On December 8-10, 36Kr held the "WISE2020 King of New Economy Conference-Rise and Return" at the Beijing International Convention Center. This conference is the eighth WISE conference, and 2020 is also the tenth year of 36Kr. In the main venue of the King of the New Economy, we invite those who have braved the wind and waves in the past ten years to connect with start-ups, Internet giants, investment institutions, local governments, traditional enterprises and other market participants, and look back at the ten rapid rise of China’s new economy. In 2009, we will jointly look forward to the infinite possibilities of the new economy in the next decade.
Jiang Nanchun, Chairman of Focus Media, Chen Xiaohua, Chairman and CEO of Swan Daojia, and Bai Rubing, co-founder of Che Hao Duo, discussed together with the theme of "Ten Years of Mind Controversy" at the WISE conference, discussing how companies can differentiate in the new economic decade Positioning? How do brands occupy the minds of users?
"Returning today to ten years ago, when you were unable to use the Internet for meals or taxis, I believe that everyone will not be able to go back. I believe that the drastic changes in the lives of consumers in the past ten years seem to have changed every year on the surface. A little bit, but the accumulation of ten years is a drastic change. A lot of changes have been experienced in ten years, and many have not changed. Many heroes have risen in many changes, and there are also many stories about the Internet. There are also many things that have not changed, maybe ten years Over the past two decades, even one place has continued to do deep and thorough, and it has also created many opportunities." said Jiang Nanchun, Chairman of Focus Media.
Regarding the frequent traffic wars among Internet companies, Jiang Nanchun said, “Currently, sales promotion is effective in the short-term and can be increased in the short-term. However, if it is not promoted later, it will not be sold. Traffic must be accompanied by promotion, and the cost of traffic More and more expensive. The dilemma of many Chinese companies is to enter a double kill, that is, traffic costs continue to kill upwards, customer unit prices continue to kill downwards, and their profits are getting thinner and thinner. Only by moving towards the brand can it change from volume to volume. The process of qualitative change."
Regarding the difference between brand advertising and performance advertising, Jiang Nanchun gave an interesting analogy. He said: "The advantage of performance advertising is that it can quickly produce a result, so it can quickly see the effect, because it sees it, so believe it. Brand advertisements may often need to be believed and seen, so I think that performance advertisements are a bit like your lover. Is the lover good or not? But the way for a lover is usually to stir your emotions and trigger a certain behavior, a single behavior, but Brand advertising is like your wife. Can you and your wife live together? It depends on whether you have a common understanding. So brand advertising is to shape consumer perception, while traffic advertising is to stir your emotions, within two or three seconds You have to get some points after reading it, and if you don’t click on it, you will pass, so I think the difference between the two is not the same. So I think the same effect advertisement on the Internet is put out. If there is a brand with a strong brand recognition, it Conversion rate will become very different."
Chen Xiaohua, chairman and CEO of Swan Home, said that today's consumers care more about services and brands. Brand advertising is a long-term value.
At the same time, Bai Rubing, the co-founder of Chehaoduo, predicts that in the future, China will continue to develop new brands in subdivisions, helping users to reduce the difficulty of decision-making in different fields.
The following is the dialogue record of the theme round table "Ten Years of Mind Controversy", edited by 36 krypton:
Jiang Nanchun: I was very emotional just now. I watched the wave of China's new economic war unsuccessfully and one after another in the past ten years. The two sitting next to me are representatives of the unique wars of certain years in the New Economic War. In this part, you can talk about what has changed in the past ten years? What is unchanged? What is this law? Please talk to Bai Rubing first.
Bai Rubing: I just watched the video. Mr. Xiaohua and I have participated in two changes, one is 58 and the market, and the other is after we made Guazi second-hand cars, Mr. Xiaohua made a swan home.
Speaking of unchanged, I have a feeling after watching the video that the Internet wars will not stop, and it is indispensable. The business war in China is also quite exciting. Every year the market changes so much, and China's economic market is very active. Internet people have become accustomed to the war, and it will always exist.
