---
title: "Xuantong's Debut: The Beginning of the Evolution from 'Tool Revolution' to 'Revolutionary Tool'"
description: "The invention and use of tools is one of the most important advances in human history, marking our shift from relying on nature to actively transforming it. However, humans often make mistakes in understanding and applying new tools, as seen with gunpowder and early automobiles. On July 18, 2024, Xuanwu Cloud (02392.HK) announced the strategic upgrade of its 'Xunxun' brand to 'Xuantong', reflecting a shift from 'tool revolution' to 'revolutionary tool' in China's FMCG digital transformation."
author: "陈思廷"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2024-08-16"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/cEgXXCogXbzDWJ-M57Rj7w"
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---

# Xuantong's Debut: The Beginning of the Evolution from 'Tool Revolution' to 'Revolutionary Tool'

> The invention and use of tools is one of the most important advances in human history, marking our shift from relying on nature to actively transforming it. However, humans often make mistakes in understanding and applying new tools, as seen with gunpowder and early automobiles. On July 18, 2024, Xuanwu Cloud (02392.HK) announced the strategic upgrade of its 'Xunxun' brand to 'Xuantong', reflecting a shift from 'tool revolution' to 'revolutionary tool' in China's FMCG digital transformation.

**Some tool advancements have changed history**
The invention and use of tools is one of the most important advances in human history.
It marks our transition from **relying on the natural environment** to **actively transforming it**, and is key to our distinction from most animals.
However, humans often make mistakes in understanding and applying new tools.
Gunpowder was invented by alchemists but was used only as firework material for a long time; the earliest automobiles were ridiculed because they couldn't outrun horse-drawn carriages.
Today we know they profoundly changed the trajectory of human civilization, but that is hindsight.
On July 18, 2024, Xuanwu Cloud (02392.HK), a leading smart CRM service provider in China, announced the strategic upgrade of its **'Xunxun'** brand to **'Xuantong'**.
At the same time, Xuanwu Cloud will establish a holding subsidiary focused on the consumer sector, dedicated to operating the 'Xuantong' brand, aiming to become a digital intelligence service provider for the consumer goods industry.
Chen Yonghui, Chairman and CEO of Xuanwu Cloud Technology Holdings Limited, believes that the change from 'Xunxun' to 'Xuantong' is not a simple one-character difference, but an inevitable trend after China's FMCG digital transformation enters an advanced stage.
**Chen Yonghui**
Chairman and CEO, Xuanwu Cloud Technology Holdings Limited
Chen Yonghui stated: The impact of digitalization on FMCG has begun to evolve from a 'tool revolution' to a 'revolutionary tool'.
**What determines a company's competitive level and operational quality in the next stage is not the level of digital technology capability, but the level of digital cognition and application.**
**16 Years of Evolution**
**From 'Xunxun' to 'Xuantong'**
"The essence of marketing is competition, and the highest form of competition is war," Chen Yonghui is accustomed to explaining problems with analogies.
"What is a tool revolution? Sharper blades, faster carriages, better bows and arrows; what is a revolutionary tool? Gunpowder, missiles, drones."
A tool revolution has a huge impact on the outcome of a battle; a revolutionary tool directly changes the mode of warfare.
In Chen Yonghui's view, from 2008 to 2024, the 16-year development of 'Xunxun' has been about 'tool revolution', while the upgraded 'Xuantong' has begun to evolve into a 'revolutionary tool'.
So what specific 'tool revolution' things did 'Xunxun' do in the past 16 years?
**First, 'Xunxun' helped FMCG enterprises connect all the businesses and people they wanted to connect through a series of products.**
Through smart CRM, it connected brand owners and distributor customers; SFA connected sales representatives; DMS/EPM/TPM connected orders, logistics, promoters, and expense management; RMS connected members; DI connected potential terminals; AIoT connected smart terminal devices.
**Second, on the basis of connection, it empowered businesses and people through systems and data.** It made marketing operations more efficient and precise, and enhanced the individual combat capability of each marketing personnel several times over.
With strong product technology capabilities and close integration with customer business scenarios, 'Xunxun' gained the trust of leading FMCG enterprises. Among every 100 well-known FMCG companies, more than 30 are long-term customers of 'Xunxun'.
On July 8, 2022, Xuanwu Cloud successfully listed on the Hong Kong Stock Exchange.
But Chen Yonghui felt that 'Xunxun' was still not his ideal product. Despite having the ability to 'connect everything' and empower customer marketing, 'Xunxun' still lacked the 'revolutionary' element he wanted.
'Xunxun' remained at the level of tool revolution, still just a sharper knife, a faster horse, still an efficiency tool subordinate to existing marketing models.
But what Chen Yonghui wanted was a tool product that could promote enterprise marketing innovation and even bring about a revolution in marketing models.
**Thus, 'Xuantong' was born.**
**Why is 'Xuantong' a revolutionary tool?**
'Xunxun' and 'Xuantong' differ by only one character; what is the difference?
Chen Yonghui believes that although it is only a one-character difference, it represents two different eras.
**'Xun' (讯)** represents connection and communication, with its core in the linkage and transmission of information; while **'Tong' (瞳)**, meaning 'vision', has several new layers of meaning.
**First, 'Tong' represents visual recognition in artificial intelligence.**
Many scenarios in the consumer goods industry involve AI vision.
For example, when a salesperson visits a store for display collection, taking a photo can reveal the products and quantities on the shelf, determine whether the store's display is compliant, and whether it meets expense standards. This is the most intuitive AI visual recognition and is where 'Xuantong' excels.
