China's reform and opening-up succeeded due to a key technique: shelving stock and reforming increment. The result: incremental reform inevitably drives stock reform. Stock involves established interests; stock reform means redistribution of interests. Incremental reform enlarges the cake, creates new interests, and new interests prove the direction of reform is correct. When increment expands, stock reform is no longer a problem. Chinese marketing has been "stock capped" since 2013, with all industries reaching historical sales peaks. At this time, e-commerce rose, diverting stock (though e-commerce also created some increment). Thus, stock is not secure. Without increment, stock cannot be maintained. No change can prove reform correct with bad results. The combination of traditional and internet now has three major battlefields: new marketing, new retail, and new distribution. These are the "+internet" of the three major links in the channel chain, corresponding to brand + internet, retailer + internet, and distributor + internet. From the connection point, it is divided into 2C, 2B, and BC integration. 2B solves stock problems and is an efficiency system. Traditional deep distribution is 2B, which, without increasing terminal traffic, changes the terminal's "internal share" through customer relations and interest inducement, and through terminal stores' "first recommendation." When terminal stores still have increment, deep distribution is relatively effective. When terminal stock is not secure, terminal stores still hope to expand profits, but the cost of customer relations and interest inducement in deep distribution becomes too high. Simply defending stock is difficult because even if defended, the cost is too high. Sales and profit are hard to achieve simultaneously. 2C can generate increment because 2C can change the redistribution of traffic among terminal stores. With the ability to allocate traffic, there is the qualification to change the terminal's "internal share," thus changing stock. So increment has a leverage effect. It can be said that stock is the terminal's bargaining chip, while increment is the brand's and distributor's bargaining chip. Even with BC integration, there is still the question of B first or C first. The logic is consistent with the above. The difference between 2B and 2C is: 2B is more rational than emotional; 2C is more emotional than rational. All business mixes emotion and rationality. For example, 2B customer relations are emotional, and interests are rational. Of course, emotion also involves interest investment. When the industry grows overall, terminals have emotional capital; the more sales decline, the more terminals tend to be rational. This is why customer relations as a bargaining chip gradually fails or costs more. The higher the C-end income, the more consumption tends to be emotional. Coupled with the internet's characteristic of spreading emotions, not functions, 2C emotional marketing makes it easy to mobilize C-end traffic. IP-driven is mostly emotion-driven. Whether it's Jiang Xiaobai's IP-driven or Lidu's immersive experience, both are C-end driven. C-end driving will inevitably push B-end. Teacher Fang Gang said, 2B is sweeping the streets, 2C is sweeping people. Street sweeping is no longer effective; people sweeping has high technical content. For BC integration, it's best to sweep people first, then streets. Sweeping people is internet skill, one-to-many; sweeping streets is channel skill (lower body skill), one-to-one. Most industries have long had no increment, but traditional enterprises have huge stock. Stock scale is "economies of scale" in good times, and "scale burden" in bad times. In transformation and change, traditional enterprises are traditional because they carry the stock burden. The stock burden is not a scale burden, but a mental burden. The mental burden is wanting to reform stock. Ma Licheng in "Historical Turning Points" raised a question: In Chinese traditional history, there is a mystery: more than ten dynastic changes succeeded, but more than ten major reforms mostly failed. Stock reform is hard not to fail. It's hard to turn a big ship; why not release a small sampan to turn? Where is stock? Stock is in the channel. So changes around 2B are still stock changes. Where is increment? Increment is at the C-end. In the past, 2C had technical difficulty, but the internet provided technical tools, making it much easier. From 2B to 2C, from stock to increment, two points are important: one is the organizational system; the other is the marketing system. Organization is the solidification of functions. The street-sweeping organization's KPI is to ensure street sweeping; sweeping people is not KPI. Unified Company changed its sales department to marketing department, both sweeping streets and people. Sweeping streets requires assessing sales, sweeping people requires assessing traffic. Assessing sales inevitably pushes frontline employees to sweep streets. Many enterprises wanting to transform have leaders emphasizing slogans that are disconnected from organizational functions and KPIs. Of course, traffic is also sales. But traffic may not be current sales; it may be future sales. So 2C work emphasizes process, while 2B emphasizes results. There has always been a debate between result-oriented and process-oriented. Logically, process-oriented seems better, but reality is result-oriented. The reason is that process KPIs are hard to convert to sales. Traffic solves this problem well. The 2C marketing system has two branches: one is IP; the other is C-chain. IP is a centralized communication system. Although it is also 2C, brand IP is usually centralized. However, C-chain is usually distributed. C-chain has three means: technical, content, and community. Technical means, such as one product one code; content means, such as two microblogs and one Douyin. Now, it seems that community means have the highest interactivity. From the brand's perspective (not micro-business), mass products are suitable for community communities, and niche products are suitable for vertical communities. In current communities, community communities are relatively clean. Because communities have strong offline relationships, messing around in community communities is like losing face offline. Niche products are suitable for vertical communities. Vertical communities have shared values, forming convergence and exclusion. So vertical communities are also relatively clean. Vertical communities are content-driven, and usually a combination of IP + community. IP is values, community is interaction. At the 2019 Spring Sugar Fair, at a food conference, I proposed a viewpoint: all food industries are leisure industries, and all food must have social attributes. On the premise of good products, social is standard. When function and quality reach safety bottom lines, all products are spiritual products. In fact, not only food, but other industries are the same. Consumers' attention to spiritual value, and the internet's emotional communication characteristics, give brands the ability to influence the C-end. They also have the ability to mobilize C-end traffic at the terminal. In the past, it was thought that only e-commerce traffic could be mobilized. Now, it is possible to influence terminal traffic through the internet. This is exactly why 2C influences 2B. For example, Lidu did a group buying activity with cooperative terminals during the Spring Festival, changing the distribution of traffic in the local area, creating increment for cooperative terminals, and increment in turn affects stock. Without 2C, C-end to terminal traffic is determined by the terminal, which is the terminal's bargaining chip. With 2C, and brands usually have stronger ability to influence C-end, brands also have the ability to influence terminal traffic. Stock is in the hands of 2B, increment is in the hands of 2C. With 2C, you can influence 2B. Without 2C, you can only buy 2B's traffic. Without 2C's increment, you will eventually fail to hold onto 2B's stock. Source: Teacher Liu's New Marketing Tips will be paid 400-2000 yuan once adopted. China FMCG + Internet Professional New Media Dedicated to FMCG manufacturers' transformation and upgrade and channel digital solutions