Summary of Shede Liquor Industry Conference Call Company Overview - **Company**: Shede Liquor Industry - **Date**: Q2 2025 Key Points Industry Impact and Sales Performance - The macro environment and the 518 alcohol ban have reduced consumption scenarios, impacting government and enterprise-related projects, but sales of main products remained stable during the Dragon Boat Festival [2][3] - The T68 banquet product was not affected, and the market for townships, counties, mass consumption, self-drinking, and banquet markets maintained double-digit growth [2][3] - After the 618 period, the number of opened bottles gradually recovered, indicating a loosening of demand [2][4] Inventory and Distribution - 70% of Shede's distributors are large businesses with over 5 million in sales, maintaining a healthy inventory level of two to three months [2][4] - The company has actively reduced inventory since last year, with a slight increase in inventory levels by the end of Q2 2025, but overall inventory management remains good [2][6] Pricing Strategy - Mainstream wholesale prices remained firm in Q2 2025, with the Taste series priced around 330 yuan, and the Water of the Way series priced between 190-200 yuan and 150 yuan for the Tiandao series [2][6] Market Segmentation and Product Strategy - The banquet market is a focus, but the opening rate in cities above the prefecture level is low due to unfamiliarity among participants, while products in township markets perform better [2][7] - The company is developing a 29-degree liquor product that incorporates decades-old liquor, showcasing its old liquor strategy [3][23] - Online sales channels account for about 10%-15% of total sales, primarily driven by cultural customization and youth-oriented products [2][5] Marketing and Advertising - Shede is focusing on precise advertising investments, including main products and brand building through platforms like CCTV, and targeting mass banquet consumption [3][11] - The company is innovating in youth marketing by integrating emotional value and thematic elements into online cultural products and live streaming platforms [3][24] Future Outlook and Strategic Adjustments - The company plans to strengthen its base market strategy, covering all regions and channels, and will focus on new channels and products for young consumers [3][21] - Shede is optimistic about market demand for Q3 and the upcoming festivals, with plans to enhance resource allocation and incentivize sales personnel [3][20] - The company aims to launch new cultural products for the upcoming year and upgrade its main products to ensure the best quality at competitive prices [3][22] Financial Performance - Overall profit and gross margin are expected to recover in 2025, driven by cost control and refined management practices [3][17][18] Channel Management - The company is managing channels by controlling distributor inventory and protecting product prices to create a positive sales cycle [3][19] Conclusion - Shede Liquor Industry is navigating a challenging macro environment while focusing on strategic growth areas, product innovation, and effective marketing to engage younger consumers and maintain sales momentum.

Summary of Key Points from the Conference Call Industry and Company Overview - The conference call focuses on the Chinese liquor industry, specifically the company Jinjiu (劲酒) and its strategies to attract young consumers and achieve growth despite market challenges [1][2][3]. Core Insights and Arguments - **Marketing Strategy**: Jinjiu employs a combination of online (e.g., Douyin, live streaming) and offline (e.g., restaurant channels, training store owners) marketing strategies to engage young consumers, emphasizing the ritualistic and fashionable aspects of drinking [1][4]. - **Sales Growth**: Monthly sales in certain markets have increased from around 100 units to over 200 units, particularly in bars and shopping malls, indicating the effectiveness of the marketing strategies targeting young consumers [1][5]. - **Consumer Feedback**: The company conducts regular visits to over 300 stores monthly to gather feedback, which has shown a significant increase in young consumers, especially women, who often mix Jinjiu with other beverages [5][6]. - **Channel Structure**: Jinjiu's distribution channels are primarily B2B (approximately 80%) with a focus on retail and dining, while B2C accounts for about 20%. The dining channel serves as a nurturing ground for consumer engagement [11][12]. - **Product Positioning**: Jinjiu is positioned as a health liquor with unique herbal ingredients and a specific alcohol content of 35 degrees, which enhances its compatibility with mixed drinks [3][16]. Additional Important Content - **Response to COVID-19**: During the pandemic, Jinjiu adapted by utilizing community-based sales and online platforms, which helped in managing inventory and maintaining sales [2]. - **Advertising Content**: The company uses diverse advertising slogans like "Jinjiu with ice" and "Whiskey for Chinese people" to resonate with consumers, particularly the younger demographic [8][15]. - **Consumer Engagement**: Jinjiu focuses on enhancing consumer loyalty through quality improvement, targeted marketing for different age groups, and effective customer service [33]. - **Future Growth Projections**: The company anticipates a 20% increase in health liquor sales by 2025, although it is intentionally controlling sales volume to stabilize prices and market channels [28]. - **International Market Presence**: Jinjiu has established a presence in international markets, including Europe, Africa, and Asia, with sales exceeding 100 million, although these operations are not yet profitable [25]. Conclusion - Jinjiu's strategic focus on young consumers, innovative marketing, and robust feedback mechanisms are key drivers of its growth in the competitive liquor market. The company's commitment to quality and consumer education positions it well for future expansion and market stability [31][32].

