Sou Hu Cai Jing·2025-12-17 00:16Core Viewpoint - The Chinese liquor industry is experiencing a downturn, with major brands like Moutai and Wuliangye facing price drops and declining sales, while Shanxi Fenjiu stands out for its resilience and innovative strategies in adapting to changing consumer preferences [2][4][12]. Industry Overview - The overall liquor market is in a deep adjustment phase, with a collective revenue decline of 5.90% and a net profit drop of 6.93% among 20 listed liquor companies in the first three quarters of 2025 [12]. - The production of liquor has been on a continuous decline, with a significant drop from 1,358.4 million liters in 2016 to an estimated 414.5 million liters in 2024, marking a decrease of nearly 69.5% [13][14]. Company Performance - Fenjiu is one of the few companies to achieve growth, with a revenue increase of 5% and a net profit growth of 0.48% in the first three quarters of 2025, while other major brands like Moutai and Wuliangye reported declines [16][17]. - Moutai's revenue for the first three quarters was 1,309 billion yuan, with a growth rate of 6.32%, but this is a significant slowdown compared to previous years [16]. Strategic Adaptation - Fenjiu has shifted its focus towards e-commerce, achieving the highest online sales growth in the industry, with a 81.8% increase in online sales in 2024 [18][19]. - The company employs a multi-faceted online marketing strategy, including live streaming and local delivery services, to enhance consumer engagement and drive sales [19][20]. Market Dynamics - The high-end liquor market is losing its monetary appeal, and companies must find new growth points to cope with performance pressures [8]. - Changing consumer demographics and preferences, particularly among younger generations, are shifting away from traditional high-end liquor towards lower-alcohol beverages [13][15].