The consumption of liquor during the Spring Festival increased significantly, and the sales of many

Mondo Finance Updated on 2024-02-08

The Chinese New Year has always been the peak of sales in the liquor market, and major liquor companies are also competing for market share during this critical period. With the Spring Festival approaching, the pre-holiday sales of the liquor market are nearing the end. After experiencing brand competition and ** adjustment in 2023, what is the Spring Festival sales of many liquor companies?

Recently, Kweichow Moutai, Wuliangye, Shanxi Fenjiu, Luzhou Laojiao and other well-known liquor companies have said that the sales before the Spring Festival this year are good and in line with expectations.

Sales were in line with expectations, and brand performance was differentiated

From an inside perspective, the overall sales this year have been quite satisfactory. The staff of Shanxi Fenjiu license agency revealed that although in previous years, during the peak sales season, companies often increased sales by cutting prices, but this year the company decided to maintain stability in order to maintain market order. According to its disclosure, judging from the current channel feedback, the company's sales performance is good.

Wuliangye announced on January 30 that it would raise the ex-factory price of its core product, Badai Puwu, and it will be implemented on February 5. This ** adjustment coincides with the peak season of liquor sales, how does the market react to it? The staff of the Wuliangye Securities Agency Department responded that the impact of the adjustment on the market was limited, and the company's sales were still in line with expectations.

The market response was largely in line with expectations, and overall sales were good. The representative said that compared with the same period last year, this year's liquor consumption has picked up, especially personal consumption such as gifts and banquets.

Kweichow Moutai Securities Agency also said that due to the strong demand for gifts during the Spring Festival, Feitian Moutai products are in short supply, and the market sales are good.

However, liquor analyst Cai Xuefei pointed out that despite the good performance of the overall market, there is still a divergence in the sales of liquor. He believes that alcohol consumption during the Spring Festival is mainly concentrated in social occasions, and the brand value and image of products are high. Well-known brands such as Kweichow Moutai and Wuliangye have strong rigid demand in the banquet, gift, collection and other markets, so in the context of consumption upgrading and industry differentiation, these famous wines perform better. However, some low-price-oriented regional brands and non-branded wines are facing sales difficulties.

Dealers are destocked, and famous wines are stable

After experiencing the problem of inversion and inventory backlog in 2023, during the Spring Festival this year, dealers have adopted the best strategy to accelerate inventory turnover.

A liquor distributor in Anhui revealed that although the sales of liquor this year have improved compared with last year, on the whole, the ** of many liquor brands has decreased compared with previous years. In order to compete for market share, all kinds of dealers have launched a variety of activities. However, under the fierce market competition, the ** of famous wine is relatively stable.

Online and offline activities have led to a further decline in some famous wines. On the e-commerce platform, the subsidized 53 degrees Feitian Moutai and the eight generations of Puwu have decreased. Although corporate consumption is still the mainstream, household consumption has increased significantly during the Spring Festival this year. A number of dealers said that as many people chose to go home for the New Year this year, the demand for family banquets and gifts has increased significantly.

Cai Xuefei believes that these consumption phenomena reflect the trend of concentration of liquor consumption in the Spring Festival to famous liquor brands and quality. Although high-end consumption has declined, mass consumption, represented by social gifts, has risen.

The research report of China Merchants also shows that waist products (100 yuan to 200 yuan) are expected to grow rapidly, while high-end wine is mainly stable. Wuliangye and other famous liquors performed well in terms of dynamic sales and corksage, but the overall performance of sub-high-end brands is expected to decline slightly, and the differentiation will intensify. Strong brands in various regions, such as real estate leaders, Fenjiu and Jiannanchun, are still growing, but some Mobvista brands are under pressure.

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