Core Insights - The Chinese liquor industry is undergoing a significant transformation due to tightening policies and a shift towards more rational consumer behavior, particularly in the context of graduation banquets [3][4][5] - The scale of graduation banquets has drastically reduced, with many now opting for small family gatherings instead of large celebrations, reflecting a cultural shift in how achievements are celebrated [3][5][6] Policy Impact - New regulations, such as the revised "Regulations on Strict Economy and Opposing Waste in Party and Government Organs," prohibit high-end meals and alcohol at official gatherings, impacting the scale of graduation banquets [4][5] - Public sector employees, including teachers, are discouraged from participating in or hosting graduation banquets, further contributing to the decline in banquet sizes [5][6] Market Trends - Graduation banquets have seen a 60% reduction in scale compared to the previous year, with typical gatherings now limited to 2-3 tables instead of the previous 10-20 [5][6] - In Guangzhou, banquet prices range from 1,400 to 1,800 yuan per table, indicating a shift towards more modest celebrations [5][6] Industry Response - Liquor companies are adapting to the new market conditions by lowering the minimum table requirements for promotional events, with some brands now offering incentives for smaller gatherings [7][8] - The focus has shifted from large-scale events to more intimate celebrations, with liquor consumption patterns reflecting this change, as families tend to purchase higher-end products in smaller quantities [8][9] Consumer Behavior - Consumers are increasingly favoring quality over quantity, opting for premium liquor brands for small family gatherings rather than bulk purchases for large banquets [8][9] - The overall consumption of liquor during graduation banquets is significantly lower than that of wedding banquets, with a notable preference for mid-range to high-end products [9][10]