At 22:30 on December 22, Ren Zeping's year-end show "Igniting Hope and Optimists Moving Forward - 2024 China's Top Ten Chinese Economies" ended successfully. Zeping Macro, Beijing Radio and Television Station, Shanghai High Net Worth Research Institute, Beijing Time, etc. work together to create a feast of knowledge. Douyin has exceeded 10 million, and the whole network has spread more than 20 million yuan, and it has appeared on today's headlines, Weibo and other hot lists. *The following is the essence of Jiang Nanchun's speech on December 22 to ignite the hope of the year-end show:
I am very happy to participate in Mr. Ren's New Year's Eve speech, I think this theme is very good, and only those who are optimistic can move forward. Let me share a few of my thoughts.
The first point is to talk about how the market has changed and how users have changed. After opening today, consumption has shown a momentum of recovery, but it is indeed under pressure as a whole, less than expected. Although ** is not as expected, but in the past ten years, a big river has been moving forward, and China has formed 4700 million people with upper middle incomes, after they work hard, need to compensate and reward themselves, which 4700 million middle-income people want to be a better version of themselves, and I think this is an inexhaustible driving force for China's economy to upgrade.
I think Chinese's yearning for a better life in the next 10 years will remain the sameLove food, beauty, health, fear of old age, fear of tiredness, fear of loneliness, lack of love, lack of mood, lack of stimulation, three loves, three fears and three shortages have promoted China's continuous consumption upgrading. In the past ten years, the consumption psychology of the mainstream population has also undergone great changes, low-priced things have been quality, brand, how to provide psychological satisfaction, just needed things have been aesthetic, interesting, self-labeled, I buy you this brand represents what I am people, pragmatic things have been replaced by emotional, atmospheric scenes, necessary things are wanted, trendy goods not only provide function,The key is to soothe the mind and emotions
What has changed today?In the past 10 years, the consumption upgrade has been from the logic of cost performance to the price ratio, the appearance ratio, and then to the mood ratio. At the same time, we also see that after the income is unstable, consumers want both cost-effective and cost-effective ratio, as well as cost-effective, face and brain. How to deal with this trend?We see that our products are getting cooler and cooler, the same Oreo has a white Oreo, we have seen the Oreo with poplar nectar, we have also seen the same milk sold, we can see that the packaging is getting cooler and cooler. If it's selling beer, for example, we can see snow beer, and the whole price ratio is getting higher and higher. The whole brave little blue bottle, Mars green bottle, including the brown bottle created by ingenuity, is actually getting better and better in appearance and appearance.
We look at the health needs are also constantly escalating, eat low-carb water for meals, drink 3 points of sugar for milk tea, and the entire food industry is adding 5 points: adding protein, calcium, cheese, dietary fiber, and probiotics;5 minus: sugar reduction, fat reduction, calorie reduction, oil reduction, salt reduction, we also see 5 no: 0 sucrose, 0 pigments, 0 flavors, 0 preservatives, 0 additives, we also see 5 pursuits: freshness, naturalness, lightweight, green, organic.
Second, we think that there is a right and a wrong side of growth. Let's see what's changingThe demographic dividend is peaking, offline traffic is decreasing, and online dividends are not there. Combined with consumer expectations and lack of confidence, the entire consumption is facing many challenges. But let's go back to the essence of the question, if the consumer wants you, loves you, and wants you, you have to, will he not be able to buy you?SoTrue competition is when you have a reason in the mind of consumption to choose you over others
Traffic is very important, but traffic is not the foundation of business growth. So what do we think is a real algorithm?It is very important to follow up the algorithm of the platform, but a real brand, only if you calculate the hearts of the people, the hearts of the people are a more advanced algorithm, and with the algorithm of the people, you are the lasting foundation of business growth. Therefore, we think that in today's disappearance of demographic dividend and traffic dividend, in the current uncertainty, only by building a high-quality brand can we go through the cycle.
Let's take a look at these famous companies around the world, and these famous companies with strong profitability have a seven-three principle70% comes from branded purchases, and 30% comes from short-term** and traffic conversions. So we found that in the past ten years, a lot of our money has been invested in performance traffic, but performance advertising is a kind of user leasing, and the rent is constantly getting higher, and the money is stopped. Brand advertising is a kind of user investment, one year of growth, three years of compound interest, usually within a few months of the entire advertising effect traffic type of advertising than the return rate of brand advertising, but after seven or eight months, we see that the cumulative compound interest of brand advertising produces a higher value, 8 months later, look at the compound interest of brand advertising will bring better returns.
