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Text |At the forefront of entrepreneurship, by |Wu Xiaowei, editor |Egg total.Recently, Guotai Liquor announced that it had reached a cooperation with Country Garden Service, aiming to carry out marketing directly to C-end users and open up the last mile of family consumption scenarios.
According to Country Garden Service Group, the company has 240,000 employees, serving 300 cities, 7,000 projects and 30 million owners.
However, the reporter observed that the liquor brands currently on the shelves of the Country Garden "Phoenix Club" mini program not only include Guotai, but also Moutai, Wuliangye, Yanghe, Luzhou Laojiao, Fenjiu and other famous liquors.
It can be seen that for Guotai Liquor, although it has found opportunities to tap new increments for the owners around self-drinking, collection, gift-giving, investment and other subdivided needs, it is still facing fierce competition for brand power.
Under the competition of the leading wine companies, Guotai has a chance of winning?
Since the beginning of this year, high inventory, upside down, marketing involution, etc. have become hot words in the industry, and when destocking has become the most urgent problem to be solved in the industry, wine companies have set their sights on the owners of the community.
Xu Binhuai, president of Country Garden Service Group, said that as early as three years ago, Country Garden Service Group found that many owners had a demand for alcohol, hoping to buy good wine, real wine, and cost-effective products. Based on this background, Country Garden Service Group hopes to dig deep into the wine track to further meet the needs of owners.
Obviously, on the road of seeking new increments, Country Garden's 30 million owners have become the target of Guotai Liquor.
Cai Xuefei, general manager of Zhiqu Consulting and wine analyst, told the reporter that if you want to find a new incremental market in the stock environment, family consumption is undoubtedly an important breakthrough point.
The most direct benefit of this cooperation between Guotai and Country Garden is that Guotai can further expand its sales network, deepen channel intensively, and expand the target consumer group, so as to accelerate the national layout and performance growth of Guotai Liquor. Secondly, new scenarios of alcohol consumption can be developed through the community market to improve the sales rate of products. Cai Xuefei said.
It is worth mentioning that before Guotai Liquor joined hands with Country Garden to serve, Shanxi Fenjiu's brands Zhuyeqing and Jiangji Winery had already started a wine sales business with it in 2020 and 2021. At present, brands such as Zhuyeqing, Jiangji Sorghum Liquor and Guotai have settled on the platform of Country Garden Phoenix Club.
The reporter's experience found that the above three brands of alcohol products on the Phoenix Club mini program are cheaper than Tmall***, which means that the profit will also be lower.
Taking the national standard of Guotai Liquor Industry as an example, the 53-degree Guotai national standard wine (500ml) brewed in 2018 is priced at 319 yuan on the Phoenix Club mini program, while the product is 388 yuan on Guotai Tmall***88 yuan. Today's wine price WeChat *** shows that the wholesale price of the product on December 25 is 245 yuan.
Figure: Phoenix Club applet, Guotai Tmall Futures Ship Store).
In fact, there are far more than these three liquor brands on the Phoenix Club mini program, as well as a number of famous liquors such as Moutai, Wuliangye, Yanghe, Luzhou Laojiao and Fenjiu.
Xijiu and Langjiu, which are also soy sauce liquors with Guotai Liquor, are also among them, and the revenue or sales revenue of these two companies has exceeded 20 billion yuan.
Although Zhang Chunxin, general manager of Guotai Liquor, once proposed that "you must drink Moutai when you should drink Moutai, and you can drink Guotai when you can drink it or not", as a company that was only acquired in 1999, its brand historical foundation and popularity are far less than that of Xijiu and Langjiu.
Figure Phoenix Club applet).
It can be seen that for Guotai Liquor, although it has found opportunities to tap new increments for the owners around self-drinking, collection, gift-giving, investment and other subdivided needs, it is still facing fierce competition for brand power.
Interface News: The Forefront of Entrepreneurship It is found that in recent years, in addition to Country Garden services, other wine companies have also taken measures to cooperate with property companies. Among them, there are not only property companies that are personally involved in the liquor business, but also a number of property companies that cooperate with liquor companies to target the consumption scenarios of owners.
For example, Shanghai Peihua Industrial Group Fuxing Chongyang Gujiao chose Jiuxian Group to cooperate with the latter's 2,000 offline stores and major live broadcast platforms to achieve dynamic sales.
Another example is the sale of luxury real estate enterprises Star River launched Star River old original liquor in Guangzhou, the product price is 2,000 yuan bottle, some industry insiders said that Star River old original liquor customers are mainly Star River residential and property owners and customers.
In addition, Poly Property has cooperated with many famous liquors such as Wuliangye, Gujing Gongjiu, Yanghe, Fenjiu and so on through the owner's business group** and the housekeeper's circle of friends**, and has established a sales platform "Heyuan Youpin", which sells more than 10 kinds of famous liquor brands, and at the same time launched the "million subsidy" activity.
Judging from the financial reports of Country Garden Service and Poly Property, neither company disclosed the sales of alcohol products, but only included them in local life services and community retail services, which may reveal that the business scale of alcohol sales alone is relatively small.
