Zheng Tanjun was photographed in Suqian, Jiangsu Province in April 2023.
Wuliangye, the "second brother" of liquor, is a veritable "boss" of sales expenses.
In the first three quarters of 2023, Wuliangye's sales expenses ranked first among the 20 A-share liquor companies, and it was 143 times, fourth place Kweichow Moutai 203 times, but the net profit in the same period was 43 of Kweichow Moutai18%。In fact, Wuliangye has been sitting on the "throne" of sales expenses for several years. From the perspective of deconstruction, ** fees account for the largest proportion, accounting for 60 in the first half of 202348%。
In recent years, Wuliangye's direct sales channel has been relatively expensive. In 2020, the operating cost of Wuliangye's direct sales channel accounted for about 10% of the total operating cost47%；In the first half of 2023, this figure will increase to about 3161%。The reason for this is the strategic effect of Wuliangye increasing the direct sales channel. Among them, ** channels and online channels have developed rapidly. It should be noted that while the cost is rising, the proportion of direct sales channel revenue has also increased significantly.
The sales fee is firmly at the "top of the list".
In the first three quarters of 2023, a total of 6 liquor companies with sales expenses of more than 2 billion yuan - Wuliangye, Gujing Gongjiu, Yanghe Co., Ltd., Kweichow Moutai, Shanxi Fenjiu, and Luzhou Laojiao, with sales expenses of 622.7 billion yuan, 436.3 billion yuan, 356.2 billion yuan, 306.3 billion yuan, 252.9 billion yuan, 240.6 billion yuan.
Wind data shows that among the 20 A-share liquor companies, in the past five years (2018 to 2022), Wuliangye's sales expenses have been ranked first.
According to wind statistics, in 2022, the sales expenses of 20 A-share wine companies totaled 3577.4 billion yuan, of which 68 percent was spent on Wuliangye4.4 billion yuan, accounting for 1913%。
In the first three quarters of 2023, Kweichow Moutai's sales expenses reached 306.3 billion yuan, a record high, but 62Compared with 2.7 billion yuan, it is only equivalent to 4919%。As of the same period, Kweichow Moutai's net profit was 5287.6 billion yuan, equivalent to 228 percent of Wuliangye3.3 billion of 232 times.
In the long-term dimension, wind data shows that in the five years from 2018 to 2022, the ratio of Kweichow Moutai's annual net profit to Wuliangye's annual net profit was 263 times, 237 times, 234 times, 224 times, 235 times, but Kweichow Moutai's sales expenses have always been smaller than Wuliangye. As of the same period, Kweichow Moutai's sales expenses were only equivalent to 068 times, 066 times, 046 times, 042 times, 048 times.
From the perspective of total operating costs, in the first three quarters of 2023, the total operating costs of Wuliangye will be 3115.3 billion yuan, compared with 280 percent in the same period last year2.2 billion yuan, an increase of 1117%。
How exactly is Wuliangye's sales expenses structured?
According to the recently published detailed data, as of the end of June 2023, Wuliangye's sales expenses were 432 billion yuan, an increase of 2 percent year-on-year55%。The composition of sales expenses from high to low is ** fee, image promotion fee, labor cost, storage fee and logistics fee, and other expenses, which are 261.3 billion yuan, 7590,000 yuan, 45.9 billion yuan, 26.9 billion yuan, 22.1 billion yuan, accounting for the proportion of sales expenses were .11%。Among them, the ** fee is obviously the big one.
From the perspective of advertising expenses, Wuliangye's advertising methods in the first half of the year mainly included television, radio, Internet, outdoor advertising, exhibitions, etc. Among them, online advertising 09.2 billion yuan (half a year), offline advertising 34.9 billion yuan (half a year), TV advertising 31.8 billion yuan (half a year), of which offline advertising accounts for the largest proportion.
Lean towards the direct sales model
Wuliangye's direct sales channel has soared in recent years.
The 2023 semi-annual report shows that Wuliangye's main sales model is the distribution model. Including traditional channel operator model, KA stores, etc., mainly under the first sales. The second is the direct sales model. Including the first sales model, direct sales to group consumers;Specialty store model, directly facing retail terminals and group consumers;Online sales model, through Tmall, JD.com and other e-commerce platforms to sell products.
