KWEICHOW MOUTAI(SH:600519) Xin Lang Cai Jing·2026-01-14 01:53Core Viewpoint - The announcement from Kweichow Moutai on January 13 outlines a significant shift in its pricing strategy, moving towards a market-oriented dynamic pricing mechanism for its products, which will allow prices to adjust based on market demand rather than adhering to a fixed guideline price [1][17]. Pricing Mechanism Changes - Kweichow Moutai will implement a "dynamic adjustment mechanism" for retail prices, meaning that product prices will no longer be fixed but will fluctuate according to market supply and demand [3][17]. - The company has listed retail prices for 15 products, including the flagship 53-degree 500ml Feitian Moutai, which will now be aligned more closely with current market prices rather than a fixed guideline price [1][17]. Historical Context - The previous guideline price for the 53-degree 500ml Feitian Moutai was set at 1499 yuan, a price that had remained unchanged for eight years [4][20]. - Over the past eight years, the market price for Moutai has often exceeded the official price, with instances where it reached over 3000 yuan due to high demand [7][21]. Profitability and Market Dynamics - The new pricing strategy aims to reclaim pricing power from distributors, who have been profiting significantly from the price discrepancies between the official price and the market price [9][22]. - The dynamic pricing will allow Moutai to adjust prices in favorable market conditions, thereby capturing more profit that was previously lost to distributors [22][23]. Distribution and Sales Models - Moutai's new strategy includes two sales models: one where distributor contract prices will be based on retail prices and dynamically adjusted, and another where channels will assist in selling products for a fixed commission [25][26]. - This approach allows for a more flexible distribution strategy, enabling distributors to choose between a traditional sales model or a lower-risk commission-based model [26][27]. Future Considerations - The announcement has not addressed how Moutai will manage pricing in the event of declining demand, which remains a concern for investors regarding the company's performance [27].