Core Insights - The liquor industry is experiencing a trend towards lower alcohol content, with many companies launching products below 30 degrees to attract younger consumers. However, this strategy alone is insufficient to engage this demographic, highlighting structural challenges in adapting to new consumption trends [1][4]. Group 1: Challenges of Low-Alcohol Liquor - Technical limitations hinder the flavor balance of low-alcohol liquor, as reducing alcohol content can lead to increased cloudiness in high-quality base liquor. Although advancements have improved flavor retention to 85%, it still falls short of the fullness found in higher alcohol products [1]. - The consumption scenarios for low-alcohol liquor are misaligned with younger consumers' preferences, who favor casual settings like solo drinking and gatherings. Data shows that ready-to-drink low-alcohol products have a turnover rate of 8.2 times, compared to only 1.3 times for traditional liquor requiring mixing [1]. Group 2: Rise of New Beverage Products - New beverage products like Guoli Fang and Meijian are rapidly gaining traction among younger consumers, as they lack traditional constraints and can be enjoyed in various settings. Their core competitive advantage lies in taste and innovative production methods, allowing for direct consumption or DIY mixing [2]. - Price competitiveness is a significant factor, with new beverages priced at around ten yuan, offering a stark contrast to low-alcohol liquor priced at over 68 yuan, thus providing consumers with compelling reasons to choose the former [2]. Group 3: Market Restructuring - The emergence of new beverages reflects a generational shift in consumer culture, with over 60% of young people preferring ready-to-drink options. This shift indicates a desire for simplicity in consumption, aligning with the Z generation's "self-pleasure" lifestyle [3]. - New beverages have established a competitive edge in distribution channels, as 76% are priced below 30 yuan, while traditional low-alcohol products are significantly more expensive, leading to a loss of appeal among younger consumers [3]. - Distributors face challenges as the gross profit margin for low-alcohol liquor is only 43% of that for high-alcohol products, necessitating 2.3 times the sales volume to compensate for profit gaps. Rising channel costs further complicate the situation for many distributors [3]. Group 4: Transformation of Consumption Trends - The transformation in the liquor market is fundamentally driven by deep changes in consumer culture, with old demands fading and new ones emerging that prioritize lifestyle compatibility and experiential consumption [4]. - Young consumers' motivations for drinking have shifted from "pleasing others" to "pleasing themselves," leading to different product designs and marketing strategies compared to traditional liquor [4]. Group 5: Long-term Consumer Perception - Negative perceptions of certain consumer products can persist even with increased wealth or forced consumption, explaining why merely lowering alcohol content does not change young consumers' overall views on traditional liquor [5]. - New beverages successfully meet unmet consumer demands with their diverse flavors and flexible consumption scenarios, driving a transformation in the liquor market that reflects a more segmented and personalized demand landscape [5].