The second constant is that from the user's point of view, the basic needs of consumers will not change. The user's demand for how fast, good and economical, and the user's demand for the brand, will not change. For brands, the minds of users that can be seized are limited. After these wars, there are always a few brands that survive, because the minds of users cannot accommodate so many things. These two points will not change.
From the perspective of change. First, we just talked about the changes in the industrial Internet. Many people are working on the industrial Internet. Internet people continue to penetrate into various industries, or they may transform each other. This is a process of continuous advancement and deepening. From our own point of view, the proportion of online car consumption in China is constantly increasing. For example, in the past year, nearly 10% of used cars can be sold purely online. We also believe that one day Regardless of whether it is a used car business or a new car business, it can be sold online to a higher proportion than offline, which is an online trend.
Second, the final choice of users today will still change. In each category, some top brands will eventually change. In the next period of time, China will continue to emerge as brands in new subdivisions to help users reduce the difficulty of decision-making in different fields. For example, on second-hand cars, equate second-hand cars with melon seeds, and equate new cars with edamame. This is a possible change in the future, thank you.
Chen Xiaohua: Ten years ago, in 2010, the advertising war was very hot, and the war in local life was also raging. Later, I started my own business. In 2015, I also experienced a very fierce O2O war.
To sum up the past ten years, three things have not changed.
First, the brand advertising has not changed. Just talked about the advertising war, most brands advertise in Focus, this is not a trust, but a sigh. Just look at the elevator to and from get off work to know what is popular in the Internet economy. Everyone always starts with a ground subsidy war and a traffic war, and it is difficult to avoid a brand war in the end.
Second, competition has never changed. There is no war on the Internet, and awakening without experiencing wars and without bloodshed.
Third, the Internet is getting deeper and deeper into the lives of ordinary people, and the combination of mobile Internet and industry is becoming tighter, and more and more changes are being made to ordinary people's lifestyles. From the very beginning, it was just looking for information and obtaining information, to post-dough shopping and takeaway, to housekeeping, buying second-hand cars, and grocery shopping. The Internet gradually sank from the cloud, integrated with industries and people’s lives, and became more and more grounded. It hasn't changed. These are the three things I feel most about.
Jiang Nanchun: Let me also talk about it from the perspective of our industry. We have witnessed the various battles of the new Internet economy. At the same time, we have also seen consumers’ yearning for a better life. During the evolution of the Internet, many changes in lifestyles and consumer concepts have continued to occur during so many battles.
Today I return to ten years ago, when you were unable to use the Internet for meals or taxis, I believe you won’t be able to go back. I believe that the drastic changes that have taken place in the lives of consumers in the past ten years seem to have changed a little every year, but the accumulation of ten years is a drastic change.
From the perspective of our industry, what has changed is that the information model is changing drastically. More than a decade ago, the most important thing was TV. Since 2015, the viewing time of the Internet has surpassed the total viewing time of traditional media. The information function of traditional media has been replaced by Weibo and WeChat, and the entertainment function has been replaced by video. This is a big change, and the information model is changing drastically. After the information model has changed, it can be found that the living space has not changed much. Ten years ago, I had to go home, go to work, and the movie theater. The living space has not changed. Nowadays, mainstream people are less likely to watch TV. Watching videos spend 20 yuan to buy members to advertise. Look at Weibo and WeChat. Everyone looks at the content. There are a lot of information flow advertisements. You are close to mobile phones, but not so close to mobile advertisements. The number of advertisements that can be remembered on mobile phones in a month is very limited.
This change is a change in the information model. It is not that the effect of advertising is getting better, but that the effect of advertising has become fragmented compared to a decade ago. More than a decade ago, there were few media, and advertising effects were concentrated. Today, we have seen so many forms of advertising fragmented and dusty, and the power of advertising is declining. I myself have always adhered to it. Although I have watched and experienced some changes, my living space remains the same. I would rather bet on the unchanged part. Because you can’t keep up with those changes, but the living space remains the same. Eighteen years ago, I created Focus Media during SARS (SARS) in 2003. My biggest experience is China’s urbanization, which is to build buildings. There must be an elevator. What is this change? Urbanization has changed the face of the city. Elevators have been built, and the city cannot operate in the future without elevators. From today's point of view, the more high-rise buildings in the city, the elevator is a kind of infrastructure.
