Zhong Guo Ji Jin Bao·2025-12-21 22:05Core Insights - The Chinese liquor industry is undergoing significant challenges, with a deep adjustment phase leading to price declines and market restructuring [1][3][5] - Major liquor companies are shifting from passive responses to proactive strategies to stabilize prices and regain market confidence [1][4][11] Price Dynamics - The wholesale price index for liquor dropped by 9.9% year-on-year in the first half of 2025, with premium liquor prices falling by 14.96% [3] - The price of Feitian Moutai has decreased by approximately 35% from the beginning of the year, falling below the retail guidance price of 1499 yuan [3] - Many first-tier liquor brands are facing "price inversion," where wholesale prices are lower than factory prices, leading to significant market pressure [3][5] Market Concentration - In the first three quarters of 2025, only two out of twenty listed liquor companies achieved revenue growth, while the total revenue for the sector declined by 5.83% [5] - The top six liquor companies accounted for 84% of market share, indicating increasing concentration and challenges for smaller firms [5][6] Management Changes - The liquor industry has seen numerous executive changes in 2025, with key figures resigning amid poor performance [7][8] - These changes are viewed as attempts to adapt to new market conditions and enhance operational efficiency [8] Transformation and Innovation - Brands focusing on "low-alcohol and health" products, such as Jin Liquor, have experienced growth, with an expected overall increase of about 10% in 2025 [10] - Major liquor companies are innovating by introducing lower-alcohol products and engaging in direct consumer interactions to adapt to changing consumer preferences [11][12]