Core Viewpoint - The market for Moutai has experienced a significant downturn, with prices reverting to levels seen a decade ago, leading to a forced reevaluation of its value by dealers and consumers alike [1] Group 1: Market Dynamics - The market was initially driven by hype around several "cultural series" new products, which peaked in early 2023, but by mid-2025, the excitement dissipated, causing prices to plummet [3] - The wholesale price of the popular 53-degree Feitian Moutai fell from 3,500 yuan in 2022 to below 1,700 yuan, prompting concerns among dealers [3] - New product launches have seen drastic price drops, with some products losing 30% to 40% of their value shortly after release [5] Group 2: Dealer Sentiment and Behavior - Dealers are now facing unprecedented market conditions, with many initiating clearance sales to recover cash, often selling below cost [9] - The shift in market dynamics has led to a significant reduction in inventory levels, with warehouses that were once full now echoing emptiness [3][9] - Dealers are increasingly cautious, focusing on quick turnover rather than long-term investment, as many face substantial losses on unsold stock [13][16] Group 3: Consumer Behavior and Market Structure - The consumer landscape has shifted, with buyers now purchasing only for personal use rather than for resale, leading to a decline in high-value gift purchases [9][11] - The rise of e-commerce has increased price transparency, contributing to the perception of Moutai as a consumable rather than an investment asset [11][18] - The prevalence of counterfeit products has surged, with over 90% of samples from low-price platforms being fake, causing consumers to be more cautious [9][18] Group 4: Industry Outlook - The Moutai company has acknowledged the cyclical adjustment within the liquor industry, indicating a shift towards a competitive environment focused on existing inventory [13] - Despite the price drop, Moutai's stock has not seen a corresponding decline, with some investors still choosing to increase their holdings, suggesting confidence in the company's long-term value [15] - The company aims to stabilize its supply and distribution channels in anticipation of a market recovery [15]