And my own feeling, on this infrastructure, I also saw a very important point at the time-no one wants to watch advertisements, and this point has not changed. You watch TV and mobile phones. You watch content, not commercials. When will consumers watch advertisements? I found this unique scene of waiting for the elevator. Everyone will watch the advertisement. For example, I was in the elevator with a girl. I can't stare at her. I am a man of high morals. I watch advertisements better. Should I take the elevator to watch stainless steel, or watch the advertisement? Therefore, this has not changed. In this scenario, it is easier for consumers to take the initiative to watch the time and space of the advertisement.
Looking backward, this has not changed. As soon as the elevator door is closed, the mobile phone is out of signal. Maybe the advertisement is to help you get rid of the boring and embarrassing things. Mobile phones were born, and there were some changes in the elevator entrance. More people are watching mobile phones. Originally, 100 people and 60 people watched Focus ads, but now only 40% of them watch them. Mobile phones have had a certain impact on us. But from another angle, everyone knows that it is an advertisement. 100 people pass by and 40 people watch it. In essence, it hasn't changed much. The elevator is still a place where everyone will take the initiative to watch the advertisement.
There have been many changes in the past ten years, and many have remained unchanged. Many heroes have emerged during the changes, and there are also many Internet stories. There are also many unchanging places, maybe ten or twenty years, or even a place where you continue to do more and more thoroughly, but also have many opportunities.
Ask two people, because now China's advertising is divided into two methods. First, the core of brand advertising. Second, focus on performance advertising. For example, Douyin, Kuaishou, and Alibaba are at the core of performance advertising space, while Focus is the core of brand advertising space. How do the two look at performance advertising and brand advertising?
Chen Xiaohua: First of all, brand advertising and performance advertising are not antagonistic. The rise of every successful company in the world initially relies on a different path. Some are good at products at the beginning, and some are good at traffic at the beginning, relying on the platform to quickly master operations. Ability, and some have strong ground pushing ability. But successful companies are similar in the end. Both in terms of brand and effect, they must do well. So first of all, these two points are not in opposition.
The second thing to note is that today there is no doubt that most entrepreneurs are traffic hungry and hope they have more traffic. You must know that the cost of accurate traffic on the Internet today is extremely expensive, which is much more expensive than it was ten years ago. Push it ten years ago, and the traffic cost will be cheaper. The reason is simple, all economies are digitizing, all platforms have upgraded business models, and have huge revenues. Therefore, the cost of accurate traffic has risen at a rate much faster than brand advertising in the past, from my perspective. Because the flow of any industry must face greater competition. When you buy accurate traffic, you have to compete, and it is calculated based on how much a click is. In some industries, it may even cost a few thousand yuan to buy an effective lead, and the cost of accurate traffic is getting more and more expensive.
In the early days of a company's establishment, it often does not have enough funds for long-term planning. It is understandable that you can start with your own private domain traffic and community traffic, and then obtain precise traffic. But to a certain extent, the power of the brand must be used.
Third, play brand advertising. Swan Daojia also launched a large-scale brand advertisement in September. At that time, many people also said that if advertising fees are used to buy traffic, it will be a 100% increase in performance. In fact, brand advertising is like losing weight. Some people choose to drink less water or be hungry for a few days. They think this works well, but why would some people choose to run? Because of the need for long-term, continuous, and healthy influence. Therefore, there is rarely a brand advertisement today, and orders will skyrocket tomorrow. Of course, if the increase is possible, the premise is that the product has no service barriers, low barriers to entry, and low prices. In this way, brand advertising can still have an immediate effect. When today's consumers care more about services and brands, brand advertising is a long-term value. And in terms of the game, its multiplication of all links is not a single increase in a certain attack ability, it is an increase in all the attributes of the hero, whether it is intelligence or agility.
