“During the Spring Festival this year, many customers cancelled their original orders, and many who did not cancel also changed the original boxes to loose bottles.” China’s Moutai Baijiu dealer told China Securities Journal that the Spring Festival was traditionally the peak season for liquor sales, but this year, due to the adverse effects of many factors such as epidemic, the Baijiu market showed a “busy season” situation, and sales were slightly lighter than in previous years.
China Securities Journal, Bing dwen dwen, Taurus journalist, found that in the face of recent market, merchants have offered a big trick of “fancy sales promotion”. Many small and medium-sized businesses have shouted slogans of “buying wine to send ice pier pier” and “buying wine to send Moutai” in order to sell their products. In a large supermarket in Xicheng District, Beijing, even Wuliangye Yibin Co.Ltd(000858) , Yanghe, Fenjiu and other high-end wines have also posted the promotion labels of “buy one get one free” and “buy one cash back XX Yuan”.
high end wine promotion
In a supermarket in Xicheng District, Beijing, the Baijiu counter is full of “sales of XX Yuan”, “buy one get one”, “buy A to give B” and other promotional signs, attracting several customers to stop.
A consumer pointed to the sign of “Yanghe Daqu (xintianlan bottle) 52 degree 500ml buy a give B” pasted on the container and asked the staff nearby, “what kind of gift is this?”
After careful checking, the staff found out Yanghe Daqu (xintianlan bottle) 42 degrees 500ml and gave it to the consumer, “send a bottle of this.”
The consumer was a little unbelievable: “are you sure? Buy 138 yuan wine and get 128 yuan free?”
After checking again, the staff said, “yes, it’s a gift. You can buy two and get one free for this 42 degree one.”
After many comparisons, the consumer selected, “that’s it. It’s the most cost-effective.”
“Then I have to check out with you and talk to the counter.” The staff carried two bottles of wine and accompanied the consumers to the cashier.
China Securities News · China Securities Taurus reporter found that the above “playing methods” also include Wuliang state guest, Xijiu, Qinghua Fen Liquor, Jiugui Liquor Co.Ltd(000799) , Xinghua village, Hongxing Erguotou and other liquor enterprise brands.
“These are promotions carried out by agents, not activities of wineries and supermarkets. Supermarket activities will hang the brand of ‘promotion’.” Xiao Li, a staff member, told reporters that if you choose the “cash back” payment, you need to settle the bill according to the price first, and the staff will transfer the cash back amount to consumers one by one, “but the invoice is still opened to you according to the price, and the cash back will not be counted in.”
The reporter saw that the above promotion activities are basically from February 1 to February 28.
Baijiu, a liquor industry expert and general manager of Cai Xuefei, told China Securities Journal, the central certificate Taurus reporter. Dealers use the Spring Festival sales season to promote sales, thereby speeding up the efficiency of product circulation and returning funds. They are normal sales means. And this year, because of the pressure of sales, dealers will be forced to increase sales promotion efforts under pressure from inventory. It is controllable as long as it is within the normal price range.
Maotai dealers who “never worry about selling” are also happy and worried this year. A Maotai dealer in Beijing told reporters that the sales of Maotai liquor during the Spring Festival this year was “much worse than in previous years. In previous years, a unit could order more than ten boxes. This year, many units have cancelled the wine orders, and many customers only need one or two boxes, but they still have to break bottles.”
A large Maotai dealer in East China told reporters that his customer source is relatively stable. There is no unsubscribing phenomenon around the Spring Festival this year, which is similar to the sales situation in previous years. “Feitian Maotai is basically in short supply, but now the whole liquor industry continues to gather to the head, the situation of regional liquor enterprises being squeezed by the head is becoming more and more serious, and small and medium-sized liquor enterprises will be more and more difficult to do.”
Bing dwen dwen
Compared with high-end Baijiu, the intention of small and medium Baijiu dealers will be stronger.
The reporter consulted a small and medium-sized dealer in the consumer’s status when Moutai was in stock. Chen Juan, a shop owner, sold the brand Baijiu to reporters continuously. “This is our own wine produced in Renhuai’s distillery. The Maotai flavor is 53 degrees Daqu Kun sand craft, Moutai flat goods, grain wine, you can try!”
Bing dwen dwen, Chen Juan’s circle of friends has also released a “big trick” to buy the brand name liquor, which is to send ice cream pier.
