KWEICHOW MOUTAI(SH:600519) Sou Hu Cai Jing·2025-06-06 12:29Core Viewpoint - The wholesale price of Feitian Moutai has been declining since early 2025, leading to discussions about its market position and profitability for retailers [1][5]. Price Trends - The price of Feitian Moutai in Changsha has dropped significantly, with retailers reporting that they can only make minimal profits, often just covering costs [2][4]. - As of June 5, 2025, the price for a bottle of Feitian Moutai has decreased from 3280 yuan to 2980 yuan, indicating a 300 yuan drop [2]. - Online platforms are also experiencing price competition, with promotions leading to prices as low as 1909 yuan per bottle [4]. Supply and Demand Dynamics - The decline in prices is attributed to an imbalance in supply and demand, with approximately 120 million bottles of Moutai in circulation and a base liquor inventory capable of producing 560 million bottles [5]. - The total inventory, including new production capacity, suggests that nearly every Chinese household could receive about two bottles of Moutai [5]. Market Strategy Adjustments - Moutai has not implemented measures such as limiting supply to stabilize prices, which is a departure from past practices during price declines [5]. - The company is also adjusting its market strategy by promoting lower-priced series of products, indicating a shift towards consumer-driven pricing [6].