The liquor market in 2023 has never been calm, with cyclical and structural contradictions intertwined, and the contradiction of aggregate demand highlighted.
As the market enters the stock era from the incremental era, the structure of the liquor industry is further concentrated, and the competition is highly "involuted". In the second half of the year, high inventory and consumption downgrade have become the biggest problems in the industry.
However, the favorable conditions for the development of China's wine industry are stronger than the unfavorable conditions, and the basic trend of long-term improvement has not changed. The 10 major events in China's liquor industry in 2023 also prove that the overall situation is still favorable, and as long as we seize the opportunities brought about by the structural adjustment of the industry, it is possible to become the leading force in the new order and pattern of the liquor industry in the future.
1. Moutai raised prices in the middle of the night
Summary of the event:Late at night on October 31, Kweichow Moutai issued an announcement that it would raise the ex-factory of Kweichow Moutai by 53 degrees from November 1, with an average increase of about 20%. According to this estimate, the ex-factory price of 53% vol Feitian Moutai was adjusted to 1169 yuan. Kweichow Moutai emphasized that this adjustment does not involve market guidance for products**. One stone stirred up a thousand waves, and even if the announcement was released in the middle of the night, it still aroused great concern and ** in the society. The vast majority of Moutai's revenue comes from ordinary Moutai products such as Feitian Moutai, and this price increase will significantly improve Kweichow Moutai's Q4 and next year's performance.
Afterthought:For a long time, Moutai has been the ex-factory price of the terminal sales price, and the product has a strong premium ability. Now, Moutai's price increase after nearly 6 years means that Moutai will enter a new stage of "both volume and price increase", which is also in line with the long-term development needs of the company, and is expected to boost the realization of Moutai Group's new five-year goals. For the industry, Moutai is regarded as the anchor of the pricing of the liquor industry, and its price increase is fed back to the terminal market and even the whole industry, which is of great significance for boosting industry confidence and stabilizing the market. First of all, the upward expansion space of the thousand-yuan ** belt has been opened, and the certainty of industry growth has been further consolidated.
2. Chinese liquor is accelerating its export to sea
Summary of the event:The internationalization of Chinese liquor is the only way, and the "Belt and Road" initiative has brought more new opportunities, and many liquor companies have included going overseas as a major development strategy, competing to sail away, passing on Chinese liquor culture overseas, and showing the charm of Chinese liquor. In 2023, Ding Xiongjun, chairman of Moutai Group, will go to sea together with Diageo and Pernod Ricard in London, Zhang Liandong, chairman of Wuliangye, will visit Europe during the year, and Luzhou Laojiao will start a global journey of "letting the world taste China", and will expand its international territory to 31 countries and regions, become the official partner of the Premier League Wolves, and show the oriental life aesthetics to European consumers at the Yuyuan Lantern Festival in France.
Afterthought:Last year, China imported 22800 million US dollars, liquor exports 71.6 billion US dollars, a huge deficit shows that the international market is still a blue ocean for liquor. Liquor is the universal language of the world, and Chinese culture is very popular overseas, and baijiu, as one of its carriers, should be recognized. On the one hand, Chinese wine companies should learn from the experience of foreign wine entering the domestic market, and at the same time, they should adhere to cultural empowerment and pay attention to cultural output. Under the leadership of leading enterprises, we fully believe that China Baijiu will be able to tell the story of Chinese Baijiu in a new way of expression, achieve a positive growth trend overseas, and bring new incremental space to the industry.
3. The revival of famous wine has become a bright line in the industry
Summary of the event:In 2023, the relaunch of famous liquor brands will become a bright thread in the liquor industry. Xinghuacun under Fenjiu, Shuanggou under Yanghe Distillery, Tuopai under Shede Liquor, and Longnanchun under Jinhui Liquor are either restarted or shouted for revival. As the former national memory, Tuopai started from the brand strategy of "awakening" and "renewing", reviving the brand and seizing the industry position of "beautiful famous liquor". Fenjiu hopes that Xinghuacun Liquor will achieve a revenue of 5 billion yuan. Shuanggou hopes to achieve sales of 10 billion yuan by 2025 and become one of the 10 billion yuan camp of famous wines.
Afterthought:The revival of famous wines, glowing with new brilliance, stimulating new potential, creating new value and creating new business opportunities, this is the trend of the times, the direction of the market, the responsibility is great, and it is of great significance. Among them, cultural heritage is the foundation of the revival of famous wine, and cultural drive is the core driving force of the revival of famous wine. The state proposes to fully revive traditional culture by 2025. In this strategic context, China's famous liquor, which carries the historical and cultural heritage, traditional winemaking technology, and the continuous upgrading of the quality of fine wine, needs to seize the opportunity to take advantage of the situation. Whoever can squeeze into the "shuttle" of famous wine will be able to get the opportunity for sustainable development.
