Who will take over the goods?

This article deeply explores how the one-stop logistics model promotes the innovation of corporate marketing models, and combines the successful case of Midea Group to demonstrate the key role of one-stop logistics in reducing circulation costs, increasing profits and promoting the overall marketing model transformation. The article not only provides an analysis of current market trends, but also puts forward strategic suggestions for channel diversification, pointing out the direction for companies seeking transformation.

General observation: At present, consumer goods manufacturers must be determined to promote the one-stop service.

Yipanhuo is promoting innovation in marketing model by leveraging changes in logistics model.

Although Yipanhuo studies the transformation of enterprise logistics model, its key point is to solve the innovation problem of enterprise marketing model.

At present, due to the influence of two major factors, enterprises must change their traditional marketing model as soon as possible:

First, the significant impact of omni-channel;

The second is the major changes in market structure brought about by multiple channels.

Some business owners may have different understandings of omni-channel. The following data will help companies gain a clearer understanding of the current omni-channel status, future development trends, and current market opportunities.

From January to April 2024, my country's total retail sales of consumer goods reached 15,602.6 billion yuan, a year-on-year increase of 4.1%. The national online retail sales reached 4,411.0 billion yuan, a year-on-year increase of 11.5%. Among them, the online retail sales of physical goods reached 3,735.6 billion yuan, an increase of 11.1%, accounting for 23.9% of the total retail sales of consumer goods.

Nielsen’s research data: In my country’s fast-moving consumer goods market, the online and offline market share has reached a structure of 42:58.

Nielsen's research data: From January to May 2024, my country's FMCG market grew by 4.3% across all channels, with online channels growing by 18% and offline channels falling by 2.3%. Non-food categories performed better than food categories across all channels.

Judging from the macro data, nearly a quarter of my country's consumer goods market has shifted online; data from Nielsen's fast-moving consumer goods industry survey shows that my country's market has basically formed a situation where offline and online markets each account for half of the market; Nielsen's survey data this year further shows that the offline market is declining and shrinking, while the online market continues to maintain rapid growth.

These data fully demonstrate that: China’s current consumer goods market is already an omni-channel market; China’s consumer goods market in the future will definitely be an omni-channel market; China’s future consumer goods marketing model will definitely be an omni-channel integrated marketing model; and the main growth space for the future market will come from the online market .

Regarding channel diversification, most of our companies have deeply felt the rapid changes in offline and online channels in recent years.

China's offline and online retail markets have entered a period of active innovation and reform. The performance has been particularly outstanding in recent years. The offline market is constantly generating new retail formats, and the online market is also constantly iterating new e-commerce models.

Judging from current observations, this trend of change will continue in the future .

Facing the changes in omni-channel and multi-channel, it is difficult for enterprises to continue with the traditional marketing model. It is necessary to build a new marketing system that adapts to omni-channel and diversified channels as soon as possible.

At present, the omni-channel model that operates independently offline and online cannot adapt to such changes. It is necessary to establish an omni-channel model that integrates offline and online channels as soon as possible.

Faced with more and more new channels generated by channel diversification, companies must have people and teams to study the characteristics of these new channels, combine their own business realities, and better occupy these new channels to create better market growth.

To solve these two major problems, it is necessary to reform and innovate the marketing model of enterprises. From the practical experience of some successful transformations of enterprises, we can first seek breakthroughs from the logistics side, explore new marketing models that can realize the sharing of goods and logistics resources, support enterprises to use one set of inventory and one set of logistics systems, meet the needs of enterprises in all channels offline and online, and meet the needs of enterprises in multiple channels.

The establishment of a one-stop shopping + omni-channel delivery system is the first step that companies must take to adapt to the marketing changes in the new environment.

One batch of goods helps companies further reduce circulation costs.

Borrowing a set of data from Midea Group:

Midea Group started to promote the one-stop product transformation in 2014 and after five years, it has achieved important results.

By 2019, the number of warehouses of the group has been reduced from 2,244 to 140, a decrease of 94%; the warehouse area has been reduced from 5.52 million square meters to 1.66 million square meters, a decrease of 70%;

The overall order cycle dropped from 45 days to 12 days, a decrease of 56%;

The inventory turnover days decreased from 51 days to 35 days, a decrease of 31%; the inventory capital ratio decreased from 17.6% to 11.2%, a decrease of 6.4 percentage points.

From the above data, it should be clear that the use of one batch of goods can have a significant effect on reducing the company's circulation costs.

