Core Insights - Shanxi Fenjiu is transitioning from a "marketing-driven" approach to "consumer co-creation," reflecting a strategic shift in response to changing consumer preferences in the liquor market [2][6] Industry Context - The liquor industry is undergoing a deep adjustment, with traditional government and business consumption declining while self-indulgent consumption is on the rise, presenting new challenges for liquor companies [3] - Despite these challenges, Fenjiu has maintained growth resilience, achieving revenue of 32.92 billion yuan in the first three quarters of 2025, a year-on-year increase of 5.0% [3] Strategic Goals - Fenjiu's 2026 strategy aims to achieve a "double hundred billion" target for its two core products, Qinghua 20 and Glass Fen, supported by special expenses for emotional consumption [2][4] - The strategy focuses on four main directions: national expansion 2.0, youth-oriented 1.0, internationalization 1.0, and precise consumer services [3] Product Performance - Qinghua 20 and Glass Fen are becoming the main growth drivers for Fenjiu, with Qinghua 20 targeting the mid-to-high-end business market and Glass Fen positioned for mass consumption [4] - The company has seen significant growth in its provincial markets, with revenue from outside the province reaching 6.671 billion yuan in the third quarter of 2025, a year-on-year increase of 31.14% [3][4] Market Management - Fenjiu has implemented a "two-tier" management system (provincial and regional market segmentation) and a "two-focus" strategy (core distributors and channels) to enhance resource allocation efficiency [4] - The rapid growth in provincial markets has become a key driver for Fenjiu, with sales revenue from these markets reaching 21.813 billion yuan in the first three quarters of 2025, a significant year-on-year increase of 12.72% [4] Emotional Consumption Strategy - A notable innovation in Fenjiu's strategy is the introduction of special expenses to support emotional consumption, indicating a shift from functional to emotional consumption [6] - The company plans to engage consumers through four co-creation methods: IP co-creation, scene co-creation, expression co-creation, and regional cultural co-creation [6] Targeted Consumer Engagement - Fenjiu is designing differentiated emotional touchpoints for various consumer groups, including immersive experiences for young consumers and companionship for the elderly [6] - The company has initiated the "Fen Enjoy Youth 28-degree" project to develop products that resonate with younger consumers' emotional needs and drinking scenarios [6] Industry Implications - Fenjiu's 2026 strategy is significant not only for its scale goals but also for its exploration of transformation within the liquor industry, providing new development ideas [7] - Analysts remain optimistic about Fenjiu's future development, noting its ability to maintain channel cooperation and enthusiasm despite weak demand [7]