hand, market competition is fierce; if everyone does the same, the chance of standing out is low. On the other hand, from the brand's perspective, the entire chain cannot be effectively controlled. The manufacturer's investment not only fails to reach users effectively but may also cause price chaos, leaving all nodes unprofitable and unwilling to participate.
Currently, the success rate for new product launches is very low, only 2% according to statistics.
Now, everyone is talking about channel digitalization and bC integration, hoping to use digital tools to connect the chain, activate terminals and consumers, and make spending more efficient. Many brands are actively trying this.
Therefore, **"Shahe Tequ 6" also embraces new concepts and tools, using digital methods for new product promotion.**
We started planning at the end of last year and first piloted in Hefei at the beginning of this year, with excellent results.
We don't advertise; we precisely calculate market investment. Relying on 10 core terminal stores, 100 big C customers, and 1,000 precise users, we quickly achieved monthly sales of 50 boxes per store and 800 boxes per county, igniting the market within three months, creating brand effect and strong consumer stickiness.
"10 core terminal stores, 100 big C customers, and 1,000 precise users"—hearing this, a question arose in my mind:
What does "big C" mean here?
**Big C is not an ordinary consumer, but a KOC who can influence other consumers, or a procurement manager with bulk needs, or a group-buying customer with group purchase needs.**
Big C is a very critical role in our model, Mr. Cao said.
After successfully running this model, we have started replicating it in other cities. We plan to build 1,000 groups, develop 10,000 big C customers, and connect 100,000 consumers within 6-7 months. However, due to the pandemic, we are slightly behind schedule.
**Interpretation:**
 _When we talk about opening up the channel chain, we always refer to F2B2b2C: from manufacturer to distributor to terminal store to consumer. The key here is bC integration, which means leveraging terminal stores to activate a large number of consumers, i.e., activating the store's private domain._
_Everyone talks about private domain, but what exactly is it?_
_Truly effective private domain requires more than just information reach; it requires communication, interaction, and human relationships._
_But how much private domain does a terminal store actually have?_
_Store owners are busy managing their stores; how many close relationships do they have? And how many of those can become consumers?_
_For bC integration, is it enough to rely solely on terminal stores to leverage consumers?_
_In the "Shahe Tequ 6" model, there is an additional big C. After hearing Mr. Cao explain the meaning of big C, I suddenly realized there is something significant here—it might be the biggest innovation of the Shahe model!_
_How exactly is it done? I can't wait to find out._
**Three Steps to Create a Model Store**
#### What is the role of big C?
"Let me explain our '3 x 3' model in detail, and it will be clear," Mr. Cao said.
The first "3" in "3 x 3" refers to three steps to create a model terminal store.
**Step 1: Find a terminal store and build a group.**
Through our partner distributors, we find terminal stores. These are not randomly chosen; they must be stores of a certain scale and influence.
Most importantly, the store owner can bring in a dozen or so influential consumers who like to drink—these are the big C customers we mentioned earlier. Then we help the store owner create a "Shahe Tequ Benefits Group."
**These big C customers already know the store owner and have a trust relationship. They then invite their drinking buddies to join the group, forming a very precise private domain group with existing relationships.**
**Step 2: Operate the community.**
After building the group, community operation is crucial.
Every Wednesday and Friday at 10 AM, the store owner posts a preview in the group, announcing that a "0-yuan purchase" activity will start in half an hour, and then shares a link to the cloud store mini-program.
The number of vouchers is set based on a certain proportion of group members. After one or two activities, everyone becomes familiar with the rules, and the vouchers are usually grabbed within 2 minutes of the link being posted.
Each activity generates about an hour of group engagement, which is the user education period. During this time, our videos and carefully designed scripts (over 20 types) come into play, helping users understand more about "Shahe Tequ 6"—its brand, quality, production area, culture, and more.
**Why launch the "0-yuan purchase" activity?**
On one hand, it's to achieve "taste breaking the ice." Initially, users don't know the product. If you send a discount link offering 10 or 20 yuan off a bottle, they might think you're trying to trick them.
On the other hand, group members will realize this is a fan benefits group. After a period of group operation, they subconsciously develop brand awareness and recognition. After consuming the benefit liquor, they will naturally make purchases. Later, we send coupons to attract group members to redeem offline, generating repeat purchases.
