Decoding the rise of Xifeng against the trend

Mondo Gastronomy Updated on 2024-01-31

Looking back at the development of Xifeng Group in the past five years, its operating income jumped to 60 in 2019After 300 million yuan, 6.3 billion yuan in 2020;In the next two years, 8 billion yuan, 84$2.9 billion. In 2023, its high-end product Hongxifeng will achieve 77 in the first half of the year94% growth.

The three-year epidemic has bucked the trend, and it is not an easy performance.

Relevant data show that in 2022, there will be 963 liquor enterprises above designated size in China, a decrease of 630 compared with 2017. At the same time, the cumulative production of liquor was 67120,000 kiloliters, down 50 percent from the peak in 201659%。

In the course of five years, Xifeng Wine is like a mountaineer, accumulating strength and making breakthroughsRecharge your strength, and then break through ......Not only the expansion of revenue scale, but also the re-built high-end product matrix Red Xifeng, the optimization of the production system from the field to the workshop, and the channel construction of "going out of Shaanxi and facing the whole country" have laid a solid foundation for the rapid development of Xifeng Liquor in the next stage.

It is worth noting that Xifeng Liquor bucked the trend and regained the resilience and vitality of one of China's four famous liquors, which is closely related to the formation and large-scale sales of the Red Xifeng matrix that integrates the thousand-year-old culture, superb winemaking technology and precise product strategy - the reform of product power and brand power represented by Red Xifeng is the core strength of Xifeng Liquor in the new stage of steady progress and leap forward from time to time.

Improve the high-end matrix and enhance the brand power with product power.

On May 25, 2023, Xifeng Liquor held the "Red Xifeng 1978" listing conference in Shenzhen. The industry believes that the sub-high-end "Red Xifeng 1978" will become the final piece of the puzzle of the high-end matrix of Red Xifeng.

High-end liquor is a must-have product for any liquor company that wants to fight in the national market, and it is also the core battlefield for establishing a brand, building a reputation and expanding its influence. In the past five years, Xifeng Liquor has made long-term contributions in this field, and finally created a force to be reckoned with in today's high-end liquor market.

In 2019, Xifeng Liquor fully embarked on a new journey of high-end and nationalization strategy, of which the core masterpiece was the launch of a new generation of red Xifeng, priced at more than 1,000 yuan. Eight authoritative liquor evaluation committees repeatedly selected the base liquor, optimized and upgraded the formula 363 times, and followed the ...... of the "Ten Methods of Blending Liquor".The carefully tuned red Xifeng also quickly gained a foothold in the market. In 2021, Hongxifeng completed the sales volume of the previous year in the first quarter, with an increase of more than 600%.

At the end of August of the same year, on the occasion of the second anniversary of the listing of Red Xifeng, Xifeng Liquor launched the ultra-high-end brand "Five-Star Red Xifeng", priced at 3,980 yuan. This is another breakthrough for Xifeng Liquor to a higher high-end market after occupying a place in the thousand-yuan ** belt, which not only shows the company's confidence in the quality of its own products, but also blesses the overall brand power of Xifeng with excellent product strength.

In 2023, "Red Xifeng 1978" will be unveiled, priced at 588 yuan, and since then, from sub-high-end to high-end, and then to ultra-high-end, the high-end matrix led by Red Xifeng has been fully formed.

On the one hand, the sub-high-end (300 yuan-800 yuan) ** belt of the liquor market has been expanding in recent years - about 20 billion yuan in 2015 and 138.6 billion yuan in 2022. The "Red Xifeng 1978" will undoubtedly bring a new high-speed growth point.

On the other hand, the completion of the high-end system of Red Xifeng will undoubtedly make a larger customer base feel the ideal quality of Xifeng's thousand-year-old liquor rhyme, and help further enhance the brand influence of Xifeng.

Brand, quality and channel are the three core elements of liquor competition. Just as Zhang Zheng, Secretary of the Party Committee and Chairman of Xifeng Group Company, gave a speech during the 109th National Sugar and Wine Fair held in Shenzhen: "Culture + Quality Leads the New Future of the Wine Industry".

Three thousand years of inheritance, Xifeng has no shortage of culture;The brewing process accumulated by history can monopolize a flavor type in China's famous liquor series, and there is no lack of ability to make high-quality liquor. However, only when culture is combined with quality, high-quality, and accurate market positioning products, can it finally be shown as brand power and market driving force.

The complete Red Xifeng Matrix is undoubtedly the ideal bearer of this mission. After the high-end matrix is perfected, the sales of Xifeng Liquor are also expected to start a breakthrough process.

The whole industry chain is controlled, the high-quality guarantee brand drives the market, and the products win the market. The success of the Red Xifeng series and the rapid development of Xifeng as a whole in recent years are based on the production optimization of the enterprise from the field to the workshop.

