Hotspot Engine Program
Paying tribute to "Longrich", who has dedicated his youth and enthusiasm.
As the former "standard king" of CCTV, it seems to confirm that the decline of the "standard king" belongs to the law that cannot be scientifically verified, from the Young Singer Grand Prix to the five-second "throwing a lot of money" of CCTV-1** to the current 70-year-old Xu Dong's situation in his later years, from 2003 to 2023, a brand that has achieved a market value of 10 billion yuan in 20 years has now reached the third and fourth tier level, and the impression of "Longrich" has finally become the appearance of most domestic local daily chemical brands. has to make people who have paid their youth and enthusiasm sigh.
Recalling the passionate "Longrich" years in the early years of his career, and paying attention to the encounters of "Longrich" gradually going astray in these years, today I will talk about the three "ifs" in those 20 years, maybe the current "Longrich" will not be the current situation:
The first "if": If Xu Dong was not blindly superstitious on the road to growing into a "standard king", "foreign monks will chant scriptures", may not introduce those so-called standardized rules such as "5s", "6" and so on to the sales team, and then trigger a "burden" that has no effect on sales performance but eventually becomes a hotbed of formalism.
I remember that it was around 2006, maybe Mr. Xu really had to see clearly that under the huge performance, he really needed the formal rules of the corporate game and the support of corporate culture to prevent the real "high operating costs", "huge pending payments, high inventory loss" and financial risks and hidden dangers caused by the rough development of the entrepreneurial period. However, it is precisely because of the lack of cultural heritage that Xu Dong, as a decision-maker, is blindly confident in various business management concepts, rules and standardization, and adopts a habitual "one-size-fits-all" approach to deny his own successful experience, and then completely turns to the transformation of Western enterprise management standards.
It is a pity that Mr. Xu still stayed at the cognitive level of the production enterprise at that time, that is, the huge direct market model across the country formed a systematic sales team, and it was also regarded as the sales department of a production-oriented enterprise; Daily chemical products are incorrectly positioned in the commodity operation mode of FMCG categories; The crisis consciousness of peasant entrepreneurs leads to excessive harshness on the fault tolerance rate of the people around them, so that they waver and sometimes consequential, sometimes pursue the standardization of process procedures, and finally "use people who are still suspicious" and "use people who are suspicious", which also proves that regional discrimination always exists, just as those in the north of the river look down on "Huaiyin" and those who come from the south look down on those in the north.
In the end, batches of entrepreneurial or self-cultivated daily chemical sales teams embarked on the road of resignation one by one, and the introduced instant noodle cadres such as "Jinmailang" and "Unification" entered and controlled Longrich sales companies and teams from the headquarters to the local level, or forced to "change ideas" or "change heads" to eliminate dissidents. Perhaps it was to cater to the cultural cognition and change-seeking psychology of the decision-makers at that time, in short, after the clouds and rain in one place, the initial culture of struggle of "Longrich" has been uprooted before it has grown strongly.
The second "if": If Xu Dong did not implement the "distribution system" reform but continued to continuously improve the "direct market model", he might not drag the huge sales team to collectively and forcibly transform, and then open the "drastic" road of "changing people without changing ideas", and finally create a "vacancy" for the "FMCG" to control the sales team.
It was in 2006, it was too late to say that it was fast, once because of the loss of the infringement lawsuit, a product that has been fully spread for a long time must disappear from the market within three days, once Xu Dong gave an order, in the direct market mode from the headquarters sales director to the regional manager to the terminal ** staff, the middle seven levels, but also including return procedures and transportation warehousing, inventory and return and so on, from the delivery to the implementation of a commodity from the shelves within three days to complete the warehousing clearance, It is no exaggeration to say that this was something that no national brand could do back then, and it was precisely through this incident that the terrible execution of the "Longrich" direct market model and the combat effectiveness of the market game were demonstrated.
This has also become a "self-determination" method to quickly break the successful market operation model of Longrich. When the "instant noodles" gradually fooled Xu Dong with the so-called business philosophy to indulge in cultural accumulation and loss, it also opened the prelude to the transformation of "instant noodles" and "hand cream", that is, since I am not familiar with the company's operating model, then change it to the model I am familiar with, and gradually from the headquarters to the local government while instilling the so-called standardized management concept while replacing the leaders of the local sales team, and turning a blind eye to the financial loopholes or hidden dangers and the local successful market operation mode and model, the general requirement is "political correctness." A large number of offices that originally belonged to the direct market model were forced to change to distributors, and they also had to obey the regional first-class businessmen, that is, outsiders to manage their own people, and the inventory in the process of market operation became accounts to be collected, and the market operating costs became operating input expenses, so as to reduce the risk of market tying up funds, but unfortunately not only ignored the essential difference between daily chemical products and food FMCG products, but also completely denied the successful history and experience of "Longrich", just for the sake of "political correctness".
