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Articles by 刘润
Browse 27 New Distribution articles by 刘润.
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27 articles · Page 1 of 2
Loneliness: The Next Economic Opportunity?
This article explores how loneliness and the search for meaning are driving new consumer trends, from fan communities and stand-up comedy to vintage clothing, retro experiences, and crowdfunding. These trends point to a shift toward more spiritual and personalized consumption, offering opportunities for businesses to provide emotional value and connection.
刘润Ways to Make Money Change Daily, but the Axioms of Making Money Never Change
We talk about business every day, but the environment changes so fast that what worked yesterday may fail today. However, even in the ever-changing business world, there are underlying principles that never change, like axioms in mathematics. These axioms, such as 'consumers always want to buy better products at lower prices,' serve as the foundation for deriving methodologies and theorems that help you navigate business with constancy amidst change.
刘润Don't Sell Cheap Goods, Sell Goods Cheaply
On October 26, at the 2024 'Power of Evolution·Liu Run Annual Speech', I said: Customers 'always' want to buy better products at lower prices. This was true 100 years ago, and it will still be true 100 years later. This should also be the eternal pursuit of enterprises. However, in recent years, there has been a widespread race to the bottom on price. Without the lowest, only lower. In the end, when there is nothing left to cut, quality is sacrificed for lower prices. But on JD.com, I heard a different answer: Don't sell cheap goods, but sell goods cheaply.
刘润What I Fear Most Is 'No Middlemen Taking a Cut'
Many people complain about middlemen taking a cut, but as a business consultant, I've seen their true value. Middlemen shield you from upstream complexity, enable small-scale low-cost purchasing, and guarantee quality and safety. Without them, transactions become inefficient and risky.
刘润Liu Run: All offline retail must become a destination
In January 2018, the Yayuncun store of Beichen Shopping Center closed. Beichen was once the largest and most profitable shopping center in northern Beijing, with annual revenue reaching 1.2 billion yuan. But from 2012, its performance declined, and by 2017, half-year revenue was only 80 million yuan. In 2020, Scitech Shopping Center on Chang'an Avenue announced closure for renovation. In 2021, Wangfujing Department Store in Guangzhou closed after 25 years, and more closures followed. However, some offline retailers like Fusenmei, MixC, and SKP are thriving. The key, according to Liu Yunhua, co-founder of Chengdu Fusenmei, is that offline retail's positioning has changed from a 'gas station' to a 'destination'.
刘润Start Building Your Private Domain: The Four-Force Growth Model
This article discusses the T+ Brand Private Domain Value List released by Tencent Smart Retail and the Four-Force Growth Model behind it. The model emphasizes that to succeed in private domain operations, businesses must focus on four forces: organizational strength, product strength, product capability, and operational strength.
刘润What Is the Essence of Channels?
A channel partner worries about brand owners going direct or switching partners. The article argues that the essence of channels is low-cost, scalable reach to potential consumers, and advises channel partners to accurately assess their core competency and innovate by aggregating offline traffic into private traffic pools or grouping people in online public traffic based on common interests.
刘润Channel Distributors, of Course, Have Value
A channel distributor expressed concern about their future value. The article argues that distributors are valuable due to their efficiency in reaching users, and outlines five core capabilities: lower-cost user reach, stable inventory maintenance, lower capital costs, higher turnover, and better risk management. It advises distributors to recognize and leverage these strengths to remain indispensable.
刘润Can Stealing Coca-Cola's Recipe Defeat Coca-Cola?
This article discusses the value of brands, using Coca-Cola as an example. It argues that brand value exceeds recipe value, as a strong brand can enable a company to recover even after losing its physical assets. The article identifies three types of brand value: pre-sale, premium, and extension.
刘润How Xinwang Baidi Effectively Transforms to Private Domain?
Digital transformation is the future trend, and it's even more urgent for traditional enterprises. Xinwang Dairy, a subsidiary of Xinwang Group, is a city-based low-temperature dairy company. Recently, we had an in-depth discussion with Anhui Xinwang Baidi Dairy, a subsidiary of Xinwang Dairy, and found they have many insights, especially in the private domain.
刘润Start Building Your Private Domain: Why Oreo's Private Domain Isn't About Boosting Sales?
This article explores why Oreo, a brand with deep distribution channels, still invests in private domain operations. The key insight is that Oreo's private domain strategy is not aimed at increasing sales but at improving marketing efficiency, testing new products, and ultimately feeding back into public domain marketing.
刘润Lessons from the Century-Old Cola War
In 1983, Steve Jobs asked John Sculley, then president of PepsiCo, "Do you want to sell sugar water for the rest of your life, or do you want to come with me and change the world?" This irresistible pitch led Sculley to become Apple's CEO, but two years later, he ousted Jobs. This article explores the century-long competition between Pepsi and Coca-Cola, highlighting key strategies and lessons for businesses.