Research by the Global IPA shows that the entire brand advertising and the effective advertising need to be balanced 6:4 to move through the cycle. Brand advertising should account for 60%, and the effect should account for 40%, so that the balance of quality and efficiency can pass through the cycle. What exactly is a brand?According to Kantar's research,The first part is meaningful, do you have meaning?In terms of what functional or emotional needs you are satisfying the consumer. The second is different, whether it is different, and this difference can lead the trend. The third is prominence, just think of this category, and immediately think of you. So we can find that the whole growth is two types of growth, one is called tactical growth, we see that expanding products, doing first, buying traffic, this is called tactical growth, and the real growth is strategic growth.
The first thing about strategic growth is to improve the mindAren't you one of the best in the field?After you have one of the best, you can expand products, scenarios, channels, people, and regions to expand the market. At the same time, we will create the second and third curves to expand the direction of future business. How does the brand break through?To put it simply, how do you become the first choice?You are either the first choice for a category, the first choice for which functional features, the first choice for which group of people, or the first choice for which scenario. Only by becoming the first choice of a sub-category can you win high-quality development.
Thinking about the third point, I think ** has changed, and the style of play has changed. We can see the 2021 study of advertising attention of Chinese urban residents, and the highest reached is Internet advertising, followed by elevator advertising, and then TV advertising, which are the top three in China. In the huge content of the Internet, in fact, consumers mainly watch the content and pay little attention to the advertisement.
Then we also see that in the outdoors**, everyone passes by a lot of outdoor spaces every day, but in fact, they rarely focus on watching advertisementsOnly in a closed environment without choice, often consumers pay more attention to advertising. At the same time, we can also see that among the advertisements that can be recalled, the elevator ** recalls about 329, Social** 248, 2 of short** ads14 pcs. Why are these three ** recalled?Because it is a high-frequency **, there are relatively many advertisements that can be remembered, and the number is relatively high, so we feel that social grass planting has become a very important standard for marketing today, but the dividends of large-scale grass planting have also ended, everyone is planting, and now it is a bit like planting grass on the grassland. That's why I think it's important to plant grass and treesIt is necessary not only to be familiar with the core central idea of the brand, but also to be able to diversify, multi-scene, multi-content, and multi-KO diversified planting, and the combination between the two forms the most effective method of communication.
I think there are three paths to brand communication in China, the first path is to integrate and create a major social event and a major social topic. For example, the sauce latte. The second is to integrate into the society of major entertainmentFor example, JDB The Voice of China, Where Are You Going, Daddy Yili, Brother Anmuxi Run, Mengniu Super Girl, etc. The third is to integrate into the core living space and life scene of consumptionThat's Focus, you always have to go home, you always have to go to work. So who doesn't want to bet on the most popular variety show of the year?In recent years, there have not been too many variety shows that have become popular, who doesn't want to be the most popular article and event of the year?But it's hard to find, so I thinkIt is necessary to use the deterministic logic to win the uncertain communication environment.
So what is the deterministic logic?You can take a look at the research of ipsos, among our top ten popular advertising slogans in 2020, the main advertising slogans come from elevators, the Internet, TV, and in 2020, zero calorie, zero fat and zero sugar, Yuanqi Forest, Honey Snow Ice City, etc., these advertising slogans come from **?Elevators, internet, TV;In 2022 we don't produce water, we're just nature porters, and these come from **Elevator, internet, TV;This advertising is like investment, there must be certainty, and Focus is to form a definitive connection on the road that 400 million people must pass through every day.
We feel that many industries have entered the cycle of stock game, which may be difficult today, but I believe that tomorrow will be better. Because our industry has entered a stock game cycle, competition is not only high-quality, every brand must answer a question in the brain of consumption, what is the reason for choosing you and not others?In the past 20 years, channel traffic has been king, so we've seen a hundred flowers bloom and thousands of horses gallop. In the next 10 years, brand is king, so the head brands will gather more and more.
Branding is the biggest Matthew effect in the business world. In the long run, the top brands tend to suck up most of the industry's profits. The success of the enterprise is the final decision of the layout, the flow of it is only a temporary dividend, I believe that the brand has a lasting compound interest. Management is not to manage tomorrow's or next month's sales results, management is to manage cause and effect, your cause and effect must be right. So today may be difficult, but tomorrow will be better, because the crisis and the cold winter will also sweep the market, and companies that are not competitive and do not have the ability to innovate will be eliminated. Today is the best time for ambitious and determined brands to move forward. Therefore, I believe that in the next 10 years, tens of billions and hundreds of billions of Chinese brands will continue to be born. What is uncertain is always the market environment, and what is determined is the great ambition of the rise of Chinese brands.