Core Viewpoint - The decline of the real estate industry in China has significantly impacted the high-end liquor market, leading to a need for transformation and new consumption drivers in the liquor sector [1][4][7]. Group 1: Real Estate and Liquor Industry Interconnection - The real estate sector's growth has historically driven the high-end liquor market, with a notable increase in business-related consumption [2][4]. - From 2004 to 2013, real estate investment surged over 520%, while the liquor industry experienced a "golden decade" with production up 293%, revenue up 719%, and profits soaring 1272% [5]. - The collapse of major real estate companies like Evergrande and the subsequent economic downturn have led to a significant decline in the liquor industry, which is now facing intense competition and adjustment [7][8]. Group 2: Current State of the Liquor Industry - As of early 2025, the number of large-scale liquor enterprises has decreased to 887, with a slight revenue increase of 0.19% but a significant profit drop of 10.93% [8]. - Major liquor companies have initiated strategic transformations, focusing on new consumer demographics, international markets, and affordable product lines to adapt to changing market conditions [10][11][12]. Group 3: Strategic Transformations in the Liquor Industry - Companies like Moutai are targeting new consumer groups in emerging industries and enhancing personalized service offerings [10]. - The liquor industry is also expanding its international presence, with initiatives aimed at promoting Chinese liquor globally [10]. - There is a growing emphasis on affordable products, with several brands launching new offerings to capture the mass market [11][12]. Group 4: Future Outlook and Challenges - Despite initial successes in transformation, the liquor industry faces ongoing challenges, including the need to find new consumption drivers to replace the real estate sector [14]. - The export market for Chinese liquor is still in its infancy, and the profitability of mass-market products lags behind that of premium offerings [14].

Core Viewpoint - The article discusses how major liquor companies are adjusting their marketing strategies in response to the pressures from the "strict alcohol ban," opting to exchange profits for sales volume through increased channel incentives and promotional activities [2][3][4]. Group 1: Industry Adjustments - Many liquor companies have begun to increase channel expenses to stimulate sales due to declining market demand, with some brands like Moutai and Wuliangye implementing measures such as halting supply to stabilize prices [3][9]. - A specific example includes a certain strong aroma liquor company that has raised its incentive for distributors from 50% to 70% for a new promotional activity, which has positively impacted sales enthusiasm at the terminal level [3][4]. - Other brands, such as Moutai and Xijiu, are also employing various strategies to boost sales, including selling discount coupons and reintroducing promotional activities [4][6]. Group 2: Market Dynamics - The increase in sales expenses is seen as a necessary response to a significant drop in sales volume, with some companies experiencing declines of 30-50% in the second quarter [9][10]. - Analysts suggest that these strategies are defensive measures aimed at digesting inventory and boosting terminal sales, ultimately to maintain market share and sales volume [9][10]. - The reliance on channel subsidies raises concerns about potential disruptions to the market price system and long-term stability for companies [10][11]. Group 3: Future Considerations - While short-term incentives may alleviate inventory pressure, companies must carefully balance expense investments with profit margins to ensure sustainable growth [10][11]. - The effectiveness of these new strategies remains uncertain, as the industry is currently in a low season, and the long-term impact on brand value and market dynamics will require ongoing observation [11].