Core Viewpoint - The white liquor industry is facing challenges due to conflicts between traditional offline distribution models and e-commerce sales, particularly highlighted during the "618" promotional event, where low-price promotions have re-emerged, raising concerns about the impact on pricing structures and market dynamics [1][2][6]. Group 1: E-commerce Impact - E-commerce platforms have initiated low-price promotions for premium liquor, with prices for 53-degree Feitian Moutai dropping below 2000 yuan per bottle, which is lower than the market average [1]. - The intensity of this year's "618" promotions is less than in previous years, with fewer participants and less aggressive discounting, indicating a potential shift in market dynamics [2][6]. - The control over pricing by liquor companies has weakened as e-commerce platforms have started to establish their own trading companies, complicating the ability of liquor companies to manage pricing effectively [6]. Group 2: Market Dynamics - The overall performance of major liquor companies is expected to decline starting from the second half of 2024 into the first quarter of 2025, influenced by a sluggish consumption market and proactive measures taken by companies to manage inventory [6]. - Some second and third-tier liquor companies are struggling, with reports of significant price reductions online compared to offline sales, indicating a potential oversupply or desperate measures to stimulate sales [6][7]. - The current market environment is characterized by intense competition and slow sales, leading to innovative but concerning practices such as selling opened or discounted products to stimulate consumption [7]. Group 3: Future Outlook - Industry experts express concerns about the long-term market outlook, suggesting that the current challenges may persist for several years, with a potential market recovery taking 3 to 5 years [7][8]. - Discussions among liquor companies at recent earnings meetings have shifted focus towards consumer behavior changes, internationalization, and channel reforms, with little emphasis on addressing e-commerce challenges [8].