Home » Brand power enhancement is not a day’s work; liquor price increases at the end of the year are mostly for promotions

Brand power enhancement is not a day’s work; liquor price increases at the end of the year are mostly for promotions

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Brand power enhancement is not a day’s work

21st Century Business Herald reporter Wen Jing reports from Chongqing On December 28, according to industry media Weijiu reports, Luzhou Laojiao Liquor Sales Co., Ltd. issued a notice that starting today, the 60-year price system of Luzhou Laojiao Liquor will be adjusted. The overall price increase.

Among them, the recommended group purchase price of 52-degree cellar-age wine in 60 years is adjusted to 468 yuan/bottle, and the suggested retail price is adjusted to 558 yuan/bottle; the recommended group-purchase price of 43-degree cellar-age wine in 60 years is adjusted to 448 yuan/bottle, and the suggested retail price is adjusted. It is 538 yuan/bottle; the recommended group purchase price of 38-degree cellar-age wine in 60 years is adjusted to 428 yuan/bottle, and the suggested retail price is adjusted to 518 yuan/bottle.

This month, Luzhou Laojiao (000568.SZ) products have issued price increases many times. On December 14, Luzhou Laojiao Tequ Liquor Sales Co., Ltd. issued a notice on the proposed adjustment of the price of 52-degree Luzhou Laojiao Tequ Liquor (Old Brand) 2018 Edition. According to the notice, in order to realize the return of the brand value of “Chinese Famous Wines”, it was decided by the Southern Region to study the 52-degree Luzhou Laojiao Tequ Liquor (Old Brand) 2018 version from now on, and the price plan suggested to increase by 40 yuan/500ml. It is recommended to increase to 388 yuan/500ml.

On December 16, Luzhou Laojiao Guojiao Liquor Sales Co., Ltd. issued the “Notice on Adjusting the Price System of 52 Guojiao Classic Terminal Channels” issued by the Central South and Southwest Regions. The notice suggested that 38 degrees and 52 degrees should be changed. The planned quota supply price of the pit 1573 classic (500ml X6) terminal channel was increased by 40 yuan/bottle and 70 yuan/bottle, and the unplanned quota supply price was adjusted to 750 yuan/bottle and 1080 yuan/bottle.

The increase in liquor prices reported by the industry media is far more than that. The ex-factory price of the collections of Shede Winery will be increased by 30 yuan, the price of Guizhou Zhenjiu Zhen 30 and Zhen 15 dozen will be increased by 100 yuan/bottle and 30 yuan/bottle; the unplanned ex-factory price of 52-degree ordinary Wuliangye will be increased to 1,089 yuan/bottle In 1988, Xi’s wine cellar collection increased by 50 yuan/bottle, and the group purchase price of Gujing Gongjiu’s original pulp “New Year’s Thirty” products was increased. Tanjiu even opened the first “Tanjiu Real Year Price Increase Festival” on December 1st. !

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The 21st Century Business Herald reporter noted that in the information release channel, only a few of the listed liquor companies have announced their product price increases in the form of announcements, such as Guyue Longshan (600059.SH) and Shunxin Agriculture (000860.SZ). Most of them are released in the form of notices issued by sales companies or circulated in dealer channels. The sales company is not entirely at the level of liquor manufacturers, and some price increase policies are based on platforms established by dealers, such as Luzhou Laojiao.

But the improvement of brand power is not a day’s work. On the one hand, there are price increases, and on the other hand, various price reduction promotions of liquor companies online and offline to sprint performance. Some companies even raise prices for products that are not the main products, in order to gain attention and catch the trend of liquor price increase.

Distributors increase the price of Luzhou Laojiao products

On the morning of December 28, a reporter from 21st Century Business Herald called Luzhou Laojiao Jiuling Liquor Sales Co., Ltd. and asked about the notice of price increase. The other party said that the matter was sensitive and would not accept interviews. It is worth mentioning that the phone number of Luzhou Laojiao Liquor Sales Co., Ltd. shows that it is Luzhou Xintianfu Liquor Sales Company.

In fact, Luzhou Laojiao Liquor Sales Co., Ltd. is a liquor platform company invested and established by Luzhou Laojiao distributors. According to data from Qixinbao, the company was established in 2016, with 16 companies and individuals invested as shareholders, and the legal representative is He Huawei. Luzhou Xintianfu Liquor Sales Company happens to be one of the shareholders of Luzhou Laojiao Jiuling Liquor Sales Co., Ltd., holding 6.67% of the shares and investing 5.5 million yuan.

Similarly, according to Qixinbao, Luzhou Laojiao Tequ Liquor Sales Co., Ltd. was established in January 2014 with a registered capital of 240 million yuan. The legal representative is Xu Min. There are 42 companies including Zhoukou Huafu Wine Co., Ltd. Shareholders. Among them, Liu Fengmei and Zhoukou Huafu Winery hold 9.1% and 9.5%, respectively.