What we should see more is that the promotion of one product has driven the faster development of Midea Group. From 2015 to 2019, the company's operating income increased from 139.35 billion yuan to 279.38 billion yuan, and the company's profit increased from 13.62 billion yuan to 25.28 billion yuan.

From the overall development trend of the logistics industry, logistics will eventually move towards intensive, large-scale and socialized development. The current "privatized", multi-link and decentralized logistics model in the consumer goods industry has its historical reasons. But in the end, with the development of the industry and the changes in the logistics environment, it must move towards intensive, large-scale and socialized development.

The above analysis is to further strengthen the confidence and determination of enterprises to promote "one-stop shopping". With the help of one-stop shopping, the logistics and circulation costs of enterprises can be reduced and the profits of enterprises can be increased; with the help of one-stop shopping, the overall marketing model of enterprises can be transformed and innovated, helping enterprises to achieve better marketing transformation and development.

To promote the one-stop service, or from the perspective of enterprises, what kind of enterprises should enterprises seek to discuss cooperation with on the one-stop service? In view of the current environment of change, the following suggestions are put forward:

Guarantee the safety of goods: Cargo safety must be the first condition for enterprises to seek third-party logistics cooperation enterprises. Seeking cooperation with large enterprises and powerful logistics enterprises is very important to ensure the safety of goods.

Have a nationwide network: From the perspective of corporate market development, seeking cooperation with logistics companies that already have a nationwide network layout should be the focus of corporate choice.

The ready-made logistics network system can help enterprises quickly complete the transformation to an overall integrated logistics model.

Possessing comprehensive logistics service capabilities of warehousing + distribution + omni-channel delivery: Since the enterprise's transformation to a one-stop service model is to promote the transformation of the enterprise's overall marketing model, the third-party logistics company that the enterprise seeks to cooperate with should preferably have comprehensive logistics service capabilities of warehousing + distribution + a one-stop service + omni-channel delivery.

The company is not only capable of solving the efficiency issues of warehousing and distribution, but also capable of solving the omni-channel TOB and TOC delivery, and capable of supporting more marketing innovations of the company based on changes in different delivery scenarios.

Possess strong digital technology capabilities: In fact, the company's marketing transformation this time is more of a major marketing transformation and innovation based on digital capabilities. Digitalization is the key infrastructure of this marketing transformation.

Therefore, third-party companies that companies seek to cooperate with for cargo logistics solutions must have strong digital technology capabilities.

This kind of technical capability not only requires digital technical capabilities for warehousing and distribution, but more importantly, it requires technical capabilities to achieve full-link digital links with enterprises, and technical innovation capabilities to provide more digital technology support for enterprise marketing model innovation.

This digital technology capability is even more important if it has been verified through a successful batch of goods.

For small and medium-sized manufacturing companies, it may be more necessary if such third-party companies can provide more digital technology support.

Possess integrated marketing and innovation capabilities: In the new marketing system of integrated goods, "logistics is no longer just logistics" and has become a very important marketing node.

Relying on the support of digital technology, a large number of valuable marketing resources are "assembled" at this critical node, such as a large number of upstream manufacturer resources, a large number of dealer and distributor resources, a large number of terminal retail channels, catering channels and various special channels, etc., as well as a large number of terminal user information resources.

These resources, in compliance with relevant regulations and with the help of relevant integrated marketing methods, can be shared more widely, and will generate very important market value for upstream, midstream and downstream companies.

Have a strong sense of service: After all, logistics is service, and it is crucial to choose a third-party logistics company with a strong sense of service, service capabilities, and service means.

According to current industry research, some companies have begun to prepare for the transformation of one-stop service. However, due to lack of practice, they are worried about the pitfalls that may exist in the transformation process.

Therefore, in this case, it is very important to choose a logistics company that has experienced the transformation of a batch of goods. It can help the company better avoid the problems that may be encountered in the process of a batch of goods transformation.

In addition, from some innovative practices in B2b transformation in recent years, it can be concluded that logistics companies that undertake a batch of goods cannot touch the business flow and can only focus on comprehensive logistics solutions.

According to the observation and research of the industry and the opinions of relevant industry professionals, there are not many companies that can meet the above conditions. There is no need for too many. Ande Zhilian, a subsidiary of Midea Group, is one of the companies that meet the above conditions.

In the future, we hope that several large-scale logistics companies will participate in this service field and jointly promote changes and innovations in the consumer goods industry.