Why do we still use brand advertising? For example, today is the same service. Consumers are willing to choose Swan Home, because he believes this is the largest and best company in China and believes in our services. This sense of trust will bring brand and service trust. When funds lack long-term patience, there will definitely be pressure to survive in the short term. At this time, you can first find ways to do private domain traffic, precise traffic, and perform well. If you have some spare capacity, you must consider the brand. This brand is not only brand advertising, but also PR and company service positioning. Don't simply equate mental influence with simple advertising.
Bai Rubing: Brand advertising and performance advertising are not contradictory in daily work, they are all done at the same time. As far as a company is concerned, there can be no shortcomings in all aspects of the company, and any shortcoming is a problem. These two always assist each other in the specific process. If brand advertising is done well, the traffic conversion rate and the revenue of performance advertising will be higher. When there is a lot of investment in performance advertising, such as the content of information flow, it is also helpful to the brand, and it is also mutual promotion.
Second, talk about the brand. We are a company that believes in brands, no matter from Ganji or melon seeds or edamame. The past few years have been a time when we thought we were doing relatively well. When I first entered the second-hand car industry, I had a high degree of brand attention and investment. I hope to shorten a war as soon as possible, and do not want to delay this war for too long. A very important way to shorten the battle is that we made a heavy bet on the brand, including from the very beginning, we made a completely new brand, renamed Guazi Second-hand Car, and also included our presence in some major media. , Including targeted advertising on Focus, that is, we must pursue our own detonating impact on user perception as soon as possible. In fact, in the past few years, we should have invested a lot of capital on the brand of Guazi. Say it? There is a multiple-level gap with competitors.
Therefore, Guazi quickly established an entry-level capability in the second-hand car field. Let’s look at the traffic in China’s second-hand car industry today. Whether it is buyers or sellers, most of them are gathered on the side of Guazi. In fact, this traffic does not remain on other platforms. We have seen that in China today, the first mention rate of melon seeds without prompt has reached 60%. Everyone knows about various industries. First mention is that if you reach such a level, users will basically regard you as the first place in the purchase list, and it should be regarded as an entry capability.
Regarding investment, I think we have been calculating a big account, and can't care about the short-term gains and losses of one city and one place. When working on a brand, there is no way to make an advertisement this morning, and the data team will give you a count at 7 or 8 o'clock in the evening, and it is even too short on a weekly basis. Although we will also look at it, we cannot look at it solely by this indicator. In fact, when many companies first started branding, they couldn't achieve that the entire ROI was converged, or that the capital flow was positive. When the brand started, it was not so cost-effective compared with the flow.
For our own sake, we advertised in September 2015. At that time, we saw that ROI accounted for a lot of costs. We only made a lot of money for a car, but we spent so much money on short-term customer acquisition. But at that time we were predicting, where will the future business model converge? We are calculating, about the scale of expenditure each year, the total number of customers will grow several times faster, and when it reaches a certain level, we predict that it will drop. So in the past 2016, 2017, and 2018, our entire customer acquisition cost has been declining, from tens of thousands of dollars at the beginning to thousands of dollars later, and today we have reached a very low number. And today we have harvested a huge amount of our own traffic, and this traffic pool is free. Especially during the epidemic, we are still very emotional. During the epidemic, the top brands surfaced. About 60% of our own traffic today comes from ourselves. This actually reduces a lot of our future growth. pressure.
I think the purpose of the brand is ultimately to form an entrance. Today, we treat it as an investment to help users shorten the decision-making time. Today, when users consider second-hand cars, they don’t have to worry about melon seeds. In fact, they still get from the brand. The customer's perspective has become a brand entrance, and finally the process of forming user habits. I think this is a relatively long-term perspective of our brand investment.
