Which industry in China is the most profitable?
The net profit margin of the manufacturing industry is generally less than 10%, and the leading enterprises are not more than 15%, and the net interest rate of the Midea Group in 2020 is 9.57%, and the net interest rate of Gree Electric Appliances is 13%. Tech companies a little higher? Not necessarily. In 2021, Xiaomi's net interest rate is only 6.7%, which is not as good as Midea and Gree; Huawei is slightly higher, with a net interest rate of 17.85%, and SMIC is relatively high, reaching 31.27%.
What about the real estate industry? This line has long been considered a lucrative act. In fact, this is not the case, in 2021, Country Garden's net interest rate is 7.83%, and Vanke's net interest rate is 4.97%, which is not as good as the manufacturing industry. Should the Internet industry be relatively high? Tencent's net interest rate is 22.1%, which is really quite high. But the Internet industry is more special, in addition to these giants, many companies are losing money, not making money at all.
Looking at the most profitable banks recognized by everyone, in 2021, ICBC's net interest rate will be 37.15%, construction behavior will be 36.87%, agricultural behavior will be 33.6%, medium behavior will be 37.54%, delivery behavior will be 33%, and postal savings will be 24%. It is worthy of a profitable business, but in fact, the bank is not the most profitable industry, and there is a stronger than them, that is, liquor.
There is a liquor company, selling a dollar, to make a net profit of 5 cents, such a business is the real profiteering, it is Maotai. According to the financial report, in 2021, Moutai revenue was 106.190 billion yuan, net profit was 52.460 billion yuan, daily earnings were 144 million yuan, and the net interest rate was nearly 50%.
Globally, the goods that can become luxury goods are designer clothing, jewelry, perfumes, watches, bags, drinks, etc., such as LV, Chanel, Dior, Gucci, Hennessy and other luxury brands. In China, in recent years, Moutai has undoubtedly become the country's largest luxury goods group.
What is Moutai a luxury product?
In the eyes of many people, isn't wine just water? It can also be a luxury. At LVH Moscow, wine and champagne brands like Hennessy have a history of hundreds of years. Judging from the official introduction of Moutai, it is on a par with Scotch whisky and French brandy, and is the originator of Daqu sauce flavored liquor, which has a history of more than 800 years.
So historical, it really has one of the characteristics of luxury. Of course, luxury goods are naturally expensive and scarce. Bags like Chanel and Dior are tens of thousands, tens of thousands of prices, and a bottle of Feitian Maotai is only 1499 yuan, which seems not to be luxurious enough.
In fact, Moutai is not cheap, although the official price is 1499 yuan, but the market sales price is much higher than this, many people still hoard up and do not sell, it can be said that a bottle is difficult to find. The monthly per capita disposable income of the mainland is less than 3,000 yuan, which is equivalent to a bottle of wine for half a month. As early as 2005, a bottle cost 500 yuan. And a bottle of wine is not much, and it tastes very fast, so the price is a luxury.
As for the scarcity, it is indeed less. With an annual production of only 60 million bottles, it is difficult to expand production capacity. Not to mention that to maintain scarcity, we must not increase production capacity, but let people feel that a bottle is difficult to find, in order to raise the price and earn more profits.
How did Moutai become the "King of Baijiu"?
Moutai can have today's status and performance, inseparable from a person, he is Ji Keliang. In fact, after the founding of the People's Republic of China, Moutai's life was not good, and it was in a state of decay. After graduating from university, Ji Keliang came here to work, then took up the position of factory director and began to reform Moutai.
On the one hand, the reform of the brewing process of Moutai is Ji Keliang is recognized as a master of wine tasting in the industry, he himself said that the Moutai he drank had 2 tons, through non-stop tasting, improve the process, to have today's quality. Moutai is popular in the industry, and its quality is recognized by consumers.
On the other hand, in marketing, Moutai and "national liquor" are equated. In 1915, he won the Panama Gold Medal, the necessary wine for the founding ceremony, etc., and one story after another, the status of Moutai wine was continuously improved. In terms of publicity, the concept of "national wine" is constantly proposed to seize the minds of consumers. Although the concept of "national liquor" cannot be used today, its status is unshakable.
Of course, there is also the reason for the market hype, merchants and individuals will hype Moutai up, but also increase its reputation and market influence.
The market capitalization exceeds the GDP of 11 provinces and municipalities
In recent years, with the continuous improvement of Moutai influence, profits have become more and more lucrative, and the market value has also soared. On February 10, 2021, the market value of Moutai exceeded 3 trillion yuan, reaching 3.2 trillion yuan, surpassing ICBC and becoming the king of A-shares. In the list of the top 500 mainland listed companies by market capitalization in 2021, Moutai ranked second, second only to Tencent and surpassing Ali.
At present, the market value of Moutai is 2.24 trillion yuan, exceeding the GDP of 11 provinces and municipalities in Inner Mongolia, Guizhou, Xinjiang, Tianjin, Heilongjiang, Jilin, Gansu, Hainan, Ningxia, Qinghai and Tibet in 2021.
However, Moutai is not satisfied with more than 50 billion yuan of profits, and has been accelerating its self-operation in recent years. Self-operated sales accounted for nearly 20% of total sales in 2021, which is not enough, on March 31 this year, Moutai launched the "i Moutai" APP, and immediately landed on the first place in the free list of Apple's App Store. It is understood that in one hour, the total number of people who made reservations on the first day exceeded 2.29 million, which can be said to be very hot.
Duan Yongping, who often holds Moutai stock, expressed his appreciation for Moutai's move, and it seems that Moutai performance is about to reach a new high, the stock price may continue to rise, and investors can earn more.
In the short term, the myth of Moutai will not be shattered, and the high market value will still be maintained. Moutai entering the ranks of luxury goods is also unstoppable.