Sou Hu Cai Jing·2025-12-09 11:06Core Viewpoint - The white liquor industry is experiencing a significant downturn, with traditional high-end sales strategies failing as consumer preferences shift towards more affordable options. The industry must adapt to these changes to survive and thrive in the current market environment [2][12][24]. Industry Overview - The white liquor industry has seen a continuous decline in sales, with overall production dropping by 9.9% year-on-year in the first nine months of 2025, marking the eighth consecutive year of decline [8]. - Major companies like Moutai and Wuliangye are facing unprecedented challenges, with Moutai's revenue growth slowing to 0.35% and Wuliangye experiencing a 10.26% decline in revenue, the first negative growth in a decade [5][6]. Company Performance - Moutai reported a revenue of 398.1 billion yuan and a net profit of 192.24 billion yuan, both at near-record lows [5]. - Wuliangye's revenue fell to 81.74 billion yuan, a staggering 52.66% decrease, with net profit down 65.62% [7]. - Among 19 listed liquor companies, 13 reported a decline in net profit, with some like Shede Liquor experiencing a 63.18% drop [7]. Consumer Trends - There is a notable shift in consumer demographics, with younger consumers increasingly turning away from traditional high-end liquor brands. This trend is reflected in the rising inventory levels of Moutai, which saw a 27% increase year-on-year [4]. - The perception of white liquor as a luxury item is changing, with consumers now prioritizing affordability and quality over brand prestige [12][23]. Strategic Shifts - Shanxi Fenjiu has managed to grow its revenue by 5% in the first three quarters of 2025, attributed to its focus on understanding consumer needs and offering products at more accessible price points [9][20]. - The company has successfully positioned its 50 yuan Fenjiu as a core product, appealing to a broader market, including younger consumers who are using it in cocktails [20]. Market Adaptation - The industry is beginning to recognize the need for a strategic pivot towards lower-priced products, with some companies launching new lines targeting the under-100 yuan market [22]. - This shift indicates a growing understanding that consumer demand is not necessarily for the most expensive products, but rather for those that meet their expectations of quality and affordability [23].