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How Maotai defeated Luzhou Laojiao, Shanxi Fenjiu, and Wuliangye to the top

author:Guys from Guangdong
How Maotai defeated Luzhou Laojiao, Shanxi Fenjiu, and Wuliangye to the top

If you ask who is China's first liquor, it must refer to Moutai and look at the stock market.

But before Moutai, there were three big brothers. They are Luzhou Laojiao, Shanxi Fenjiu, and Wuliangye.

Today we talk about how Moutai defeated Luzhou Laojiao, Shanxi Fenjiu, and Wuliangye to the top?

How Maotai defeated Luzhou Laojiao, Shanxi Fenjiu, and Wuliangye to the top

China's first generation of baijiu big brother is the old cellar in Luzhou, Sichuan. His reign probably began 60 years ago.

In 1958, China's Ministry of Food Industry produced the first book on the craft of liquor, and his sample was the Old Cellar in Luzhou.

With the recognition of the state authority, the sales of Luzhou Old Cellar seem to be hanging in the market. Many national departments have come to Luzhou Old Cellar Factory to learn and observe.

To this end, Luzhou Laojiao also ushered in a loud slogan, the Whampoa Military Academy of Chinese liquor.

By 1978, the annual output of Luzhou Old Cellar exceeded 15,000 tons. The output of Moutai, Wuliangye, and Shanxi Fenjiu combined by 10 is not enough for it.

Therefore, the first generation of Chinese liquor kings are none other than Luzhou Old Cellar.

In the 1980s, with the deepening of China's reform and opening up, the people's living standards were getting higher and higher.

Liquor is no longer a luxury, and more and more ordinary families have put liquor on the table.

Therefore, who can reduce the price to cater to this huge consumer group has become a key to the competition in the wine market.

In this era, Shanxi Fenjiu turned out to be a world and quickly occupied the low-end market.

How Maotai defeated Luzhou Laojiao, Shanxi Fenjiu, and Wuliangye to the top

The production of Shanxi Fenjiu is different from the cumbersome old cellar in Luzhou, his requirements for the production site are very low, and the cost is low and the cycle is short.

So in the late 1980s, when Luzhou Laojiao was still immersed in the dream of his liquor Huangpu Military Academy, Shanxi Fenjiu had successfully seized power and became a brother of the liquor industry.

Since 1988, the sales of Shanxi Fenjiu have dominated the liquor market for six consecutive years.

However, after 97 years, the Southeast Asian financial crisis broke out, and workers were cut or laid off. The liquor market ushered in a depression. Shanxi Fenjiu, which focuses on the low-end market, suffered the heaviest losses.

In 1998, the Outbreak of The Shanxi Counterfeit Liquor Case, the exposure of industrial alcohol mixing liquor, made people's trust in Shanxi brands, especially Shanxi Fenjiu, greatly reduced.

Shanxi Fenjiu gradually declined, while another brand quietly began to take over the baton, it is Wuliangye.

How Maotai defeated Luzhou Laojiao, Shanxi Fenjiu, and Wuliangye to the top

In the environment of the southeast Asian financial crisis, Wuliangye not only maintains sales by reducing prices like other liquor brands. Instead, it is a price increase against the trend, focusing on health, safety, and high-end brands.

Therefore, consumers at that time believed that the price of the difference between the east and the west was reduced, and the price increase must be quality assurance.

In 1998, Wuliangye began to slowly enter the list of state banquets, and grabbed the "national liquor" trademark, and also advertised on the news network.

If you are slightly older, you should all have an impression of this advertising slogan. Every night at 7 o'clock, CCTV News, Wuliangye, Didi Di di chimes for you.

By 2000, Wuliangye's sales volume ranked first in the liquor market, officially becoming a brother in the liquor industry.

Later, with the greed of Wuliangye, it continued to expand. Not only do we want to occupy high-end brands, but also continue to launch low-end brand liquor.

Slowly, because the reputation of low-end liquor deteriorated, Wuliangye's brand began to decline.

At this time, Moutai rose in a different way.

How Maotai defeated Luzhou Laojiao, Shanxi Fenjiu, and Wuliangye to the top

The marketing path of Moutai is not very different from the big brothers before. Moutai began to tell stories in the market.

For example, when the Red Army's Long March arrived in Moutai Town, a certain leader drank dozens of times Moutai in one breath. Such cultural content abounds on the Internet. The main image of Moutai is official wine.

Inside our specialty store in Moutai, we can clearly see that it says the national liquor Moutai on it.

As China's national strength grows and its national pride grows, a sip of official wine has become a fashion, or something patriots should do.

Moutai also learned the lesson of Wuliangye, not too greedy, did not think of high-end also wanted, low-end also did not let go. Instead, it is focused on the high-end field.

By 2005, Moutai's net profit had completely surpassed Wuliangye and become the leader of China's new generation of liquor.

According to my research based on some data, a bottle of more than 1200 yuan of Maotai costs only 21 yuan.

So with such a high profit, why should he engage in a low-end market, it is completely unnecessary.

What do you think of China's liquor industry?

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