Let me talk about traffic. From the perspective of brand and traffic, the market is sometimes like a shopping mall. What is the brand? Branding is a tool for you as a brand party, a corporate party, and today's traffic platform. If you don't have a brand, you are not Haidilao, but an ordinary hot pot restaurant. In the mall, it must be suppressed by the mall. But today if you are Haidilao, you don’t need to pay attention to the location of shops in the mall, and you don’t need to send flyers to users at the door every day, stand at the stairs to intercept users, and make promotions every day, and users will take the initiative to come to you. . Of course, those actions are also needed, but you have a brand to compete with today's traffic giants. Otherwise, if you are in front of him, he will continue to increase prices. In fact, it will be difficult to succeed. Now the traffic cost is indeed getting more and more expensive.
But for us, the traffic part is actually more like a result of our own capabilities. It may not be a thing that can do too many actions on the front end. We often see customer acquisition ability or traffic acquisition ability. It is like a result of our own comprehensive ability. For example, is the chain cost very good? Is the back-end conversion efficiency very good? Is there any value in LTV for users, and is there any repurchase? Is there any referral? Only after these comprehensive capabilities are available, can you provide users with an attractiveness in the front-end, whether it is price or other aspects, and you can finally figure it out: because the back-end conversion chain is better, one click and one exposure on the front-end can give a higher price than others. , So that their ability to acquire customers becomes stronger.
Finally, from our own point of view, in fact, we are constantly improving our abilities in order to finally increase our competitiveness with others to obtain traffic. Optimizing these things is actually some short-term capabilities. Especially in today's Internet companies, it is difficult for everyone to have an extremely huge essential difference. Good and bad, it can be about 20% difference. How much can it be? However, the final flow capacity is still enhanced by the comprehensive strength and effectiveness of the enterprise.
Jiang Nanchun: Okay, thank you! Some of my own opinions. Because I have participated in so many wars in the past, I feel that the combination of traffic and effect on advertising has their own advantages. I think the accuracy of traffic advertising is very good, and the brand advertising is widely used. The universality is very good, and it happens to be a complementary thing. Traffic advertising, because accuracy is a good thing, but because of accuracy, you will also miss a lot of potential target customers, because if you have a hundred target audiences, the protection of privacy now prevents you from tracking the iPhone, including a lot of data. Not obtained, so the money you can invest based on the data is probably able to get through 30, 70 consumers are your potential consumers, but you do not reach him, you can not find him, I think this is the missing potential target consumer.
The second part, I think advertising has been in our years. I have always felt that advertising should not only target buyers, but also relevant decision-making influencers, as well as relevant communicators, etc. There are many relevant people who are interested in the final purchase. There is a mutual effect, but because you are accurate data forwarding, you often find the buyer.
I was very impressed. I was working on BYD Han’s advertising plan. BYD accurately pushed an advertisement. He got a customer and paid a deposit of 2,000 yuan. As a result, the person came to refund the money. I asked you why you refunded the money. I said, what do you think our BYD Han is inferior to Model 3? He said that after reading it, he felt that most of our BYD Han data was better than Model 3, but his wife didn't do it. His wife said, don’t you buy a Model 3 for tens of thousands of dollars? What is the subtext? I understand:
First, BYD Han’s precise advertisement did not effectively reach his wife. It touched the boys, but his wife has the right to veto the decision.
Second, why does his wife have this idea? You must buy a Model 3 for tens of thousands of dollars. I think her opinion largely represents the opinions of many people around you.
So you can see that BYDhan China is confident. After BYDhan has made a large-scale brand advertisement, you can find that its current sales have exceeded 10,000 units in a single month. Directly hit Model3. I believe that in the next two months, BYDhan There is a chance to beat Model 3 in a single month in terms of the number of bicycles delivered. Imagine that if you add another three or four thousand units, it will go from five thousand to seven thousand to ten thousand. This is like Huawei's Mate7 at the time, and it will change people's views on BYD. When it reaches the top of the high-end market, it will break Tesla's so-called superstition, and finally it will rebuild its perception. A good product will eventually be reshaped through a large number of brand advertisements. Everyone also remembers that Huawei used to be a thousand yuan phone, and today it is a symbol of high-end phones.