'Xuantong' can use photos as a medium to quickly capture market details. Through AI image recognition, it identifies massive frontline information, such as store management and product sell-through, providing accurate data support for decision-makers.
**In the future, AI will clearly be a core driving force for 'Xuantong's business development, helping 'Xuantong' build a moat in technology and products.**
Whether key business data can be presented in a more intuitive and direct 'visualized' manner through algorithms is an important feature of whether a future digital system is sufficiently intelligent.
This is also 'Xuantong's forte. For example, it provides managers with multi-dimensional key business data in a cockpit form that is smarter and better understands manager needs, assisting managers in efficient and scientific decision-making.
**Second, 'Tong' represents insight.**
Data itself is meaningless; the most valuable thing is to use data, see through data to gain insight into market truths, and make correct decisions.
**The unparalleled 'insight' capability is the core capability that distinguishes 'Xuantong' from all traditional digital systems.**
Why can it possess such capability?
With the development of competition, FMCG channels are becoming increasingly fragmented, and their business scenarios are the most complex and changeable among all commodities.
Xuantong serves more than 30% of leading FMCG enterprises, and it has experienced almost all omni-channel scenarios and complex situations of FMCG enterprises.
**Based on a large base of leading FMCG customers, 'Xuantong' can adapt to almost all current FMCG business scenarios.**
But adapting to scenarios is far from enough; to truly 'understand' the ever-changing FMCG scenarios, strong artificial intelligence (AI) capabilities are necessary.
Xuanwu Cloud, which is technology-oriented, established the first AI laboratory in the CRM industry as early as 2016. It self-developed AI technologies such as image recognition, and as early as 2017, they were widely applied in its SFA system.
Through hundreds of millions of training iterations, **the upgraded 'Xuantong' can quickly understand an FMCG enterprise's marketing business in applications, continuously learn and train during use, and ultimately become an intelligent assistant that best understands the business and managers.**
One of the most important reasons Iron Man is Iron Man is that he has the super intelligent assistant J.A.R.V.I.S. The upgraded 'Xuantong' can fully become the J.A.R.V.I.S. assistant for FMCG managers, so it can certainly be called a revolutionary tool.
**How can FMCG enterprises make good use of 'Xuantong'?**
How can an FMCG enterprise make good use of 'Xuantong'?
**First, understand that 'Xuantong' is not an isolated system product; it is a product cluster formed by connecting a series of digital tools.**
This digital product cluster covers all aspects of an FMCG enterprise's marketing, from brand owners to distributors to terminals to members. All products, channel partners, and terminals related to the enterprise are connected and integrated by this system (as mentioned above).
All data and images, in the connected state, can flow freely according to business needs, be retrieved, and be applied.
Therefore, among the product cluster under 'Xuantong', which application products to choose depends on your category and business characteristics. Your choice also determines at which levels and to what extent 'Xuantong' can help you.
**Second, the initial application of 'Xuantong' in an enterprise is very critical.** Although a child can succeed through later efforts, the boundaries of success are often set by innate factors.
"Each has their own specialty," digital research is not the strength of FMCG enterprises. To avoid detours, one needs a 'master to lead the way', which is one of the main reasons Xuanwu Cloud established a dedicated industry research institute.
To allow 'Xuantong' to play a more thorough role in the digital intelligence process of consumer goods enterprises, the Xuanwu Cloud Industry Research Institute focuses on deep cultivation, pragmatism, and ecosystem co-creation.
Combining Xuanwu Cloud's years of methodology accumulation and practical experience in enterprise digital intelligence transformation, it provides digital intelligence transformation planning consulting, while also focusing on innovative research for next-generation smart CRM. This is only part of the industry research institute's work in promoting digital intelligence construction in consumer goods.
For the Xuanwu Cloud Industry Research Institute and industry customers, it conducts insights into sub-sectors such as beverages, snack foods, alcoholic beverages, daily chemicals, grain and oil, dairy, condiments, and consumer electronics. Based on industry characteristics and practical experience, accumulating a large amount of think tank assets is also not to be ignored.
Among them, **industry omni-channel marketing model development trends** and **best practice research** are the highlights.
For example, the industry research institute's latest research has distilled a mature **'volume-profit growth model'**, which is widely applicable to various sub-sectors of consumer goods and can help enterprises find the true sources of 'volume' and 'profit' tailored to their needs.
Tracing back to the source is the essence of business growth and the right path for digitalization.
Although China's FMCG industry digital transformation has been advancing for a decade, its evolution has not stopped for a day, and it is accelerating.
Today, we already know that digitalization can do a lot, and we know it can do even more, but we still haven't touched its limits.
**The debut of 'Xuantong' is a revolutionary evolution in the digitalization process, but it is still just the beginning of a great era.**
**Scan the code to talk to a Xuantong consultant immediately**
******Learn more about consumer goods industry digital intelligence practice cases and solutions******


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