4. Liquor companies embrace the wave of marketing digitalization
Summary of the event:The whole industry is making efforts, digitalization is becoming an important element in the competition of liquor, and the leading enterprises are going all out. This year, Moutai proposed to continue to increase its digital layout, optimize and upgrade i Moutai, and recommend the reform of the marketing system in the way of digital integration and direct facing consumers. Wuliangye is also actively expanding the new marketing and new retail pattern, and opening up the digital upgrade path of the whole link from production to consumption. Fenjiu proposed to accelerate the digital transformation of "Smart Fenjiu", build a big data platform, and improve the operation capacity of digital assets.
Afterthought:The wave of digitalization is surging and is disrupting the traditional liquor industry. For wine companies, in the context of intensified market competition, digitalization can help wine companies better understand consumer needs, improve brand awareness and reputation, and promote sales growth. At the same time, with the development of mobile terminal technology, consumers are more and more fond of online purchases, and obtain product information from social **, wine companies should quickly adapt to changes, take the initiative to strengthen digital marketing and social ** operation and maintenance capabilities, and shorten the distance between them and consumers.
5. Soy sauce wine ushered in a period of structural adjustment
Summary of the event:It has been 6 years since 2016 when soy sauce wine became popular, and the influx of capital was unprecedentedly intensive, however, due to a variety of factors, soy sauce wine will enter a period of structural adjustment in 2023. In this year's liquor ** upside down, soy sauce wine is more serious than strong flavor wine and fragrant wine. In addition to Moutai, the mainstream products of other soy sauce wine brands have fallen to varying degrees, and some small and medium-sized brands have even "cut in half", and many dealers exclaimed that soy sauce wine "can't be sold". In order to further attract consumers, head brands such as Moutai, Xijiu, and Langjiu have launched mass products, and ** have dropped to ordinary prices.
Afterthought:Overall, soy sauce wine is still a high-quality track, and there is considerable certainty in an uncertain environment. However, this year is a year of adjustment and test for the soy sauce wine industry, with opportunities and challenges coexisting, at least, the expansion of production capacity of leading enterprises and wine companies in core producing areas has made people see the resilience and potential of soy sauce wine. In addition, some professionals pointed out that for most soy sauce wine brands, it is not so much an upside down as a return. After several years of frantic running, the value of soy sauce and wine began to return to a reasonable range.
6. The Spring Sugar Exhibition reflects the confidence in the development of liquor
Summary of the event:In April 2023, the 108th National Sugar and Wine Fair will be held offline for the first time after the transition of epidemic prevention and control. According to the organizing committee, this year's Sugar and Wine Fair has set up 10 exhibition areas and 17 special areas, with a total exhibition area of 320,000 square meters, setting a new record for the exhibition scale of the National Sugar and Wine Fair, and more than 6,500 companies from more than 40 countries and regions will actively participate in the exhibition, becoming the largest comprehensive exhibition in the global food and wine industry in 2023. A record 170,000 visitors were on the first day. Judging from the number of exhibitors and the number of participants, the popularity of this spring sugar has increased significantly compared with the 2022 Sugar and Wine Fair, the product promotion and marketing activities of leading wine companies have returned, emerging brands have actively attracted investment, and the recovery trend of the industry has continued.
Afterthought:The first spring sugar three years later made the liquor industry burst out with long-accumulated enthusiasm, and there were many cars, many people, many liquor companies, and many products, which was the biggest feeling of the participants. The industry recognizes that the number of famous liquor companies exhibiting and releasing products at the Spring Sugar Fair is to a certain extent the vane of the liquor industry. Judging from the feedback of the participants, the general trend of industry recovery has gradually become a consensus, and the confidence of the upstream and downstream of the industry has continued to increase under the recovery of demand.
The Spring Festival Gala wine companies "dominate the screen".
Summary of the event:On January 21, the four major liquor brands of Wuliangye, Yanghe Dream Blue, Gujing Gongjiu, and Shede Liquor, plus strong liquor, all appeared at the 2023 Spring Festival Gala, and in the 5 minutes before the opening of the Spring Festival Gala, in addition to the aforementioned 5 liquor companies, there were also shadows of Moutai and Xijiu, and 7 liquor companies formed a group to appear at this Spring Festival Gala, which means that the liquor industry has become the "biggest financier" of this Spring Festival Gala. Among them, Wuliangye gave away liquor gifts worth hundreds of millions of yuan on the night of the Spring Festival Gala. In the local Taiwan Spring Festival Gala, liquor brands also made many wonderful appearances, Laobai Dry Liquor sponsored the 2023 Hebei New Year Gala, and Gujing Gongjiu sponsored the 2023 Jiangsu Satellite TV and Anhui Satellite TV Spring Festival Gala.
