KWEICHOW MOUTAI(SH:600519) Sou Hu Cai Jing·2025-07-20 09:11Group 1 - The core idea is that Moutai is establishing joint venture companies with provincial distributors to stabilize the price of its flagship product, Feitian Moutai, which has been subject to significant price inflation [1][6][11] - The joint venture companies will allow provincial distributors to develop regionally customized Moutai products, which could potentially offer higher profit margins compared to standard Feitian Moutai [3][5][11] - This move is seen as a response to the increasing pressure on Moutai to control prices and maintain profit margins, as the market price of Feitian Moutai has surged beyond its suggested retail price [6][9][12] Group 2 - The joint venture model involves a partnership where Moutai provides the brand and distributors offer the sales channels, creating a collaborative business environment [3][5] - Customized products will reflect local cultural elements, such as unique packaging and branding, which may attract consumers and create a new revenue stream for distributors [5][11] - However, there are concerns that distributors may not fully abandon the lucrative practice of inflating Feitian prices, as the demand for the product remains high and it is considered a "hard currency" in the market [7][10][12] Group 3 - The effectiveness of this strategy in stabilizing prices is uncertain, as it depends on the success of the customized products and whether distributors will prioritize them over the more profitable Feitian Moutai [11][12] - Moutai's production capacity is limited, which complicates the situation further, as even if prices stabilize, the supply may not meet consumer demand [9][10] - The potential for a shift in the entire liquor industry is present, as other brands may adopt similar joint venture models if Moutai's approach proves successful [11][12]