From now on, all China’s business is worth re-doing!
Some people think that China has entered the era of do what all don’t make money, but on the contrary, in my opinion, I think from now on, all of China’s business is worth to do it again from the beginning!
When others are aware of the danger, you must see the opportunity! The worst thing in the world is blind despair. The more such moments, the more we need to stay awake.
Right now, it’s the best chance to copy the real economy! Why do you say that? China is undergoing a major transformation, and all business logic is being demolished and rebuilt.
And for those who see the changing times, the real opportunity comes.
For example: in the wuxia novel, the only way to get into a coma is to get through the two veins of the Lord, the blood of the Lord and the Lord.
It is a man’s strangework, and he is a man of all things. If this person is lucky, its “directoire ii” can be reverse through! So when he woke up, he was a master of the world.
China’s economic structure is also the same, a real major upgrade is happening. Which will also be born numerous big opportunities, but if you want to find these opportunities, you have to understand the variation of logic, shuimu today but will give you a system analysis.
Economically, there are only two types of people: “producer” and “consumer”.
Consumer” and “producer” are not opposites, they are interchanging. If you are a garment factory worker, then you are a producer and your product is clothing.
But when you go to a restaurant, you will become consumers, then the restaurant’s chef is the producer, but chefs also need to wear clothes, he needs to buy clothes, so he is also one of your customers.
So, everyone is serving others while serving others. This is the constant transformation of “production” and “consumption”, which is what drives the economy.
“Production” determines “consumption”
When production and consumption complement each other, the whole society moves forward, and the economy grows healthy. On the contrary, when production and consumption are out of sync, one side can’t keep up with the other, and there will be economic stagnation.
In the past, there was a dearth of products, so as long as you could produce them, they would be consumed by consumers. All of these products can be included in “social wealth”, of course, created by “producers”.
Today’s social products are very abundant, producers are still flock, even a blind chaos, disorder, homogeneity production stage, it will produce a lot of no one use the product.
At this point, only can satisfy the need of consumer products can be included in the “social wealth”, the remaining as a pile of garbage, not only consumed a lot of our resources and energy, also takes up space.
In the traditional mode of production, the product is the “producer”, the “consumer” only needs to decide whether to buy or not to buy according to his own demand.
Such as manufacturers often unable to low cost understand each customer demand, so often adopt the method of one size fits all, is the demand to do more together, the performance of a product.
This production doesn’t have a deep understanding, statistics, and integration of consumer needs. That means the need for “consumer” is separated from the research and design process. The producer only CARES about the quantity and scale of the order; Sales will focus on sales and will not care much about consumer demand.
Since be disjointed and consumption demand, is inevitably produce inventory and goods, and inventory and goods is consuming vendors profit of the black hole, is also a difficult obstacle to falling commodity prices.
Goods and natural enemies of the inventory is profit, China’s retail commodity retail price is often costs 5 times, glasses, jewelry, luxury retail price is often cost one hundred times, such a huge price difference is layer upon layer of inventory, goods tariffs and the terminal retail due to high cost.
In garment industry, for example, like septwolves, widely, li ning, and so on the traditional enterprise, in the glorious s turnover can reach billions, their advantage is in terms of production capacity and channels, production line one is one hundred thousand, then the channel is very strong also, after the products produced by distributor to the retailer to shop goods, to rely on advertising on CCTV, you can quickly occupied the market, this is the traditional advantage.
In the past, if we looked at someone who wore a beautiful brand of clothing, I would ask you where you bought it, and I would buy one. Now, if with a girl just bought a new dress today, happily wear to go out to find with others bump unlined upper garment, will feel depressed: how does he like I’m wearing?
So he went back and left his clothes at home! In other words, the demand for consumers has changed, and now is the age of personalized demand.
Times are different! This change is the beginning of the search for self, the beginning of the next era!
Consumption determines production
Everyone’s personality needs are amplified and people are becoming more and more interested in personalized things. But there is less demand for personalised things, which require industrial companies to make small batches of quick production.