There is a saying in the liquor industry: good liquor is not only brewed, but also "grown".

The "seed" here is not only to obtain excellent winemaking raw materials through modern agricultural planting, but also to improve the quality of raw materials through seed breeding.

To this end, Xifeng Liquor cooperated with Northwest A&F University and other universities to jointly carry out research on sorghum variety breeding and cultivation technology, and the "Hongdianzi" variety was born.

In addition, Xifeng has opened up planting bases in many places to ensure the quality, safety and controllability of the whole industrial chain, while helping the development of local rural areas.

Beyond the field is the workshop. In October 2021, the "333" project with a total investment of 2.2 billion yuan for Xifeng Liquor to expand capacity and improve quality was implemented, which added 30,000 tons of high-quality Daqu, 30,000 tons of high-quality base wine production capacity and 30,000 tons of wine storage capacity. Among them, there are three wine-making workshops after completion, each with 2,808 cellars and a design capacity of 10,000 tons.

In addition to the scale, Xifeng pays more attention to the integration of the workshop and the application of advanced technology.

Taking the 906 liquor brewing workshop as an example, it is not only the first in the country to realize fully intelligent liquor production, but also has reached the domestic leading level in many aspects such as artificial intelligence and base liquor quality.

In January 2023, as a key construction project at the two levels of Shaanxi Province and Baoji City, the production and supporting project of 100,000 tons of high-quality base liquor of Xifeng Liquor with a total investment of 14 billion yuan will start, which is another masterpiece of Xifeng's expansion of production capacity.

The project plans to build a construction area of more than 2 million square meters, including a 100,000-ton base wine production workshop, a 70,000-ton koji-making system, a 500,000-ton wine storage tank farm, a logistics and warehousing system and its supporting engineering facilities. After the completion of the project, Xifeng Liquor will have a production capacity of more than 150,000 tons of base wine.

The control of the whole industrial chain from seeds, fields to workshops has become the foundation for Xifeng's reputation and sales to increase rapidly in recent years.

The Red Xifeng series also benefits from this.

For example, in the year when the five-star red Xifeng was launched, Xifeng Liquor started the construction of the 10,000-ton liquor sea storage project, and after the completion of the project, the storage capacity of 200,000 tons of base liquor was added to provide sufficient old liquor resources for high-quality Xifeng liquor.

In addition to the larger territory of products and quality under the nationalization of channels, in recent years, Xifeng Liquor has also achieved good results in marketing promotion and channel construction.

Since 2019, Xifeng Liquor has divided the original marketing system into three, promoted organizational transformation, and formed a channel model of "distributor + independent operation + Internet". Since then, the three companies have operated in parallel, opening up a new pattern for Xifeng Liquor in marketing and promotion.

For example, when the new generation of Hongxifeng was launched, the company held press conferences in Xi'an, Hangzhou and other places to help it win more than 70 million yuan in more than three months after its listing. The listing of "Red Xifeng 1978", the first stop in Shenzhen, and the end in Xi'an, can also see its intention.

Under the pull of the brand, the channel laying of Xifeng Liquor is also in full swing.

The first is the store system.

In July 2019, Xifeng Liquor No. 0001 store began operation in Liulin Town, Fengxiang County. In September of the following year, Shanxi's first store was inaugurated in Xiaoyi City......In addition, the store system in Shandong, Jilin, Guangxi, Dongguan and other places has expanded rapidly, and the number of Xifeng stores nationwide has reached 498 in 2022.

In addition, there is the dealer system.

On the one hand, Xifeng is deeply involved in the province, and on the other hand, it is developing markets outside the province in different regions and stages. In 2021, there will be 463 new dealers in Xifeng, reaching more than 2,300;There were 390,000 controllable terminal outlets in the market, which increased to 480,000 in the following year.

The laying of sales channels, especially channels outside the province, has significantly improved the market.

Relevant data show that in 2021, the sales volume of Xifeng Liquor outside the province will be close to forty percent.

The sales of classic green bottles of Xifeng Liquor's "Taji" product can show the benefits brought by the market outside the province. It is reported that the classic green bottle is not only in the forefront of the sales of light bottle wine in Shaanxi, but also in Henan, Hebei, Shanxi and other places.

In a speech in 2023, Zhang Zheng said: "The core of China's liquor industry has never changed: inheriting the foundation of the industry and achieving the best product qualityThe new era of innovation and better products and services will be an important factor in the success of the transformation of the liquor industry under the new retail model. In the era of digitalization and intelligence, consumers' needs and behaviors have changed dramatically, but consumers' original intention of choosing excellent brands and high-quality liquor has not changed. ”

Led by the perfect "Red Xifeng" high-end matrix, the quality assurance of the whole industry chain control from the field to the workshop, and the channel system that is stretching out to all parts of the country like a vine, Xifeng is using its own steady pace step by step to return to the larger stage of first-class famous wine.

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