We are still confused about the new retail, and new manufacturing is coming again.
I summed up the feeling after Ma Yun’s speech in one sentence: If the new retail may mean that the front end of the brand market is “lost”, the new manufacturing may be the “fire” of the brand backyard.
New retail and new manufacturing are actually a pair of brothers. With new retail, there will inevitably be new manufacturing. From the perspective of brand owners, if the front end has fallen and the back end has a fire, it is even more dangerous.
Where is the danger? Don’t think that Ma Yun will go to manufacturing, production is hard work, and the Internet is unwilling to do it. Even multinational companies have long been reluctant to do it and are outsourcing.
However, the task of defining user needs and the product premiums that are commonly referred to as brand value added by defining requirements may be transferred to Ma Yun’s new retail platform.
We know that when multinational companies do OEMs, they can live more moist, that is, have the ability to define user needs, and the added value derived from it. This is the core value of the brand.
Brand owners are brand owners, not manufacturers, because they have the above capabilities. New manufacturing is likely to squeeze the brand into a manufacturer.
Although the new manufacturing did not grab the brand’s business, but grabbed the value of the brand, you said that it is the position of the brand?
However, I use the word “may”, which means there is another possibility, that is, the new manufacturing can also be the new manufacturing of the brand, and even the new retail can be the brand new retail.
Opportunities are the same, and everything depends on how the brand responds to the DT (Data Technology) era.
New retail, new manufacturing issues, the brand to answer questions. If you don’t answer the question, you will be PASS.
The new manufacturing, originated from Ma Yun proposed a not new concept: DT era.
Corresponding to the DT era is the IT era. Let’s take a look at Ma Yun’s statement: “IT is mainly to control the future, and DT is to create the future.”
“IT turns people into machines, and DT wants to turn machines into people.”
“The IT era was born in manufacturing, and the DT era was born and created.”
“The IT era relies on knowledge, and the DT era must harness the wisdom of humanity.”
“The IT era is dominated by me, and the DT era is dominated by him.”
“The DT era is a platform idea, what is a platform? A platform is not a scale, a platform is altruism, and enableothers (altru) is to make others do better.”
“IT requires standardization and scale, while DT requires uniqueness, personalization, and flexibility.”
Ma Yun is right, I agree, but there is a saying that: Who is the protagonist of the new manufacturing?
Ability to define user needs
The “new” of the new manufacturing lies in DT; the key to DT is D (Data), who owns Data, who may have the DT era.
Although I am not in the IT industry, I am a computer major who entered the school in 1981. I tried to interpret the logic of the DT era that Ma Yun said.
New retailers should reconstruct “people, goods, and fields”, and people ranked first. Why do you rank first? Because you want to “connect” people with mobile internet tools.
Pay attention to the word “connection”, which is the source of all the problems. Without new connections, there is no new retail or new manufacturing.
Connection is to connect to the C terminal. The purpose is: user connection → user online → user privatization.
Users are online only when the user is connected. The user produces a result online: the user behavior is digitized.
Digitizing user behavior will form Data in the DT era. Once data is formed into big data, it can be done. All actions can be digitized. With big data, many things can be derived from artificial intelligence, such as behavior prediction and demand forecasting.
To say something that doesn’t necessarily mean someone: With big data, businesses know themselves better than the users themselves.
With big data, all the technologies used in marketing in the past have all fallen behind. What user surveys and consumer insights are all LOW.
All in all, because of the connection, there is big data. Because of the big data, it can produce products that users can’t tell, but the source is unclear, but the business is like a mirror, and it is sold to users with the new retail platform.
This logic, I call the ability to define user needs. The source of business value added is who has mastered this ability.
Grasping the user’s needs, you can use the logic of C2F to achieve customization. Flexible production technology is no longer a problem.
The user needs to customize, the result is Ma Yun’s “unique, personalized, flexible.”
New manufacturing is not just platform empowerment
If the new retail is unbounded retail, or retail rhetoric. New manufacturing has clearly caught the boundaries. Fishing over the boundary, definitely who to grab the position. Although Ma Yun said that the new manufacturing is just a platform empowerment, it must not be that simple.
The platform is empowered, and this sentence is concealed. The meaning of its explicit expression is: I am just helping you, not robbing you of your life. However, the implication is that you are doing it by yourself, but the pattern and profit distribution are what I have to say.
