Group 1 - The "limit on alcohol" policy is significantly impacting the alcohol retail market in Chengdu, leading to a reduction in revenue for many businesses, with some smoke shops experiencing over 70% decline in sales [1][5] - Chain smoke shops, despite their brand strength and bargaining power, are struggling to maintain operations as orders sharply decrease, prompting layoffs and salary cuts [3][5] - High-end restaurants are also facing challenges, with many closing locations or reducing staff hours, resulting in an 80% drop in alcohol orders from their usual levels [6][9] Group 2 - Some smoke shops are adapting by extending operating hours and collaborating with local food vendors to boost sales, while larger chains are exploring "alcohol + other" business models [3][5] - High-end dining establishments are adjusting their menus to offer more affordable options, with some restaurants introducing lower-priced meal packages to attract customers [6][9] - The overall market is experiencing a shift in consumer behavior, with a notable decline in traditional alcohol consumption patterns, leading to increased competition among businesses for limited customer spending [7][9]

Core Viewpoint - The recent "new ban on alcohol" and multiple local initiatives to resist graduation banquets have severely impacted the already struggling Chinese liquor market, particularly affecting small and large liquor companies alike [2][4][10]. Policy Impact - The revised "Regulations on Strict Economy and Opposition to Waste" issued in May explicitly prohibits the provision of alcohol in government meals, marking it as the strictest ban on alcohol to date [4][5]. - Various regions, including Hainan, Sichuan, and Guizhou, have issued bans on hosting graduation banquets, expanding the scope of the regulations beyond just government consumption [5][9]. Market Dynamics - The graduation banquet market, traditionally a significant revenue source for liquor companies during the summer months, is facing a drastic reduction in orders due to the new regulations [10][12]. - The overall demand for banquet and gift-giving has sharply decreased, with many liquor companies reporting a significant drop in sales and profits [10][12]. Industry Response - Some liquor companies, such as Water Well Square and Tianyoude Wine, have downplayed the impact of the new regulations, while others have reduced their marketing efforts related to graduation banquets [11][12]. - A few regional companies have attempted to promote graduation banquet-related offers, but the overall sentiment in the industry remains cautious [11][12]. Long-term Implications - The new regulations are expected to push the liquor industry towards a transformation in consumption scenarios, moving away from reliance on government and social consumption towards more standardized and transparent consumption [14][15]. - The industry is likely to see a shift in focus towards rational consumption, emphasizing product value and diversification, as well as targeting new consumer demographics [14][15].