On January 25, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) released the announcement on the pre increase of performance in 2021. It is expected to achieve a net profit of 5.234 billion yuan – 5.542 billion yuan, an increase of 2.155 billion yuan – 2.463 billion yuan over the same period of the previous year, with a year-on-year increase of 70% – 80%, and its impressive performance continues to refresh.
Chinese Baijiu market has been increasing in recent years, and the concentration of brands has been increasing. Race each other and survival of the fittest has become the normal competition in the industry. Fenjiu must be in the increasingly fierce Baijiu situation, to achieve the “14th Five-Year” target and even revival goals, heavy responsibilities and long way to go.
Since the official announcement of taking office on December 17, 2021, yuan Qingmao, Secretary of Fenjiu Party committee and chairman of Fenjiu, who has been in office for only more than 30 days, has successively attended the Zhuyeqing Development Conference and the Fenjiu global distributor conference, conducted in-depth research on the front-line production and sales companies of Fenjiu brewing, assembly, storage and distribution, and put forward a clear strategic plan for the future development of Fenjiu.
“We must look at the internal and external environment of Fenjiu in a comprehensive, contact and development way, recognize the current situation of Fen Liquor, identify the development orientation, and must continuously increase in three aspects: speed, quantity and quality. At the same time, we must make good use of our four advantages of reform, products, markets and achieve the all-round development of Fen Liquor and march into the first camp of the Baijiu industry. Yuan Qingmao’s words were sonorous and powerful.
assess the situation and rebuild the brand position
On both sides of the Changjiang River, the “Fen old” was popular in the north and south of the country in 1980s, accounting for more than half of the Baijiu market. However, the market economy is unpredictable and surging. Fenjiu has experienced ups and downs for several times. The glory of “fenboss” is gone forever and once became a local brand in Pianan corner. After the unremitting efforts of several generations of Fenjiu people, Fenjiu is constantly recovering its lost land in the national market, and the brand value is also rising all the way.
Throughout the Baijiu market, “thick, clear, sauce” three points in the world, the proportion of fragrance market is not high. Yuan Qingmao is also clearly aware that in the environment of brand concentration and the survival of the fittest, Fenjiu is facing a competitive environment of “not advancing or retreating, slow or dying”. “I have always stressed that brand, Fen Liquor represents the national fragrance Baijiu, leading the development of the whole fragrance category. Only by strengthening our brand and enhancing our market competitiveness, Fen flavor market share will naturally increase.”
At present, Fenjiu has reached the key breakthrough period of climbing over the ridge. Whether the brand power can be fully demonstrated directly affects the development quality of Fenjiu. “Baijiu brand is king. In the final analysis, brand is the foothold and focus of Fenjiu’s accelerating development.” Yuan Qingmao further said, Follow up a victory with hot pursuit of Baijiu development, we should strengthen brand leadership, take brand as the core value of enterprises, enhance brand value as the primary goal, continuously enhance brand awareness, reputation and customer loyalty, strive hard for internal strength, win the chase, and take advantage of the trend to get better structure, better efficiency and higher quality. At the end of 14th Five-Year, Fen Liquor will enter the liquor industry. Industry first camp, realize “one third of the world has one”, and re-establish the brand status of “boss Fen.”
“quality + management” double improvement
The traditional brewing technology of Fen Liquor can be said to be the most representative wine making technology in China, and is the authentic blood of China’s traditional Baijiu brewing. The process characteristics of Fen Liquor “steamed twice and cleaned to the end” have created its unique style of “clear, cool, soft, sweet and clean”. Fenjiu ancient brewing technology was also listed in the first batch of national intangible cultural heritage list in 2006.
The endorsement with a long history also makes Fen Liquor dare to innovate. “General liquor brands are afraid of others saying they are old enough. Fen Liquor is because it is old enough, but it dares to innovate.” Yuan Qingmao believes that it is in the collision between “old” and “new” of Fen Liquor that the quality of Fen Liquor is polished. In fact, the old gave the sweet water quality and inheritance technology to Fenfen, so that Fen Liquor could afford the first brand of Chinese baijiu. The new gives Fenjiu modern technology and digital management, so that Fenjiu can carry forward the traditional ingenuity and ultimate quality in the new era.
