Core Insights - The Chinese liquor industry, particularly the sauce-flavored liquor segment, is experiencing a shift from capital-driven growth to consumer-driven strategies as the market cools down after years of rapid expansion [1][7] - Major players like Kweichow Moutai and Zhenjiu Lidu are focusing on new product launches to better align with consumer preferences and needs [1][7] Company Performance - Kweichow Moutai reported a revenue of 75.59 billion yuan in the first half of the year, with a year-on-year growth of 10.24%, indicating a strong performance despite market fluctuations [2] - Zhenjiu Lidu faced significant challenges, with a revenue decline of 39.6% and a net profit drop of 39.3% due to reduced demand in business and gifting scenarios [4] Product Strategy - Kweichow Moutai has launched several new products, including the limited edition "Guizhou Moutai (Five-Star Trademark 70th Anniversary)" with a unique design of one bottle per day for a year, aimed at catering to personalized consumer demands [2][3] - Zhenjiu Lidu's chairman initiated a high-profile marketing campaign for a new product priced at 600 yuan per bottle, which is positioned against products in the 3000 yuan range, showcasing a strategy to penetrate the high-end market [5][6] Market Approach - Kweichow Moutai's direct sales channel revenue increased significantly, with direct sales contributing 40.01 billion yuan, a year-on-year growth of 18.63%, reflecting a successful strategy to manage pricing and distribution [3] - Zhenjiu Lidu is implementing a "Ten Thousand Merchants Alliance" plan to recruit thousands of partners, aiming to create a community of interests and stabilize pricing through strict controls [6] Industry Trends - Both companies are adapting to the industry's transition by focusing on consumer preferences, emphasizing the importance of product quality and uniqueness in a market that has previously been driven by speculative financial attributes [7] - The current adjustment period in the liquor industry is seen as a critical time for companies to refocus on core consumer needs and preferences, which is essential for long-term stability and growth [7]