Core Viewpoint - Wuliangye is focusing on cultivating the younger market and exploring new instant retail operation models to enhance its market share in 2024 [1] Group 1: Market Strategy - The company is implementing a systematic marketing strategy that includes product categories, channel development, brand promotion, and market cultivation [1] - Wuliangye aims to enhance its market presence by adopting a youthful, fashionable, trendy, low-alcohol, and international approach [1] Group 2: Organizational Changes - A dedicated team for youth-oriented initiatives has been established to drive the company's focus on younger consumers [1]

Core Viewpoint - The event "Tian Sheng Gan Jing Dang Ran Hao Ting" organized by Vatti in collaboration with JD MALL and JD Appliances showcased innovative marketing strategies targeting younger consumers through a music festival format, highlighting the features of Vatti's products like the beauty bath water heater and integrated cooking center [1][8]. Group 1: Event Highlights - The music festival took place from June 14 to 18 in Chongqing, Xi'an, and Beijing, featuring performances by popular artists and interactive experiences that allowed consumers to engage with Vatti's products [1][3]. - The event included a "Net World Bathroom" interactive segment where attendees could win prizes and learn about the beauty bath water heater's skin-nourishing technology [5][8]. - Various themed interactive areas, such as the "Home Appliance Live House" and "Dishwasher Bubble Jazz Club," provided immersive experiences that combined music and product demonstrations [5][7]. Group 2: Marketing Strategy - Vatti's approach to marketing has shifted from traditional methods to a more engaging format that resonates with Gen Z, integrating elements of fashion and technology into the product experience [8][9]. - The company has successfully utilized collaborations with platforms like JD to create innovative marketing campaigns, including city pop-up events and customized short dramas [8][9]. - Feedback from attendees indicates a positive reception to the fusion of kitchen appliances with music and art, suggesting a successful rebranding of Vatti's image [8][9]. Group 3: Future Initiatives - Following the music festival, Vatti plans to host a themed pop-up event in Jinan from June 20 to 22, further promoting the beauty bath water heater and redefining modern bathing culture [11].

Core Insights - Dr. Pepper has surpassed Pepsi to become the second-largest soda brand in the U.S. due to its unique flavor combination and strong ties to college sports culture, as well as viral marketing on platforms like TikTok [2] - Pepsi has recently been overtaken by Sprite in the U.S. carbonated soft drink market, highlighting a decline in the market share of its flagship product, classic Pepsi [2] Group 1: Sprite's Product Launch and Marketing Strategy - Coca-Cola launched Sprite Chill in April 2024, a new product that combines cherry and lime flavors with a patented cooling agent to enhance the drinking experience [2] - Sprite Chill targets modern consumers, especially Gen Z, who seek novelty and multi-sensory experiences in beverages, positioning the drink as a symbol of "coolness" and self-confidence [3] - The product generated over $50 million in retail sales within 21 weeks of launch and surpassed $100 million in sales over the past 12 months, leading Coca-Cola to make it a permanent product [5] Group 2: Rebranding and Cultural Resonance - Sprite has revived its "Obey Your Thirst" slogan from 1994, aligning it with Gen Z's values of authenticity and individuality, which resonate with their aversion to commercialization [6][7] - The rebranding includes a new advertisement featuring NBA star Anthony Edwards, creating a connection between past and present basketball icons [7] - Sprite has introduced limited-edition packaging with QR codes leading to interactive online experiences, enhancing engagement with young consumers [9] Group 3: Integration of Sports and Hip-Hop Culture - Sprite has successfully integrated sports and hip-hop culture into its marketing strategy, collaborating with top athletes and artists to maintain cultural relevance among younger audiences [12] - The brand has sponsored events like the Unrivaled women's one-on-one basketball league and partnered with athletes like Sha'Carri Richardson to reinforce its image of authenticity [15] - Sprite's ongoing commitment to hip-hop culture includes initiatives like the "Thirst for Yours" project and the "Hip-Hop 50" summer campaign, celebrating the genre's history and engaging with fans through interactive content [16] Group 4: Market Position and Cultural Reflection - Sprite's rise to surpass Pepsi reflects changing consumer preferences and the evolving landscape of popular culture, emphasizing the importance of brands being rooted in cultural movements rather than merely chasing trends [18] - The shift in market positions between Sprite and Pepsi serves as a reminder that brands must respect cultural fluidity to remain relevant [18]