Key Insights from Jiangnan Chun’s Interview: In the AI Era, Brands Still Compete for People’s Hearts
I. The Survival of Brands in the AI Age: Either Become the “Preferred Choice” or Pay for Recommendations
AI acts like a super shopping assistant, but it treats brands differently:
- If you are the user’s first choice: For example, when someone is thirsty, they think of Nongfu Spring; AI will just help them find the cheapest and fastest delivery option—AI is your “execution tool,” and you don’t need to pay for its recommendations.
- If you’re not the first choice: AI might include you in a list of 3–5 recommendations, but you’ll have to pay for those. For instance, an OpenAI ad costs $60, three times more than a regular US advertisement. Since AI has already invested billions, it will eventually make its money from brands, meaning the cost of these recommendations will only rise.
Conclusion: In the AI era, the cheapest strategy is to become the user’s preferred choice. This is known as the “AI escape period”; otherwise, you’ll have to continuously pay for recommendations, squeezing your profits.
II. Human Nature Remains Unchanged: The Brain Craves Simplicity, Repetition, and Familiarity
Jiangnan Chun emphasizes that the human brain has evolved over hundreds of thousands of years and won’t change just because of AI. The key principles are:
- The brain is lazy and thrives on efficiency: 90% of decisions are made based on intuition (e.g., thinking of Wanglaoji when you feel hot).
- Repetition = Truth: Things that appear repeatedly make the brain feel safe and comfortable. For example, you gradually develop a positive impression of someone you see daily; repeated ads help users remember a brand.
- Limited mental capacity: Users can only remember a few brands; they’ll stick with the “first” or “only” one. For instance, people will choose Mekalongduo for cheese due to frequent exposure.
Conclusion: No matter how advanced AI becomes, it can’t replace the conditioned responses in our brains. The essence of a brand is to establish a strong connection with users.
III. A Brand Is Not the Result of Success, but the Cause of It
Many entrepreneurs think they should “make money first and then build a brand,” but Jiangnan Chun disagrees:
- Brand building starts with product development: Ask three questions: ① What problem do you solve for users? (Relevant) ② How are you different from others? (Unique) ③ Will users think of your brand when they need this product? (Stand out).
- It’s better to be unique than just better: For example, Feihe doesn’t compete with international brands on “professionalism” but focuses on being “more suitable for Chinese babies”; PepsiCo doesn’t compete with Coca-Cola on “authenticity” but highlights itself as a choice for the younger generation. Contradiction can lead to success.
- Niche markets can also be dominant: If you can’t become the number one nationwide, focus on being the best in a small niche (e.g., “King of Mushroom Hot Pot within 3 kilometers” or “Deyou – The Preferred Wet Toilet Paper”).
Conclusion: A brand is the cause; success is the result. Without a brand strategy, even a popular product will be swallowed up by market trends (like many temporary hits that disappear after a few months).
IV. The Core Qualities of Entrepreneurs: Courage, Persistence, and Long-Term Thinking
Jiangnan Chun has seen many brands rise and fall; successful entrepreneurs share these three traits:
- Courage: To take risks when others doubt you (e.g., Wang Chuanfu with electric vehicles or Jiangnan Chun investing in elevator advertising in 2003).
- Persistence: To endure loneliness and wait for success (e.g., Zhong Zhaozha’s Oriental Leaf brand took 10 years to reach $2 billion).
- Long-Term Thinking: To bet on things that remain constant (e.g., Amazon’s belief in “cheaper, more convenient, better experiences”).
Lesson: Don’t chase short-term trends and empty promises. Jiangnan Chun invested in an internet advertising company in 2008 to boost his stock price, but it fell from $8.6 billion to $600 million—“A market value without real substance is just a bubble.”
V. Consumer Trends: Rational Savings and Emotional Spending
The current trend is not “consumption downgrading” but a “K-shaped divergence”:
- Rational savings: For essential items (e.g., coffee), users compare prices and look for discounts.
- Emotional spending: For things that provide relief or enjoyment (e.g., concerts, Pop Mart), people are willing to spend more due to stress.
Future Opportunities: The second-hand economy, the elderly market, anti-aging trends (technology + wellness), and AI robots (time-saving solutions).
VI. Advice for Young People
Jiangnan Chun suggests:
- Find something you love: Do what you enjoy so much that you want to do it again and again.
- Live with intensity: Life is about meaningful experiences, not just length of time.
- Don’t fear failure: The biggest regret is missing out on opportunities.
Summary: In the AI Era, Brands Still Compete for People’s Hearts
Jiangnan Chun’s core message is that while AI has changed tools, it hasn’t changed human nature. The ultimate battle for brands is to become the user’s preferred choice. Entrepreneurs should leverage unchanging human traits, use courage and persistence to establish a strong brand connection with consumers, and create brands that endure market cycles.
His own goal? To become the driving force behind Chinese brands, helping them go global—that would be the true meaning of his life’s work.