According to industrial and commercial data, Luzhou Laojiao Guojiao Liquor Sales Co., Ltd. has a registered capital of 360 million yuan. It was established in 2015 and consists of 45 shareholders, including individuals and distributors. Among them, Chen Shiqin invested 16 million yuan with a shareholding ratio of 7.25% and is a major shareholder.

“Most of the information on product price increases on the market is done by platform companies established by these distributors, not by joint stock companies, but many consumers and investors mistakenly believe that listed companies are intensively increasing prices.” Luzhou, December 28 A person from the Laojiao Brand Image Management Center explained to the 21st Century Business Herald reporter on the phone that he also saw a lot of product price increase information from the Internet. The company did not pay much attention to the recent price increase information released by dealers.

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He further stated that at the end of the year, it is understandable that dealers want to increase prices to offset performance. On December 28, with the rumors of price increases, Luzhou Laojiao Jiuling Liquor Sales Co., Ltd. offered an annual salary of 250,000 to 450,000 to recruit targeted city managers to recruit mid-level and high-level marketing fighters. Its distribution areas include Lanzhou, Shijiazhuang, and Shijiazhuang. Xingtai and other second- and third-tier cities. The company stated in the recruitment announcement that during the “14th Five-Year Plan” period, to accelerate the breakthrough in business scale and achieve the sales target of tens of billions of dollars, the company needs talents who can build and operate tens of millions of markets.

The promotion war became more intense at the end of the year. Luzhou Laojiao Guojiao Liquor Sales Co., Ltd.’s notice on the increase in the supply price of Guojiao 1573’s planned internal and external quotas was issued on December 16, before the Wuliangye 12.18 dealer meeting was held, following the 52-degree eighth-generation ordinary Wuliangye’s The price increases. At the same time, many regional platform vendors of Guojiao 1573 issued notices that the implementation of the quota for the national jiao category has been completed next year. From now on, sales orders for all products of Guojiao 1573 will not be accepted temporarily, in order to increase the supply price.

Under the situation of repeated epidemics, the liquor market has become severely differentiated this year. Although liquor companies represented by famous liquors still maintained double-digit year-on-year growth, the performance growth of Kweichow Moutai and Wuliangye has slowed down. The financial report shows that from January to September, Luzhou Laojiao’s revenue and net profit attributable to shareholders of listed companies were 14.1 billion yuan and 6.3 billion yuan, up 22% and 30% year-on-year, respectively. However, Shanxi Fenjiu has surpassed Luzhou Laojiao in the same period. The revenue of the cellar. In the third quarter, Luzhou Laojiao’s revenue and net profit grew at 21% and 28% year-on-year, respectively, which were slower than the first half of the year. The net profit gap between Shanxi Fenjiu and Luzhou Laojiao narrowed to less than 1 billion. Yuan.

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“Branding power is not a one-day effort. Both liquor manufacturers and distributors frequently raise prices throughout the year in order to complete their sales targets, and the final overdraft will be the brand.” As early as two years ago, investors expressed interest in Luzhou Laotian. Cellar dealers expressed their opinions on similar practices.

Most price increases are promotions

There are only two price increases in the liquor industry: one is passive price increase, such as the 53-degree 500ml Feitian Moutai; the other is the manufacturer’s initiative to increase prices. Over the years, industry insiders believe that only Kweichow Moutai (600519.sh) has played a leading role in its main products, letting the invisible hands of the market play a leading role.

In late December, a Wuliangye distributor in Jiangsu told the 21st Century Business Herald that next year, in addition to the eighth-generation Wuliangye plan to raise prices, classic Wuliangye will also be requested by manufacturers to raise prices. The guided retail price of Classic Wuliangye is close to 3,000 yuan, but in his actual sales, many consumers compare Feitian Moutai with it and choose the former.

“Classic Wuliangye is indeed a good wine and it tastes good, but many people don’t know it.” He said that at present, in order to enhance Wuliangye’s brand value, manufacturers have worked together to hold many high-end tasting sessions, but Classic Wuliangye needs Cultivation time, rather than raising the price first. With more people drinking and the scarcity of products, the market will naturally force manufacturers to raise prices.

The market guide price of the eighth generation Wuliangye is 1399 yuan. Although the ex-factory prices of unplanned quotas for manufacturers have increased next year, discount sales at market-guided prices are common. In the China Merchants Bank Credit Card Mall, the 52-degree 500ml eighth-generation Wuliangye is a popular brand, and the double-bottled coupon is 150 yuan off. Offline, several Wuliangye distributors in Chongqing said that 1399 yuan is only a marked price, and the price is still negotiable.

In addition to price increases and promotions, another trick for liquor manufacturers to sprint performance at the end of the year is to release new products. Whether it is the launch of Luzhou Laojiao this year in 1952, or the appearance of Kweichow Moutai’s treasure Feitian Moutai on the evening of December 29, the location of the National Industrial Heritage “Mao Liquor Source”, it is through increasing production capacity, expanding the sales scale, and increasing The level of profitability.

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