Reporter Liu Xuexia Huaxia Wine News
In recent years, the competition in the alcohol market has become increasingly fierce, the external environment is complex and changeable, the internal contradictions in the industry are prominent, and the industry is transforming and upgrading, and the wine market is facing unprecedented challenges. At the same time, with the continuous change of consumer demand, the alcohol market is also undergoing an unprecedented transformation. From traditional brewing techniques to modern production methods, from traditional sales channels to digital transformation, the wine industry is constantly exploring ways to innovate.
In order to better respond to market changes and help wine brands seize market opportunities, Huibo Technology Industry Research Institute recently released the "2024 Wine and Beverage Industry Digital Research Report" (hereinafter referred to as the "Report"), which deeply analyzes the current market status of the wine and beverage industry, discusses the latest trends and breakthrough strategies of digital operation in the wine and beverage industry, and may provide some reference ideas for wine companies that are exploring and experiencing digital transformation and falling into growth problems.
New opportunities in a diversified landscape
In 2024, the mainland alcohol market will show a pattern of diversified development. With the advancement of science and technology and the continuous change of consumer demand, the wine industry is facing new development opportunities and challenges. From the perspective of market size, the wine and beverage industry as a whole has maintained stable growth, but the internal structure is constantly optimized and adjusted. The differentiation of consumer portraits is becoming increasingly obvious, and consumers of different ages, regions and consumption scenarios have different preferences for alcohol, which provides more market segmentation opportunities for wine companies.
●Market size: The overall scale is stable, and the online market is growing rapidly
The overall scale of the liquor circulation market showed a steady fluctuating trend, but the scale of the online liquor market increased significantly. In 2023, the size of the online alcohol market will exceed 120 billion yuan, a year-on-year increase of 56.4%. Taking the Douyin e-commerce platform as an example, the platform's alcohol sales in Q1 2024 increased by 72% compared with Q1 2023, fully demonstrating the huge potential of online channels in the field of alcohol sales. At the same time, more and more consumers prefer to buy alcohol products through online channels. According to the data, in 2023, 54.2% of Chinese netizens prefer to buy alcohol products through online channels, and this proportion is increasing year by year.
●Consumer portrait: Men are the main force of consumption, and women's purchase potential cannot be ignored
According to the data, men are the absolute main force of alcohol consumption, accounting for 84%, among them, men over 41 years old have a particularly strong willingness to consume alcohol products. Male consumers tend to have a high level of loyalty, and once recognized, they will continue to buy the same brand; Female consumers account for only 16% of the alcohol market, but the market potential is huge. Female consumers pay more attention to the taste, quality and health factors of alcoholic beverages, and are interested in low-alcohol and soft-tasting alcoholic beverages, such as wine, sparkling wine, cocktails, etc.
In terms of age, there are significant differences in the preferences of consumers of different age groups. The mature age group has a special preference for liquor and beer, while the younger group is more interested in diversified alcohol consumption experience, focusing on personalized and fashionable consumption methods, and showing a higher acceptance of emerging categories and innovative products.
●Competitive landscape: The leading enterprises have a stable position, and small and medium-sized brands innovate to win vitality
In the liquor market, the leading enterprises have a stable position, and leading enterprises such as Moutai and Wuliangye have occupied the forefront of market share for a long time by virtue of their strong brand influence, excellent product quality and extensive market channels; The turnover rate of the top 10 brands is 30%, and the turnover rate of the top 100 brands is 49%, which means that small and medium-sized wine companies still have the opportunity to break through the market and gain more share through innovation and differentiated competition.
●Category heat analysis: Baijiu stands out, and rice wine/rice wine has increased significantly
From the perspective of data analysis, liquor occupies an absolute dominant position, accounting for 82.2% of sales, from high-end Moutai and Wuliangye, to low-end Erguotou and Laobaigan, the price range of liquor is wide, which can meet the needs of different consumers; Wine, foreign wine, fruit wine, beer, and rice wine/rice wine also have a certain market share. Rice wine/rice wine has increased significantly, and it is deeply loved by consumers who are concerned about health preservation.
● Consumer price analysis: 100 yuan to 300 yuan price range hot sales, driving 1,000 yuan high-end growth
100 yuan to 300 yuan is the hot-selling price range of various items, and the sales account for more than 25%. These products usually have a high price-performance ratio and can meet the needs of most consumers. In addition, the sales of alcoholic products in the price range of more than 1,000 yuan increased significantly. In Q1 of 2024, the sales of alcoholic products with an average sales price of more than 1,000 yuan accounted for more than 30%, and liquor merchants improved the overall sales conversion of the brand through limited models, co-branded models, product portfolio sales and other forms, which also drove the sales growth of the price band of more than 1,000 yuan.
