Core Insights - The overall performance of the liquor industry has declined significantly, with many businesses reporting a drop of over 20% during the recent holiday season [2][4] - The traditional sales pattern of maintaining customer relationships in off-peak seasons and profiting during peak seasons has been disrupted, leading to increased anxiety among liquor distributors [2][4] - High-end liquor sales, particularly those priced above 500 yuan, have seen a drastic decline due to macroeconomic factors and restrictions on alcohol consumption [2][4] - Group purchasing, which was once a major sales channel, has been severely impacted, with sales dropping from over 100,000 cases to nearly zero in some cases [4][5] - Despite the challenges, companies are adapting by adjusting product offerings and focusing on maintaining cash flow [7][10] Industry Performance - Many liquor distributors reported that the sales during the recent holiday season were 30% lower compared to previous years, despite being better than the first half of the year [2][4] - The market for mass-market liquor priced below 300 yuan has performed relatively well due to strong demand during family gatherings and social events [4][8] - The overall sentiment in the industry is one of cautious optimism, with companies striving to survive and adapt to the changing market conditions [5][11] Strategic Adjustments - Companies are implementing strategies to stabilize their cash flow by reducing inventory and focusing on established brands rather than new products [7][8] - Some distributors are optimizing their workforce by reducing market personnel by up to 30% to ensure operational efficiency [10] - There is a call for innovation in promotional activities, as current strategies have become too homogeneous and less effective [10][11] Future Outlook - The liquor industry is undergoing a deep adjustment, but there remains a strong determination among distributors to navigate through the challenges and continue to serve consumers effectively [10][11] - As restrictions on alcohol consumption gradually ease, there is hope for a recovery in the restaurant channel and overall market [10]

Core Viewpoint - The white liquor industry is experiencing a significant downturn characterized by a decline in both volume and price, high inventory levels, and deep market segmentation due to new regulations and weak consumer demand [2][5][21]. Market Conditions - The second quarter of the year has been the worst in recent years, with overall sales down approximately 15% [1]. - The white liquor market is facing dual pressures from a traditional off-season and new alcohol restrictions, leading to a notable decline in both volume and price [2][4]. - High-end liquor has been hit hardest by policy impacts, showing the most significant decline in both volume and price, while mid-range products are maintaining volume at the expense of price [2][5]. Consumer Behavior - Consumer demand is weak, with a noticeable drop in the quantity and quality of liquor consumed during social events [5]. - The market for traditional gift sets has been diluted by alternative products, reducing the seasonal demand for white liquor [3]. Regional Performance - The most significant declines in sales have been observed in Henan and Shandong provinces, with Henan experiencing a 20% drop in sales and high-end liquor sales down by approximately 30% [12][14]. - Other provinces like Anhui, Hebei, and Shaanxi also show declines around 10%, with Anhui's sales dropping by 20% in June [15]. Industry Dynamics - The industry is witnessing a shift towards real consumption, with many distributors facing losses and limited sales momentum [2][7]. - The trend of "price without market" is prevalent, as many companies have abandoned volume control strategies due to excessive inventory [8][10]. - The competitive landscape is intensifying, with various unconventional sales tactics emerging, such as "damaged goods" and misleading promotions [18][19]. Future Outlook - The third quarter is expected to remain challenging, with signs of increased competition and a potential shift towards a more diversified and mainstream market [21]. - The overall sentiment in the industry suggests that conditions will continue to worsen, with a consensus that the market will face increasing difficulties [19][20].