The innovation of technology, represented by industry 4.0 (including big data, Internet of things, cloud computing, 3D printing, and so on), has just adapted to this change. It is realizing that “manufacturing” and “informationization” are highly integrated, producing the C2F (customer’s factory) model. Fast, small batches, customized production that every consumer needs!
So this is a great liberation of consumer relations. The future consumption relationship is what the consumer needs and the producer has to produce, which is a process of reverse production.
The supply of the whole society has been rebuilt, and the economy’s second pulse is being called into reverse. The supply relationship of the Chinese economy has also been reversed. So the production, marketing, channel, and profit model all changed, which means that the traditional consumer theory and experience all failed!
New economy and new climate
China will enter a economic era, that is: all the production will be carried out in accordance with the consumer demand, the future of every product, before production all know who its customers are and know that what is the standard of the product.
Instead of price, manufacturers compete with consumers first, and with the accuracy of consumer demand. There is no inventory, there is no competition, and the industry is further divided. New supply relationships are forming.
That is to say: “consumers” will decide on production, not “producers” (including factory owners, designers, etc.) to decide on production! Such as many factories have begun to take first order production, millet mobile phones, a hammer, a variety of pre-sales, the raise pattern is this logic, such as doing so has two advantages:
One, every product that knows its customers before production, is customised production, and the product meets consumer demand.
Second, all products are made in order to be remanufactured, so that there will be no inventory in the future.
Therefore, the best companies do the standard, which will no longer be true. There is only one standard for all future products: whether this product meets the needs of the consumer that it belongs to!
In the future, all “social wealth” is driven by consumption, and China is entering the “on-demand production” phase. The phrase “customer is god” has been around the world for almost 200 years, and now it’s true.
Now, let’s look at the nature of e-commerce.
The nature of electricity
Some people attribute the root cause of the crisis to the rapid development of e-commerce, which is actually a fallacy! In the Internet age, people’s needs are becoming more individualized and diversified, and brands and styles tend to be more, newer, faster and more cost-effective.
And a lot of e-commerce is getting more and more consistent with that demand. There are more than 200 suppliers across the country, for example, because there are now many small processing companies, and 100 is acceptable.
So that’s the equivalent of having more than 200 production lines across the country, and one company has two million SPU online, and that strain and response is very strong.
The supply chain is being transformed by “placing orders, pipeline and planned production” to “take orders, multi-payment, and batch production”.
With the need for individuation, even a single item, the traditional enterprise is still 100,000! But a lot of electrical goods can be made from 100 pieces. If this one is not suitable for consumer tastes, the loss of the electrical brand is 100, and the traditional brand loss is 100,000!
“The essence of e-commerce is customization and outsourcing,” he says. Consumers start to guide the supply chain, where the starting point of the chain is consumer demand, resulting in customization and then layers of outsourcing and decomposing production. Then there is logistics delivery to deliver products to consumers.
As the traditional garment industry is declining, many of the ecommerce signs are growing in reverse, which is why. Therefore, I really want to ask the extensive production enterprises. What are you sticking to?
Booking and trial sale
The traditional age was “production” after “production” and now “production” after “consumption”. Traditional supply chain each link between the lack of real-time and docking, the product information can’t timely feedback, cause inadequate inventory of products sell like hot cakes, inventory backlog of drug and so on.
Now supply chain “retrograde shi”, that is to say, first by the consumer on the platform to express their needs, again by platform orders to manufacturers, manufacturers group suppliers to manufacture, so that products easily accepted by people.
Products for trial, therefore, also is very good, you can choose the electric business platform for test, if test the feedback is very successful, OK, immediately start to do mass production.
By consuming feedback we can accurately predict how big the market is, and then order the downstream supply chain. And this is a time when you’re basically doing nothing, this is the so-called “light asset” model.
Who don’t have to put money at some point, when the product into the periodic operation, after operation planning, to do again into the normalized, so a new brand was born!
