Following the "3.15 party", Tinghuajiu, which is fading out of the public opinion turmoil, has made a blockbuster move. On May 9, Tinghua Liquor General Distribution Qinghai Spring issued three notices in a row, mainly involving the limited quota supply system, increasing the supply price, and the high-quality packaging is only for export.
Nashi believes that the issuance of the three notices has released a clear signal: whether it is from consolidating high-end positioning or activating market vitality, the change of listening to Huajiu is about to come out.
Three notifications a day
What's the meaning behind it?
Judging from the three notices issued in succession, the main ones involve the following:
The first is to implement a limited quota supply for the standard packaging of Tinghua wine. From 2025 to 2035, a total of 30,000 tonnes of canopy products will be delivered to the mainland market. The total amount put on the market each year does not exceed 3,000 tons, and it is divided into two supply systems, planned and unplanned, with different prices. The second is to increase the settlement price of the dealer of the standard bottle of Tinghua wine to 3989 yuan / bottle. Third, in order to accelerate the internationalization of Chinese liquor, the price of up to 58,600 yuan per bottle of Tinghua boutique will be suspended in the mainland, only for export.
In Nashi's view, behind a series of market strategy adjustments, Tinghuajiu may have more far-reaching and comprehensive considerations.
On the one hand, the implementation of limited quota supply to consolidate high-end positioning. Rarity is the key to the fight in the high-end liquor market. As an important means for famous wine companies to stabilize their control, the "quota system" shows the dual consideration of first-line wine companies for increasing growth and maintaining brand power. This time, Tinghua Liquor announced that it would control the total amount put on the market every year within 3,000 tons, of which the planned quota would not exceed 1,000 tons. Undoubtedly, this will further confirm the scarcity of the brand, and in the long run, it is expected to increase its value space, which will also become a powerful weapon for Tinghua Liquor to conquer the market.
On the other hand, price increases are more conducive to boosting consumer confidence in the market and stimulating market demand.
It is understood that at present, the ex-factory price of Feitian Moutai is about 1,169 yuan, and the terminal transaction price of the bulk bottle market is within 2,600 yuan. The settlement price of Tinghua liquor dealers was increased to nearly 4,000 yuan, exceeding the retail price of Feitian Moutai. Although the retail price of standard Tinghua is still 5,860 yuan, the price is more than twice as expensive as Feitian Moutai.
Unlike other consumer goods, liquor is a social consumer product, and confidence and expectations are more important. The increase in the supply price of the standard packaging of Tinghua wine this time is the demand of market control, and it can also inject stronger confidence and vitality into the market. This is not only to adapt to the consumption characteristics of high-end products in the industry and enhance its social value in the hearts of consumers, but also to show its confidence in product quality and its determination to actively respond to market challenges.
Finally, Tinghua boutique packaging is only for export, which will further resolve online public opinion and accelerate the export of liquor. Since its listing, the Tinghua boutique series products have been controversial in the domestic market because of their complex technology and high standards for raw wine, and the price is as high as 58,600 yuan / bottle. Stopping the sale of this product in the domestic market can, to a certain extent, avoid misunderstandings and doubts about the high price of Tinghua wine in the market, and avoid unnecessary public opinion crises. At the same time, it will also accelerate the strategy of Tinghua Liquor going overseas, tell the story of Chinese liquor to the world, and "pave the way and build bridges" for the internationalization of Chinese liquor.
Create high-end scarcity, increase prices,
Why is Tinghuajiu full of confidence?
In the past year, the liquor industry has had an extraordinary year. Subject to "inventory backlog", "poor sales" and "price inversion", the entire industry has actively or passively made large-scale adjustments from many aspects. Under the new round of development of the liquor industry cycle, especially after the "315" public opinion turmoil, why is Tinghua Liquor full of confidence when it implements limited quota supply and product prices rise again? Some industry insiders said that the deep comprehensive strength and market foundation of Tinghua Liquor are inseparable from it, and we also see the company's persistence from Qinghai Spring's 2023 annual report.
1. Vigorously carry out product research and development to bring breakthrough technologies to the industry
In terms of product innovation, on the basis of inheriting the advantages of traditional solid-state liquor, Tinghua Liquor has created a new theory of "double activation" healthy liquor, and successfully launched the Sauce Flavor PLUS and Strong Aroma PLUS series liquors, realizing the upgrade of flavor and taste and the innovation of drinking value. It is worth mentioning that the "method of rebrewing old liquor" used by Tinghua Liquor obtained the "Invention Patent Certificate" issued by the State Intellectual Property Office in March 2024.
2. Aim at the target market for precise communication and effectively enhance brand awareness
By continuing to advertise in mainstream media and major airports, aviation magazines, target building elevators and other media, and carrying out market education on the characteristics of "double activation" liquor theory, "directional ingredient editing" process system, flavor and taste created by Tinghua Liquor, and also inviting 208 Chinese culinary masters with more than 30 years of liquor and covering major Chinese cuisines to participate in the offline tasting activities of Tinghua Liquor, which further enhanced the popularity of Tinghua Liquor in the target market and consumer groups. It has also laid a good foundation for the company's follow-up market development work.
3. Promote the selection of merchants in an orderly manner and broaden product sales channels
In terms of market expansion, Tinghua Liquor Industry has promoted the selection of merchants in an orderly manner, successfully selected 38 distributors, and opened 16 Tinghua Liquor experience stores in many cities. This initiative not only broadens the sales channels of the product, but also provides consumers with a more intuitive experience opportunity. At the same time, in order to strengthen market control measures, the company advocates the establishment of a dealer self-discipline committee, which not only ensures the effective implementation of the company's sales and price policies and the smooth development of investment promotion, but also fully mobilizes the advantages and enthusiasm of dealers in the target area, consumer groups, brand communication and product promotion.
In Nashi's view, through its long-term efforts in product research and development, brand promotion, and market expansion, Tinghua Liquor has made resolute progress in the market even in the face of uncertainties, and at the same time injected new vitality into the traditional liquor market and brought revolutionary breakthroughs.
or for the high-end liquor market
Bringing more options
According to the "2024-2030 China Liquor Industry Market Status Analysis and Investment Prospect Planning Report" released by Zhiyan Consulting, although the overall supply and demand of liquor in mainland China continue to decline, the proportion of sub-high-end and high-end demand continues to increase, driving the scale of the mainland liquor market to continue to grow. Specifically, in 2022, the domestic high-end and sub-high-end shares will account for about 16.9% and 20.8% respectively, and as the recognition of high-end liquor products continues to increase, the proportion of high-end and sub-high-end will continue to increase, driving the scale of the mainland liquor market to continue to grow.
The liquor industry has always had the tradition of "whoever occupies the high-end is the king", and the current high-end liquor market is gradually developing from the "Mao Wulu" three-legged to diversification, with more and more powerful liquor brands, the traditional high-end liquor brand market has begun to be slowly squeezed, and the rare Tinghua liquor that dares to set prices, has the ultimate product power, and will bring new choices to China's high-end liquor market.
China's high-end liquor has always been born from "high" and won from "excellent". For consumers, they have high expectations for Tinghua wine, which can bring a new drinking experience; From the perspective of the competitive landscape, the high-end price of Tinghua Liquor can achieve the anchoring of the brand status of the first-line high-end liquor camp, so that consumers can feel the dignity and quality conveyed by the brand when using Tinghua Liquor.
With the implementation of a series of strategies such as limited quota supply, more rare and high-quality Tinghua liquor will receive more attention and expectation in the high-end market, and become a new high-end liquor choice for consumers.