On the day when I was chatting with Vice President Wang Qiang, I said that your Mate7 was made by you. In essence, your BYD Han is a Mate7 today. This may be the most important turning point for BYD. Its brand relies on your product and a lot of The advertising promotion may have changed a lot.
The third part, so I think that advertising requires a field, not just limited to buyers of search data, it must target all relevant people such as buyers, influencers, and communicators to form a social field. In fact, brand advertising can create a sense of detonation, and precision advertising, my own experience, seems to be that I and Rubing interacted with each other. In the end, we both knew that no one would recognize it when we went out. This is like private Set for life.
Brand advertising is like proposing in a square. After the bombing in the square, everyone has seen that some people competed, and finally you have become a social consensus. It has become a kind of field power. Many people have played 500 million on Douyin. Advertisement, it is a traffic distribution, it is difficult to establish this kind of field can detonate the feeling.
What are the advantages of performance advertising? It can produce a result quickly, so it can see the effect quickly, and believe because it sees it. Brand advertising may often need to be believed and seen, so I think performance advertising is a bit like your lover. Is your lover good? It’s okay, but the way for a lover is usually to stir your emotions and trigger a certain behavior, a single behavior. But brand advertising is like your wife. Can you and your wife live together? It depends on whether you have a common understanding. So brand advertising is to shape consumer perception, while traffic advertising is to stir your emotions. You must get points within two or three seconds after reading, and if you don’t click, you will pass, so I think the difference between the two is not the same. . So I think if the same performance advertisement is put out on the Internet, if there is a brand with strong brand awareness, its conversion rate will become very different.
So before Double Eleven, who do you think is the top? They are all traffic players who have reached the top. Now, when you see Double Eleven, they are basically brand-based companies, and traditional big brands have reached the top. Why? It is not that its traffic method is better, but that its brand recognition is stronger, so its traffic conversion is a matter of course.
So I have a great experience myself. I often read a formula in the e-commerce industry, called GMV = traffic × conversion rate × customer unit price × repurchase rate. I think this is a flow formula. The flow is accurately distributed and the flow is fissioned. In private domains, traffic can be made into depressions and bonuses for traffic. I think this is called traffic operation. Does the level of traffic operation need to be improved? Of course you need to improve. This is called an excellent number. You will be optimized by others, and others will also optimize. There is no secret to this thing. Everyone is competing in the process of optimization.
But in fact, can everyone make money on the e-commerce platform? The core depends on the proportion of the brand's own traffic. Just like the ice mentioned that the Guazi second-hand car brand's own traffic is 60%, so when your brand breaks through and breaks the consumer's blood-brain barrier, you plant it in, "Nongfu Spring is a bit sweet "It took 2 billion to get it in. You said today that you want to use 20 billion to pull it out, but you still can’t pull it out. So it becomes a brand with continuous free traffic. It has become the conditioned reflex in the minds of consumers. .
I think why is L'Oreal easy to make money on the e-commerce platform? And many brands are not easy to make money? Because L’Oreal’s own traffic has a high proportion, it may be 50%-60%, and 40% may also rely on advertising, traffic advertising to play, but after its traffic advertising is launched, its conversion rate is 3 times that of yours. Why? What? It is well-known and well-recognized, and the same promotion, others want to offer one and two discounts. If Estee Lauder offers a discount, it would be crazy. So at this time, what is a core feature that everyone can discover? That is, your conversion power today depends on brand power, brand awareness and recognition, and what does the final customer unit price depend on? The customer unit price depends on the brand's premium ability. Whether your brand's potential energy is high or not, your brand's potential energy is high, so your premium ability is high. I just talked about Model 3, because it puts satellites, and finally its brand potential is higher. Although it may not be as good as yours, its premium ability is stronger.
