“Baijiu price increases except the flying Moutai price is driven by the market, and the other price rises are not real price increases.”
Two years ago, Kweichow Moutai Co.Ltd(600519) a senior executive once commented on the price rise in the industry.
Baijiu consumption season, in April 14th, a friend of the circle of Sichuan Gulin Langjiu Sales Co., Ltd. documents were confirmed by manufacturers: Langjiu shares high-end products 53 degrees 500 ml Qinghua Lang plan to increase the factory price of 100 yuan / bottle.
Source: Wine
Since March, the epidemic situation has been distributed more frequently, and consumption scenarios and consumption intentions have been restrained. One side is the continuous impact of Baijiu enterprises on high-end prices. The 21st Century Business Herald reporter combed it. The price of Sichuan Swellfun Co.Ltd(600779) the new well platform that raised the price of old products or borrowed the price of new products was 808 yuan. Jiangsu Shuanggou Liquor Sales Co., Ltd. raised the price of 52 degrees of Susu liquor · Lvsu to 1028 yuan / bottle. Guizhou Zhenjiu launched the new high-end cultural and creative product “handed down treasure”, and Jinsha liquor’s high-end cultural and creative product school-based liquor was renewed and upgraded, but the market attention was not high.
Different from the market retail price increase announced by the above liquor enterprises, qinghualang directly increases the ex factory price. After the price adjustment, the ex factory price of qinghualang is significantly higher than that of Kweichow Moutai Co.Ltd(600519) and Wuliangye Yibin Co.Ltd(000858) . In the high-end liquor market that hangs over the market price and the factory price upside down, and even the market price and wholesale price, what does Baijiu dealer rely on to make money?
“The biggest profit of dealers comes from the time difference. Second-hand goods are sold when new goods come. Because sauce and wine can be marked with the concept of year, and the bottles stored for several years can be stored in qinghualang. The purchase cost is lower than now, but it can add value.” On April 18, a dealer of Langjiu shares who has been operating for many years disclosed to the 21st Century Business Herald reporter that, therefore, only large dealers can play with sauce wine sectors, but only if the market price of the product is really raised.
In her opinion, qinghualang’s retail price of more than 1400 yuan is not a transaction price acceptable to consumers, and the ex factory price of thousands of yuan is not a wholesale price acceptable to the market. The driving force of the price rise comes from the manufacturers, and it is more the price support behavior in the off-season. After all, the wholesale price of qinghualang has fallen back to about 940 yuan.
manufacturer’s power
In April 18th, the first price of WeChat official account was announced. The wholesale price of 53 degree 500 milliliters Qinghua Lang was 910 yuan for three consecutive days. The 21st Century Business Herald reporter learned from Chengdu that the market price is about 940 yuan.
A dealer of Langjiu shares told reporters that qinghualang has more goods in the market. On the basis of 940 yuan, she often adds 20 or 30 yuan to sell. In many terminal hypermarkets, the retail price of 53 degree 500ml qinghualang market is 1499 yuan.
Before the price increase, the ex factory price of qinghualang was 909 yuan. Qinghualang’s market retail price of 1499 yuan has shrunk to within the selling price of 1000 yuan, which is opposite to the flying Maotai premium of 1499 yuan. Even Lang Liquor manufacturers discount their own flagship stores in Jingdong. On April 18, qinghualang priced 1419 yuan at the flagship store, but the actual transaction price after participating in the event was 1210 yuan.
This is quite different from Feitian Maotai, which belongs to Chishui River Valley. Wang Junlin, the head of Langjiu shares, does not want to see that the price difference between Langjiu and Maotai is too large in the minds of consumers.
“In 2021, Langjiu will sell 11000 tons of Maotai flavor liquor. In 2022, Langjiu Maotai flavor liquor is planned to put in 13 Yihua Healthcare Co.Ltd(000150) 00 tons, of which hongyunlang is less than 400 tons, qinghualang is less than 4000 tons, honghualang is less than 9000 tons and langpai Langjiu is less than 1600 tons.” On March 28, Wang Junlin said at the press conference of “internal control guidelines for Langjiu Maotai flavor products enterprises”.
“The factory price is in the thousand yuan, and the quality should be the basic quality of high-end baijiu.” Some insiders said that even the ex factory price of 53 ° 500ml Feitian Maotai and 52 ° 500ml Wuliangye Yibin Co.Ltd(000858) has not exceeded 1000. Consumers will naturally compare the taste of qinghualang with the top two. If it exceeds that, why should the manufacturer emphasize the quality by itself?
The above-mentioned dealers of Langjiu shares in Chengdu reflect that the taste differences and preferences of qinghualang’s tasting wine and standard products, as well as Guizhou sauce wine and Sichuan sauce wine, have always existed in the eyes of many consumers.
where does the profit of dealers come from
“The ex factory price of famous wine manufacturers has risen, so we have no discussion with dealers.” The above dealers said that compared with the manufacturer’s high gross profit margin, some dealers do not even make money by selling the price difference of products.
In 2020, the prospectus for the initial public offering of Langjiu shares (application draft) disclosed that from 2017 to 2019, the gross profit margin of the company’s main business was about 68%, 75% and 81% respectively, showing a steady upward trend, mainly due to the adjustment of product structure and the increase of selling price, as well as the reduction of main business costs by independently producing packaging materials.
“The gross profit margin of dealers is much lower, which is often in single digits. Some products don’t make money just by selling the price difference, and mainly rely on manufacturer subsidies.” A Lang liquor dealer disclosed to the 21st Century Business Herald reporter.
She said that the manufacturer’s support comes from the delivery policy and year-end rebate.
The so-called delivery policy means that after the dealer pays a certain amount, the manufacturer will return 2-3 points of delivery, which will actually reduce the ex factory price. In addition, online dealers have promotion fees and offline dealers have tasting fees or wine tasting fees. Some sauce and wine enterprises will sell the tasting wine given by the manufacturer on the market and reduce the purchase cost after realization.
During this time, for the old customers who use a lot of wine, some Lang liquor dealers pay a retail price of less than 1000 yuan. The purpose of impulse is to get the year-end rebate from the manufacturer. However, many dealers said in the interview that adding the operating costs, capital costs and tax costs, adding dozens of yuan on the basis of the ex factory price will not make money at all.
Then, the ex factory price of qinghualang is raised to 1000 yuan / bottle, and the purchase price of dealers is further raised. How to make money?
“The biggest profit comes from the time difference.” The above-mentioned Langjiu dealers said that large dealers would purchase goods in advance and bet on the price increase of manufacturers. As far as she knows, before the Spring Festival, the inventory value of several big businessmen around them was hundreds of millions of yuan.
She said that the price of high-end Baijiu manufacturers is rising, and dealers’ old goods are being sold when new goods come, so that the comprehensive cost of purchase can be reduced. After all, sauce wine can be sold at an increased price according to the year of bottle storage, so the gross profit margin of large merchants is higher than that of small merchants, about 8% – 10%.
“But the capital pressure of purchasing is great. Only big businessmen can play with sauce and wine sectors.” She said that inventory and bottle opening rate are the key to whether the terminal price of products can rise. Once the inventory is too large, it indicates that the consumption intention decreases, and the large dealers will sell their goods at a low price to get some funds back.
