King's Luck(SH:603369) Sou Hu Cai Jing·2025-10-18 05:42Core Insights - The forum titled "Breaking the New Cycle: Strategic Transformation of Chinese Baijiu from Scale Expansion to Value Innovation" was held in Nanjing, highlighting the industry's shift towards value creation amidst changing market dynamics [1] Industry Analysis - The Chinese baijiu industry is experiencing significant changes, with national production dropping from 13.58 million kiloliters to 4.15 million kiloliters, indicating the disappearance of scale dividends and the onset of stock competition [2] - The industry faces challenges such as overcapacity, a shift in consumer demographics, and competition from diverse alcoholic beverages [2] Company Strategy - Company is focusing on "smart brewing" and "co-creation of consumer value" as strategies to navigate the current market challenges [2] - The company is enhancing its manufacturing capabilities through smart technology across four dimensions: sourcing quality raw materials, intelligent brewing processes, long-term storage using ceramic jars, and precision management through digital systems [2] Consumer Engagement - The company aims to create value for different consumer segments by establishing three-dimensional value anchors: quality-price ratio supported by smart brewing, cost-performance ratio highlighted by mid-range pricing, and emotional connection through cultural recognition [3] - The company is transitioning from "we brew" to "we co-create" with consumers, emphasizing a collaborative ecosystem that benefits both the company and its customers [3]