Venture(US:VEMLY) Bei Jing Shang Bao·2026-01-20 11:03Core Insights - The article highlights the challenges faced by the Chinese liquor industry in 2025, particularly the high inventory turnover days and the pressure on both production companies and distributors [1][5] - It emphasizes the unique approach taken by Xiaofang Bottle (Beijing) Liquor Co., Ltd. under Chairman Zhang Chengguang, focusing on supporting distributors and innovating products to engage younger consumers [3][9] Industry Overview - The liquor industry is undergoing a significant adjustment period, with an average inventory turnover of 900 days, a 10% increase year-on-year, indicating that it takes approximately two and a half years to sell off existing stock [5] - The total inventory of 20 A-share listed liquor companies increased by 11.32% year-on-year, exacerbating the "dam" problem in channel inventory due to weak terminal sales [5] Company Strategy - Xiaofang Bottle's strategy diverges from the industry norm by not pressuring distributors to stock more products, instead focusing on helping them reduce inventory [5][8] - The company has adopted a long-term approach, covering all terminal channel costs and marketing expenses, allowing distributors to concentrate on customer service and market maintenance [8][14] Targeting Young Consumers - Recognizing the shift in consumer demographics, Xiaofang Bottle aims to connect with the 18-35 age group by making liquor more appealing and fun [9][10] - The establishment of a new retail department is seen as a "second entrepreneurship," focusing on content dissemination and product development tailored to younger consumers [9][10] Product Innovation - The company plans to introduce a new product line that includes fruit-flavored, tea-flavored, and sparkling liquors, aiming to break away from traditional liquor perceptions [9][19] - The new products are set to launch in January 2026, with a price range of 49-59 yuan and targeting different segments within the young consumer demographic [23][25] Market Positioning - Xiaofang Bottle aims to position itself as a modern, youth-friendly brand, distancing itself from the traditional "dad flavor" associated with its product category [10][15] - The company believes that the liquor industry will rebound by 2027, with aspirations to establish itself firmly in the second tier of the market, targeting a scale of over 5 billion yuan [25]