For the future planning, yuan Qingmao said that first of all, we should make good wine, store old wine and sell good wine, and make an overall plan for the production capacity and energy storage of raw wine, so as to lay a solid foundation for the brand building of Fen Wine; Secondly, pay close attention to the control of the whole industrial chain, strengthen the control of the whole process and all links from field to table, and improve brand loyalty with quality reputation; Third, pay close attention to management improvement and continuously deepen green and low-carbon development.
compete for medium and high-end products and expand outside China
Under the excellent quality and management, the market positioning of Fen Liquor is very clear, that is, based on the medium and high-end, expand the market outside the province and adhere to internationalization. In recent years, with the expansion of China’s middle income group, Baijiu enterprises have been laying the high-end market, and Fen Liquor has attached great importance to the high-end price band. “The occupation of medium and high-end price belt is the development line that we must be strong and stand up, the survival line that we can’t let go and retreat, and the position line that we can’t lose or afford.” Yuan Qingmao’s words are firm.
In 2017, Fenjiu made every effort to promote the national market layout. In recent years, the market outside the province has developed rapidly and bloomed all over the country. In 2020, the proportion of sales revenue inside and outside Fenjiu province has reversed from 6:4 in 2017 to 4:6. Behind the reversal is the remarkable effect of Fenjiu nationalization and the significant increase of brand influence. Yuan Qingmao knows that Shanxi is the base of Fenjiu, but Fenjiu still needs to put more resources for development into the market outside the province. “The Yangtze River Delta and the Pearl River Delta are areas of rapid economic growth in China, and they are also highlands that must be seized by the national strategy of Fenjiu. We should timely optimize the market layout according to the national development strategy, make breakthroughs from the central market, point to area, and form a prairie fire.”
In recent years, Fenjiu has actively promoted its international layout and carried out a series of activities such as “Fenjiu global tour” and “China Fenjiu, enjoy the world”. At present, the company’s liquor export ranks among the top three in the industry, with a rapid development momentum. Recently, the wine heart chocolate jointly signed by Fenjiu and the top Danish food enterprise Aiton Borg, as well as the wine jointly produced with Georgia, once again demonstrates the strength of Fenjiu’s cross-border attempt and the accelerated pace of internationalization.
Yuan Qingmao said that one belt, one road to continue to explore overseas markets, closely follow the pace of “one belt and one road” and “new heights of opening up to the interior of Shanxi”, focusing on the Asia Pacific market, grabbing the construction of the bay area and creating broad market opportunities for RCEP, looking for new opportunities in the Mideast countries and continuously enhancing the international brand image of Fenjiu.
work hard to achieve high-quality “rejuvenation”
Looking back on the glorious history of Fen Liquor, yuan Qingmao was clear in his heart; Facing the current Baijiu situation, he is a very clear sighted person. Looking forward to the future development of Fenjiu, he is also confident and confident.
\u3000\u3000 “Fenjiu museum is the first place where I went to Chinese Baijiu and later I came to know Fen Fen and Fen Fen. My ancestors left us with such a heavy historical and cultural wealth. We should not deny our predecessors’ expectations, continue to dig and activate Fen culture deeply, inherit and develop it, and shoulder the glorious mission of the Chinese liquor industry leader and successor to the society. And consumers show the responsibility and responsibility of Chinese Baijiu enterprises. Yuan Qingmao sighed.
The start reflects the whole journey and enlightens the future. Today’s Fenjiu has reached a new historical starting point, with rare development opportunities, clear development objectives and firm development confidence. “In order to achieve the goal of rejuvenating Fen Liquor as soon as possible, we will strengthen the brand leadership, practice our internal skills, seize the victory and pursue the attack, take advantage of the momentum, show our new responsibilities and show our new works on the new journey of all-round and high-quality development of Fen Liquor with the attitude, ambition and perseverance of the striver, the hard work of ‘building a bridge between mountains and rivers’ and the tenacity of’ continuous efforts for a long time ‘ Write a new chapter for us. ” Yuan Qingmao’s words were resounding. (image source: Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) )
