Without demand, the price increase tide is impossible.
Text | Selling Wine Wolf Team
Ed southerly
On October 31, Kweichow Moutai issued a major event announcement late at night, announcing an increase of 53%vol Kweichow Moutai (Feitian, Five Star) ex-factory prices from November 1, 2023, with an average increase of about 20%.
On November 1, Luzhou Laojiao announced the adjustment of the price of 60 versions of special songs, and the settlement prices of 52 degrees, 43 degrees and 38 degrees Luzhou Laojiao 60 versions of special songs (500ml*6) were increased to 478 yuan/bottle, 438 yuan/bottle and 428 yuan/bottle respectively.
Two of the "Mao Wulu" have announced price increases, and "whether Wuliangye will follow the rise" has instantly become the focus of attention of many liquor practitioners.
In recent days, there have been market rumors that Wuliangye is considering raising prices. In this regard, Wuliangye made it clear in an interview with the media that "internal discussion on price increase" and "price increase timing to be determined" are false news.
Wuliangye's reply made the rumors no longer have a basis for spreading, but the discussion about the "liquor price rise tide" did not lose its "nutrients", and many media wrote articles to join the discussion, such as: "The liquor price rise tide is coming? Industry insiders look at it this way...""The "liquor price rise tide" is coming? Just now, Luzhou Laojiao also officially announced a price increase! Some people have begun to hoard Moutai..."", "The price rise tide of the liquor industry continues, Luzhou Laojiao joins the price increase army, and wine companies need to carefully control the price increase" and so on.
1
There is not a single data to support the price increase of liquor!
There has been a history of Feitian Moutai rising in price, and everyone collectively follows the rise!
It is reported that at the end of 2017, the Moutai National Dealers Association reported a price increase, and since 2018, the ex-factory price of Feitian Moutai has been increased by 18%. Subsequently, a number of liquor brands such as Wuliangye, Yanghe, Jiuguijiu, and Jiannanchun adjusted the prices of their products.
Since there are "precedents to follow", it is reasonable that there will be heated discussions about the "tide of liquor price increases". However, some industry veterans clearly pointed out that it is meaningless to put aside the comparison between the market environment and the past.
Since the outbreak of the epidemic, the domestic liquor market has been through round after round of "challenges". Later, some channel sales were blocked, and the price inversion became more and more serious. After 2023, the pandemic has indeed disappeared, but the "challenges" have not.
The inventory problem has not been solved so far, and market consumption is only recovering, and "weak consumption" is still a fact.
Although many leading liquor companies have delivered beautiful report cards in the first three quarters of 2023, the prosperity of the liquor industry can never be supported by the "good news" of a few liquor companies alone.
According to industry insiders, since the beginning of this year, from the macro economic recovery situation to the various data released in the liquor industry, there is no evidence that can support the price increase of liquor.
Even though Feitian Moutai has increased the ex-factory price, it remains to be verified whether it can ultimately drive the market transaction price to continue to rise.
2
No price increase does not mean that it is bad
Health is the most important thing!
In the opinion of industry experts, the first thing to consider when the price of liquor products wants to rise is their own strength, such as: Is the brand appealing enough? Is the sales system sufficient? Even if these are qualified, it is only a prerequisite for meeting the price increase. In fact, it is always the consumers in the market who really decide whether the price can be raised.
The amount of channel inventory is the clear attitude of consumers towards price increases. Since 2023, problems such as high inventory and channel backlog of wine companies have been more common, and in such a situation, the probability of a wave of price increases is too small.
Perhaps, some people will say, the price increase can boost confidence and help accelerate the recovery of the industry. However, the health of an industry is the most important thing.
In an era where the whole people pursue healthier, the premise for an industry to achieve high-quality development is also health.
Anything that doesn't address the problem that has already occurred and tries to cover it up with shortcuts is not advisable.
Of course, actually solving the problem will cause "labor pain", but it will be worth it. For example, Shuijingfang stabilized its performance by actively reducing inventory in the first quarter of this year, returned to growth in the second quarter, and successfully achieved the goal of double-digit growth in the third quarter.
In the long run, the price of liquor will continue to rise, but only looking at the current stage, the market in a state of recovery needs to be regulated by liquor companies from multiple dimensions such as quality, price, and output in combination with their own actual conditions, so as to truly solve the problem of high inventory and meet a better era in a healthy state. #MyLifeDiary##Liquor##头条酒馆#