Speech by Fan Lin, Chief Operating Officer of Luyun Microview, member of the Expert Committee on Knowledge Economy.
I was born in the 80s of the last century, and it has been more than 20 years since I entered the direct selling industry in 2002. I dedicated my youth to this industry.
I "love" and "hate" direct selling, "love" because the industry is really beautiful and itself is for the benefit of society, and "hate" because the industry has hardly changed in more than 20 years. At present, almost all of the exemplary and exemplary enterprises in the whole industry are foreign-funded enterprises, and it is difficult to see domestic-funded enterprises. The Chinese market is so big, what are the domestic enterprises going to?China's health care products market is so big, and the demand for health products of Chinese is so large, should it be handed over to foreign capital?Foreign-funded enterprises are indeed worthy of our respect, and a lot of experience is worth learning from Xi domestic enterprises, but now it is time for our domestic enterprises to awaken as a whole.
At present, there are three "phenomena" or "chaos" in domestic direct selling enterprises: rampant institutional models, serious exaggeration of products, and closed self-esteem. When it comes to which company has developed well, the system has been changed again, and which company's performance has risen, it must have played a "small routine". Throughout the development of the industry in the past two decades, everyone knows how explosive enterprises achieve high performance. If we continue to operate in that way, when will the current chaos in the industry be changed, and is there any hope for the future of the industry?
Compare foreign-funded enterprises with domestic enterprises. At present, the business logic followed by foreign-funded enterprises is to first focus on products, derive a series of corporate culture on products, and then formulate business models on the basis of culture and products, so the business model of foreign-funded enterprises is almost hidden in products and culture, and emphasizes the model based on strong products and culture. Domestic enterprises often make a model first, and then develop a set of corporate culture around the model, and then find some products to be listed based on the corporate culture. So the end result is that the product is not important, but "making money";The service is not important, the important thing is "fast development";It doesn't matter what matters, what matters is that you can get rich quickly. In contrast, foreign-funded enterprises are actually relatively more rational, unlike domestic enterprises that are passionate, brutal and impetuous. It can be said that it is domestic enterprises that have destroyed the ecology of the industry.
Now the ecology of the whole industry is that some domestic enterprises blindly pursue to make money, and most of the consumers of domestic enterprises are the operators themselves, and even say that the operators do not want to consume that product, but there are hard performance requirements every month. The correct and benign ecology should be that all operators must be based on consumers, and consumers will cooperate with companies to promote products and services on the premise of recognizing products and services.
Based on rational thinking, why are foreign-funded enterprises developing like a fish in water in the Chinese market now, and why are these foreign-funded enterprises bucking the trend when the entire industry is collectively declining?I think that today's domestic enterprises must consider high-quality development. In the past, the emphasis in the industry was "fast" and "time is life", and everyone thought that fast was good. This is a certain achievement, but at the same time, it has also caused great harm to society. Now, the ultimate goal we pursue is not fast, but high-quality development, which is "good and fast", and "fast" under the premise of "good".
So, how can domestic enterprises and even the direct selling industry achieve down-to-earth, positive and circular high-quality development, instead of first-class and explosive development?How can we break the aforementioned dilemma and rebuild the industry ecology?
Return to the underlying logic of business. The essence of commerce is actually the relationship between buying and selling, or the relationship of commodity exchange. It is very wrong logic to slowly evolve a fundamentally sales-oriented business into a purely profitable business, or even into success, making money, and getting rich.
The underlying logic followed by the enterprise is to take products, services, culture, and value as the bottom line, and then make models, seek development, make plans, and talk about innovation on these basis. The premise of innovation is based on the foundation of innovation, and if there is no product, service and value as the foundation, innovation is indiscriminate innovation.
There is a key point in the underlying logic, that is, whether the operator has strategic determination and whether he can firmly follow the path of the underlying logic when the enterprise encounters difficulties and challenges. Many domestic companies don't have a strategic focus, and they have a one-size-fits-all reason – to survive. When they touch the bottom line, these companies tell themselves to survive first, and if they don't survive, they can't develop, and as a result, they break the rules.
Therefore, based on the above reasons, Luyun Weikan adheres to "strong logic", "universalization" and "* value", which is also our value standard.
The first is strong logic, which is to grasp the positioning of products and industries, which is very crucial. In the past, domestic direct selling enterprises did not pay attention to logic, and there is a common phenomenon of well-developed domestic direct selling enterprises: most of the participants are old people with gray hair. Why are young people doing foreign direct selling, while domestic direct selling is done by old men and old ladies?The difference lies in whether the enterprise has strong logic, including whether the product can stand up to scrutiny, whether the industrial positioning is a recognized industrial positioning, and whether the product logic can stand up to scrutiny or only "self-justify". Everyone pursues "market rejuvenation", and young people like content with strong logic, so they don't like to be fooled if the content is not logical. If you want to find a market for young people, you have to solve the problem of strong logic.
The second is universalization, that is, the positioning of content and form, and the content and form of corporate propaganda must be universal. We now advocate a return to the state of normal people, and we must "wear normal people's clothes", "speak normal people's words", and "live as a normal person". If the content and form of corporate propaganda are not accepted by the public, it will never be recognized by others.
The third is the ** value, that is, the positioning of culture and pattern. Popular science has become a synonym for Lvyun Microview, which is cooperating with the Microecological Medical Professional Committee of the China Association for the Promotion of Science and Technology Industrialization, and launched the "Healthy China Tour" microecological healthy family service project, which is promoted in the form of popular science, and has now entered kindergartens, primary schools, communities, and factories. We launched such a public welfare science popularization activity, the purpose is to let the whole people make up for a microecology course, and our service providers are also respected by the society, and some service providers have even been hired as health supervisors by several schools, for which they are very proud and sacred.
What this industry needs is not only to change and optimize the "Direct Selling Management Regulations", but also to make all direct selling people sober up, return to the essence of business, and find their conscience, which is the prerequisite for career development.
I hope that the whole industry and the people of Lvyun will work together to create a better place with their conscience. Thank you!
*:Knowledge economy.