On August 20, the Price Supervision and Competition Bureau of the State Administration of Market Supervision and Administration held the “Symposium on Supervision of Liquor Market Order”. The Beijing News reporter was informed that the symposium focused on the current overheated investment in the liquor industry. Participants include experts, brokerage representatives, and corporate representatives.
At the same time, the reporter noticed that a number of famous liquor companies have recently issued “price increase letters.” Whether this meeting will bring about new regulatory policies is still unknown, but there have been many discussions inside and outside the industry on the impact of various capital forces competing to enter the liquor industry. Among them, the hottest discussion is the “price increase in the liquor market”. Is there a connection between “fashion” and “capital fever”? Will the regulatory authorities forcefully control issues such as liquor market prices?
The “price hike” under the capital boom
The Beijing News reporter learned that since 2021, various capital forces have been active in the liquor market. This is not only reflected in the concentration of funds into the core production area of Maotai wine with Maotai Town as the core, but also the capital investment boom. To a certain extent, the market’s expectations of the value of Maotai-flavor liquor have been raised. One of the intuitive manifestations is that major wine companies continue to increase product prices.
From the perspective of the industry, one of the most direct reasons for capital to enter the liquor industry on a large scale is that liquor has higher profits and a longer and more stable storage period than other consumer goods industries. Therefore, liquor naturally has the attributes of becoming a financial product to a certain extent, and some capital into the sauce-flavored liquor also tends to pursue sustained and growth returns, so it is timely to promote the increase in the terminal price of liquor.
According to public information, Jiugui Liquor previously announced that starting from July 1st, the guide price of 52-degree 500ml Jiugui Liquor (Fufu Classic) will be increased by 70 yuan/bottle, and the retail guide price will be increased by 110 yuan/bottle; from July 19, 42 The guide price for group purchase of 500mL Jiugui Liquor is raised by 40 yuan/bottle, and the retail guide price is raised by 50 yuan/bottle.
Previously, the price of Guizhou alcohol sauce fragrant five-year products will increase by 15% from May 17, and the market guide price will be increased to 799 yuan per bottle; in early April, Shuijingfang adjusted the prices of many of its core products, including Shuijingfang Zhenniang No. 8 The series will be increased by RMB 10/bottle, and the well platform series will be increased by RMB 20/bottle.
In addition, at the beginning of 2021, Luzhou Laojiao adjusted the prices of its high-end products Guojiao 1573 and Jiaoling Liquor. Among them, the group purchase price of 52-degree Guojiao 1573 rose to 1050 yuan per bottle, the 30-year terminal supply price of 52-degree cellar wine increased by 10 yuan per bottle, and the prices of other products with different degrees were also raised. By July, it was reported that Luzhou Laojiao had adjusted the suggested retail prices of Luzhou Laojiao’s boutique first songs and other products.
The Beijing News reporter also noticed in previous market visits that the terminal retail price of loose bottle Feitian Moutai has exceeded 3,000 yuan. As a result, under the impetus of “sweet and wine craze” and “high-end”, the major liquor companies have set aside the price range set aside for the price increase of Feitian Moutai in order to enhance the brand value of their companies. The only way.
A rational view of the relationship between capital and price
However, there are also opinions that the increase in product prices by famous liquor companies will not happen suddenly in 2021. In fact, in recent years, high-end brands under famous liquor companies and some mid-range “fist” products have increased prices to varying degrees. The price increase of liquor products is often in order to seize the high-end and sub-high-end price bands. The product layout and product position are well prepared in advance to prepare for the subsequent expansion of the high-end and sub-high-end price bands. Therefore, it is not comprehensive to link the price increase with the capital-intensive entry into the liquor market in 2021.
More importantly, when observing the price of liquor products, one should not only observe the official recommended retail price or an isolated data. Industry insiders pointed out that the price of liquor products is often affected by various factors such as sales channels, regional consumption habits, the needs of enterprises to expand the market, and agreements with distributors. Therefore, in actual operation, there are often differences between the official guide price and the official guide price. These differences cannot be completely eliminated under the influence of capital.
In addition, for the industry to associate liquor with capital, perhaps it is also inseparable from the “financial nature” of liquor that has been frequently mentioned in recent years.
Enhance the financial attributes of liquor products, even being included in the development goals of some liquor companies. Take Wuliangye as an example. At the 2019 Annual General Meeting of Shareholders held in May 2020, it was proposed that “the blockchain digital wine certificate and Wuliangye’s physical products should be anchored, and the integration of consumption, investment, collection, and storage should be explored. The new model of digital consumption improves Wuliangye’s financial attributes.”
However, during the interview with a reporter from the Beijing News, some consumers said that from a “simple” perception, only Moutai can maintain its value in the terminal market and have relatively stable growth, and it has even become a mortgage loan for many companies. Tools, other famous wine products in the recycling market are difficult to achieve the same price as the suggested retail price.
Based on this, there are opinions that, in addition to special cases such as Kweichow Moutai, the market has a certain price bearing range and psychological positioning for liquor products, especially high-end liquor products. Therefore, the impact of capital on the price of liquor is limited.
Beijing News reporter Xue Chen pictures Xue Chen
Editor Zheng Mingzhu proofread Zhang YanjunReturn to Sohu to see more
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