●Sales channel analysis: live broadcast promotion opens up new increments for categories
Offline franchised stores/supermarkets provide consumers with more choices, online flagship stores display brand image, and live broadcast promotion opens up new increments for categories, with live sales accounting for more than 6% of each sub-category, and all maintain double-digit growth.
Eight trends in the digital operation of the wine and beverage industry
With the continuous development of technologies such as big data, cloud computing, and artificial intelligence, digital operation has become the key for wine companies to enhance their competitiveness and achieve sustainable development. The report provides an in-depth analysis of eight trends in the digital operations of the beverage industry, which are profoundly shaping the future of the industry.
●Omni-channel integrated development is the trend of the times: In the current market environment, consumers' shopping behaviors are becoming more and more diversified. They may browse product information online and then go to offline stores to experience and purchase; You may also see a product you like in a physical store and compare prices and buy them through online channels. The integrated development of omni-channel can meet the shopping needs of consumers in different scenarios and provide consumers with a seamless shopping experience. By integrating online and offline resources, wine companies can improve operational efficiency and customer satisfaction by realizing inventory sharing, membership system interoperability, and marketing campaign coordination.
● Consumer precision marketing is the key to increasing profits: With the help of digital tools, wine companies can collect and analyze large amounts of consumer data to gain a deeper understanding of consumer needs, preferences and purchasing behaviors. Through the mining and analysis of this data, wine companies can accurately locate target customer groups, understand their interests, consumption habits and purchase needs, and formulate personalized marketing strategies.
●The importance of private domain traffic operation is highlighted: With the intensification of market competition, the cost of acquiring new customers is getting higher and higher, and in this case, the importance of private domain traffic operation is becoming increasingly prominent. By establishing their own official websites, apps, WeChat official accounts, mini programs, communities and other private domain platforms, wine companies can precipitate users and carry out refined operations. Private domain traffic operation can reduce marketing costs, improve user repurchase rate and brand loyalty, and at the same time, is conducive to brand communication and word-of-mouth construction.
●Live streaming and short video marketing have become mainstream: Live streaming and short video are intuitive, vivid, and interactive, which can quickly attract consumers' attention. Through live streaming and short video content marketing, wine companies can more comprehensively display product features and brand image, and enhance product sales and brand awareness.
●Product innovation and personalized customization have become a new trend: With the diversification of consumer demand, wine companies have developed new products that are more in line with market demand through the mining of consumer feedback data, such as low-alcohol wine, healthy wine, personalized customized wine, etc., which are welcomed by the market.
●Digital optimization of the supply chain enhances customer experience and trust: The supply chain of the beverage industry is complex, involving multiple links such as raw material procurement, production and processing, warehousing and logistics. Through digital technology, real-time data sharing and collaborative operation of all links in the supply chain can improve the efficiency and transparency of the supply chain, reduce costs, and better respond to market changes and emergencies.
●AI customer service improves after-sales service experience: In the digital era, consumers have higher and higher requirements for after-sales service. Using artificial intelligence technology, wine companies can build an intelligent customer service system to achieve 24-hour online service and quickly answer consumers' questions. At the same time, through the digital platform, optimize the after-sales service process, improve the quality and efficiency of after-sales service, and enhance consumer satisfaction and reputation.
●Data-driven enterprise decision-making is more scientific: through in-depth analysis of data, understand market dynamics, product sales and changes in consumer demand, make scientific decisions, and optimize product layout and marketing strategies.
Four strategies to help the digital transformation of beverage companies
In the face of the diversified market pattern and the impact of new trends in digitalization, how can alcoholic beverage brands break the situation?
The report gives four major strategies to provide strong support for the digital transformation of alcoholic beverage enterprises.
●Building a global data middle platform is the foundation of digital transformation
Building a global data middle platform is the foundation of digital transformation. By integrating internal and external data resources to achieve unified management and analysis of data, alcoholic beverage companies can have a more comprehensive understanding of market conditions and consumer needs, and provide strong data support for subsequent decision-making.
●Accurately mining user needs is the core of digital transformation
Precision marketing is the key to improving marketing efficiency and conversion rates. By using big data and artificial intelligence technology, wine companies can deeply analyze consumers' purchase preferences, consumption habits and other characteristics, and build a comprehensive customer labeling system, so as to formulate more personalized marketing strategies and product plans.
●The integration of public and private domains is the key to digital transformation
The efficient integration of public and private domains is an important way to promote brand growth. On the public domain platform, wine companies can attract potential consumers through advertising, content marketing, etc.; On the private domain platform, wine companies can establish closer ties with consumers through membership management, community operation, etc., and achieve in-depth user operation and conversion.
Data-driven decision-making is the guarantee of digital transformation
Building a brand-owned report analysis system is an important basis for ensuring scientific decision-making. Through real-time analysis of market data and consumer feedback, wine companies can adjust their operational strategies and product plans in a timely manner to ensure that their decision-making is more scientific and effective.