Recently, the (19th) “World Brand Conference” hosted by the World Brand Lab (World Brand Lab) was held in Beijing. The analysis report of “China’s 500 Most Valuable Brands” in 2022 was released at the meeting. With a brand value of 364.619 billion yuan, Wuliangye ranked 16th in the list of “China’s 500 Most Valuable Brands”, and achieved double-digit growth for five consecutive years with a brand value increase of 12.08%, becoming the only “2022 Most Valuable Brand” in the liquor industry. top performing brand”.
In addition to being highly recognized by the World Brand Lab, Brand Finance, a global authoritative brand value assessment agency, also praised the Wuliangye brand. In its latest “Brand Finance 2022 Top 50 Most Valuable Spirits Brands in the World” list and report, the brand value of Wuliangye has increased significantly to 28.7 billion US dollars, a year-on-year increase of 12%, and the brand strength index BSI score is 89.4 points , the brand rating reaches AAA (the highest level), and it has become the world‘s strongest wine brand with the highest brand strength index.
The above honors have confirmed the objective fact that the brand value of Wuliangye is maintaining a steady and rapid increase, or become a leading indicator of its development. Among the top liquor brands, why Dudu Wuliangye can successfully achieve the greatest increase in brand value, both in terms of marketing performance and corporate image, have steadily improved. What is the “secret” to its long-term strong development momentum?
Revenue and net profit hit a record high with multiple measures and remarkable results
For an enterprise, good operating performance is the best proof of its upward development and an important foundation for the growth of brand value. Wuliangye’s 2021 annual report shows that the company achieved revenue of 66.209 billion yuan and net profit attributable to the parent of 23.377 billion yuan, both of which maintained double-digit rapid growth and reached record highs.
Some industry professionals said that the company has taken multiple measures in recent years, and has carried out multi-faceted reform and development in terms of brands and channels, with remarkable results and market recognition.
According to the survey, as of the end of May, the national sales level of the eighth-generation Wuliangye remained flat and slightly increased. Among the 21 theaters, 11 theaters saw a year-on-year increase in sales, which is commendable under the deep influence of the epidemic, and also reflects the brand centripetal force of Wuliangye.
In terms of brand, relying on the core value, strong cultural heritage and advantages of raw grain, cellar, brewing, quality, brand, etc., we actively create “The Forbidden City” and “Courtesy!” China” and other excellent cultural IPs to spread Wuliangye culture; brand image is fully implanted in key airports, core business circles in key cities, transportation hubs, etc., and the atmosphere in high-end consumption places across the country continues to increase, and exposure continues to increase degree, radiation, memory and reputation; deeply integrated into the “Belt and Road” national initiative, participating in international events such as the Dubai World Expo and the Boao Forum for Asia, giving the scene culture new connotations and new ways to express the national corporate image and national brand charm, brand International influence continues to expand.
In terms of channels, build a multi-dimensional channel system of “offline + online”, fully cover operators, specialty stores, KA supermarkets, and terminal retail stores offline, build Wuliangye cloud store network online, and innovatively apply “digital liquor license” , expand “new retail”, rely on digital platforms to link dealers, terminals, and consumers; assist brand operators to set up “visit sales teams” to implement refined services for nearly 30,000 social terminals under the Wuliangye brand; at the same time, it also steadily Promote the integration of the supply chain of Wuliangye and series wine KA channels, and strengthen the refined layout and healthy competition of national supermarkets. Through a series of refined channel construction, the brand awareness has been effectively improved.
The strong “resonance” of brand power and product power has been recommended by many securities companies and gold stocks
At present, the industry is further concentrating on advantageous enterprises, advantageous brands and advantageous production areas, and the competitive advantages of famous wine enterprises are more obvious and certain. The substantial growth of Wuliangye’s brand value is inseparable from the continuous improvement of its product power. As we all know, “Wuliangye Liquor” is a typical representative of my country’s Luzhou-flavor liquor. While continuously meeting the diverse needs of consumers at different levels, the company has developed Wuliangchun, Wuliangchun, Wuliang Tequ, Jianzhuang and other categories. The complete and clear “Wuliang Luxiang Liquor” has further optimized the company’s brand structure and its brand image has also been greatly improved.
Today, Wuliangye’s brand power and product power can be said to “compliment each other”, which is directly reflected in the growing gross profit margin of its alcoholic products. In 2021, the gross profit margin of Wuliangye’s wine products has reached 80.29%, a record high since its listing. The comprehensive gross profit margin of Wuliangye in the first quarter of 2022 has further increased by 3.1 percentage points compared with the end of 2021, and the product strength is increasing. Significantly. Under the strong “resonance” of brand power and product power, the profitability of the company has also been greatly improved. The ROE in 2021 will be 23.6%, a record high in the past five years.
For Wuliangye, a leading brand in the high-end liquor market, the agency is very optimistic about its development. In July alone, many brokerages recommended it, making it the top three brokerage gold stocks in the monthly hot market. At the same time, a number of brokerages have given ratings such as maintaining “buy” and “recommended”. Its popularity in the capital market is evident.
At present, the valuation of Wuliangye is relatively discounted, and the margin of safety is relatively high. On the basis that the sales and inventory of main products are stronger than market expectations, and with the joint boost of many positive factors such as the accelerated pace of reform of the company’s new management, this company Super-large state-owned enterprise groups will accelerate their growth, and their investment value will continue to highlight.
Standing at the top of the liquor brand, leading the national wind to “blow” to the world
At this World Brand Conference, Ding Haisen, CEO of World Manager Group and World Brand Lab, said that a brand ecosystem refers to how a brand creates a perfect global industrial chain through its various interrelated products and services, from Manufacturers, integrators and consumers can all collaborate around a brand’s philosophy and reputation. If Chinese brands want to seize and consolidate the high-end market, they must build a world-class brand ecosystem.
It is understood that in promoting Chinese liquor to the world, Wuliangye has always been at the forefront of the liquor industry, and has become the best benchmark for the cultural construction of the Chinese liquor industry. It can be seen that by spreading Chinese wine culture, Wuliangye has connected itself with the outside world and with the world. It has not only expanded its brand influence, but also “added branches and leaves” to its own brand ecosystem. Zhang carries the “Chinese business card” with a strong historical fragrance, so that the world can drink Wuliang brewing and taste Chinese culture.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
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