The transformation of liquor industry under policy control

2013 was a painful year for liquor companies. New regulations such as the "Eight Regulations" and the "Prohibition Order" issued by the decision-makers came successively in this year, and the high-end wine market shrunk sharply.

The performance of baijiu has collectively plunged, and the industry has entered a period of pain

Since the introduction of the prohibition order, high-end baijiu has been the first to bear the brunt. Since 2013, the high-end wine series of brands such as Moutai and Wuliangye have begun to decline in price. The prices of Moutai and Wuliangye have dropped to more than 800 yuan and 600 yuan. The high-end liquor series of the company encountered this situation. Compared with the same period of last year, the prices were all cut in half. The market price was even lower than the ex-factory price for a long time, and the price was inverted.

The same situation is also reflected in the financial reports of listed liquor companies. Compared with the booming performance of liquor companies and the sharp increase in net profit margins in the previous two years, the interim report of listed liquor companies this year is terrible.

In the first half of 2013, Jiugui Liquor's operating income fell by 59.15% year-on-year, and its net profit fell by 88.24% year-on-year; Tuopai Shede's net profit in the first half of 2013 decreased by about 80% year-on-year; Huangtai Liquor's operating income in the first half of the year fell by 27.44% Profit loss was 587,500 yuan. Moutai Group's sales revenue in the first half of the year increased by only 0.6% year-on-year, becoming a rare "zero breakthrough" in the history of Moutai. Only Wuliangye's situation was slightly better, maintaining a certain growth, but the growth rate also slowed down.

With regard to restricting the consumption of San Gong, Liu Yuan, vice president and secretary-general of the China Alcohol Circulation Association, once told the media, "The impact of consumption of San Gong on the liquor market is very huge and long-term, and this time the macro policy adjustment will not only be 'A gust of wind', the impact of high-end wine this time far exceeded the industry's previous expectations for its negative impact. In the future market, as an industry, San Gong consumption should be excluded from the wine market. The development of the industry is faced with Severe challenges."

Liquor companies gather in the low-end and middle-end, and the competition is becoming more and more fierce.

The high-end liquor market has suffered setbacks. Development of new products.

Since 2013, Wuliangye has frequently released new products to seize the mid-price market. Under the pressure of sales performance, Moutai Group has also begun to play various "combination punches" to increase sales, including directly cutting prices to seize the mid-end market, and even loosening distribution rights to expand sales. Liquor giants such as Fenjiu, Yanghe, and Luzhou Laojiao have also bet on mid-to-low-end products, and the competition in this category is now extremely fierce.

Some analysts believe that the effect of this low-end approach to grab market share will have to wait for the verification of time. The liquor market is overcapacity, and the accumulation of mid-end liquor will lead to product homogeneity, which may lead to vicious price competition and trigger a round of liquor industry reshuffle.

"Government consumption" is a dead end, and the transformation focuses on people's livelihood

Regarding the future of the liquor industry, several liquor company executives and industry experts expressed their views to the media.

Zhou Suming, chairman and general manager of Jiangsu Jinshiyuan Liquor Industry Co., Ltd., said, "The future market of the liquor industry lies in folk liquor, while government affairs consumption is a dead end."

Liu Bangchang, former head of the Liquor Expert Group of China Brewing Industry Association, said, "Liquor enterprises should pay attention to product differentiation and innovation according to the attributes and characteristics of the industry. For example, they should introduce concepts such as rational and healthy drinking, so that liquor can truly become popular among ordinary people. Favorite folk wine."

As for the social value of baijiu, Zhang Liang, president of Luzhou Laojiao, believes that baijiu has a strong regional resource attribute and is unique among the world-class intangible cultural heritage, which itself is a special social value. Today, when the construction of ecological civilization is highly valued, the liquor industry must give full play to its inherent advantages of ecological brewing to maximize the ecological value and social value of liquor.

Xu Yonghui, chairman of Yilite Liquor Industry, believes that the social value of liquor should be more reflected in people's livelihood. Liquor must combine its own industrial characteristics and actively transform into an environment-saving direction. For example, the ecological concept can be integrated into the enterprise. In all aspects of daily operation, according to the principles of ecological economics, an industrial ecological value chain of "producers, consumers and restorers" is established in the system to achieve mutual coordination between economic development and environmental resources.

With regard to the future of liquor, Wang Shoubing, President of Su Liquor Group, believes that the positioning of the liquor industry is a "national, popular, and cultural" industry. Internal laws, active transformation, and coping with the adjustment period of the liquor industry.