Of course, **another important role of operation is to influence and infect big C customers. They are mostly "high-influence people" with their own consumption needs. Through such operations, their influence on those around them is enhanced.**
This lays the foundation for the next step.
**Step 3: Transform big C into group-buying partners.**
After initial group operations, big C customers themselves develop recognition for "Shahe Tequ 6" and feel the group members' approval of the brand. Through subsequent actions, we transform big C into group-buying partners.
The store owner initiates invitations for big C to visit the Shahe experience store to personally experience the history, culture, quality, and craftsmanship of Shahe Tequ.
After the experience, a discussion session is held where everyone fully expresses their feelings and experiences with "Shahe Tequ 6," while emphasizing the help big C provides to the store owner. The partner plan is then introduced, where big C can earn commissions on sales.
At the dinner, we also hold a tasting session, offering products priced at twice the retail price of "Shahe Tequ 6" for blind tasting. In this session, the taste, quality, and ultra-high cost-performance of "Shahe Tequ 6" will make everyone exclaim, "Exceeds expectations!" and "Unexpected!"
When the dinner atmosphere reaches a certain level, big C customers begin committing to sales volumes!
Through these three steps, in about 1-2 months, a store can sell over 50 boxes per month. With proper follow-up operations, by the third month, monthly sales can reach 100 boxes.
**Interpretation:**
_As mentioned earlier, terminal stores' private domain operations are limited in both coverage and capability._
_How does "Shahe Tequ 6" solve this problem?_
_**1. Introducing big C to create second-degree private domain.**_
_If the terminal store's private domain is called first-degree private domain, then big C's private domain is second-degree private domain._
_First-degree private domain is limited. Introducing big C is like providing the terminal store with leverage points to reach more precise consumer groups._
_Operating first- and second-degree private domains together improves operational efficiency._
_**2. Operational support with four-fold effects.**_
_The manufacturer and distributor help the terminal store with operations. The content and rhythm, both online and offline, are carefully designed. Its effects include:_
_1. Breaking the ice: taste and relationship ice-breaking;_
_2. User education: helping users deeply understand product quality, craftsmanship, and cost-performance, and familiarizing big C with the operational model;_
_3. Brand promotion: one-to-many, point-to-point mind penetration;_
_4. Sales: directly driving sales conversion._
_One point to emphasize here:_** _Whether it's the distributor or the terminal store, what they truly care about is whether they can make money. During the initial introduction phase, there is great uncertainty. Therefore, the fewer operational actions required of them, the better. The manufacturer's operational support is crucial._
After listening to Mr. Cao, a question arose in my mind:
**Building a community and getting it lively initially is not difficult. The key is how to ensure sustained and effective operations afterward?**
**How to Design the Chain?**
#### Mr. Cao then explained the design of the entire chain in detail.
In the whole model, not only are there incentives at each node, but we have also fully considered many problems encountered in brand digitalization practices.
There are two sales logics here.
The first is the consumer (small c) directly transacting offline at the store, with the terminal store earning the price difference. This is the traditional distribution logic.
**The second is the cloud store sales logic, which is the purpose of the entire chain design.**
First, let's talk about big C. Becoming a partner and earning commissions is good, but many people feel embarrassed promoting liquor to friends.
What to do?
All transactions go through the cloud store mini-program. After big C becomes our partner, they receive a unique mini-program QR code. When their friends scan it, they enter the terminal store's cloud store and place orders directly. They can choose store delivery or self-pickup.
We even design recommended scripts for big C, making the process natural and unforced. With recommendations from acquaintances, transactions are easy.
Big C does not handle the product or payment; delivery and after-sales are handled by the terminal store. Payment goes directly to the distributor, and the system automatically calculates commissions to big C's account.
Here's a key point: **The distributor, terminal, and big C are bound together!**
That is, every order placed by small c through big C results in payment to the distributor, but both the terminal and big C receive corresponding commissions.
Similarly, when small c orders through the terminal store's QR code, funds also go directly to the distributor, and the system automatically calculates commissions to the terminal.
Why design the chain this way?
**On one hand, our commission rates are calculated. Through the cloud store system, costs are rationalized, and return on investment is maximized.**
**On the other hand, this is the purpose of digitalization: to have all parties' data online. With data, we can analyze and optimize our marketing decisions.**
But how do you incentivize all parties to promote the cloud store?
Big C doesn't need much explanation; they earn commissions through the cloud store.
