Focus Media Jiang Nanchun: Find definite growth in an uncertain market

　　A few days ago, 36Kr's "WISE 2022 King of New Economy" conference was held.

At the meeting, Jiang Nanchun, founder and chairman of Focus Media, delivered a keynote speech titled "Finding Deterministic Growth in an Uncertain Market".

He mentioned that the dividend of population growth is indeed over, but the dividend of people's hearts is unfolding, the dividend of traffic is ending, but the dividend of brand growth is coming back, because the core of the brand is to truly measure people's hearts, and this is also the key to business growth. fundamental.

　　The following are selected contents of Jiang Nanchun’s speech:

　　Today I want to share with you a topic: "How to find certain growth in an uncertain market".

In fact, in an economic cycle, we all face five major growth challenges.

　　The demographic dividend is gradually disappearing, traffic costs are high, and offline traffic has been cut in half due to the impact of the epidemic. The dividends of traditional e-commerce are no longer there, but if you invest in hobby e-commerce, it is difficult to make a profit. Ask yourself a question: Will we lose growth opportunities if the traffic dividend disappears?

If a consumer wants you to love you and specifies to buy you, will he not be able to find you today?

I think the essence of the problem is that traffic is not the root of business growth. Traffic can neither retain volume nor people's hearts.

What is the real algorithm?

What traffic algorithms are we often studying?

How to find the traffic algorithm of the new platform?

In fact, you can't count the platform at all. The real calculation of people's hearts is the foundation of business growth, and the core of the brand is to be able to count people's hearts.

　　As the largest research company in the world, Kantar once conducted an ROI analysis and found that for truly profitable companies, 70% of their sales come from brand-named purchases, and 30% of their sales come from short-term promotions and traffic conversion.

From the perspective of capital market performance, BrandZ's top 100 Chinese brands have grown by 246% in the past ten years, while China's Morgan Stanley Index has grown by 77% in the past ten years.

Really strong brands also earn better returns in the investment market.

　　So what is the brand?

In fact, the first brand is to "break the circle", expand the coverage of the crowd, and establish a social consensus to promote sales growth.

The second brand needs to be "anti-rolling", which can seize users' minds and form a siphon effect. If others follow up on your categories and characteristics, they will be siphoned away by you. Every dollar and fifty cents invested will be sucked away by you. The rise of homogeneous competitors.

　　So today’s new consumption in China largely captures new people, new needs, and new traffic dividends, but the real challenge today is the rise of new people and new needs. New hot products are quickly imitated. , As a result, the price has formed a new "involution", and after the end of the new traffic bonus, the traffic cost has risen sharply, eating up the brand's profit.

　　So the brand is the real "moat".

It will not only help you break the circle, generate a scale effect to reduce costs, but also help you "anti-roll" and form a "moat" for the brand's mind. At this time, the value of the enterprise will not be pulled down, and a better market will be formed in the traffic market. transform.

　　Today, in an era where the media is becoming more and more dusty, how can it become a mainstream brand that breaks the circle?

The three most important media in the entire Chinese market are TV, elevators, and the Internet. The advantage of TV is that it has the widest audience, the city is sinking, and it is strongly endorsed, but the trend of aging is becoming more and more obvious; from the perspective of video, there are 700 million monthly active users. users, but more than half of them will buy members and buy members to advertise, so you must bet on the title of the top variety show to succeed.

　　The Internet is precise traffic, a channel, a transaction, and it is often precise one-to-one, but it is difficult to build a brand by precise one-to-one transactions, because a brand is to build a social consensus, so if we have precise Traffic distribution, in fact, cannot break the circle and form a social consensus of the brand.

　　Therefore, no matter how much the brand invests, it may be a drop in the ocean. Therefore, planting grass on social media has now become grass planting on the grassland. In fact, the dividends of planting grass on the Internet are over. The most important issue in establishing brand consensus is to plant trees .

Everyone is planting grass on the grassland, and after planting the grass, they can no longer find where their own grass is.

Therefore, it is still necessary to expose the brand until it is familiar to everyone. Only after planting trees can we plant grass to be effectively seen.

　　Wang Xing, CEO of Kantar Group Greater China and Global Chairman of Kantar BrandZ, talked about a method. For these successful brands, their communication is simple. Weibo, WeChat, Douyin, and Xiaohongshu are all online. Offline is office buildings, residential buildings, shopping malls, online and offline resonance is the most effective paradigm for brand communication.

　　Focus Elevator media has about 2.5 million terminals in China covering mainstream consumer life, work, shopping malls, and theaters. Every day, 400 million people pass by repeatedly. Therefore, we have been thinking that elevator advertising has become the second largest media in this process. , from the perspective of memory, it is the first media driven by memory and purchase.