Review: moving from big orders to small orders is the key to a surprisingly strong future.
New retail, new business
Traditional retail complex, including: marketing, joined, and online, belongs to the mixed channels, completely solve the problem of retail, must achieve three shops unity, with the same price, break it layer upon layer of wholesale, and the problems of the different channels of different price.
Manufacturers and retail in the future should be according to the demands of consumers, through coordinate suppliers to product production, unified set retail price, the price must be unified national unity, online and offline, and sells consumer goods through various channels, and then based on the relationship of each link in the supply chain share cost and profit distribution.
Let’s take a look at a new economy: the red economy.
Web celebrity economy
Traditional businesses are getting harder to do. The production of products, however good and bad, is too much, some to the point of flood, it is difficult to sell the good products. Even if a product creates a reputation, there will be a knockout.
But what about the red economy? This is because a new “consumer relationship” is forming a three-way relationship:
1、Manufacturers refer to the production process that is at the core of production, such as a factory.
2、A dealer refers to the circulation of a product, such as a delivery company.
3、Consumer business is to point to: the part that manages consumer, in order to guide consumer to buy the core, such as self-media, network big V, star, network red person, model.
Online celebrity That’s how it was born, and it’s replaced by traditional dealers.
Now, every producer is thinking about it: how do you own and lock in the consumer? The focus of economic activity is on the consumer side, who can own and lock the user, and become the most critical thing.
This is before relying on traditional dealers, who, while dominating and operating the market, need big money to get them. And it has been eliminated. People who have a lot of fans, just by sharing the effects of the product with more people, can influence consumption. Even if you do it a little bit bigger, you can combine a fan with a custom product.
They became a channel for targeting consumers. After all, it’s still because the consumer’s initiative is getting bigger!
Develop your own product
As an average person, developing your own products sounds incredible. It is true that in traditional business, it is difficult to become a “producer”, and in the future we will all have this opportunity.
“Suppose you have a design idea, you are very excited to put the new design drawing, after you do? If you have enough your fans, you can share it out, let fans really amazing one;
Even if you don’t have so many fans, but now more and more online community or creative mall design, is to let people with ideas and creative registered here, communication, discussion, form the cluster, you can also work on the above personal home page.
Then, when there are fans or net like, they can order directly, then you can contact the factory customized ability! This is the fashion brand that is customised into the kernel, and it will become more competitive as it becomes a major player in the shopping.
At the same time, if there are consumers really like, also can share, click a button to your WeChat, weibo, QQ space, and so on, attract more purchases, share the purchase he should get the corresponding divided into, this also is the core value of the mobile power, your brand to grow, too.
This is the process from idea to product, help us to solve the problem of the channels of information and Internet, it will cause a liberation of personality and interest, including the realization of our personal values.
China’s economy has begun to reverse!
To sum up, we can find that in the past, the growth of the Chinese economy mainly depended on investment, which means expanding “production”, which is pushing away. At this point, China’s economy is focused on the “producers” at the back.
In the future, the growth of the Chinese economy must be consumed, and the “consumption” of people will be fissile, and this is pulling away. China’s economy has shifted to the “consumer” side.
Review: the traditional consumption relationship is driven by the following links. And the new consumer relationship is tiara, which relies on consumer demand to carry the whole chain.
Today, this kind of “reverse” consumer relationship has completely into our life, relying on the development of mobile Internet, a lot of supply relationship has moved to a mobile phone, customer order is no longer affected by time and place limitations and can effectively improve the efficiency of management through the phone anytime and anywhere, such as taking a taxi, takeout, and wash his clothes, and a manicure, booking hotel, booking tickets and air tickets, are first consumer orders through the platform first, and then another platform to respond, by the “manufacturer” (broad sense) to us for service.
For businesses, the question before is: “do what I can,” and the question is, “give him what he wants.”
So the “reverse” of this economic structure is rewriting business rules. It is like the reverse of the Chinese economy, awakening China to the next spring! “People-oriented” time is really coming!