Adversity and Rebirth ——Helen Luan, Vice President of Tencent Online Media Group & General Manager of Advertising Account Department, Tencent

1. Adversity and Rebirth
——Helen Luan, Vice President of Tencent Online Media Group &
General Manager of Advertising Account Department, Tencent
My presentation today has two main ideas: insight and solutions.
Although the scale of the FMCG (Fast Moving Consumer Goods) industry
is very large in 2016, but the growth rate of the last year is only 1%. I
think all of us in this industry are reluctant to see such a situation.
Although there are some brands that have done well in the last year, the
overall industry is downward. Everyone present here are looking forward
to some suggestions from other sectors, which can open up new
horizons for us.

2. Last year, Coca-Cola replaced the position of CMO (Chief Marketing
Officer), which has been set up for 24 years, with CGO (Chief Growth
Officer). This is also a well-known event in the FMCG industry. A lot of
people were mouthing off about the meaning of this event. In my
opinion, it is not that CMO is useless, or for another position has some
special functions. It is a functional integration. The Chief Marketing
Officer has to combine customer service marketing with commerce
strategy to find new growth points. From the perspective of the
consumer market, the consumption patterns of consumers have
changed a lot, which puts forward more requirements for the CMO. No
matter how the market and the large enterprises change, we are trying
hard to find new growth points. Everyone in this industry has the same
kind of thought. As one of the practitioners in advertising industry, I am
also pondering over what kind of growth point should we find, where is
the growth point and how can we help the FMCG enterprises.

3. In fact, the simultaneous growth of increment and sales itself is a
paradox. Once the incremental market has been saturated, the growth of
the sales will be basically impossible. The only way out is the upgrade of
the consumption structure. Everyone is talking about consumption
upgrade, but what on earth is it? Through the analysis of the statistics in
2015 and 2016, we can sum up the three levels of consumption upgrade:
the upgrade of the products, the upgrade of the consumer groups, and
the escalation of the consumption channel.
Firstly, the driving factor of the industry growth in 2016 came from the
upgrade of the products, including the taste of the products, the
consumption scenarios, and so on.
And furthermore, we can see that the consumption rate, consumption
capacity and consumption concept of the many Net Generations or the

4. post 85s and the post 90s is far stronger than the post 80s and 70s. It is
them that brought a large opportunity to the consumer market. But the
thing is how to develop these people into our users. This is what we
really need to think about.
The third one is the consumption channel. As an e-commerce
practitioner, I think e-commerce must be a big growth point. However, in
fact, so many years after the e-commerce had been in popular, the online
trade doesn't account for a large proportion of the overall sales channels,
and the most important sales channel is still offline trade.
We have to look at this matter from two perspectives. The first one is
what the real opportunity that the e-commerce will bring to us. As far as
we can see, some products have a high cognition degree and market
penetration rate in online trade, but they cannot do well in the offline
trade. On the contrary, three are also some products that can only be
sold offline instead of online. This is what we need to pay attention to.

5. The other one is to pull together the data both online and offline, we
must consider how to combine e-commerce and non-e-commerce that
we can optimize the sales channels without repeat. Or that there is still
some room and some particular aspects or some store that can be
optimized.
These are the three points I concluded, and I will put forward three
suggestions in view of the three points.

6. In face of the adversity, three are three important directions that we
should think over. The first one is the upgrade of the products. The
second one is the rise of the young generation. The third one is the
transformation of the consumption channels.
Firstly, what is the content of the product upgrade, and how can we
achieve it? As far as I can see, the product upgrade is not only to meet
the demand of the consumer, but to create a desire of consumption.

