Core Viewpoint - The importance of public relations (PR) in consumer goods companies has surpassed that of direct advertising spending, as neglecting PR can lead to severe brand crises and losses [6][9][32] Group 1: The Shift in Consumer Goods Management - Many consumer goods executives believe that having a good product is sufficient, but this mindset is outdated in the current media environment [2][4] - Companies face rapid backlash from the public due to minor issues, such as packaging or labor disputes, which can lead to significant financial losses [5][9] - The lack of respect for public opinion and inadequate communication strategies can result in catastrophic consequences for brands [5][9] Group 2: Financial Implications of PR - A budget of 10 million yuan in advertising may yield 100 million yuan in gross merchandise value (GMV), but a PR crisis can incur losses far exceeding that amount [7][9] - Direct sales losses from a crisis can include returns, consumer boycotts, and platform delistings, while indirect losses can affect brand trust and employee morale [9] - Investing in PR builds long-term consumer trust, which is more valuable than short-term advertising gains [9][10] Group 3: Media Relations and Budgeting - Many executives mistakenly view media spending as a form of extortion rather than a necessary investment for professional services [10][13] - Proper media investment should focus on reputable outlets that provide in-depth analysis and have a strong audience trust [13][20] - Establishing good relationships with influential media can be crucial during a crisis, as they are more likely to provide fair coverage [22][30] Group 4: The Role of Content in Crisis Management - Long-form media, such as articles on public platforms, can provide deeper analysis and context during crises, unlike short videos that may oversimplify issues [14][15] - Companies should balance their media strategies by using short videos for daily engagement while relying on in-depth articles for brand building and crisis management [16] Group 5: Building Relationships Before Crises - Companies often prioritize immediate sales over building long-term media relationships, which can leave them vulnerable during crises [18][20] - Establishing genuine connections with media and KOLs (Key Opinion Leaders) is essential for effective crisis management [25][26] - Companies should invest time and resources in nurturing these relationships to ensure support during challenging times [21][26] Group 6: Leadership's Role in PR - The involvement of company leadership in PR is critical for understanding media dynamics and ensuring that PR is prioritized within the organization [28][30] - Leaders should elevate PR to a strategic priority, enabling quick decision-making during crises and fostering a culture of awareness among all employees [30][31] - Every employee's actions can impact the brand's reputation, making it essential for leadership to instill a collective responsibility for public relations [31]

Core Viewpoint - The recent crises faced by companies like Xibei and Baiguoyuan are seen as inevitable due to underlying misunderstandings regarding public relations [2] Group 1: Importance of Public Relations - Many traditional consumer brands do not prioritize public relations, often lacking a dedicated PR director even after going public [4] - When performance declines, companies tend to cut PR teams instead of investing in them, leading to a high turnover rate among PR professionals [5] - Some advanced-thinking leaders hire PR directors but misallocate their roles to focus on sales rather than strategic communication [4] Group 2: Challenges in PR Management - PR professionals face limitations in upward communication, struggling to manage strong-willed bosses who may not heed their advice [7] - Successful entrepreneurs often possess absolute confidence, which can lead to a lack of openness to feedback, creating a disconnect between the PR team and the leadership [8] Group 3: Emotional and Communication Management - Effective PR involves managing the emotions of the boss and ensuring their communication skills are honed [10] - High-end brands often encounter crises due to emotional expressions from their leaders, which can lead to public relations disasters [13] - There is a lack of training in emotional management and communication skills for executives, which is a gap in business education [15] Group 4: Aligning Internal and External Perceptions - PR must bridge the gap between the internal perception of the brand and the external consumer view, ensuring consistency in messaging [24] - A significant disconnect between how a brand sees itself and how consumers perceive it can lead to crises [29] Group 5: Proactive Crisis Management - Effective PR should focus on preemptive measures rather than reactive crisis management, identifying potential issues before they escalate [34] - Establishing an internal self-check system can help in early detection of potential PR issues [37] Group 6: Risks of Personal Branding - The personal branding of entrepreneurs can amplify risks for consumer brands, as any controversy surrounding the individual can directly impact the brand [38] - It is advised that entrepreneurs maintain a degree of separation between their personal image and the brand to mitigate risks [39] Group 7: Social Responsibility in Branding - Brands should focus on telling stories that highlight their social value and responsibility, transforming from personal enterprises to socially responsible entities [40] - The narrative should aim to provide solutions to societal issues, enhancing the brand's relevance and impact [42]