Recently, Kweichow Moutai Co.Ltd(600519) has once again become the focus of the industry due to policy changes. On December 13, Kweichow Moutai Co.Ltd(600519) relevant people told the reporter of Beijing Business Daily that the “unpacking order” was completely cancelled and a case of 12 bottle Feitian Maotai liquor was launched. Following the policy, the terminal market price of the original case of Feitian Maotai liquor fell slightly. It is understood that on December 13, the terminal price of the original box of 53 degree flying Maotai (500ml) in 2020 was 3350 yuan / bottle, which was far from the price of 3860 yuan / bottle on September 10 this year. In fact, since Kweichow Moutai Co.Ltd(600519) began to implement a series of price control measures, such as large-scale, empty bottle replacement, and the cancellation of “unpacking order” for some Maotai liquor, almost all the prices of the original box and bulk bottle flying Maotai terminal market have decreased to varying degrees.
“unpacking order” cancelled
346 days later, the “unpacking order” was completely cancelled. In recent days, the news that Kweichow Moutai Co.Ltd(600519) will completely cancel the “unpacking order” has aroused heated discussion in the market. On December 13, the reporter of Beijing business daily asked Kweichow Moutai Co.Ltd(600519) relevant people for confirmation. The other party said that the news was true.
It is worth mentioning that with the news of the complete cancellation of the “unpacking order”, the price of the original case of Feitian Maotai fell. It is understood that yesterday, the terminal price of the original box of 53 degree Feitian Maotai (500ml) in 2020 was 3350 yuan / bottle. On December 10, the price of the original box of Feitian Maotai was still 3560 yuan / bottle, which was far from the price of 3860 yuan / bottle on September 10 this year.
In fact, the news that the “unpacking order” will be completely cancelled has been circulating in the wine circle for nearly two months. In October this year, it was said that Maotai was about to completely cancel the “unpacking order”, but at that time, the only products that really cancelled the “unpacking order” were high-quality Maotai and Maotai liquor of the year of the ox, which also led to a decline in the prices of some products.
The reporter of Beijing Business Daily found on major social platforms that consumers have a variety of views on the complete cancellation of the “unpacking order” for Kweichow Moutai Co.Ltd(600519) . Some netizens predicted that the price of Maotai liquor would continue to decline next. Some netizens said, “wine is for drinking, not for frying”. Some netizens pointed out that consumers’ demand for a whole box of Maotai, “now gifts are sent in a whole box, and personal collections are also collected in a whole box”.
Shen Meng, executive director of Xiangsong capital, pointed out that the complete cancellation of the “unpacking order” is a return adjustment to the previously criticized sales strategy to reduce the damage caused by the “unpacking order” to Maotai distribution links. Although the original intention of the “dismantling order” is to reduce the speculation bubble in the circulation market, it has caused a lot of confusion and failed to realize the original intention of the Kweichow Moutai Co.Ltd(600519) to set up a “dismantling order”. Therefore, the abolition of one side is a reflection of Moutai’s previous strategy, and on the other hand, it shows the more flexibility of the new leadership to Moutai management.
terminal price “original sin”
The 346 day “unpacking order” seems to have an impact on Kweichow Moutai Co.Ltd(600519) .
It is understood that the “unpacking order” was originally launched to stabilize the price of the terminal market and promote the bottle opening rate of Feitian Maotai in the terminal market. However, the data show that at the beginning of the implementation of the “unpacking order”, the terminal market price of 53 degree Feitian Maotai (500ml) in 2020 was 2760 yuan / bottle on January 1, 2021. When the “unpacking order” was officially implemented, the price of the original case of Feitian Maotai was “advancing by leaps and bounds”, and there was no trend of price reduction, even reaching 3860 yuan / bottle on September 10.
In addition, once Kweichow Moutai Co.Ltd(600519) launches relevant policies, or there are rumors in the market, app or capital market rises sharply, the price of Feitian Maotai terminal market will fluctuate. It is understood that when the capital market rose slightly in May this year, the terminal price of 53 degree flying Maotai (500ml) bulk bottle in 2021 was 2710 yuan / bottle, which was higher than the previous terminal price. In October this year, Kweichow Moutai Co.Ltd(600519) Hotel stopped selling Feitian Maotai liquor at the original price, which also caused small fluctuations in the price of the terminal market.
In this regard, Cheng Wansong, Secretary General of Beijing liquor circulation industry association, pointed out that the “unpacking order” itself is contrary to the right of consumers to choose freely. Just because Feitian Maotai liquor products are special, in order to prevent scalpers, the “unpacking order” was launched for terminal control. However, because Feitian Maotai liquor has a very strong gift attribute, it will be used as a gift most of the time, and consumers usually choose to buy a whole box to give gifts in order to save face. Therefore, the consumer demand can not be met, which will give birth to other aspects of supply, resulting in a bad impact.
new underpricing measures
The impact of the total cancellation of the “unpacking order” on the price stability of the terminal market is still uncertain. The new price reduction measure of Kweichow Moutai Co.Ltd(600519) – the introduction of 12 bottles of new specifications of Feitian Maotai liquor per box specially for bulk sales is more attractive.
It is understood that 12 bottles of Feitian Maotai per box is not the first time. Beijing Kweichow Moutai Co.Ltd(600519) liquor merchants told the Beijing Business Daily that in the early years, Kweichow Moutai Co.Ltd(600519) had launched 12 bottles of Feitian Maotai per box, but later the conventional specification was changed to 6 bottles per box. The reporter logged on to Jingdong platform and found that there are also 12 bottles of 53 degree Feitian Maotai (500ml) per box in different years such as 2015 and 2017. The price is about 55000 yuan / box.
Although Kweichow Moutai Co.Ltd(600519) is not the first time to launch 12 bottles of Feitian Maotai liquor, Feitian Maotai liquor specially used for bulk sales is the first time.
Jin Yufeng, a Baijiu marketing expert, pointed out that the launch of 12 bottles of Moutai wine per case and the sale of 6 bottles per carton for sale in full container will help Moutai stabilize the price of terminal market. Dealers and specialty stores want to sell more full boxes, but there is a demand for loose bottles in the market. Such a policy meets the needs of consumers and dealers.
Jin Yufeng said that unpacking 12 bottles can crack down on the loose bottles in the market, so the loose bottles in the hands of the scalpers must be cleared as soon as possible. In fact, bulk bottles have gradually formed an independent market. This is mainly due to the early Maotai airport stores, which purchased at parity with specific air tickets, and then formed a large-scale employee queue, price increase transfer, etc. After that, a large-scale Feitian Maotai with an original price of 1499 yuan / bottle for limited sale has gradually formed in local specialty stores, thus forming a bulk bottle market with a certain scale and commercial inventory. This is the spontaneous behavior of the market, but it already exists objectively.
“Unless scalpers hire people to queue up to buy 12 bottles of unpacked retail on a larger scale, they will further expand the intermediary trading market of loose bottles, so as to relatively monopolize the supply of loose bottles.” Jin Yufeng added.
Maotai confirmed! Cancel the “unpacking order” and add 12 bottles per box. The terminal price of Feitian fell, but the share price rose sharply
Market practice after the “unpacking order” was completely cancelled in Maotai: the price of the original case of wine was slightly corrected in the short term, and the dealer said it would still rise in the long term
(Beijing business daily)