　　Focus can boost brand growth. In fact, the core logic of brand growth comes from four directions:

　　First, the new product breaks the circle. For example, Miaokelando was the first milk company, and it first saw a brand new opportunity.

In the field of milk, there are already very strong companies, but in the cheese circuit, there are only a few international brands.

At this time, you have a high-growth opportunity track, and at the same time, the competition is not so strong, so after the nationwide detonation of Focus, Miaokelando ran from 170 million to 500 million in the first year, and from 500 million to 500 million in the second year. 1.5 billion, from 1.5 billion to 4.45 billion in the third year, an increase of nearly 30 times in 4 years.

Under the high growth, Miaokelando continued to launch new products, in addition to cheese sticks, it also launched cheese slices, which seized the breakfast scene.

It took just one quarter for Focus to detonate, and the market share has risen from 12% to 25%, and now it has reached 30% and 40%.

　　Second, scene triggering. In an era of consumption stagflation, it is necessary to create a scene to stimulate the desire to buy and promote business growth.

Harvard has the most important theory called Job to be done. The core of this theory is that only the scene is the demand, and only the creation of the scene will lead to growth.

Because people don't need the product itself, what they need is the scene problem that this product can solve, as well as their own emotions and meaning of life in the scene.

What is a scene?

In fact, it is a reason for people to actively participate and actively invest. It is time, place, person, and event, which are the core motivations that trigger consumption.

A specific time, place, person, event, and specific scene awakening can stimulate potential desires and create more business increments.

　　Third, channels must form effective assists.

How can online channels assist?

You can find that online channels need product-efficiency collaboration to help break through the bottleneck of sales.

Represented by Ulike, after the detonation of its brand and the second follow-up investment online, it has achieved a 4-fold increase in the past few years, and its market share has increased from 30% to 70%, which is far ahead in the industry.

As a mainstream brand of hair removal devices, Ulike actually entered a bottleneck period when its sales reached 1 billion. Since then, it has strengthened "from fishing to fish farming", because everyone is fishing. If there are only effective advertisements and no brand, fishing is very tiring. , And when it comes to fish farming, there is a brand, education and training of users, then fishing, and then effective advertisers fishing, it will become easy.

So when Ulike’s sales reached 1 billion, they teamed up with Focus to detonate and break the circle. In 2021, when the detonation broke the circle, it made great strides. Compared with itself, it achieved 340 million sales on Queen’s Day. 100 million, and achieved a high-speed growth of 462 million in "618", breaking through the effective bottleneck in the early stage.

　　After launching Focus, this data can flow back to Tmall and be deposited into its digital assets. It can see who has seen Focus’s advertisements among the A crowd, and can continue to operate from A to I, to P, to L, and from the exposed crowd To interest groups, to purchase groups, to loyal groups.

After the second follow-up investment, it can continue to operate these groups of people, forming an effective sales closed loop.

　　There are also many opportunities for assists in offline channels, because there are more drainages entering the market.

Focus can make precise selections, either around your storefront, or in the communities around the storefront to find the crowd with the most target potential customers. With these precise selection of buildings, Focusgroup can effectively retain around the terminals of its storefronts, At the same time exchange volume with the store.

Because after your advertisement is published, it is the store that will be signed, and the store will give you more layouts, and the sales will naturally increase when the layout is large.

So we think this not only educates the C-end, but also leverages the resources of the B-end. In fact, the B-end and the C-end have joined forces, and sales have achieved a very big breakthrough.

　　Fourth, social resonance.

How to jointly seek definite growth in an era of stagflation, the core is to find bright spots.

Whether it is the detonation of new products, the innovation of scenes, the assistance of channels, or the resonance of online and offline content, we must find bright spots, because if the world does not advance, it will retreat.

　　The cold winter will eventually pass, and those who take the lead will surely usher in more markets. Now is a good opportunity to build a brand and move forward, because the crisis and cold winter will clean up the market, competitors will be weak in attack, and the spread of environmental noise is keep lowering.

So I think brand marketing in 2022 brings us a lot of thinking. The dividend of population growth is indeed over, but the dividend of people’s hearts is unfolding. The dividend of traffic is ending, but the dividend of brand growth is coming back.

　　I think the success of an enterprise depends on its own ambition and determination. In fact, whether a brand is truly determined or not comes from the differentiated value brought by continuous brand development and the mental compound interest brought by brand communication.

Because management has never been about managing results, but managing causes and effects, it is naturally right to manage the causes and effects correctly.