The performance is outstanding, and Changyu has demonstrated the effectiveness of reform with contrarian growth
Text | Linxi
Recently, Changyu released its 2023 annual report: the company achieved operating income of 4.385 billion yuan, a year-on-year increase of 11.89%, and net profit of 532 million yuan, a year-on-year increase of 24.2%.
In 2023, the wine market will not usher in the expected consumption recovery, and "destocking" will become the main theme of the industry. As a leading domestic wine company, Changyu has calmly studied and judged the industry situation on the one hand, seen the upward trend in the counter-cyclical for 10 consecutive years, and conveyed the confidence of long-termism, and on the other hand, it continued to amplify the sales and profit advantages of core products, focusing on the strategy of rejuvenation and internationalization, and seeking new increments.
In the eyes of industry insiders, this report card is not only a recognition and reward for Changyu's patience in cultivating the market, but also gives wine practitioners firm confidence and motivation.
01
Clarify the division of labor of the business department and effectively implement the strategic objectives
Let's first take a look at the composition data of Changyu's operating income.
In terms of products, the revenue of wine was 3.139 billion yuan, accounting for 71.59% of operating income, an increase of 10.48% compared with the revenue in 2022, and the revenue of brandy was 1.153 billion yuan, accounting for 26.3% of the operating income, an increase of 16.35% compared with the revenue in 2022.
As you can see, both major categories have seen an increase in revenue, and brandy has grown at a higher rate than wine. This achievement is due to the reform of Changyu's sales system.
It is understood that in order to implement the "three focuses" strategy, fully release the potential and vitality within the company, and effectively meet the consumption needs of different groups of people, Changyu has successively established 7 sales divisions in 2022, namely Longyu Sales Division, Winery Wine Sales Division, Cabernet Sales Division, Brandy Sales Division, Imported Wine Sales Division, Online Sales Division and Tourism Division.
In the eyes of industry insiders, Changyu's move has clarified and improved the division of powers, responsibilities and interests of each business division, so that the team can specialize in the industry, effectively improve the efficiency of front-line organization and command in the market, and break the original sales model, so as to give more resources and support to strategic brands and new products, and better implement the company's strategic goals.
At the same time, each business unit has its own core products, which is conducive to Changyu to concentrate manpower and resources to develop products that adapt to different consumers, adjust them in a timely manner according to market conditions, and give full play to the advantages of the products of each business division, and provide dealers with more professional and better services.
02
Strengthen the "three focuses" strategy and deepen the effectiveness of reform
As we mentioned earlier, 2023 will be a very challenging year for the entire wine industry. In the context of economic slowdown, weak consumption and overcapacity, the market size of wine has shrunk further, and the leading enterprises represented by Changyu are also facing great challenges.
So, during the reporting period, what were the main tasks that Changyu did to achieve contrarian growth?
First, innovation does not stop, adhere to innovation to lead the company's development. Last year, while adhering to the development strategy of "focusing on mid-to-high-end, high-quality, and large-scale single products", Changyu continued to develop new products, and launched new products such as the National Red Dragon Message, the Effie Fort Qianli Jiangshan Series, and the Keya Dragon Year Zodiac Commemorative Wine.
Second, deepening the construction of the business unit system has played a decisive role in improving performance. As mentioned above, Changyu has established seven business divisions in 2022, and in the past two years, each business division has combined its own products and market characteristics to carry out a variety of marketing activities such as banquet promotion, tasting meetings, winery experience, and live streaming according to local conditions, so as to improve the efficiency of dynamic sales and "circle fans" of a group of consumers.
Third, focus on circle marketing and strengthen the construction of the marketing team system. During the reporting period, Changyu established a "marketing promotion" and "credit" evaluation system for distributors and alliances, focused on circle marketing and prescribed actions, integrated and upgraded the "Changyu Quality Life+" membership mini program and the "Changyu Wine Official Flagship Store" mall mini program, improved user experience, reduced subscription and operation and maintenance costs, and accelerated the construction of product experience halls, which achieved good results.
It is worth mentioning that the tonnage price of Changyu wine increased by 10% year-on-year compared with last year, which also confirms the effectiveness of Changyu's high-end strategy.
03
The quality has been further improved, and the global influence has continued to increase
Let's take a look at the domestic and foreign revenue data. According to the annual report, the total domestic revenue in 2023 will be 3.76 billion yuan, an increase of 13.27% year-on-year, and the foreign revenue will be 623 million yuan, an increase of 4.19% year-on-year. This also shows that the recognition of Changyu in the domestic and foreign wine markets is further improving.
In the past year, Changyu's high-end strategic brand, Longyu, has become a frequent guest on the wine lists of some of the world's high-end restaurants and Michelin-listed restaurants, and has been recognized by the food and beverage leaders. Today, through Changyu's channel advantages and Longyu's own excellent quality, it has been stationed in more than 50 countries around the world.
In 2023, Changyu won 227 awards such as Grand Gold Award and Gold Award in various well-known competitions at home and abroad. In addition, for the first time, it also ranked first in the list of "2023 World's Strongest Wine & Champagne Brands" released by BrandFinance, a global authoritative brand value evaluation agency.
At ProWein, the world's largest wine and spirits trade fair held in Düsseldorf, Germany, China's leading wine company Changyu appeared at the exhibition with a large independent booth, and its star brands such as Longyu, Keya, Effieburg, Cabernet, and Golden Ice Valley attracted attention from all over the world with their unique oriental charm and Changyu style.
Experts such as Mr. Frank Kämmer MS, Mr. Stefan Neumann MS, and other experts have said that Co-Asia 15-year-old XO has subverted their perception of conventional brandy, and they believe that Co-Asia is definitely comparable to the quality of the world's top cognac, but it is not a copy of cognac, but a real Chinese wine.
▲Mr. Frank Kämmer MS, Mr. Maximilian Steiner, "Austria's Best Sommelier", Mr. Zhou Hongjiang, Chairman of Changyu Company, Mr. Sun Jian, General Manager of Changyu Co., Ltd., and Mr. Lenz Moser, European Affairs Representative of Longyu Winery (from left to right)
In the 2024 MUNDUS VINI World Wine Competition and the 2024 Berlin Wine Competition, Changyu won a total of 26 medals, including 1 Grand Gold Medal and 17 Gold Medals.
In the eyes of industry insiders, the quality of Changyu's domestic wines and brandies has been internationally recognized, which is crucial to Changyu's performance growth, and has also played a positive role in promoting Chinese wines to the world. The continuous promotion of digitalization will also make Changyu more focused on precise operation and market positioning, and further promote Changyu's continuous growth.
What do you think about this, please leave a message in the comment area below to share.