In May 2024, Caixin China's manufacturing purchasing managers' index (PMI) was released, with a PMI of 51.7, up 0.3 percentage points from April and hitting a new high in 22 months since 2022. The PMI index reflects the expansion of purchases, and it can be seen that the production of enterprises is increasing.
In general, the mainland's real economy as a whole has begun to show the rudiments of a K-shaped economic recovery, which is simply polarized, with those who make money more profitable, and those who do not make money more difficult to make money.
According to past market experience, K-shaped recovery is a process of major reshuffle, and often the profits of an industry are concentrated in only a few companies that can cope with changes and achieve innovation.
Growing against the trend, the growth rate of national treasure Li Du has not decreased
At present, the overall domestic consumption growth is still insufficient, and alcohol, as one of the main driving forces of the consumer market, is entering a period of transition and development cooling-off period, with increasingly fierce industrial competition and more obvious stock characteristics. The Matthew effect in the liquor market will be accompanied by the development trend of "strong concentration, strong differentiation and more optimization" in the advantageous production areas, advantageous enterprises and advantageous brands, and enter the stage of transformation and reshuffle of the liquor industry.
"High inventory" and "price inversion" have become hot issues in the liquor industry in recent years, and there are very few liquor companies that can still maintain a good price throughout the domestic liquor industry.
However, a "dark horse" slid through the night sky like a bright pop, breaking this argument and fighting its way out of the encirclement with its unique style of play. On the evening of August 21, Li Du (6979. HK) released its 2024 first-half results, with revenue of 4.133 billion yuan in the first half of the year, a year-on-year increase of 17.5%; Its national treasure Li Du increased by 37.9% year-on-year, and the brilliant results immediately swept the industry.
In the challenging macroeconomic and capital market environment, what is the secret behind the 60-fold increase in revenue of a wine company from Jiangxi Province, which has grown against the trend in the face of a challenging macroeconomic and capital market environment? Let's find out.
Culture is the first life of liquor
The national treasure Li Du is a "national treasure" in the "national security" of Chinese liquor, and is one of the top ten archaeological discoveries in China in 2002; In 2006, it was a national key cultural relics protection unit. It is a cultural heritage held in the palm of the hand by the country, and it is also the world's only "one mouthful of four spices" liquor held in the palm of the hand by Li Du people.
Li Du in the two Song Dynasty has formed a polder city, relying on its superior geographical location, developed water and land transportation, to the end of the Yuan Dynasty and the beginning of the Ming Dynasty to develop into a well-known Daxu Town, the formation of a large-scale liquor industry, its liquor history can be traced back to more than 2000 years ago, since ancient times it has been spread "Wang Anshi smells the fragrance and dismounts" and "Yan Tong Uncle knows the taste of the boat" reputation.
In June 2002, in the process of renovating and expanding the production workshop of the old factory, the national treasure Li Du was shocked to the world with a complete and complete liquor site with 13 cellar pools of the Yuan Dynasty, which is the site of the national treasure Li Du Yuan Dynasty Shochu Workshop, which is the earliest discovery age, the most complete relics, the most relics, the longest continuation time and the large-scale ancient liquor workshop site with local characteristics, which was rated as one of the top ten new archaeological discoveries in the country in 2002, and is a national key cultural relics protection unit and national industrial heritage.
The discovery of this "ancestral garden of Chinese soju" suddenly made the national treasure Li Du famous, no one would have expected that the lonely and unknown small distillery in the past was like a "generation of grandmasters" who lived in seclusion in the mountains and forests, with its "martial arts supreme" identity was confirmed, its cultural value and commercial value soared, and was unanimously recognized inside and outside the industry, and the sales volume of the national treasure Li Du market was also in short supply, and it was out of stock several times.
Experience is the first battlefield of liquor
The closer you are to the consumer, the easier it is to succeed.
The experience economy is the new top of the commercial food chain, and in the era of great change, it is even more user-centric, and from 2013 to 2023, the national treasure Li Du ushered in a decade of rapid growth. In the past two years, in the face of the economic slowdown, there has still been counter-cyclical growth, which is enough to prove that the thickness of the brand culture and the breadth of immersive experience of National Treasure Lee can stand the test at any time.
Culture is the shield of the national treasure Li Du, and experience is the spear of the national treasure Li Du.
The national treasure Li Du has innovatively created an immersive experience mode based on history, quality as the core, and experience as the content, and has taken Zhiweixuan as the experience position all over the country, so that more wine lovers can experience the feast of Li Du's cultural wine and food culture.
In 2016, Commander Tang, general manager of Guobao Li Du, based on the cellar pool of the Yuan Dynasty, created the "Chinese liquor immersive experience", dividing the experience of the distillery into three levels of experience: general rudder, sub-rudder and small rudder, and opened more than 300 Zhiweixuan across the country, in the liquor experience places based on consumers' consumption concepts and personalized needs, the charm of the immersive experience will continue to continue, so that consumers can feel and taste China's liquor culture by themselves through the experience scene.
At the same time, more than 300 Zhiweixuan stores all over the country have also contributed to the revitalization of Jiangxi's liquor industry, actively opened up the "last mile" for the whole country, and successfully built a cultural ecosystem with immersive experience.
Trophy is the first reputation of liquor
On September 23, the 2024 Brussels International Spirits Awards (Spirits Selection by CMB) selection list was released globally. The "1308 World Heritage Gift" stood out from 2,811 samples from 59 countries and regions and won the Grand Gold Medal, the highest honor of the competition.
This is the second time that Lidu core products have won this international award after Lidu Sorghum 1955 and 1308 won the big gold medal award in 2015 and 2019 respectively. So far, Lidu Liquor has achieved the "Grand Slam of Grand Gold Awards" and has become the first liquor company in China to have three Grand Gold Medal Awards, and has bloomed with dazzling brilliance on the world stage.
With the frequent fragrance of the national treasure Li Du on the international stage, the world can vividly see the 800-year-old cultural thickness of the national treasure Li Du through the window of Li Du, and let the world cultural heritage float fragrance to the world. What's even more incredible is that in ten years, its tax revenue has increased by 100 times, its output value has increased by 28 times, the scale of winemaking has increased by 25 times, the number of employees has increased by 9 times, and the annual income of employees has increased by 3.7 times.
In the face of the challenges of the domestic economic environment, the lack of consumption momentum, and the complexity of the international situation, the battle for terminals, channels and resources in the liquor industry has been intensifying, the overall domestic consumption has tended to be saturated, and the industry has strengthened its involution. With its culture, experience and reputation, the national treasure Li Du has become popular against the trend, and has become a clear stream against the trend in the environment of weak economy and the volume of the wine industry.
To sum up, behind the 60-fold increase in ten years is the victory of the national treasure Li Du's long-termism, and the breakthrough in various dimensions such as cultural output, quality forging, brand strategy, word-of-mouth accumulation, organizational upgrading, and immersive experience core breakthrough. Especially based on the immersive experience, it not only strengthens Lidu's advantages in building three-dimensional competition, but also empowers dealers and partners to enhance their confidence in development. It can be said that every step of Li Du has stepped on the process of development and the context of the times, so every action has become a "phenomenon" widely praised in the industry.