Core Viewpoint - The article discusses how Chun Kaijiao is innovating the traditional Chinese liquor distribution model through a unique "Three Systems in One" approach, aiming to create a win-win ecosystem for distributors and enhance profitability in the high-end liquor market [2][15]. Group 1: Traditional Challenges in the Liquor Industry - The traditional liquor distribution model is characterized by multiple layers of intermediaries, leading to significant price inflation and reduced producer profits, with producers receiving less than 10% of the retail price [2][4]. - The lengthy distribution chain results in three major issues: price bubbles due to 20%-30% markups at each level, quality control problems with increased risks of counterfeit products, and slow market response to consumer demand [4][5]. - Franchisees often engage in destructive competition, leading to significant financial losses, with some reporting losses of up to 2 million yuan due to price undercutting and cross-regional supply issues [4][5]. Group 2: Chun Kaijiao's Innovative Solutions - Chun Kaijiao's "Three Systems in One" model includes partnership, mentorship, and competition systems, redefining the relationship between the brand and franchisees into a collaborative community [7][15]. - The partnership system redistributes profits, allowing franchisees to earn 60%-70% of sales revenue, with regional partners receiving 35% and operational partners 50%, while the founder retains only 15% [7][15]. - The mentorship system addresses low survival rates of new stores by pairing experienced franchisees with newcomers, ensuring knowledge transfer and quality assurance [7][15]. - The competition system, known as the OPT group, fosters healthy competition among groups rather than individual franchisees, focusing on value creation rather than destructive rivalry [8][15]. Group 3: Unique Policies and Practices - Chun Kaijiao implements a "3-kilometer exclusive agency" policy, ensuring that no other franchise operates within a 3-kilometer radius, thus preventing harmful competition [9][15]. - The company has established a digital monitoring system to track product distribution and ensure compliance with exclusivity agreements, enhancing operational transparency [9][15]. - The M2C (Manufacturer to Consumer) model streamlines the supply chain, achieving over 90% direct sourcing from production areas and reducing logistics costs by 50% [11][15]. Group 4: Cultural and Market Impact - Chun Kaijiao integrates cultural elements from the "I Ching" into its branding, associating different liquor types with specific regions and cultural meanings, thereby enhancing brand value [13][14]. - The company's innovative practices have led to a significant increase in franchisee profitability, with average profit margins rising to 25%-30%, compared to the industry average of 15%-20% [15]. - The survival rate of franchisees has improved from 65% to 92% due to the implementation of protective policies, and the repurchase rate for existing franchisees has reached 40% [15].