7. 66% of Japanese men between the ages of 20 and 30 have the habit of
drinking every day. In fact, the average beer bottle is so big that they
cannot drink it up, so they can only waste it. In addition, the beer has a
sharp taste and is particularly bitter so a lot of people feel unsuitable for
themselves. They want to replace the beer with beverages,, but the bottle
of the beverage is ugly. As a result, they introduced an 300ML lemon
beer with gas, which is very popular among the Japanese. This is a typical
case of creating the desire of consumption.
In that case, how to do the marketing? The first case I want to put
forward is the Zhenxi ice cream. Originally, many of us may think the ice
cream should be eat in summer, so the promotion period of the frozen
treats is always from the beginning of May until the end of September.
Instead of producing a frozen treat that can only be consumed in
summer, the Zhenxi wants to make it into a dessert that can be

8. consumed in daily life. Then how to make it? There is an IP show called
"Go Fridge", which has a lot of product placement. For example, there
displays many advertising products in the scene of the show, and the MC
also make oral advertisement in the process of hosting. There are also
many scenes about how to eat this ice cream, and how to cook it, which
can drive us to think that it is a symbol of good taste if we put this thing
into our refrigerator. In fact, this show just creates some leisure scenes
which can bring you some of the leisure experience, so that you will think
of this ice cream in leisure time. Then the ice cream becomes a dessert of
daily consumption.
We can see the results from these data, the female audience of this
program account for a ratio of 62%. After the broadcast of this program,
the overall cognition degree increased by 163%, Baidu Index reached a
total of 121,000, the blog reading quantity of the brand reached 1.97

9. billion, and the questions asked the most in the barrage is where we can
buy this product.
As we can see in the chart, although the main driving factor of the
success launch of new product is freshness, the success rate of the new
arrivals is very low. From these statistics we can find out that basically
three days after the listing of new products there are only 45% of them
remain in the shelves, only 19% of them can achieve a higher net growth,
and 4% of them can both achieve a high net growth and high sales.
There are many reasons for the failure of the new products. And the main
reason is the lack of the analysis of the market. Aiming at this issue, I am
here to give you a possible solution.
There is a new model called O2O (Online to Offline) namely combine the
offline transactions with the Internet so that the Internet will become a

10. platform for offline transactions, which can track the process of the
launch of the new product. What does it means? When you are launching
a new product, do not promote it on a large scale at first. You can just
choose a single channel to promote it, such as Watsons or an electric
business platform. You can deliver some small ads on the Internet, and
give some people some opportunities to exchange it offline. And thus
you can directly get through the data between online and offline. Now
we have a lot of cooperation with third parties, where we can take the
data over. After we make it to get through the data between online and
offline, we can use these data to make some match on the platform. By
watching the anatomy of the connected consumer, we can tell if they are
the desired consumer, what they really care about, and what kind of
product they want. After that, the launch of the new product will be more
likely to be successful, because you will know where you are more likely
to be failing, and you can just watch your step and skip the pit. Frankly
speaking, I do not know if this model can be used on a large scale, but it
is certainly a reasonable solution when the new fast moving consumer
goods keep emerging in an endless stream.

11. The second point I want to talk about is the rise of the young generation.
The rise of the young generation does not mean that we should promote
the rejuvenation of the brand but to become young people.
We must change the relationship between products and consumers and
assimilate the young people into our brand. Why should we assimilate
the young people into our brand? That is because to become a young
man is not problem of the marketing level, nor a problem of
communication; it is related to the whole chain of consumption.
At the beginning, the promotion of a new product is just a one-way pitch.
We just tell the consumer that what kind of products we want to do, and
what kind of product we can provide for you. Afterwards, we begin to
listen to the feedback of the consumer so that we can produce
something that can meet their desire. For example, the yogurt
manufacturers add blueberries into yogurt are to meet the needs of the

