Core Viewpoint - The traditional liquor distribution model in China is facing significant challenges, with high inventory levels and declining profits, prompting companies to seek new business strategies and self-branded products to adapt to changing market conditions [1][2][3]. Group 1: Industry Challenges - Overall consumption during the Spring Festival was below expectations, leading to higher-than-expected inventory levels, which will impact shipment volumes in the following months [1]. - The era of easy profits from high-end liquor sales is ending, with companies now needing to sell significantly more volume to achieve the same profit margins [2]. - 79.31% of liquor distribution companies view price inversion as the primary factor eroding operating profits and affecting growth [2]. Group 2: Shift to Self-Branded Products - Companies are moving away from relying solely on high-margin name-brand liquors and are now focusing on developing their own brands to create sustainable competitive advantages [3][4]. - The liquor industry is witnessing a consensus on seeking new profit models, with companies like JiuXian Group launching new products aimed at becoming well-known brands in the mid-price range [3]. - 1919 is transitioning its profit model from "name-brand price difference" to "strategic brand-driven," with sales of its strategic brand products expected to reach 600 million yuan this year [3]. Group 3: New Business Models - The liquor retail sector is evolving to combine offline experiences with online sales, emphasizing the importance of enhancing product categories to meet social and lifestyle needs [5][6]. - 1919 is implementing a "restaurant + liquor" strategy, integrating retail with dining experiences to create a stronger consumer engagement [5]. - The growth of e-commerce and live streaming is becoming crucial, with companies like JiuXian Group seeing significant revenue from live streaming sales, which have become a major growth driver [6].

Core Viewpoint - The era of profit from the price difference of famous liquor has ended, prompting companies to seek new business models and strategies to adapt to the changing market landscape [1][2][5]. Industry Overview - The Chinese liquor retail chain industry is undergoing significant transformation, with a need for channels to adapt to market changes and innovate marketing strategies [1][2]. - The "price inversion" phenomenon, where wholesale prices are lower than factory prices, has become common, leading to cash flow pressures for many small distributors [2][3]. Company Strategy - 1919 is shifting its profit model from relying on the price difference of famous liquor to focusing on "strategic brands" [5][8]. - The company plans to launch "1919 Liquor Life Halls" that combine "instant retail + experiential scenarios" to explore new paths for growth [1][7]. - The strategic brand products are expected to generate significant sales, with projections of reaching 600 million yuan in sales for the year [5]. Market Positioning - The company acknowledges that while it will continue to sell famous liquor, it aims to balance this with the development of strategic brands to cater to diverse consumer preferences [5][6]. - The integration of "food + liquor" is a new strategy, aiming to create strong connections between liquor consumption and dining experiences [7]. Operational Changes - 1919 is implementing a closed procurement model for its stores, requiring all partners to source exclusively from the company to maintain brand integrity [8]. - The company plans to streamline its franchise network, potentially terminating contracts with those who do not align with its new operational philosophy [8].