High-end products have market demand to create super high-end liquor

Last year, the high-end liquor represented by Moutai led the “price increase” and people began to pay attention to high-end liquor and its price. Maotai and Wuliangye led the “ups” with the “up,” and the rise in liquor prices has become the norm in the industry. But when The brand's anti-"Maotai horse is the first", after Maotai launched ultra-high-end products, liquor pricing mechanism, high-end liquor market demand and other issues once again aroused people's heated discussion.

Shuijingfang promotes high-end white liquor It is understood that Shuijingfang recently held its first extraordinary shareholders meeting in 2011. The meeting reviewed and approved a proposed total investment of 2.3 billion yuan in new product development bases and technological transformation projects. The project is located in Chengdu “China Famous Wine Industrial Park”. The main contents of the project are: 28,000 tons of base wine brewing facilities, 100,000 tons of wine storage facilities, and 20,000 tons of packaging facilities for wine products, including famous wines. Industrial Park and Food Industrial Park.

This means that following the sale of 95% equity in Quanxing Wine, the issue of insufficient capacity for Shuijingfang will gradually improve. It is understood that the new base also has an important mission: to integrate the R & D strength and technical strength of Swellfun and Diageo to create ultra-high-end innovative liquor. It is reported that the Shuijingfang project will start in March this year.

New pricing or ultra-maotai It is reported that the innovative products created by Swellfun and Diageo for the domestic market have been tested in Hunan for half a year. Speaking in an interview with the media, Keming Si, General Manager of Shuijingfang, said: “Jing Cui’s test sale price in Hunan was 1,400 yuan. We think this price is too low. This year's national promotion will have higher prices than Maotai.” Ke Mingsi further stated that the future of Shuijingfang The super-high-end liquor that Diageo jointly developed is expected to have a price system similar to that of Jade, approaching or slightly exceeding Moutai.

It is worth mentioning that, at the shareholders meeting, the representative of Yangxingji, a major shareholder of Quanxing Group, reiterated the vision of Shuijingfang to develop high-end liquor. However, under the pressure of Wuliangye, Guizhou Maotai and other first-line liquors, its market share in high-end liquor is only 5%. At the same time, the growth rate of high-end liquor has slowed down, but the growth rate of mid-end liquor has been as high as 15%. The mid-end liquor brands like Yanghe and Gujinggong have risen rapidly.

Swellfun is facing a "dilemma" situation. "Shuijingfang is currently facing a more embarrassing situation. If we focus on high-end liquor, we face the problem of how to compete with Wuliangye and Kweichow Moutai, and expand the current market share of 5% of high-end liquor." On the other hand, once the importance of the medium-end market is reduced, it is very likely that the fast-growing companies such as Yanghe and Gujinggong will eat away market share, "said a brokerage firm. In response to an interview with the media, Yang Junji explained that Shuijingfang will carry out differentiated development. “Compare with Wuliangye and Maotai, Shuijingfang started late, and the historical and cultural heritage is not deep enough. It is a weak brand. The future development of Shuijingfang is bound to Other high-end liquors carry out differentiated marketing models.At present, new products and new marketing models for Shuijingfang are in the period of market exploration, and the effects need to be tested by the market.The company’s sales performance in 2010 has indeed declined, which is the company’s development in the recent two years. bottleneck."

“Our innovation in liquor products is not simply a combination of white wine types, but production and technical innovation of the existing liquor production process. This is the only liquor company in the country.” said Yang Xieji. , Wine filling product innovation and new liquor production are located in the food industry park. "

There are market demands for high-end products. Experts from the liquor industry revealed that high-end products are far more profitable than mid-to-lower products in terms of profitability and profitability. They also contribute the most to the company’s profit, so more and more liquor companies are involved in high-end markets. Increase the proportion of high-end products. In fact, companies are building ultra-high-end products not only to increase their brand image and popularity, but also to seek more profits from ultra-high-end products.

Zhou Sianran, a food industry researcher of China Investment Consulting Group, said in an interview with Beijing Commercial Daily that companies dare to create ultra-high-end concepts, and their products are often more than a thousand dollars because of market demand in this price range. The characteristics of white spirits used in official business, business entertainment, and gift markets make it necessary to consider the social factors of the product, including brand, packaging, grade, price, etc., in which the price plays a crucial role in the purchase. "However, Zhou Siran also stressed that some companies do not have strong brand strength and sufficient market position, blindly positioning high prices, sales can hardly be guaranteed, and the market space will not be large.

Luzhou Laojiao has pushed high prices for new products. In fact, new pricing is higher than Maotai, and Shuijingfang is not the first one. In October last year, Luzhou Laojiao launched a strategic upgrade of the national cellar 1573. Chinese taste, priced at nearly 2,000 yuan, far higher than the best-selling 53-degree flying products of Maotai at that time, highlighting the momentum of competition with Maotai and Wuliangye. Sun Yue, the company’s deputy general manager, said in an interview that compared to the high price of foreign wine, the price of domestic high-end liquor still has a large room for growth. “Guojiao 1573” will continue to take the luxury goods route and will “Luzhou Laojiao” work hard. Created the first business wine.

â–  Extensive reading of foreign capital accelerating penetration into the Chinese liquor market In fact, foreign investment in the Chinese liquor market is not just beginning. It can be said that it has been a long time ago. However, analysts pointed out that because Wuliangye, Maotai and other enterprises are absolutely controlled by the SASAC and have strong capital and technical strength, the desire to develop the international market is not as strong as the outside world expects. It is not easy for foreign capitals to acquire famous white spirits. Therefore, the second and third line brands have become the first choice for foreign capital to enter.

Exploring the emerging model In 2007, Diageo acquired 43% of Swellfun and increased its holdings by 6% in 2008. In February 2010, Diageo again acquired a 4% stake in Shuijingfang for 14 million pounds, with an equity share of 53%.

“The development path currently being explored by Swellfun is something that none of the liquor companies have ever walked through.” “Yang Sooji” introduced the future development model of Swellbill, namely, relying on Diageo, to carry out liquor product innovation and marketing model improvement.

Yang Rongji acknowledged that due to the large amount of funds required for the construction of the base, the asset-liability ratio of the Shuijingfang will certainly be abnormal during the construction of the project. By then, the major shareholder Quanxing Group will provide facilities for the financing and borrowing of Shuijingfang.

It is said that when Diageo sent executives to Shuijingfang, he proposed that sales revenue and annual compound annual growth rate should achieve rapid growth in the next three years.

According to Ke Mingsi, director of Swellfing from Diageo, in the future, advertising investment will develop to the high end, market through television, opinion leaders, etc., and gradually depart from relying on traditional discount promotion methods to promote products and use Diageo's existing network to enter the international market. Market," Diageo promised, in the next 5 to 10 years, the sales volume of Shuijingfang in the international market will increase to an average of 1,000 to 20 million tons per year.

However, Diageo's entry into the main Shuijingfang has not been approved by the Ministry of Commerce and has become the biggest concern for the development of Shuijingfang.