12. post 90s. As we all know, the post 90s are always sticking to the screen of
phones or computers, which is harm to their eyes. And the blueberries
are beneficial to our eyes. In addition, the blueberries are also good for
our skin, which can make us more beautiful. And that is also valued by
the post 90s. But so what? What kind of demand it really satisfied? It is
more like a stiff chicanery. The real way to realize the assimilation of the
young is to engender the sense of identity in terms of values. And we
should operate them as products instead of consumers.
For example, when we think of Xiao Ming Students, the words come into
our mind are cute and amusing. The Rage Comic did a lot of similar
promotions for many fast moving consumer goods. After that, you can
think of a value they agreed or some words they said before as long as
you see a relevant product. It just becomes a cultural symbol, which can
draw new consumers.
Give an example which was just happened to me. There was a time when
I found that the air stewardess in many flight are very beautiful and all of
them carried the same kind of drinks. I was curious about it. So I told
myself that I must have a try of this kind of drinks. The reason I gave to
myself is just out of curiosity. In fact, the most primitive impetus is I want
to be as young as them. Once the consumers become your products the

13. cultural symbols will radiate out, and you will find that you can not only
affect them, but also make further cross-level sales. When I was talking
with the RIO, the staff here said that my products are not all aim at post
90s, there are also many mothers, some of them are young while some of
the mothers are not young any longer. They do not understand why they
will buy this product. I told the staff here that is because that they want
to be such kind of person I set, and they believe that if they consumed
this product, they will become such kind of person. If we really want to
become them, we must complete the process of assimilation, make the
culture and ideas to become the channel and symbol of propaganda, so
that we can really get the recognition, and achieve the results you
desired, or even get unexpected results.
How to do the marketing depends on your understanding of the product
and your communication with your customers.

14. The third point is to get insight into the thought of the young. We made
a data analysis with the VIPSHOP before. We analyzed hundreds of
billions photos of the clothes that post 90s and post 95s bought or worn.
When we finished the analyze of the hundreds of billions photos from
the Qzone, I understood that why someone said that the director of the
famous TV series——In the Name of the People——does not understand
the post 90S. The role he characterized who called Zheng Shengli is a
post 90“NEET” with yellow hair. And his girlfriend is a playgirl. It is
completely a mistaken of the post 90s. The favorite color of the post 90s
is 95 degrees black, not pure black. And they also intersperse it with
some bright color. After the investigation, the VIPSHOP’s designers
designed a series of clothes, and was able to show it in the New York
Fashion Week, which earned widely acclaim of the post 90s. The post 90s
reckoned that the VIPSHOP is voicing for them in the international stage,
the VIPSHOP is the spokesman of them. So they agreed the action of the
VIPSHOP. This is really a good job. The marketing effect you predicted
will not became visible right now; it must be more prominent after a few
years.
There is another case of cultural identity. As is known to all, many of us
called the post 90s cospa, because most of them got grown with
watching anime, especially the Japanese anime. These years the

15. domestic anime have been rising sharply. “The King’s Avatar" is a
popular novel in Douban.com with nearly zero negative comments. We
adapted it into an animation cooperated with another company. There is
also nearly zero negative comments after it aired online. There are no
ridicules in the barrage, all of the barrages are positive. McDonalds
discovered the businesses behind it and got the authorization of this IP.
Firstly, they launch a new dish which called “French Fries with Sauce”,
and they use Ye Xiu the protagonist of the animation as the
spokesperson of this new launched dish. Because Ye Xiu is the most
important figure in the animation, many young people came to the
McDonalds to eat it. This marketing of cospa broke the dimensional wall"
and quickly swept form online into offline. In addition, McDonald's also
released "The King’s Avatar" discount card, which only coat 5 yuan per
card. There are four kind of picture in the card, each with the same
discount. A lot of "The King’s Avatar" fans are crazy about the card, and
they want to collect all of the four cards, which they think can show the
identification of the animation. It is a successful example for many
manufacturers. When you are doing the marketing, do a full set of play;
do not put off the consumers. The marketing campaign McDonald did is
a good model. Both the implantation of the characteristics of the hero
and the offline emotional interaction evoked the intense identification of
the young people.

16. And then speaking of channel transformation, there is a word written in
the latest book of Kevin Kelly which reads, “all business derives from the
data." The problem is that we have no way to get timely data, as long as
the timely data. If we can get timely data, we will certainly know how to
do the business. Now the network has brought a convenience for us to
get the data. How should we look at the relationship between the online
electricity business and the offline business? The online electricity
business has the advantage of the timeliness and convenience of data.
So we have to figure out how to run an electricity business platform from
the perspective of the data. At the same time, we have to get through the
online and offline business and find some disciplines on how to combine
the online data with the offline business. Finally, marketing becomes the
starting point; and the starting point also becomes the end point.

