Core Viewpoint - The article discusses the transformation of factories in China, particularly in the sock manufacturing sector, as they begin to engage directly with consumers through platforms like 1688, redefining traditional distribution channels and reducing the role of intermediaries [1][4][24]. Group 1: Changes in Consumer Interaction - Factories are now showcasing their products directly to consumers, moving from a B2B model to a more consumer-oriented approach [1][4]. - The rise of live streaming and direct sales on platforms like 1688 allows consumers to interact with factories, bypassing traditional retail markups [1][4][10]. - The shift in consumer behavior reflects a preference for cost-effective alternatives, with younger consumers valuing functionality and material quality over brand prestige [13][15]. Group 2: Evolution of Distribution Channels - The traditional distribution model, characterized by multiple layers of intermediaries, is being disrupted by the internet, allowing factories to communicate directly with consumers [2][24]. - 1688 has evolved from a wholesale platform to a significant source for consumers seeking direct access to factory prices and products [4][8]. - The integration of 1688 with Alibaba's ecosystem enhances its retail capabilities, making it easier for consumers to access factory goods [8][15]. Group 3: Brand Building and Storytelling - Factories are increasingly focusing on building their own brands and narratives, moving away from solely being production entities [10][23]. - The emergence of "factory second-generation" individuals using social media to share their stories and promote their products highlights a new marketing strategy that emphasizes relatability and authenticity [19][23]. - Emotional value and storytelling are becoming crucial for factories to differentiate themselves in a competitive market, as price competition reaches saturation [23][24].