Core Insights - The Chinese liquor industry is undergoing unprecedented adjustments, with Guizhou Xijiu Group facing multiple challenges including price collapse, unclear market positioning, and intensified channel competition after separating from the Moutai system [2][4] Price Dynamics - The wholesale price of Junpin Xijiu has dropped nearly 40% over five years, from 955 RMB per bottle in June 2021 to 628 RMB as of September 28, 2025, reflecting a significant decline in brand value [3][5] - The average inventory turnover days in the liquor industry have reached 900 days, with 60% of companies experiencing price inversions, particularly in the 800 to 1500 RMB price range [3] Strategic Challenges - The strategic decision to separate from Moutai in 2022 has led to increased channel conflicts and a loss of competitive advantage, as Xijiu can no longer leverage Moutai's brand and distribution network [4][6] - Xijiu's high-end strategy has failed, as the brand lacks the necessary market foundation to support its premium positioning, leading to a blurred market identity [5][6] Management and Market Response - Under the leadership of Chairman Wang Diqiang since September 2024, Xijiu is attempting to address its challenges by engaging with key markets, but faces hurdles in brand value reconstruction, channel optimization, and product structure adjustment [6][7] - The company must avoid a simplistic management approach that forces distributors to choose between brands, which has led to resource fragmentation and decreased market efficiency [4][6] Future Outlook - Industry experts warn that Xijiu's window for adjustment is narrowing, and if it cannot restore its pricing system and market positioning by 2025, its revenue target of 23.5 billion RMB may be unattainable [7] - The case of Xijiu serves as a cautionary tale for regional liquor companies considering independence from larger brands, highlighting the risks of brand degradation and price collapse without core competitive strengths [7]