Another liquor distributor, Lao Cai, told reporters that many small and medium Baijiu Baijiu dealers will also buy Moutai flying from their own pockets and sell them with their own wine.
Cai Xuefei said that using hot events to sell wine as a gift is a conventional means of promotion and a part of product sales momentum. However, in the long run, the gift will hurt the product price and is not conducive to the long-term sales of products.
Ouyang Yu, chief analyst of food and beverage at Huachuang securities, told reporters that this sales model belongs to the dealer level. It is not a model innovation. “Small and medium-sized liquor enterprises should make more articles on the brand and win the world for consumers, not just at the channel level.”
Previously, the national and Taiwan liquor industry had heard news of price inversion and change of product quota, resulting in large losses for dealers who were pressed for goods, or will be sued by many dealers.
In this regard, a large dealer told reporters that this phenomenon is true. “In recent years, sauce wine has suddenly become popular. Guotai wine also wants to take this opportunity to enter the 10 billion camp as soon as possible, so it can be listed smoothly. Therefore, it has pressed a lot of inventory for dealers. This is really not a benign dynamic sales.”
As for the huge losses caused by the dealer will be prosecuted, the dealer said, “In fact, one is willing to fight and the other is willing to suffer. In the past, when the national and Taiwan wine was very popular, it was also necessary to grab goods. Since the contract was signed, the dealers did not sell on time, resulting in backlog, so they should bear the consequences. Some dealers do not have sufficient cash flow or have loans, there may be capital problems, and if there is no clear agreement on when to give you goods in the contract, they can only see the factory The delivery rhythm at home is, and the dealer can’t help it. “
Ouyang Yu told reporters that the “sauce and wine fever” is returning to the normal pace of industrial development and returning to the era of brand quality from category expansion. Wine enterprises should build internal strength and promote consumer marketing is the key. “China and Taiwan rush too fast and need to be digested through channels, but the core is to let more consumers consume.”
multi Baijiu market is cold
Huang Fu Shang Min, Secretary General of the circulation Committee of Henan wine industry association, previously said that during the Spring Festival of 2022, the sales of alcohol in Henan Province are expected to decline by more than 20% compared with last year’s Spring Festival. The sales are not booming in the peak season of the Spring Festival and the channel inventory is large. Guan Chunxia, Secretary General of Zhengzhou liquor industry association, also said that during the Spring Festival this year, the sales volume of Zhengzhou liquor merchants is expected to decline by about 50%, and Zhengzhou liquor market may encounter the “coldest” Spring Festival peak season in recent years.
In addition, the securities dealers have conducted research on Baijiu sales during the Spring Festival this year. Citic Securities Company Limited(600030) in the research report, it is pointed out that the demand feedback in Henan, Tianjin, Zhejiang, Hangzhou and other places is relatively poor, and the sub high-end wine with a high proportion of banquet scenes is greatly affected. According to media reports, the results of the survey of Huachang securities show that the Baijiu market in Shandong, Guangdong, Zhejiang, Tianjin, Henan and other provinces are relatively weak, most of them have seen a year-on-year decline.
Cai Xuefei told the China Securities Journal that compared with previous years, the consumption of this year’s Spring Festival is indeed relatively flat. The market generally has great expectations for the sales market during the Spring Festival after the epidemic, but the market response is relatively general and the overall dynamic sales rate is low.
“From a macro point of view, the reasons for the cold sales during the Spring Festival this year are caused by the economic downturn and the blockade of consumption scenes by the epidemic. The industry has also been affected by the more rational consumption of consumers after the upgrading of consumption. Non famous wines have shrunk more seriously than famous wines.” Cai Xuefei said.
Looking forward Baijiu Baijiu market in 2022, insiders said that the investment in high-end liquor continued to increase, and the supply of the industry continued to increase. Some high-end Baijiu had already seen structural oversupply.
But at the same time, many people in the industry expressed optimism. In Ouyang Yu’s view, the Baijiu market passed the peak season test under the external pressure. The industry has set the foundation for steady growth in the whole year. At the same time, the recent social finance data exceeded expectations, or the macro pre signal was repaired at the bottom of the demand, which can become more optimistic about the annual outlook of the industry.
“In 2022, China’s liquor industry will end its high-speed growth period and enter the consolidation stage. The potential energy of famous liquor will further strengthen, the pressure on non famous liquor and medium and low-end brands will further increase, and China’s liquor industry will officially enter the era of famous liquor and quality.” Cai Xuefei said.
