Core Insights - The current business environment has shifted from a growth phase to a contraction phase, making it increasingly difficult for companies to sustain growth [2][4] - Traditional methods of customer acquisition and retention are no longer effective, as evidenced by declining revenues and increasing closure rates in various sectors, including the restaurant industry [4][6] - Successful businesses are rethinking their entire value chain rather than just focusing on customer conversion rates [6][10] Industry Trends - The restaurant industry is experiencing a significant decline, with the number of restaurants in China projected to drop from 9 million to 7.7 million by 2024, and a 5.1% revenue decrease in Beijing [4] - E-commerce is facing rising costs for customer acquisition, indicating a need for businesses to adapt their strategies to maintain long-term growth [4][19] Business Models - Companies like Sam's Club and Costco have successfully implemented a membership model that filters out price-sensitive customers, allowing them to focus on high-value consumers and streamline their product offerings [8][10] - The domestic brand Zhihui has redefined the value of everyday products, such as tissue paper, by emphasizing quality and aesthetics, leading to significant sales growth [12] - Luckin Coffee has established a highly digitalized supply chain that allows it to maintain a competitive edge despite market challenges [14] Strategic Focus - Businesses are increasingly prioritizing customer loyalty and long-term value over short-term sales, as seen in the restaurant industry where operators focus on deepening relationships with existing customers [15][19] - Retailers like Pang Donglai are restructuring their supply chains to connect directly with manufacturers, enhancing transparency and customer decision-making [17] - The shift in e-commerce from focusing on gross merchandise volume (GMV) to customer lifetime value (LTV) reflects a broader trend towards sustainable business practices [19][21]