Last weekend, a message spread on the Internet: Guizhou Moutai price reduction. This reverses the myth of a bottle of Hard-to-Find Moutai. According to online information, the original and bulk of Feitian Moutai have dropped sharply, with a price reduction of 200-300 yuan per bottle. According to the analysis of professionals, Moutai canceled the unpacking order and allowed the whole box to be sold may be the incentive. Some people also believe that the consumption tax expectation also poses a negative impact on Moutai liquor. Others believe that the impact of the real estate market has led to the realization of some private inventories. All in all, the price of Moutai wine has dropped. This is contrary to the expectation of liquor price increases at the end of the year.
There is no doubt that this news will have an impact on the capital markets. Kweichow Moutai fell more than 2 points at the opening of the market on Monday and went all the way down to -3.5%. Then the shock rose, and finally closed at -1.21%. It can be said that Guizhou Moutai received bearish news, but only slightly shocked. Surprisingly, Wuliangye fell sharply, and on the same day, Wuliangye opened with a decline of -7.63%, and still fell 5.18% at the close. The decline is much greater than that of Moutai in Guizhou.
Why? Personally, I believe that in China's high-end liquor market, Guizhou Moutai and Wuliangye have formed an oligopoly, and it is difficult for other brands to pose a challenge to it. But between the two, Guizhou Moutai has a significant advantage, Guizhou Feitian Moutai factory price of 1499 yuan, the market retail price reached about 3000 yuan, while Wuliangye Puwu factory price of more than 800 yuan, retail price of about 1300. It can be seen that the market's recognition of Moutai in Guizhou is significantly higher than that of Wuliangye.
Due to the significant brand advantage of Guizhou Moutai, when the price of Guizhou Moutai falls sharply, it means that its price is more close to the people, and some users of Wuliangye may turn to Guizhou Moutai, resulting in the market share of Guizhou Moutai continuing to rise, while the performance of Wuliangye is squeezed. This is a manifestation of brand power and an investment logic.
Another example of brand power influencing market flows is Huawei and Apple. Before last year, Huawei's high-end mobile phones continued to exert efforts, and its market share gradually increased, due to its own quality construction and brand building. However, due to the shameless suppression of the US imperialists, Huawei's high-end mobile phones have no rice to cook, and it is difficult to continue to release high-end mobile phones to the market. As a result, this part of the mobile phone users did not turn to domestic brands such as oppo, vivo, and millet, but most of them turned to Apple, resulting in a significant increase in Apple sales. That is to say, the brand power of other domestic brands is not enough to attract high-end mobile phone customers, and Apple has generated brand power to replace Huawei's high-end mobile phone users.
Brand is the unity of popularity, reputation and credibility, and the result of market segmentation is the result of differentiated competition. Different brands have different positioning of the market, and there are obvious differences in the consumers they face. In most cases, high-end brands target high-end consumers, with fewer consumers but higher profits. Low-end brands have less profit, but a large user base. Each can survive and develop in the market it is positioned in. However, if high-end brands and low-end markets exert efforts, they may put greater pressure on low-end brands. It is difficult for low-end brands to make efforts to the high-end market. The reason is that consumers always expect their quality of life to be better, as long as the conditions are available, they will tend to buy high-end brand goods. Users who are accustomed to consuming high-end brands are unwilling to reduce the level of consumption and move closer to low-end brands. As the saying goes: from frugality to luxury, from luxury to frugality.
For Moutai Wuliangye, in addition to the difference between the fragrant sauce and aroma, at the consumption level, consumers who are accustomed to drinking 3000 yuan a bottle of wine are difficult to convert to the price of 1500 yuan, while consumers who are accustomed to drinking 1500 yuan may be converted to a price of more than 2000 yuan. Moutai price reduction, affecting the market share of Wuliangye, it is reasonable.
From this logic, we can see that domestic enterprises have obvious competitive disadvantages in terms of brand compared with foreign enterprises. Apple has been positioned as a high-end mobile phone since its birth, the quality of the mobile phone is good, the price is also expensive, not only obtained most of the high-end mobile phone market share, but also obtained the vast majority of mobile phone market profits. When it moderately reduces the sales price in the market competition, it will compress the share of the domestic mobile phone market. Tesla Motors was also initially positioned as a high-end electric vehicle and became a well-known brand. When it launched the model3 for mid-to-high-end users, it quickly gained a large number of markets. In the new energy vehicle market of more than 200,000 yuan to 500,000 yuan, the market share is far greater than that of other brands. Although BYD, the leader of domestic new energy vehicles, has advantages in automobile manufacturing, there is a huge gap with Tesla in terms of brand power, which restricts BYD's market space and profitability.
Therefore, from this point of view, domestic enterprises to grow into great enterprises, in addition to achieving superior product quality, it is more necessary to carefully polish the brand and achieve brand breakthroughs. Otherwise, it is difficult to get rid of the bitter state of being tired and making little money.
