KWEICHOW MOUTAI(SH:600519) 2 1 Shi Ji Jing Ji Bao Dao·2026-01-13 14:45Core Viewpoint - The announcement by Kweichow Moutai regarding the market-oriented pricing mechanism signifies a major shift in the pricing strategy of Moutai products, moving away from fixed pricing to a dynamic pricing model based on market demand [1][2][6]. Pricing Mechanism - Kweichow Moutai has introduced a "dynamic adjustment mechanism" for retail prices, indicating that future product prices will fluctuate based on market supply and demand rather than adhering to a fixed "guidance price" [2][8]. - The official price of the flagship product, 53-degree 500ml Feitian Moutai, has been set at 1499 yuan for eight years, but the new pricing strategy allows for adjustments based on market conditions [5][6]. Historical Context - Over the past eight years, Moutai's pricing has been influenced by market prices that often exceed the official price, with some instances reaching over 3000 yuan, creating a significant gap between the official price and market price [6][8]. - The previous fixed pricing model has led to challenges for consumers trying to purchase Moutai at the official price due to high demand and the presence of resellers [6][8]. Changes in Distribution and Sales Models - The new pricing strategy will allow Moutai to regain control over pricing, as the self-operated retail price will serve as a new benchmark for various distribution channels [8][12]. - Moutai's announcement includes two sales models: one where the contract price for distributors will be based on the retail price and dynamically adjusted, and another where channels will earn fixed commissions for assisting in sales without holding inventory [11][12][13]. Profitability and Market Dynamics - The dynamic pricing model aims to ensure that Moutai retains a larger share of profits, especially during favorable market conditions, rather than allowing excess profits to go to distributors [8][10]. - Moutai has indicated that it will maintain a profit margin of approximately 20% for distributors compared to the retail price, ensuring that distributors still have room for profitability [14]. Future Considerations - The announcement has not addressed how Moutai will respond to potential declines in demand and market prices, which remains a concern for investors regarding the company's performance [15].