The reduction of 198 brands and 2694 products is the number of "scale drops" given by Moutai Group since the "slimming" campaign. But the "slimming" addicted Moutai Group has no intention of ending the program.
Recently, it is reported that the liquor business of Guizhou Moutai Distillery (Group) Technology Development Co., Ltd. (hereinafter referred to as "Moutai Technology Development Company") has been merged into Guizhou Moutai Distillery (Group) Health Wine Co., Ltd. (hereinafter referred to as "Health Wine Company") last month, and the health wine company is currently seeking to sell its 40% equity interest in Guizhou Moutai Distillery (Group) Platinum Gin Co., Ltd. (hereinafter referred to as "Platinum Gin Company").
On April 18, Interface Liquor learned from the relevant departments of Moutai that the news was true. In the future, Moutai Technology Development Company will focus on the middle and upper reaches of the industry.
In fact, Moutai Group's action to cut the brand of Moutai subsidiaries has not stopped. On the one hand, it is crazy to drop the scale for "slimming down", and on the other hand, it is difficult to grow the number of core large items.
Between this subtraction and increase, Moutai Group has little time left for its subsidiaries.
Slimming is in progress
The incorporation of the liquor business into the health liquor company is not the first time for Moutai Technology Development Company to "reduce the burden".
As early as March 2020, the leadership team of Moutai Jikai and 9 national distributors once again proposed that in 2020, Moutai Jikai will ban low-end fragrant products and sauce products, and make every effort to create a "three-product project" that improves quality, tree brand and plastic taste. At that time, Zhang Zhiwei, general manager of the marketing company of Jikai Company, said that in order to thoroughly implement the plan of the group company's brand and product slimming, vigorously reduce brands and products, and use the brand and product of the group company's intellectual property rights, from 9 brands in 2019 to 7, namely Moutai alcohol, Tianchao Shangpin, Sauce Gate Classic, Family Portrait, Guizhou brand, Maoxian brand, and Fugui Wannian, the products were reduced to 80.
In this regard, Xiao Zhuqing, a liquor marketing expert, said: "These adjustments are all the management of Moutai focusing on the main business and maintaining the golden sign of Moutai. The integration of its subsidiaries is responsible for the future sustainable development of Moutai, so that Moutai's main business sauce wine can do better, Moutai's own products can do better, so cutting THE BRAND is the general trend of Moutai, especially the OEM wine that has been illegally publicized and rubbed in the hot spots of Moutai is a major benefit to Moutai. ”
In recent years, Moutai Group's "slimming" program has been heard endlessly, and many products have been included in the slimming list.
In May 2020, Li Jingren, deputy secretary of the party committee and general manager of Moutai Group, stressed at Moutai Sauce Liquor Company that it is necessary to further strengthen the slimming management of the product brands of The Sauce Liquor Company, strengthen large items, digest existing brands, and gradually solve related problems.
Along the way, the "slimming" campaign has lasted for nearly 5 years. Starting in 2017, the clean-up efforts were stepped up at the end of 2019. In January this year, at the second employee congress of the sixth session of Moutai Group, Moutai Group revealed that in promoting brand "slimming" and optimizing governance improvement, the company has reduced 198 liquor brands and 2694 products.
Brands are complex
For the subsidiaries of Moutai Group, the complicated product structure has become one of the "culprits" of "slimming".
Xiao Zhuqing, a liquor marketing expert, pointed out to the interface reporter that Moutai is the golden signboard of Chinese liquor, and many subsidiaries of the group and Sun Company have used the Moutai Group LOGO to promote some low-quality products, which consumes the reputation and social image of Moutai Group. Therefore, the main purpose of the timely suspension of Moutai Group is to protect Moutai's golden signboard and prevent the Moutai brand and Moutai corporate image from being diluted and consumed.
According to public information, an associated brand refers to a brand that is developed outside the company's own brand and sold and operated by a specific operator. Such as Guobo, Fortune, Golf, Wang Mao Wine, Hua Mao Wine, etc.; self-operated brands include the five brands of Moutai Prince Wine, Moutai Welcome Wine, Han Sauce Wine, RenJiu and Guizhou Daqu Wine independently sold and operated by Sauce Aroma Liquor Company, as well as Laimao Liquor Brand sold and operated by Guizhou Laimao Liquor Company; and the definition of monopoly products is the products developed under the company's own brand and sold in the company's designated areas or special channels. Such as Moutai Prince Wine (black gold), Moutai Prince Wine (sauce color), Moutai Prince Wine (Moutai Prince Wine), Moutai Prince Wine (Inheritance 1999), Han Sauce Wine (Blue Platinum), Han Sauce Wine (135BC) and so on.
Under the complicated product system, it also hides the dilemma of overdrafting the main brand of the subsidiary. For a long time, most of the liquor subsidiaries in Moutai Group have adopted the OEM business model, and the dependence on the parent brand of Moutai Group is too high.
"Overdrawing the main brand For Moutai Group, there is a potential risk of overdrafting the parent brand of Moutai, which is like a time bomb for the current Moutai Group." Therefore, it is also necessary to slim down at this point in time. At the same time, industry insiders also stressed, "Not only that, but the current slimming is also to concentrate scarce resources on the main products." ”
As we all know, the production capacity of sauce wine is the most scarce resource of enterprises. As a sauce and wine head enterprise, production capacity is also one of the main problems plaguing Moutai Group.
According to the Guizhou Moutai plan, the construction site of the project is located in Tongmin Town, Xishui County, Guizhou Province, and after the completion of the project, it can form a series of wine production capacity of about 12,000 tons, a koji production capacity of about 29,400 tons, and a wine storage capacity of about 36,000 tons. According to the interface reporter, in the whole year of 2021, Moutai will produce about 28,200 tons of series of wine-based wines. Therefore, when the project is completed, it will increase production by nearly half.
Focus on big pieces
With the deepening of the "slimming" plan, the thinking of Moutai Group's large items has become clearer.
As a phenomenon-level large single product of Moutai Group, Feitian Moutai has undoubtedly earned popularity in recent years, but also made sufficient profits for Guizhou Moutai and dealers. Recently, when the interface reporter visited the Beijing terminal market, he found that the terminal market price of Feitian Moutai ranged from 3700 yuan to 3800 yuan, and in some areas it was close to 3800 yuan.
At the same time that Feitian Moutai has become the "pillar" of Moutai Group's products, there are no hot-selling large items in Moutai Group.
When the interface reporter visited the KA store channel, he found that the products of moutai group subsidiaries were more shopped on the shelves of the supermarket. Among them, Moutai Prince Wine and Moutai Welcome Wine are the mainstays, and the price band ranges from 200 yuan to 600 yuan.
"Moutai series of wine sales are generally better. Many consumers choose Moutai series of wines for alternative consumption after buying Feitian Moutai and knowing that they are out of stock. In this regard, a supermarket salesman in Xicheng said.
With the deepening of slimming, when the products of Moutai Group subsidiaries fade the aura of Moutai, it seems that they will also face greater challenges. In the future, Moutai Group subsidiaries will pay more attention to the consumer market.
However, from another level of this issue, Moutai Group's move will also help its subsidiaries to form independent brand recognition in the terminal market, create super large items of their respective brands, and form a product group with Feitian Moutai as the main product and a variety of large items as a supplement within the overall group.
Xiao Zhuqing further pointed out that in this context, after the Moutai subsidiary has experienced a low tide period, the enterprises with excellent operation will continue to exist, and at the same time, the enterprises with poor operation will also be eliminated and written off.