The saddest thing is that the "instant noodles" who came to Longrich were all losers who were eliminated by their former employers and "gamblers" who adapted to short-term jobs, but many of them became the operators of a small local brand, that is, competitors in the same daily chemical product industry, or local competitors of the nature of "local snakes". In the end, what is reflected in the market is that there are fewer and fewer "Longrich" category items that can be seen on the shelves, coupled with the fact that dealers at all levels or first-class merchants only do best-selling goods and will not operate new products that do not see the future, and the one-sided emphasis of "instant noodles" on commodity mobility, that is, the shipment rate, fundamentally ignores the concept of sales, which is reflected in the fact that the books from various places to the headquarters are very large in terms of shipments, many accounts to be collected, and the number of returns is also very large, and the cash flow is very small, and the operating costs are still very high. This phenomenon is a dangerous situation that Longrich has not had for many years, but unfortunately it is still obsessed, and the decision-makers at this time can only "fight" to rebuild the glory in fact, in fact, to prove that they are always right.
The third if: direct selling is a double-edged sword, due to the limitation of cultural heritage and extreme extremes, Longrich's direct selling has gradually become a laughing stock of MLM from the beginning of the abnormal development, if Xu Dong did not choose the road of direct selling but continued to maintain and improve the success model, maybe it will not be the current embarrassing appearance.
It may be that in the summer of 2007, the concept of direct selling finally developed from the headquarters to the locality, some people said that Longrich applied for and obtained the "direct selling" license that year, and it was the construction of a laboratory and a star advertising, there was nothing wrong with doing direct selling, the brand was distinguished from high and low, the team was distinguished from operation and direct sales, and the transformation of the direct market to the distribution model was completed, why is it becoming more and more astray? When a reform creates a wrong result and affects the psychology of decision-makers who are accustomed to success, they need to obtain successful results as soon as possible, so as to continue to affirm their own merits. Maybe this is the psychology of Xu Dong back then, right?
From the headquarters in Jiangsu to various places, whether it is "Amway" or "new ideas" or "new life", it is actually a part of China's direct sales team, which is led to Xu Dong by the name of various cranes, "three people become tigers" or "all mouths are gold", and they take turns to hold a big name for an old man in his sixties and a high starting point and a big goal, and there are so many people who have so much money to fool, no one can bear it, and "Longrich" really urgently needs another "leg" to support the banner of domestic and local daily chemical brands. Calmly and objectively speaking, direct selling, is not impossible to do, there are many types of direct selling methods such as "factory direct sales", online and offline interaction, etc., but you need to really do a good job in direct selling and distribution of product classification, direct selling is to really separate a part of the goods in the traditional market and prepare to convert operating costs into lower selling prices, so as to support the market appeal of the brand rather than trying to obtain unjust enrichment through direct sales, because direct sales for the purpose of unjust enrichment must be obtained in a way beyond the boundary, This is an objective law.
As a result, a wave of people who were eliminated by other direct selling brands helped Longrich restart the brand on the direct selling road, reply to increase the retail price, and superimpose publicity gimmicks and other means, pushing Longrich on the wrong path in every possible way. What's even more sad is that in the era of "Internet +", Longrich is busy with its own direct selling road, and as a result, various online sales platforms are not descript, and they also created their own direct selling online platform, the results can be imagined, and when they have not yet understood online sales, they blindly did a set of their own, and the final result is ridiculous that everyone can check on the Internet.
If Longrich was good at summarizing its own experience and culture and precipitating it, it would not have introduced "instant noodles" to change to "hand cream"; If Longrich did not do the reform of "changing the track", but the reform of the "vertical level", the development and improvement direction of separation of production and sales, mutual constraints between financial settlement and operating costs, and linkage between the local market and the national market would be formed. If Longrich continues to adhere to the national direct sales market model, and does a good job in undertaking online and offline direct sales in the "Internet +" era. So the "Longrich" at this moment is still the "Longrich of the world".
Time is the only correct way to test, never find reasons from the outside world, only find problems from the inside, remember the blood and sweat that have passed away and belong to "Longrich", thank you for the learning and understanding of the road of change, six years of time, and the memory of the green pine years.