Summary of the Conference Call on Baijiu Industry and Company Insights Company and Industry Overview - The conference call focuses on **Bairun Co., Ltd.**, a leading player in the **premixed cocktail market** in **Anhui Province**. The company is facing challenges in sales and market dynamics for its **Rio** brand of premixed cocktails [1][2]. Key Points and Arguments Sales Performance - In **2024**, Bairun's sales in Anhui for premixed cocktails reached **¥1.18 billion**, a slight decline from **¥1.2 billion** in **2023**, but a significant increase from **¥750 million** in **2022** [2]. - The sales decline is attributed to reduced profit margins for distributors and increased competition from low-priced products on online platforms [1][3]. Market Challenges - The company is experiencing a **10% price drop** in the market due to excess inventory and aggressive discounting by distributors [3][5]. - Bairun's strategy has shifted towards channel expansion rather than consumer growth, as the market share is limited [3][31]. Product and Channel Strategy - The **Rio** brand targets consumers aged **18-35**, but male consumer growth has been limited, leading to a decline in sales of stronger products [9]. - The company has introduced various alcohol content levels but faces challenges in pricing consistency between online and offline channels [9][10]. - The **light enjoyment** product line is struggling to gain traction due to lack of dedicated marketing efforts and competition from beer [12][13]. Distribution and Inventory Management - Bairun has implemented measures to address market chaos, including penalties for distributors and reduced marketing expenses, but these are seen as temporary fixes [5][34]. - The company has a **healthy inventory turnover** target of **1.5 to 2 months**, with current levels in Anhui nearing this target, while other provinces may have longer turnover periods [18]. Competitive Landscape - Bairun's **Rio** brand maintains a competitive edge in the premixed cocktail market due to strong brand recognition and pricing strategies, despite the presence of other brands [25]. - The company is focusing on expanding its presence in the **whiskey market**, but the performance has been underwhelming, with most distributors achieving only a few million in annual sales [32]. Future Outlook - The company aims for a sales target of **¥1.44 billion** in **2025**, maintaining the same product structure as in **2024** [22]. - There is a belief that significant improvements in channel management and product offerings may take until the end of **2025** to materialize [33]. Additional Important Insights - The company lacks a dedicated team for the restaurant channel, which is seen as a significant growth area [13][14]. - The pricing structure for various products shows significant variability, with **strong refreshing** products having low margins and relying heavily on rebates for profitability [11][26][27]. - The overall market environment is expected to remain challenging, with a **30% slowdown** in sales turnover compared to the previous year [16]. This summary encapsulates the critical insights from the conference call, highlighting the challenges and strategies of Bairun Co., Ltd. in the premixed cocktail market.