So fundamentally speaking, from the first generation of Estee Lauder to the eighth generation of Estee Lauder, the price of the small brown bottle of each generation of Estee Lauder is constantly rising, which means that consumers have generated more recognition. At this time, although I occasionally 6.18 and double ten It is also promoted once, but Estee Lauder's potential in consumers' hearts is that domestic cosmetics may be promoted every day, every month, and they may only promote it once or twice. In the second part, you can find that it is promoting. When it launches new products, the price of one generation is higher than that of one generation, which makes its premium space relatively large.
Ping An Insurance and Yongan Insurance have the same insurance coverage, but Ping An Insurance sells you 2800, and Yongan Insurance sells you 2400. This 400 yuan may be profit, and the price difference. In this case, consumers buy Ping An Insurance The ratio will be even greater. This is the premium ability of the brand in my opinion. It finally determines whether you can make a profit in this market. This is also a great experience for me.
There are still 12 minutes to come. I would also like to ask both of you. What kind of trends do you think the advertising industry, brand industry, or marketing industry will have in the future? This trend can be used by whoever can make better development of this trend? I want to hear your thoughts.
Bai Rubing: I think that in the next ten years, some top brands will continue to emerge from the main sub-categories of Chinese users, and the head effect of the brands will become more and more obvious. Like the laws of mature markets, in the end, whether it is food, clothing, housing, transportation, life services, or consumer goods, Chinese users will have a top brand that is very easy for them to choose in each field. This process is the opportunity and challenge facing Chinese entrepreneurs. If you become a top player and become the user's solid cognition in the main consumer categories, you can win. If this is not the case, even if the market share is relatively large, it is not safe. This is the first point, the effect of the head brand will be more obvious.
Second, the head channel of brand media should be scarce in the future. After so many years in the industry, I feel that this trend is becoming more and more obvious. I remember in 2003, when it was relatively simple to make a brand in China, that is, to do CCTV advertising, and a CCTV media plan was also possible. After finishing it, it will definitely be effective. Today, when it comes to branding and advertising in a company, there should be more challenges. And we also found that head media is becoming more and more important, and the scarcity of head media is becoming more and more important.
Third, the ability of the brand. In addition to advertising, recently we are also paying attention to the comprehensive brand value manifestation. In addition to the influence of the brand itself, there is also the value driver behind the brand, whether it helps customers build value. In the process of building brand value, advertising is an accelerator, and there must be certain product and service strength behind it. Does it provide users with a good service and a good experience, forming a positive cycle of word-of-mouth. We have invested a lot in this aspect in the past year, and even divided our sales into two categories. One type is positive word-of-mouth sales, and the other is negative word-of-mouth sales. We are constantly pursuing sales that are positive word-of-mouth sales.
Chen Xiaohua: Everyone must seize the past 20 years. China has been connected to the Internet for almost 30 years. The first 20 years were mainly consumer Internet. In the past 10 years, it has gradually moved to the industrial Internet. The biggest difference between consumption and industry is that the industrial Internet has to change the supply-side services itself, so I have my own judgment. If I completely focus on the past consuming Internet, I will encounter more and more difficulties. One of the common characteristics of Internet companies that have emerged over the past five or six years is that they are all moving towards the industrial Internet and are changing the supply side. Including the food selling we talked about today, selling food is still like the traditional Internet. Everyone is just competing on price, and many companies will die because they are not competitive. If they rebuild the logistics system, vegetable operation, management, and planting, and make the experience of selling vegetables in China better, it will be more than just connecting the platform. Take take-out, for example. Take-out is to change the supply side and help catering to solve the supply-side problem. Make the consumer's ordering experience different. Instead of just booking a standard service like a group purchase. I call this the Industrial Internet. To change the traditional industry, I need to use the previous gameplay to change the supply side of the industry.
Therefore, the supply side is not only an Internet company, but also a service provider. For example, when users go to Swan Daojia, they find an aunt through the Swan Daojia platform. At the same time, Swan Daojia also provides blue-collar services such as training and employment for the aunts. This upgrade is an inevitable trend in the future. Today's education companies and new consumer brand companies are providing services and reconstructing infrastructure. The swan is doing this when he gets home.
In addition, in terms of development trends, I think there are two most important points.
