泸州老窖20251227

Summary of Luzhou Laojiao Conference Call Company Overview - Company: Luzhou Laojiao - Industry: Chinese Baijiu (white liquor) Key Points Sales Performance - In the first half of 2024, Luzhou Laojiao's sales stagnated, with November and December showing recovery but not reaching the same level as the previous year [2][3] - High-end liquor was the most affected segment, followed by mid-range, while low-end liquor performed relatively better [2][3] - Sales are concentrated in North China, Southwest (Sichuan), and East China, accounting for approximately 80% of total sales [2][3] Product Strategy - The company is focused on maintaining the market position of its high-end brand, Guojiao 1573, without adjusting its price [2][5][6] - Resources are gradually shifting towards mid- and low-end products to cope with market pressures [2][5] - The company is promoting low-alcohol products, aligning with the trend towards lower alcohol content [2][7] Market Conditions - The market has experienced fluctuations, with a notable decline starting in June due to policy impacts, leading to a stagnation in consumption scenarios [3] - The company anticipates intensified competition in the low-alcohol segment by 2026 and plans to adjust strategies accordingly [7] Distributor and Channel Management - The distributor team remains stable but faces profit and funding pressures [4][9] - The company is optimizing channel policies, shifting from volume and price assessments to consumer incentives and support for sales behaviors [4][9] Digital Transformation - Luzhou Laojiao is advancing its digital transformation across management, production, and supply chain, with a relatively complete model established [4][10] - The management can monitor production, sales, and distributor performance in real-time, enhancing decision-making efficiency [10] Regional Strategies - In core markets like North China and Southwest, there is significant growth potential, with specific plans in place to achieve sales targets [11] - The company aims to enhance brand influence and consumer cultivation in East China, where it has seen growth but still has room for improvement [11] Pricing and Market Position - The company has no current plans to adjust the price of Guojiao 1573, as brand positioning relies on price and market share [6] - The Old Brand Special Brew has faced challenges in the mid-tier price segment, with the company opting to maintain current pricing rather than pursue short-term gains [12] Seasonal Sales Expectations - The company holds a cautious outlook for sales during the upcoming Spring Festival, anticipating pressure due to policy impacts on gifting and banquet scenarios [13]