Core Viewpoint - The recent price drop of Feitian Moutai reflects a shift in supply and demand dynamics, as well as changes in the company's marketing strategy, leading to a more accessible pricing structure for consumers [1][3]. Group 1: Supply and Demand Dynamics - The wholesale price of Feitian Moutai has fallen below 2000 yuan, with retail prices around 2100 to 2200 yuan, indicating a significant change in market conditions [3]. - The demand for Moutai has decreased due to fewer business banquets and a reduction in speculative buying, resulting in excess inventory at retailers [3]. - The supply side has remained stable, with the company continuing to supply products despite the price drop, contrasting with previous practices of limiting supply to maintain prices [3]. Group 2: Company Strategy Changes - Moutai has shifted from a "hunger marketing" strategy to a "volume expansion" approach, increasing direct sales from 20% to over 30% through platforms like iMoutai [3]. - The introduction of the "Xunfeng Digital World" initiative allows consumers to purchase directly from the factory, reducing the role of middlemen and leading to price reductions [3]. - Plans for increased production of base liquor are expected to further enhance supply, putting additional pressure on prices [3]. Group 3: Financial Performance and Future Outlook - Despite short-term price pressures, Moutai's brand strength, craftsmanship, and scarcity remain intact, with a reported net profit of over 80 billion yuan and a gross margin exceeding 90% [4]. - The company is focusing on channel reforms and increasing the proportion of direct sales, which could lead to more transparent pricing and improved profit retention [4]. - Moutai is also expanding its product range with high-end offerings like 1935 and zodiac wines, which may help mitigate the impact of price declines on Feitian Moutai [4]. Group 4: Investment Considerations - Investors are advised to monitor the sustainability of the increase in direct sales and the growth of high-end products, as these factors will influence future valuation [4][5]. - The current price fluctuations are seen as a normal part of market behavior, and a long-term perspective is encouraged for assessing Moutai's position in the industry [5].