Liquors work together to survive

The embarrassing situation of the sharp drop in profits of liquor companies and even losses began in the second quarter. In order to reverse the trend, liquor companies have adopted measures such as price cuts, joint e-commerce and other "people-friendly" measures. Although the market has stabilized, taking into account the rapid expansion of production capacity in recent years to be digested, the industry adjustment period is far from over.

Qipai said willingly that in 2013 due to the impact of government orders such as the control of three public consumption, the company’s high-end product sales declined, and the initial calculation of net profit for the first half of the year will decrease by about 80%.

In the first half of 2012, Qipai had a net profit of about 186 million yuan. From this calculation, the company's net profit for the first half of this year was 37.2 million yuan. Since the first quarter of this year, the card has realized a net profit of 57.53 million yuan, and it may lose about 20 million yuan in the second quarter of this year. This is the first time quarterly loss has occurred in the brand.

In addition to the plaque, the days of other famous wines are not easy. UBS Securities expects the leading companies in Yanghe and Wuliangye to increase their net profit in the first half of the year in single digits. Last year, they all exceeded 50%.

In order to reverse the decline in sales, liquor companies have adopted price cuts. In recent years, the hot e-commerce platform has played an important role. In July of this year, Maotai, which has always had strict control over its channels, has chosen to cooperate with the liquor-based electricity supplier Jiuxian.

The diversification of channels, including e-commerce, will drive the price of famous wines closer to the actual market demand. Xie Tao, a researcher at the New Food Industry Research Institute, said that the terminal prices of the original Maotai and other famous wines are almost monotonous, and there is little room for consumers to choose. Now there is a wide range of $1,159 to $1550, which on the one hand shows that the National Development and Reform Commission has played a role in combating the monopoly of liquor prices; on the other hand, it also increases the flexibility of dealers.