First, service, because it is necessary to reconstruct the service. Second, brand power. The Internet is a product, the Internet is a service, and a new generation of Internet consumer brands must have leading companies. Moreover, there are 100-year-old brands all over the world, and the brands that enter China today are all accumulated many years ago. I hope that many long-term brands will appear in China, which can last for a long time and have lasting vitality.
Jiang Nanchun: During the ten years of the new economy, my biggest experience is that there is a pattern. The creation of a brand in the new economy must have opened a category or created a characteristic, so it must have a differentiated value to the society.
Second, it must have seized a time window. The people behind did a good job, but the first astronaut in China was Yang Liwei, and the second and third astronauts don’t remember. In the time window, it uses brand saturation attacks and preconceives in the minds of consumers. Whether it is Guazi second-hand car or Swan's home, you can find that they are preconceived in their own fields. First, they made this thing online and transformed an industry. Second, it seizes a time window that is preconceived, and what it owns is the intellectual property rights of consumers. Therefore, it is very important to create differentiated value, seize the time window, attack the brand saturation, put an equal sign in the minds of consumers, and own intellectual property rights. This is very important. From the emergence of a new species to the possession of intellectual property rights, to achieve a "thrilling leap", this "leap" has three solidifications.
The first consolidation is called capital consolidation. The second solidification is called scale solidification, which means rapid increase in volume to achieve the first in scale. Capital is coming, and the main capital dealers are here. Third, mental solidification. Just like Jizhilang eating jelly, even if others can make a healthier and more delicious jelly in the future, consumers think that jelly is equal to Kizhilang. This equal sign is dead, shutting down competitors and consumers. The door of entry in the mind.
Once they have the intellectual property rights, it will be difficult for the people behind them. No matter how good herbal tea is, or the herbal tea that can be used to reduce the fire, it will not change Wanglaoji's position in the minds of consumers. This is a very important experience for me.
Promotional traffic is effective in the short-term, and can be increased in the short-term, but if you rely too much on traffic later, it will not be promoted or sold if it is promoted. Traffic must be accompanied by promotions, and the cost of traffic is getting more and more expensive. The predicament of many Chinese companies is that they are caught in a double kill, with traffic costs constantly going up, and customer unit prices going down, and their profits are getting thinner and thinner. Only by moving towards the brand is the process from quantitative change to qualitative change. Feihe is more suitable for Chinese babies. It used to rank seventh in the Chinese milk powder market, but five years later, its revenue has risen from 3.5 billion to 13.7 billion, which is 20 billion this year. Yuanqi Forest received billions from 260 million camps last year. Yuanqi Forest created 0 calories, 0 sugars, and 0 fats in consumers. After it created a category, it made a brand saturation attack. It can be found that many people behind it have started to make sugar-free beverages, but it has been difficult to change the cognition that has been formed in the minds of consumers. Even if you are a pioneer, whether you can hold onto the first position, become a standard, common sense, and unthinking choice in the minds of consumers, depends on whether you can seize the time window to seize intellectual property rights. If you can't, your position will be shaken, or you will fall into a promotion war or a traffic war.
In addition, the experience of digitization and the improvement of the industrial Internet, like Focus Media as an offline media industry, the changes in the Internet in recent years have brought us a lot of digital things. For example, it used to require more than 10,000 people to change the card and publish it. Today, it is distributed online in the cloud, and there is no need for so many monitoring personnel to maintain the machine. It is IOT-based, and which machine has a problem can be seen immediately in the background.
Third, accurate distribution. In the past, we only knew that the products were only sold at Carrefour, so we would advertise 3 kilometers around Carrefour. What we did at that time was based on the property. Today we know what the consumption label of each district is, for example, which districts have a high probability of purchasing milk powder? We can know the buying trend and buying probability of 200 categories. At this time, it can help users reach more accurately.
Branding is an important trend in future development, and at the same time, the improvement of communication efficiency by digitalization is also the direction we have been pursuing.
Time is up, thank you all the audience, thank you all.