Core Viewpoint - The decline in liquor consumption, particularly in the high-end segment, is primarily attributed to economic conditions and policy changes rather than a shift in young people's drinking habits [1][31]. Economic Environment - The liquor industry, especially high-end liquor, is categorized as an "elastic consumption" good, meaning it is not a necessity and is more likely to be cut from budgets during economic downturns [14][18]. - The turning point for the liquor industry occurred in 2020, with stocks of major brands like Moutai and Wuliangye reaching historical peaks in early 2020 but subsequently declining for over five years [3][5]. - By the third quarter of 2025, even industry giants like Wuliangye reported significant profit declines, a scenario previously unimaginable [5]. - Economic pressures have led to reduced consumer spending, with a notable decrease in the business liquor market, which dropped by 32% year-on-year in 2024 [18][20]. Consumer Demographics - The primary consumer base for liquor has historically been middle-aged individuals, with those under 30 accounting for less than 15% of total consumption, while those over 35 represent 72.8% [9][12]. - The notion that young people are the cause of declining sales overlooks the fact that the main consumer group is facing economic challenges, leading to reduced spending [12][31]. Policy Impact - Recent policy changes, such as the revised regulations on government consumption of alcohol, have significantly altered the consumption landscape, particularly in the business sector [20][22]. - The 2025 revision of the "Regulations on Saving and Opposing Waste in Party and Government Agencies" expanded restrictions on all alcoholic beverages, contributing to a short-term decline of 2%-3% in the liquor sector [22][28]. - Local policies, like those from Guizhou province aimed at transforming the liquor industry, indicate a need for adaptation in response to changing market conditions [24][28]. Market Dynamics - The inventory levels of liquor companies have surged, with 20 listed liquor firms reporting stock levels of 168.39 billion yuan, an increase of 19.29 billion yuan year-on-year [26]. - Many distributors are experiencing price inversions, where the selling price is lower than the manufacturer's suggested price, further dampening market enthusiasm [26][28]. - The combination of economic pressures and policy regulations has compressed the consumption space for high-end liquor, which previously relied heavily on government and corporate events [30][31]. Conclusion - The decline in liquor consumption is fundamentally linked to economic conditions and regulatory changes rather than a simple shift in consumer preferences among younger demographics [31][37]. - The industry must adapt to these economic and policy shifts to meet evolving consumer demands, rather than attributing the decline to younger consumers [35][37].

Core Insights - The article highlights a shift in consumer behavior where individuals are using group buying to access quality products and services at affordable prices, indicating that saving money is no longer just about choosing cheaper options but about maximizing value through group purchases [1][3][11] Group 1: Consumer Behavior - Consumers are increasingly blending frugality with luxury, as evidenced by data showing that 30% of users who ordered inexpensive street food also purchased high-value dining vouchers [3] - The search volume for "affordable group purchases" and "high-end packages" on Meituan increased by 210% and 180% year-on-year, respectively, reflecting a growing trend of consumers seeking both budget-friendly and premium options [1][11] - The concept of "spending less for more" is prevalent, with consumers willing to pay for bundled services that offer additional value, such as hotel packages that include meals and activities at a lower overall cost [3][5] Group 2: Importance of Trust and Safety - Consumers prioritize "peace of mind" in their purchasing decisions, with a significant increase in searches for "children's meals" and "family-friendly" options, which rose by 270% year-on-year [9] - The credibility of platforms like Meituan has become essential, as consumers are willing to pay slightly more for services that demonstrate hygiene and safety practices, such as visible sanitation records [9][11] - The article emphasizes that consumers now view safety and hygiene as fundamental requirements rather than optional extras, influencing their purchasing choices significantly [5][9] Group 3: Market Trends and Data - Meituan's data indicates a 245% year-on-year increase in searches related to "National Day travel," with overall booking volume up by 60.8% compared to the previous year [11][13] - The company reported a revenue growth of 11.7% in Q2, with monthly active users surpassing 500 million, showcasing its strong market position and user engagement [15] - The diversity of offerings on Meituan allows consumers to find suitable options across various price ranges and scenarios, reinforcing the idea that modern consumption is no longer binary but rather multifaceted [13]