In modern times, China has been at war, and few brands can operate for a long time and strive for excellence.
After the founding of the People's Republic of China, there were many twists and turns, and many old brands with a certain history were also delisted, making China recognized as having no luxury companies.
As a result, most of the money Chinese spend on the luxury industry has been earned by Europe and the United States.
However, just because there are few luxury companies in China does not mean that there are no luxury companies.
Among the brands that can be called luxury companies in China, it deserves to be Moutai of Moutai Group.
On popularity,More than a billion Chinese almost all know the brand of Moutai, and even Moutai has a certain reputation abroad, and the list of "Top 500 World Brands" released by the World Brand Lab in the United States in 2023 ranks Moutai as 19th in China and 225th in the world.
On the long history,The list also ranks Moutai as one of the 10 oldest brands in the world, ranking third, with a history of 319 years, ahead of Martell, Rémy Martin, Moët & Chandon, Sotheby's and Vacheron Constantin.
Many well-known luxury brands in Europe, such as Louis Vuitton, Dior and other internationally renowned luxury brands, have a long history that is not comparable to Moutai, let alone the United States, which rose later.
And on the high margins of luxury,Moutai is even more prominent, according to the 2023 performance financial report announced by Moutai Group today, the revenue of Moutai Group in 2023 is 1644800 million yuan, compared with 127.5 billion yuan in revenue in 2022, a year-on-year increase of 205%；
The profit is even more amazing, with a total profit of 1083 in 2023500 million yuan, a year-on-year increase of 188%；
What is this concept? With a revenue of 164.4 billion yuan, the profit can reach 108.3 billion, which is equivalent to every 10,000 yuan of Moutai sold for every 10,000 yuan of Moutai liquor, and the Moutai Group can get a profit of 6,587 yuan, with a profit margin of as high. 65.87%！
This also means that Moutai Group only uses less than 35% of the company's revenue to solve the company's raw material purchase, wine making, employee wages (some time ago, the secretary of the board of directors of Moutai claimed that the turnover rate of Moutai Group's employees is only 3 per 10,000, and four generations stick to Moutai's posts), sales channels, marketing, and the company's tax payment.
Tencent, which is asset-light and highly profitable, has a revenue of 554.5 billion yuan in 2022 and 453.8 billion yuan in the first three quarters of 2023.
Tencent is also the top profit in China, with a profit of 188.2 billion yuan in 2023, and although the profit in the first three quarters of 2023 has dropped sharply, it will also be 88.1 billion.
A simple calculation can show that Tencent's profit margin will reach 33% in 2022, and Tencent's profit margin in the first three quarters of 2023 will only be 19%, far lower than Moutai's profit margin of 65%.
As for China's four most profitable banks, although the total profits generated are greater than those of Moutai, the profit margins are far lower than those of Moutai.
The contrast between Moutai as a luxury product and foreign luxury companies will be more obvious.
The largest luxury goods company abroad is the LVMH Group, which has hundreds of well-known brands such as Louis Vuitton, Dior, Tiffany, Givenchy, Guerlain, Loewe Henness, etc.
According to its 2023 financial report, full-year revenue for 2023 increased by 9% to 86.2 billion euros. Profit rose by 8 percent year-on-year to 15.2 billion euros.
A simple calculation can show that the profit margin of the world's largest luxury goods group is only 17%, although the revenue far exceeds Moutai, but the company's profit is only a little higher than Moutai, and the profit margin is far lower than Moutai.
Compared with LVMH Group, Moutai is more like a luxury item among luxury goods!
As for the ** of products, Moutai is not inferior to foreign Chinese luxury groups. LVMH Group's brands** are generally in the tens of millions of yuan.
And Moutai is not inferior, an ordinary bottle of wine ** thousands of yuan, some rare and limited edition wine ** can also reach the level of tens of thousands of yuan.
At the same time, there is another important factor in measuring luxury goods, that is, whether the product has certain financial attributes, many foreign luxury brands such as Louis Vuitton bags, Rolex watches can be quickly exchanged for money circulation, and some cherished models will even appreciate.
This point Moutai is also very consistent, after buying Moutai, it is very simple to want to sell, and the liquidity will definitely not be inferior to the bags and watches in luxury goods.
At present, Moutai's market value is as high as 2 trillion yuan, which is the company with the highest a** value, and the market value equivalent to US dollars is also as high as 278.6 billion US dollars.
Among the global luxury companies, Moutai is second only to LVMH in terms of overall value, and can be ranked as the world's second largest luxury company.
It is undeniable that there are a lot of dirt in the transaction of Moutai, but one thing cannot be denied, that is, Moutai has won the market share of foreign high-end liquor brands in China, at least leaving some of the money in China.