“Online Red economy” disperses traditional channels and becomes FMCG Brand to compete for the highland

2021 is a year of rapid growth of online economy and live delivery. With the stars and big V’s next live broadcast and goods, a large number of brands have entered the public’s vision. For example, behind Zhong Xuegao’s “high price” ice cream is that consumers have gradually established their own cognition of FMCG food and drinks. 2021 is also the year when Internet brands will end up on the traditional track. Many Internet brands abandon their former online Red titles and return to channel markets such as hypermarkets. Meanwhile, traditional FMCG giants such as nongnong Shanquan and Wahaha are also catching up with the trend.

\u3000\u3000 “In 2021, we saw that traditional FMCG enterprises became \’online Red\’, and Internet brands began to promote. These actually show that there are no so-called absolute online and offline brands in the FMCG field, and the low threshold of products and channels still exists. One or two event marketing alone is not enough to change the current market situation, keep up with the consumption trend and ensure the communication of channels Permeability is still the way for FMCG enterprises to survive. ” Zhu danpeng, an analyst of China’s food industry, said.

changes in brand marketing

In 2021, the most important policy for FMCG Brand is the signal released by the state for “rice circle culture”. In June 2021, the Internet Information Office issued a document saying that it would carry out a two-month special action to “clean up the chaos in the” rice circle “nationwide.

The renovation of rice circle culture means that FMCG enterprises, which have been keen on fan culture and variety shows for many years, have ushered in a major change in marketing strategy.

In recent years, many enterprises and brands have spared no expense in naming and sponsoring all kinds of talent shows, using the rice circle economy and culture to drive the popularity of the brand. Lu Shengzhen, an expert in FMCG industry, told reporters that the consumption problem in the rice circle in recent years is actually mainly reflected in the competition of online marketing. Internet brands use a large number of social platforms and KOL marketing, and the online exposure and traffic surpass traditional brands. In order to keep the brand exposed Online, traditional brands can only sponsor a wide range of variety shows.

Throughout the popular network brands and leading enterprises in recent years, inviting stars with fan groups to speak on the platform, implanting popular variety shows, and broadcasting goods and KOL word-of-mouth on major network platforms has become a standard publicity method, which eventually leads to “high cost”.

“The goal of the Internet is never the public. The foreshadowing in the early stage is to focus on finding target consumers. When the target consumers are gradually stable, the brand will let fixed consumers pay more spending power for the brand.” Sun Wei, a brand marketing researcher at Tsinghua University, told reporters that this is the inherent playing method of Internet brands.

At the same time, traditional enterprises also began to quickly learn the thinking and routines of Internet brands. For example, Hankou No. 2 factory and Wahaha have used the national tide thinking to combine their products with the current hot IP, which has been sought after by many consumers. In recent years, Wahaha has continuously launched a series of cross-border products jointly with Zhong Xuegao and Paopao Mart. In particular, at the end of 2021, Zong Fuli, the daughter of Founder Zong Qinghou, announced some new series plans after she became the general manager of Wahaha.

Sun Wei believes that brands can convey more brand information online, but consumers can also convey their opinions online. “In fact, the marketing routine of the Internet belongs to \’those who are difficult will not, and those who will not be difficult\’. After the practice of a large number of Internet enterprises, it has a feasible development path. The real problem lies in the ideas of the decision-making level.” Sun Wei said.

“In 2021, some brands\’ large or small rollover events in marketing actually reflect that consumers are tired of the marketing method of the Internet to a certain extent, or that consumers can distinguish between the so-called \’planting grass\’ and\’ soft wide \’.” Zhu danpeng said that when the Internet playing method appeared “failure”, many brands once again shifted their focus to offline channels.

dispute over traditional channels

Once upon a time, online platforms and new retail were the mantra of many FMCG brands. However, in 2021, not only traditional giant brands continue to cultivate traditional channels, but also many Internet brands will focus on offline. From the perspective of the whole online channel, the overall customer acquisition cost and process cost are increasing year by year, whether it is a live broadcast with goods or an e-commerce platform. In this context, a large number of Internet “aborigines” have entered offline.

According to FMCG insiders, in recent years, many emerging brands have begun to focus on the offline market. In 2021, Three Squirrels Inc(300783) officially announced its entry into the offline distribution market, put forward the strategic goal of “distribution of 5 billion in three years and 10 billion in five years”, determined the brand authorized agent to cooperate with 230 + major leisure food manufacturers with an annual average sales scale of more than 65 million yuan, and determined the dealer agent to enter the market for sales with 80% of the top 100 chain stores in China.

Zhu danpeng believes that the label difference between traditional brands and Internet brands is not the standard to distinguish whether the brand is younger or not. In recent years, Chacha Food Company Limited(002557) has been favored by many young consumers through various offline and online marketing and the launch of new products. From this point of view, once traditional FMCG enterprises get appropriate new products, their channel advantages will be more explosive than Internet enterprises. “Previously, the tea π of nongnongshan spring and the unified Xiaoming students were enough to show that traditional enterprises can make the new products of tuyere into a real big single product through channel advantages.”

Zong Qinghou once said that what Wahaha lacks is a new big piece. In fact, this is needed by old enterprises. Old enterprises have created large single products, so they understand their importance in the market. “We can see that there are hardly many offline products on the shelves, and the giant brands will focus their main energy on one or several products, so as to obtain high returns.” Zhu danpeng said.

\u3000\u3000 “Online is an unlimited shelf, so online goods can not only serve the public, but also serve the minority and personalized needs. Therefore, we see that many online Red brands will launch various products to meet the preferences of the minority. However, offline channel shelf goods are limited and exclusive, and the goods must meet the consumption concept of the public. ”Lu Shengzhen said that for many online brands, the biggest challenge to go offline is to accurately grasp the preferences of mass consumers, that is, to create large single products or explosive products, and its revenue will be much higher than online.

In the view of industry insiders, it is for the above reasons that many brands with internet genes began to enter offline. In 2021, Yuanqi forest also entered offline on a large scale. Founder Tang Binsen set a marketing goal of RMB 7.5 billion for offline channels. In nearly two years, Yuanqi forest has completed the transformation from relying on the scale of online e-commerce to more than 183000 traditional channels.

According to the data disclosed by Yuanqi forest, its revenue is expected to reach 10 billion yuan in 2021.

According to industry sources, at present, the channel layout of Yuanqi forest has entered the third and fourth tier cities. The great strides of Yuanqi forest soon attracted the attention of giants such as Coca Cola, Pepsi and nongnongshan spring. Especially when Yuanqi forest announced that bottled water would enter the offline market, it pointed to the main market of nongnongshan spring. The offline competition between the two sides is becoming more and more fierce, especially in the delivery of freezers.

\u3000\u3000 “Judging from the competition pattern of FMCG in 2021, the industry has once again changed from concept competition to channel competition. I think this has become a cycle of FMCG, especially drinks competition. Every time, a company will take the lead in proposing a new product concept and win the praise of a large number of consumers. However, due to the low threshold of FMCG industry itself and no so-called technical barriers , many companies will launch similar competitive products to seize the market, which will eventually evolve into a channel dispute between enterprises, especially in the traditional offline channels, which will test the dynamic sales and distribution ability of the terminal market. ” Zhu danpeng said, therefore, we see that Internet enterprises will eventually change into traditional enterprises and join the market competition from online to offline.

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