WLY(SZ:000858) Xin Lang Cai Jing·2025-12-12 09:13Core Viewpoint - The introduction of the "official subsidy" policy by Wuliangye aims to stabilize the market by reducing the invoice price for distributors while maintaining the factory price, thereby alleviating the financial pressure on distributors and enhancing their profit margins [1][3][10]. Summary by Sections Policy Implementation - The official factory price of the eighth generation Wuliangye remains unchanged at 1019 yuan per bottle, allowing the invoice price to drop to 900 yuan through subsidies, effectively reducing the purchase cost for distributors by 119 yuan per bottle [1][3][17]. - Additional incentives such as terminal scanning rebates and sales completion rewards are provided to distributors to stimulate end-consumer demand and improve sales performance [3][4][17]. Market Context - The policy is seen as a "de facto price reduction" for the first time in ten years, addressing the issue of price inversion in the market where the circulation price had fallen to around 850 yuan, significantly below the factory price [5][18][20]. - The average inventory cycle for distributors has increased to a warning level of 2-3 months, indicating a pressing need for intervention [20]. Strategic Implications - This initiative is not merely a price war but a strategic response to the challenges faced in the industry, providing a model for channel transformation that can be emulated across the white liquor sector [19][28]. - The subsidy policy is designed to activate channel dynamics and restructure the pricing system, reinforcing Wuliangye's market position and channel authority amidst declining revenues and profits [11][28][30]. Industry Insights - Wuliangye's approach offers three key lessons for the industry: replacing direct price cuts with policy subsidies to maintain brand value, utilizing digital tools for transparent channel management, and adopting a direct distribution model to strengthen connections between manufacturers and end-users [31][32]. - The company's comprehensive strategy, including the suspension of traditional supply channels and the cleaning of non-compliant e-commerce stores, aims to rebuild its channel ecosystem and restore distributor confidence [14][32].