Afterthought:As one of the more profitable industries in recent years, liquor has not been absent from the Spring Festival Gala and has become a de facto advertiser. It's just that the 2023 Spring Festival Gala will have fewer companies in other industries, but it seems that there will be more liquor advertisements. I still remember that the most eye-catching thing in the Spring Festival Gala is the real estate enterprises, the hot spots in 2021 are the education and Internet industries, and in the past three or two years, the business environment of the real estate, education and Internet industries has undergone major changes, only the liquor industry is still strong, in the eyes of the industry, behind the layout of the Spring Festival Gala, they are laying out in advance for the recovery of alcohol consumption in the future.
8. Wine companies collectively make efforts to destock
Summary of the event:In June 2023, the China Liquor Industry Association released the "2023 China Liquor Market Interim Research Report", pointing out that there is high inventory in the liquor industry, and destocking is the top priority for liquor companies in 2023. Major wine companies said that they would take a large number of measures to promote sales and destocking, so that "inventory can be kept at a reasonable level". According to a report, the top three businessmen in a provincial capital city in southwest China held billions of inventories in the middle of the year, seriously squeezing out liquidity. On the one hand, the phenomenon of high inventory has become common in the industry, and on the other hand, because the channel inventory is too high, the distributors of some small and medium-sized wine enterprises are not willing to buy.
Afterthought:The high channel inventory is not only a challenge, but also forces wine companies and distributors to fully understand the market demand, strengthen refined management, and make more accurate product strategies and channel marketing strategies in the transformation of the industry. The peak of inventory pressure in the liquor industry has passed, and it is gradually transitioning from active destocking to passive destocking. Industry experts said that since the second quarter of this year, with the sales expenses of major wine companies focusing more on the consumer side, the banquet market has warmed significantly, coupled with the gradual release of the holiday effect, the pressure on channel inventory is expected to continue to be released.
9. Shuijingfang issued the industry's first "Protective Production Specification for Ancient Cellar Pools".
Summary of the event:On September 1, Shuijingfang, together with the China Liquor Industry Association and the Sichuan China Baijiu Golden Triangle Liquor Association, jointly issued the "Protective Production Specifications for Ancient Cellar Pools" of Shuijingfang. Based on more than 600 years of experience in inheriting and guarding ancient cellars, it is compiled from the four dimensions of cellar management, personnel management, production protection, and development and utilization, and gathers experts and scholars in brewing production, cultural relics protection, and scientific research. It is not only a summary and important document of Shuijingfang, but also a summary and important document of the personalized experience of the protection of the living cultural heritage of China's liquor industry, and it is also another great contribution made by Shuijingfang to the protection and utilization of the living cultural heritage of China's liquor industry.
Afterthought:For Chinese liquor, especially Chinese fragrant liquor, the ancient cellar pond is a core strategic asset, a "collection" of traditional skills and liquor micro-ecology, and the protection of the ancient cellar pond is related to the future development of the enterprise and the soul of Chinese liquor. Shuijingfang issued the first "Protective Production Specification for Ancient Cellar Ponds", which fully demonstrated the core significance and strategic value of the protection of ancient cellar pools in the form of corporate "legislation", showed Shuijingfang's original intention and intentions to protect ancient cellar pools, and also demonstrated its exploration of the inheritance and development of the living culture of strong aromatic liquor. This move will encourage more and more enterprises with ancient cellar ponds to pay attention to the protection of ancient cellar ponds and continue to continue the thousand-year-old inheritance of liquor.
10. Live e-commerce has become the second growth curve of the liquor industry
Summary of the event:Starting from 2021, the live-streaming e-commerce of liquor with "interest" as the core has ushered in an explosion and has become the second growth curve of the liquor industry. Under the background of the empowerment of some leading enterprises and the general trend of live broadcast e-commerce, the live broadcast e-commerce of the liquor industry has entered a stage of rapid growth. According to statistics, there have been four changes in liquor live e-commerce this year: first, sales growth, and the sales of liquor live broadcast e-commerce in 2023 will increase by about 70% over the same period last year;The second is the migration of online consumption capacity to the sub-high-end and above;Third, higher requirements are put forward for R&D capabilities, and online products are changing very quicklyFourth, the requirements for enterprise content output capabilities and data operation capabilities have been rapidly improved.
Afterthought:Judging from the relevant data of the leading liquor companies, this change is even more obvious: in the first half of 2023, "i Moutai" will achieve a tax-free revenue of 933.9 billion yuan;In 2022, Fenjiu e-commerce will achieve 8011% high growth;In 2022, Luzhou Laojiao's e-commerce will grow by 6417%；In 2021, Shede Liquor will grow by 12943%, up to 40.2 billion. Experts believe that live broadcast e-commerce is still in the dividend period, and the siphon effect is huge, and it is expected that the total scale of live broadcast e-commerce will reach 5 trillion in 2023, an increase of 41%;Live broadcast e-commerce led by Douyin is becoming the second curve of the growth of famous wines, and breaking points are also emerging, and Douyin will become the best position for brand growth after CCTV.
This edition** is kindly provided by major wineries.
All companies are welcome to contribute!
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