Small c earns points by ordering through the cloud store, which can later be used for discounts.
What about the terminal store? The commissions from online transactions through the cloud store are higher than the price difference from offline transactions.
Additionally, **coupons sent to the group need to be redeemed at the terminal store through the cloud store, which may lead to additional purchases, helping the store owner attract traffic. Store owners will be very supportive.**
**Therefore, all parties are willing to conduct online transactions through the cloud store.**
Of course, we also fully consider that this is operating "private domain." To give terminals a sense of security, distributors cannot see through this system which specific big C generated an order, preventing distributors from bypassing terminals to contact big C directly.
Based on this chain design and system, we can achieve full visibility and data online!
**Interpretation:**
_Let's look at the chain design of "Shahe Tequ 6" from two perspectives._
_**First, private domain.**_
_As mentioned earlier, from the terminal store's perspective, the big C it connects to and the small c it can directly influence constitute its first-degree private domain, while the small c that big C can connect to is its second-degree private domain._
_These private domains can be said to exist or not exist. If they can be organized, activated, and form consumption stickiness, then they are private domains; otherwise, they are just everyday relationships, whether close or loose._
_**Second, group buying.**_
_Here, big C can be a KOC (key opinion consumer), a person in charge of bulk procurement, or a group-buying leader._
_These people exist, but the question is how to connect with them and tap into group-buying demand._
_Whether operating private domain or mining group buying, connection and activation are only the first step. What truly matters is whether a reasonable benefit distribution mechanism can be established for normalized operation._
_The benefit distribution of "Shahe Tequ 6" has several characteristics:_
_**1. Online transactions are more attractive than offline;**
**2. Distribution is based on traffic entry points;**
**3. Distribution is automatically executed by the system.**
_Activation can be achieved through operations, but to form consumption stickiness, a benefit distribution mechanism is essential; otherwise, the operational chain will be chaotic and unsustainable._
In the "3 x 3" model, the first "3" is three steps to create a model terminal store, which is well-designed and effective in practice. What about the other "3"?
**Three Steps to Ignite a Regional Market**
#### The other "3" is what we call the three-step method to ignite a regional market.
Mr. Cao continued.
**Step 1: Operate 1 store.**
In a district/county, we find a partner distributor. We train the distributor on the operational methods developed in the model store.
They first need to find a store and follow our three-step method. This is both the first step into the district/county market and a process to help the distributor master the entire operational steps and methods.
**Step 2: Replicate to 10 stores.**
Once the distributor has experience with one store, including WeChat group operations, financial settlement, marketing scripts, and consumer profiles (store, big C, small c), they have standardized operating procedures. They can then use this set of practices to replicate the model to 10 stores.
**Step 3: Replicate to N stores and ignite the market.**
With 10 stores, it's estimated there are 100 big C customers and 1,000 precise small c customers. Coupled with word-of-mouth, the market gains momentum, essentially laying the foundation to ignite a regional market.
At this point, some terminals will proactively request to stock the product. The distributor will select effective outlets for distribution and display, creating terminal atmosphere, and the market further expands.
These terminals have different pricing policies compared to the core outlets and must order online to maintain price system stability.
**With these three steps, a new product can basically ignite a regional market within about 3 months.**
Of course, we have some considerations when selecting distributors and terminals.
For example, we only work with one partner distributor per district/county, preferably one already dealing in liquor products, but they must understand and cooperate with our model.
For terminal stores, there is a density consideration: basically, only one store within a 3-kilometer radius. The store should have a certain influence, be able to find a dozen or so big C customers, be willing to build a group, and we support the costs, but they must organize big C activities and actively help redeem coupons.
**Interpretation:**
_There is a phenomenon in the advertising industry: for an audience to respond to an ad, the ad volume must exceed a threshold, or a minimum level._
_Therefore, when placing ads, you cannot spread them thinly; you must focus, not distribute evenly, and concentrate them in a short period._
_Accumulating momentum in a short time is necessary for effect._
_The same applies to market development._
_First, concentrate resources to thoroughly penetrate one point, such as building one store, then replicate to 10 stores, and finally conquer a district or county._
_This process is also about repeatedly breaking through thresholds and finally igniting._
_Here are a few important points:_
_**1. Precision: Is the target audience precise? The more precise, the more effective the resource investment;**
**2. Replication: Can experience be standardized and process-oriented? Only with process can rapid replication occur;**
**3. Rhythm: Is there a design for time progression, including spatial density? Only with rhythm can ignition happen.**
_The underlying business logic is the same, but digitalization makes market investment more transparent, allowing for "precise ignition" that traditional methods cannot achieve with the same market resources._
_Whether it's three steps to create a model store or three steps to ignite a regional market, each step is interconnected and appears carefully designed._
Such chain design, system development, and integrated online-offline refined operations seem difficult for a local baijiu brand to accomplish easily.