Figure Guotai Liquor Official***
As shown in Country Garden Services' 2023 interim report, the revenue of the local life services business increased from approximately RMB7 for the six months ended June 30, 20224.2 billion yuan decreased to about 6.0 yuan8.1 billion yuan, a decrease of about 82%。
During the same period, Poly Property's community life services and other income were approximately RMB87.5 billion yuan, a year-on-year decrease of about 144%, mainly due to changes in consumer demand and products and services in some home-based businesses such as community retail and housekeeping services.
The cooperation between wine companies and property companies can reach some potential consumer groups with certain economic strength, and the property can provide owners with a more competitive selection of goods than the market, which has additional benefits for both parties and does not affect the existing business stock. Shen Meng, director of Chanson Capital, told the reporter of Interface News Entrepreneurship Frontline.
However, he also mentioned that this kind of cooperation has a relatively limited impetus for sales, and the property can only passively accept the owner's order demand, and it is difficult to form stronger marketing measures for the sales object.
Specific to the cooperation between Guotai Liquor and Country Garden, Guotai Liquor's voice may be lower, and its ability to serve Country Garden is weaker. Shen Meng said.
As a soy sauce and liquor company, Guotai Liquor is in the second echelon. Previously, Guotai Liquor planned to spend 30 years to create a new famous Chinese liquor, and eventually become one of China's famous liquors.
However, after the listing failure, the company did not publicly disclose the sales in 2022 and the target for 2023, and only announced the brand value judged by the China Liquor Industry Circulation Association - 20626.8 billion yuan, ranking tenth in China's liquor and third in Guizhou Province.
According to Hexun.com, Li Di, deputy general manager of Guotai Sales Company, said that in the first half of 2023, Guotai Guobiao achieved a 42% growth.
Why did this self-proclaimed "second largest brewing enterprise in Moutai Town" develop so fast?
Figure Guotai Liquor official website).
Back in 1999, before Guotai Liquor was acquired by Tasly, it was only a time-honored distillery in Moutai Town. According to the official website of Guotai, from 1999 to 2007, the company focused on winemaking and storing wine, but did not sell wine - concentrating on learning Moutai and doing a good job in Guotai.
From 2008 to 2012, the brand positioning of "Guizhou Guotai Liquor and New Leader of Sauce Fragrance" was established, and the first wave of explosive growth in sales and brand, with profits and taxes of 300 million yuan in 2011 and 600 million yuan in 2012.
Since then, the market has recognized it.
In 2016, the revenue of Guotai Liquor was 36.1 billion yuan, net profit of 0200 million yuan, that is, at the beginning of this year, Guotai Liquor promoted the listing on the main board.
According to the prospectus disclosed by Guotai Liquor, from 2017 to 2020, the revenue of Guotai Liquor was 57.3 billion yuan, 117.6 billion yuan, 188.8 billion and 400.5 billion yuan. At the 2022 National Dealer Congress of Guotai, the company also said that in 2021, it achieved sales of more than 10 billion including tax.
So, how did Guotai Liquor jump from an enterprise with an annual income of more than 300 million to the camp of 10 billion?This starts with the "Equity Incentive and Manufacturer Alliance" plan launched by Guotai Liquor in 2016.
This plan allows shareholding dealers to get goods at a lower ** in the form of equity incentives, but do not enjoy quarterly or annual sales task achievement rewards (i.e., rebate support).
Driven by the expectation of listing, this policy has obvious effects.
From 2017 to 2019, the number of distributors of Guotai Liquor increased from 316 to 799, of which 104 were the largest number of shareholding distributors. During the period, the price of Guotai Liquor products was also the first, and the shareholding dealers who took the goods at a low price were also willing to stock up and wait for the price increase, which also promoted the performance of Guotai Liquor.
It was also during this period (2017 to 2019) that the shareholding distributors and related parties accounted for a relatively large proportion of the performance of Guotai Liquor, and the amount of liquor products sold by the company to 102 shareholding distributors was 27.2 billion yuan, 54.6 billion and 60.5 billion yuan, accounting for the proportion of main business income respectively. 84% and 3235%。
In 2020, Guotai Liquor finally launched its IPO, but the China Securities Regulatory Commission (CSRC) provided 47 pieces of feedback on its listing application documents, including the reasons and fairness of the dealer's shareholding, and asked the company to explain whether there was a transfer of interests and whether the issuer fulfilled the company's related party transaction decision-making procedures for the sale of shareholding dealers.
In response to the inquiry, Guotai Liquor did not reply, but took the initiative to apply for the suspension of the IPO in 2021.
According to a 2022 report by Sohu Finance, some dealers showed a Guotai dealer rights protection group, in which 28 dealers negotiated a collective lawsuit against Guotai to demand compensation for losses.
However, Guotai Liquor still seems to have hope, and Guotai Liquor is still among the list of listed reserve enterprises in Guizhou Province in 2023.
Previously, there was news in the market that Guotai Liquor wanted to go public in Hong Kong, but then the company denied the news. And after Zhenjiu Liquor was listed on the Hong Kong stock market, the stock price broke several times, which shows that the Hong Kong market is not very interested in liquor companies, and for Guotai, its listing road is still obstructive and long.