刘润What Exactly Are You Relying On to Make Money? Do You Really Know?
Recently, I held a private board meeting with a brand's manufacturer and distributor. I asked the question: What exactly does a distributor rely on to make money? Everyone quickly answered that they rely on price differences, but I pointed out that there are two angles to this question: the profit model and the business model. The key is not whether you earn a price difference or service fees, but what you rely on to earn that price difference.
刘润What Is the Essence of Channels?
A distributor worries about losing the brand's business, but the essence of a channel is the ability to scale reach to potential consumers at low cost. Channel innovation means achieving lower-cost scaled reach, and distributors should accurately recognize their core competency and continuously refine it.
刘润JDB Takes Its Advertising Slogan Battle All the Way to the Supreme Court...
The Supreme People's Court ruled that JDB can continue using the slogan '怕上火喝加多宝' (Drink JDB to prevent getting heaty), dismissing GPHL's retrial application. This case highlights the importance of advertising and brand positioning in the beverage industry, as well as the lesson that entrepreneurs must build their foundations on solid ground.
刘润Should Targets Be Lowered Amid the Pandemic?
A private board advisor advises that if targets are unlikely to be met due to the pandemic, they should be adjusted appropriately. He emphasizes that good targets should be achievable with effort, and suggests methods for adjustment, including referencing GDP forecasts or adding special incentives.
刘润Deconstructing Livestream E-Commerce
Livestream e-commerce is booming, attracting everyone from top influencers to CEOs. This article deconstructs why it's popular, its business logic, how participants profit, and its strengths and limitations, emphasizing the importance of building a moat and acting as the user's agent.
刘润Survival Strategies for Supermarkets Amid the Pandemic
Since the lockdown of Wuhan on January 24, supermarkets have been operating on the brink of survival. As the main sales channel for daily necessities, if supermarkets fail, people's livelihoods are at risk. We must care about economic recovery as well as food and vegetables. Supermarkets, especially small and medium-sized ones, face enormous challenges: on one hand, a surge in demand for daily necessities; on the other, severe overstock of holiday gift boxes. This article offers practical advice from retail expert Huang Biyun on how to 'save lives, cure diseases, and maintain health' during this crisis.
刘润How to Conduct Annual Performance Reviews? 10 Heartfelt Words for New Managers
A few days ago, we shared about how to set KPIs, emphasizing that managers should never set unattainable goals for subordinates. Otherwise, during annual reviews, even if subordinates work hard but fail to meet targets, managers face a difficult choice: whether to give full bonuses. A reader then shared a representative problem he encountered as a manager implementing his company's '271' performance review principle, which we discuss here.
刘润Why Can Some Products Sell Without Being Produced?
Every Mid-Autumn Festival, people receive two kinds of vouchers: mooncake vouchers and the recently popular hairy crab vouchers. A reader asked how to view these vouchers and whether their own products could use this method. This article discusses the concept of commodity securitization, using examples like hairy crab vouchers and mooncake vouchers, and explains how separating the virtual value from the physical value can improve business efficiency.
刘润What Should Determine Product Pricing?
Product pricing should be determined by the value perceived by consumers, which includes functional value, experiential value, and personalized value. The more scarce the value provided, the higher the price can be.
刘润The Much-Maligned WeChat Business Can Actually Be a Legitimate Profession
Despite its bad reputation, WeChat business (micro-commerce) can be a legitimate profession if it focuses on selling quality products and building trust, rather than recruiting downlines. The article explains the business logic behind WeChat business, emphasizing the role of transaction costs and the importance of trust in social retail.
刘润Is 'Breast Enlargement' the Only Way for Coconut Palm Coconut Juice to Advertise?
Last week, Coconut Palm Coconut Juice's 2019 new packaging sparked controversy. Although the tradition of using big-breasted beauties remained, the copy was more explicit, and the industry and commerce bureau deemed the 'breast enlargement' effect as false advertising and filed a case. This raises questions: why does Coconut Palm use such low-brow methods? Why link coconut juice with 'breast enlargement'? In my view, Coconut Palm may be facing unprecedented challenges and is trying to navigate the crisis. So what exactly is the challenge?
刘润2019, New Business Logic: From Selling Goods to Supermarkets to Buying Traffic from Them!
As the economic cycle enters a normal trough, businesses must adapt to new realities. The key shift is from selling products to supermarkets to buying traffic from them, recognizing that consumers hold the decision-making power and that understanding traffic is crucial for survival and growth.
刘润