I'm curious: How did you come up with this "3 x 3" model?
**What is the Core Capability Behind It?**
#### Before joining Shahe Tequ, I was a project manager at Beijing Lianyi Lian Company.
Mr. Cao continued.
Beijing Lianyi Lian focuses on consulting and design for FMCG channel digitalization. Over the past few years, they have done digitalization projects for many brands, accumulating extensive summaries and thoughts, gradually forming a mature model and related front, middle, and back office organizational capabilities.
"Shahe Tequ 6" is actually a project where we participated hands-on, with front-office personnel deeply involved and middle and back offices providing support.
A new model requires corresponding organizational capabilities:
The front office is responsible for operations and implementation; the middle office is our strongest area, with strategy output, content output, community operations, private domain live streaming, front-office training, etc.; the back office provides technical support.
The "3 x 3" model is based on our past summaries, continuously improved in practical implementation, and finally formed into an effective digital marketing method.
Currently, the operation of this model is very successful.
After listening to Mr. Cao, I gained a lot. Finally, I have one more question:
You are currently operating baijiu, or high-end bottled liquor. Have you considered the applicability boundaries of this model? For example, some categories are very suitable, while others are weaker or very unsuitable?
Mr. Cao was very candid:
We haven't thought about the applicable category boundaries, but there are two scenarios where it is very suitable: **one is new product promotion, and the other is mining group-buying resources.**
Many brands currently have the need to promote new products, but the survival rate is very low, only 2%. With our model, the survival rate can be increased dozens of times.
We are currently promoting a new product for a mineral water brand using this same approach.
The other is mining group-buying resources.
Group-buying demand exists in large quantities, but it is scattered. Our model uses systems, methods, tools, and operations to develop group-buying customers into stable and sustainable private domains. Of course, the benefit distribution ratio should be determined based on specific circumstances, but the logic is the same.
**Interpretation:**
_We always say that in channel digitalization, tools are important, process sorting is even more important, and the corresponding organizational capability behind it is the core._
_In fact, organizational capability grows over time; it cannot be acquired overnight._
_Developing organizational capability can be roughly divided into two ways:_
_1. Cultivation: recruiting, training, piloting, trial and error, summarizing—this is the cultivation method, which takes a long time._
_2. Grafting: directly adapting organizations with the required capabilities, which is relatively faster. For example, Shahe Tequ cooperated with a professional team on the "Shahe Tequ 6" product as a project._
_Of course, these two methods can also be used simultaneously._
_For new consumer brands entering offline, or mature brands launching sub-brands, or promoting new products, can they directly consider the second method?_
_Additionally,**most current bC integration practices are done by brands as a marketing tool.**
_This case is also applicable to new product promotion, although long-term sustainable operation remains to be seen. However, being able to quickly cover precise audiences, ignite the market, and achieve natural sell-through is already of great value in digitalization._
**Final Thoughts:**
#### Finally, why interpret this case?
Readers familiar with our official account can see that New Distribution has reported a batch of bC integration and channel digitalization cases since the end of last year.
Why do we do this?
Digitalization is a key topic for the industry now and in the future. Everyone talks about digitalization, but how exactly is it done?
Digitalization is not a completed state but an ongoing process; it is not just theory but practice. FMCG companies are conducting extensive practices, with both lessons and experiences, which should serve as catalysts to promote the digitalization of the entire FMCG channel.
Therefore, information exchange, communication, and collision within the industry are necessary and valuable.
"Shahe Tequ 6" is still developing. We will invite Mr. Cao for further sharing. If you are interested and are **a CIO or digitalization leader at an FMCG company**, please scan the QR code below. After verifying your identity, we will add you to the group.
There will be more content on FMCG channel digitalization in the future. Please continue to follow New Distribution!
Focusing on in-depth interviews in the FMCG industry, reflecting on the latest changes. For communication, you can add WeChat by long-pressing. Please indicate your company, position, and name when adding.
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