In recent years, the proportion of operating costs of Wuliangye's direct sales model has gradually increased. In the first half of 2020, 2021, 2022 and 2023, the operating cost of Wuliangye's direct sales model will be 108.3 billion yuan, 173.3 billion yuan, 354 billion yuan, 230.2 billion yuan (half a year), accounting for the operating cost of alcohol products respectively61%。
This is mainly due to the development of Wuliangye's direct sales model. In the first half of 2020, 2021, 2022 and 2023, the operating income of Wuliangye's direct sales model will be 705.4 billion yuan, 1159.5 billion yuan, 2707 billion yuan, 1758.2 billion yuan (half a year), accounting for the operating income of alcoholic products respectively97%。As of the same period, the gross profit margin of the direct sales model was .90%, which is higher than the distribution model in the same period51%。
Behind the data is the strategic adjustment of Wuliangye.
The key to promoting the high growth of Wuliangye's direct sales model is the development of online channels and first-class channels. In 2020, in the face of changes in the general environment, Wuliangye will promote the "compensation of old products and new products, retail losses, and offline losses", optimize the channel structure, establish three major channel systems of tradition, innovation and innovation, and complete the operation of the official platform, Wuliangye cloud store and digital liquor license platform.
In 2021, the revenue of Wuliangye's direct sales model increased significantly year-on-year. In this regard, Wuliangye explained that the main reason is to increase the cultivation of consumer opinion leaders, online direct sales, etc., and the sales revenue of the direct sales model has increased significantly, and the operating cost has increased accordingly. In that year, Wuliangye reached strategic cooperation with Huawei Group, Geely Group, Shenzhen Tongxin Club, etc., to build a first-class network led by leading enterprises and serving tens of thousands of enterprises across the country. The company takes Wuliangye products as the carrier, faces the first-class customers of the enterprise, and launches the first-class system of the enterpriseFor the best enterprise employees, carry out exclusive in-app purchase activities. In 2022, Wuliangye will carry out more than 50,000 enterprise visits throughout the year and vigorously expand the construction of first-class channels.
One trades off the other. In recent years, the proportion of operating costs in the distribution model has decreased. From the revenue analysis, in 2020, 2021, 2022, and the first half of 2023, the operating income of the distribution model will be 453 respectively8 billion yuan, 5013.7 billion yuan, 4049.2 billion yuan, 2430.9 billion yuan (half a year), accounting for the proportion of operating income of alcoholic products03%, also showing a downward trend.
In addition to channels, the cost analysis of Wuliangye liquor products is also worth paying attention to.
Wuliangye divides wine products into "Wuliangye wine products" and "other wine products", and other wine products include Wuliang aromatic wine, fruit wine, liqueur wine, ecological wine and other wine products。In recent years, the revenue of other liquor products has increased year after year, but its operating costs are relatively high, and the gross profit margin is significantly lower than that of Wuliangye liquor products.
The data shows that in the first half of 2020, 2021, 2022, and 2023, the operating income of other wine products will be 837.3 billion yuan, 1262 billion yuan, 1222.7 billion yuan, 671.3 billion yuan (half a year). During the same period, the gross profit margin of other wine products was .65%, which is lower than the gross profit margin of "Wuliangye Liquor Products" in the same period - respectively80%。
In recent years, Wuliangye series of liquor products (other liquor products) have adopted a focus strategy and cut off a number of brands. In 2021, Wuliangye will focus on the product system of the series of liquors, launch new products such as Wuliangchun, Jianzhuang 1911, and Zodiac Liquor in the Year of the Tiger, clean up and clear 7 total distribution brands and 509 products, and focus on self-operated brands, medium-ranking brands, and advantageous brands. In 2022, Wuliangye cleaned up a total of 12 brands throughout the year.
In the introduction of Wuliangye's official website, there is such a sentence - "further polish the gold-lettered signboard of 'Great Country Strong Fragrance, Harmony and Beauty Wuliang, and Chinese Wine King'". Wuliangye, which was once the king, must solve the problem of "reducing costs and increasing efficiency" in the reform of direct selling if it wants to reach the top of the industry again.
Author丨Four elephants.
*丨Exploration Finance (ID: teccj6).