17. First of all, we have a cooperation with JD which called "Jing Teng
wisdom". We must know that the first and biggest difficulty in marketing
is that the online media platform cast advertisements to some people,
but they don't not know who these people are in the electricity business
platform; the electricity business platform knows who bought its
commodities, but it can not figure out what kind of video will they watch
on the media platform. The two is difficult to get through. The
cooperation between Tencent and JD just solved this problem and mike
it to get through the data. Then with the get through of the data, we
made some labels to make one-to-one match between the two platform.
We cast some media resources in the platforms of the Tencent, and make
some chains into JD.com, then we will know when and what kind of thing
people who were watching "In the Name of the People" have bought in
JD.com.
Secondly if we want to cast specific advertisement to the people with this
kind of demand, such as people who are fond of FMCG or who want to
by sanitary towel, such exact match, we use the data of JD.com and make
a match in the platform of the Tencent, and cast media resources
specifically for these people.
The third thing is that we cooperate with JD and Blue Moon in big IP

18. construction. The Blue Moon and JD join us in making the online variety
show which called " Go! Wardrobe" as sponsors. And they can also get
some interests in return.
Furthermore, we also do offline guide. As everyone knows, now there are
many mode of payments, such as LBS (Location Based Service) which can
issue coupons based on its accurate positioning. We also have WeChat
Pay with coupons and red packets. These kinds of payments can make
quick offline positioning, and we can predict the repurchase rate through
the data of the utilization of the mode of payments or coupons. And then
you can have a better understanding of this person. That is because that
when you get some online coupons after offline shopping, you will get
some online data about the newest information of the shop online. We
can also bind it with the public accounts of some shops, then there will
be a steady flow of customers come into there. And the sellers will have a
better known of why there is a high rate of repurchase or why there has a
loss of customer in some period of time. Then you may make an
adjustment of the offline sales based on the online data.
This is what I have just mentioned, let the beginning become the end
point, the end point in turn becomes the starting point. In the digitized
society, everything has its own commodity bar code is no novelty to us.

19. Primarily, you will get a coupon or you can make check-in after you
scanned the QR code. Now WeChat introduced the Mini Program where
there provides many things including personalized recommendation and
IP authorization. You can just come into the Mini Program after the
scanning, then the accumulation of offline data and statistical analysis
can be fed back to you timely.
As far as the user is concerned, when he uses the Mini Program, maybe
he just scanned a pack of milk, but he may get a sports membership card
if he loves sports, or he may want a video membership card or some
game props of the King of Glory or whatever, it also works. There you
have many ways to retain customers, so that your starting point and the
end point will be connected into a closed circle.
To sum up, to explore reformation in adversity, the first thing is the

20. upgrade of the product, from satisfying the demand to create the desire;
the second is the rise of young, not the younger of the brand, but let us
truly become young People; the third is the transformation of the
channels, all business derives from data, make full use of the data.
Finally, AI (Artificial Intelligence) was first written into the government
work report, I believe it is closely related to our lives. But when it refers to
AI, you may think of AlphaGo. You may feel it's none of your business,
nor does the marketing management. This is not necessarily true. How
should we understand the AI? In fact, AI does not just provide us some
products to use. It provides a series of instruments and technologies,
which you can use to build a new field. In terms of marketing, it must
refer to the AdTech, which is a technology put forward by the media for
the maximization of its resources, but not for the demand of the
customers. While what you may think of is MarTech. What is MarTech? It
is not a methodology, but the real use of AI basic technology such as
natural language processing, image processing, and deep machine
learning, to provide you a lot of insight, creativity, content links, and the
subsequent analysis. After the analysis, you will know how to do it
whether in the market or the marketing.