As I said before, the hard work and tiredness of the manufacturing industry will not be grabbed by Ma Yun. Manufacturing is a heavy asset, and as technology advances, assets are worth it.
There are two types of manufacturing in the manufacturing industry: one is a brand, such as Nike; the other is a manufacturer, such as Foxconn. There are also two together.
New manufacturing is a boon to manufacturers. Anyway, they have no ability to define needs and create added value. They earn hard money.
New manufacturing is a major challenge for brand owners. The ability of brand owners to define user needs in the past was LOW in the DT era.
Of course, some people will say that I will also buy big data. Yes, but who knows the DT data? The new retail platform has the most data. Since DT is so important to grasp the demand, of course, brand owners can also find a platform.
Just as in the era of e-commerce, if brand owners want to sell goods, they have to find a platform to buy traffic. Brands want to get Data, but also bid.
Ma Yun said that the platform is altruistic. This is half right. Ma Yun mastered the Data, it will not be sunny, and all the people will be bidding. Bidding, first, you have to pay; second, you can get what you pay for, and others can get it; third, the result of bidding is that someone can’t afford it, such as the current traffic fee.
What should a brand dealer do?
“The front end is lost, the backyard is in a fire”, and some people certainly don’t like to listen.
Do marketing, used to call sales the front, and R & D, creativity, brand, etc. are called the background.
The front end is lost, it is a market problem, the sales problem; the backyard fire is a product problem, a creative problem, and a value-added problem. It is a question that the brand can still be called a brand.
Ma Yun is right: “In the next ten to fifteen years, traditional manufacturing enterprises will be very painful. Under today’s external environment, under the general trend of technological change, enterprises that rely on traditional resource consumption will certainly become more and more difficult and challenge. It will grow bigger and bigger, and companies that don’t embrace the new manufacturing industry will drive like blind people. You don’t know who your customers are and what your customers need.”
But I have to add that if a brand does not embrace new manufacturing, it is like “a blind person driving a car”; if it is a hug, it is like “on the road.”
From the perspective of brand owners, what is the core issue? It is the ability to grasp the needs of users, to buy Data from the platform, it also means that the fate of the brand is in the hands of those who have Data. Without the ability to gain insight and grasp the needs of users, brand owners will be OEM.
The platform is a huge presence, even if it is actively embraced, because it embraces the public, it will become a bidding game to buy Data, or a contest.
Grasping demand and planning products is the core competence of brand owners. This core ability is gone, is the brand still a brand?
Everything has a solution.
Is it to embrace the DT era, or to embrace the DT platform era? This is two different concepts. However, people often deliberately steal the concept.
The DT era belongs to all businesses; the DT platform era belongs to the giant new retail platform.
When I talked about new marketing, I proposed “three major infrastructures”: one is to connect C-side; the other is to channel digital; the third is long-chain, medium-chain, and short-chain retail platforms. These three infrastructures constitute the infrastructure of brand owners in the DT era.
Connect to the C-end to enable users to be online and digitize user behavior. Although the amount of data is not as large as the new retail platform, it may be more accurate. This is the premise for brand owners to enter the DT era.
The digitization of channels is to digitize all the information in the value chain, not only to digitize users, but also to realize the full chain of digits of commercial institutions. This is very important for channel efficiency and rapid response.
Long chain, medium chain and short chain together, in addition to breaking the monopoly of the new retail platform, and having the ability to directly trade with the C-end, can also obtain user data through short-chain transactions.
Unintentionally, the new marketing proposes a solution for the brand owners of the DT era. This is not only a solution to the new retail, but also a solution to the new manufacturing.
Of course, the new retail platform, as a huge presence, needs cooperation, but it is by no means an empty-handed hug. Instead, it uses the brand of the DT era of the brand to obtain the qualification for equal cooperation with the new retail platform.
Finally, it should be noted that I both recognize new retail and new manufacturing, and firmly believe that new retail and new manufacturing will succeed, and will also bring overall progress in Chinese business.
In the past, brand owners were value creators. The value creation based on DT is a huge problem for most brands. The IT era has not adapted, and the DT era is coming again. In the DT era, you must be a brand with your own Date, firmly grasp the ability to define user needs. Opportunities in the DT era belong to all business organizations that seize opportunities.