Core Insights - The price of Feitian Moutai has dropped below 2000 yuan, halving from its peak in 2021, indicating a significant revaluation of the brand previously regarded as "China's gold" [2] - A large number of liquor distributors are exiting the market, with some reporting near-zero sales, highlighting a critical turning point for the industry [2][4] - The current inventory of Feitian Moutai in circulation exceeds the total of the past three years, exacerbated by low-price dumping on e-commerce platforms [2][4] Industry Transformation - The introduction of the revised "Regulations on Strict Economy and Opposition to Waste" in May 2025, which restricts alcohol at official receptions, is seen as a significant blow to the industry [3] - Despite the policy's limited impact on Moutai's overall consumption, the market sentiment has shifted dramatically, leading to a sustained decline in stock prices across major liquor brands [4] - The average inventory turnover days in the industry have reached 900 days, a 10% increase year-on-year, with inventory levels rising by 25% [6] Consumer Behavior Changes - Consumers are becoming more rational, moving away from the blind pursuit of high-end liquor as an investment [5] - The traditional consumer base of business and management professionals, which once accounted for 85.1% of liquor consumption, is being replaced by younger demographics [8] - The share of white liquor in business banquets has dropped below 50% for the first time, with lighter social beverages like coffee and tea gaining popularity [11] Market Dynamics - The market for mid-range liquor priced between 300-800 yuan is growing rapidly, now accounting for 35% of the market [4] - The low-end liquor market is projected to exceed 200 billion yuan by 2025, with high-line low-alcohol products experiencing growth rates over 40% [6] - The competition in the low-alcohol segment is intensifying, with established brands and new entrants vying for market share [16] Strategic Shifts - Liquor companies are actively seeking new directions, focusing on low-alcohol and bottled liquor as key growth areas [15] - A significant portion of companies (64.9%) are concentrating resources on core products, while 33.3% are developing new products [18] - The industry is entering a new phase characterized by policy adjustments, structural transformations, and intensified competition [19]

Core Insights - The perception of liquor, particularly high-end baijiu, is shifting from an investment asset to a consumer product focused on enjoyment and quality [1][2][3] Group 1: Financial Attributes and Market Trends - Baijiu, once viewed as a financial asset, is experiencing a decline in its investment appeal, with prices for premium brands like Moutai dropping significantly, reflecting a broader industry trend [2] - Moutai's price has decreased from over 3500 yuan to below 1800 yuan, with annual returns falling below 5% [2] - The best-selling price range for baijiu has shifted to 100-300 yuan, with mid-range products (300-800 yuan) seeing the fastest growth, now accounting for 35% of the market [2] Group 2: Consumer Preferences and Quality Focus - Consumers are increasingly prioritizing the intrinsic value of baijiu, such as quality, taste, and cultural significance, rather than its investment potential [3][5] - Recent consumer feedback highlights a shift towards taste and comfort as primary purchasing criteria, with many opting for high-quality, cost-effective options [5] - New product launches focusing on high quality and affordability are resonating well with consumers, as seen with the success of Yanghe's light bottle series [5] Group 3: Emotional and Cultural Consumption - The consumer base for baijiu is diversifying, with a notable increase in family and personal consumption scenarios, now accounting for 62% of total consumption [8] - Emotional factors are becoming increasingly important, with the significance of emotional resonance in purchasing decisions rising from 18% in 2020 to 43% in 2024 among younger consumers [8] - The Mid-Autumn Festival exemplifies this trend, as families gather to celebrate, reinforcing the cultural and emotional connections associated with baijiu consumption [10]