After experiencing a continuous decline in prices, Kweichow Moutai quickly launched a series of "price protection" policies to promote the price of Feitian Moutai to stabilize and rebound. As of June 30, the price of bulk bottles of 24-year-old Feitian Moutai has risen to 2,290 yuan per bottle; The price of the original box 24-year-old Feitian Moutai rose to 2,550 yuan per bottle.
Since June this year, Feitian Moutai has suffered the largest price drop in recent years. Bulk Feitian Moutai fell to a low point of 2080 yuan/bottle at a cliff-like speed, and the original box Feitian was also "not to be outdone", with a decline of more than 100 yuan in a single day, from the highest point of 3000 yuan/bottle all the way down to 2400 yuan/bottle. In the face of Feitian Moutai's "endless ups and downs", the pessimistic expectation that Feitian will not be able to "fly again" once filled the entire Chinese liquor industry.
The downward oscillation of Moutai's price is caused by the superposition of multiple factors. People in the liquor industry believe that the price collapse of Feitian Moutai this time is inseparable from the reduction of Moutai consumer groups and consumption scenarios, and the oversupply of products. Under the market's expectation of shrinking alcohol consumption, many e-commerce platforms took advantage of the consumption festival to launch bulk Feitian Moutai at a price lower than the market wholesale price.
As the vane and compass of the industry, Feitian Moutai's price continued to fall this time, which was a big blow to the market confidence of the industry. As early as April, as soon as the news of Moutai's price reduction came out, the stock market performance of the entire liquor sector was immediately affected, with the CSI Liquor Index falling 4.13% and the liquor ETF also falling 3.97%, reflecting the market's extreme sensitivity to Moutai's price changes. It can be said that every price change of Moutai can drive investors to re-evaluate the prospects of the entire liquor industry.
Some optimists believe that Moutai's price cut is a rare opportunity for other high-end liquor brands to benefit, and may prompt the liquor industry to shift from "one liquor dominance" to "fragmentation". However, there is no doubt that this price reduction has not really shaken the foundation of the "national liquor" brand that Moutai has established at home and abroad for many years. In the process of Feitian Moutai's price reduction, the overall compression of liquor price space and further market turbulence are indeed visible "butterfly effects".
Fortunately, Kweichow Moutai launched the "price defense war" in time. On June 23, Moutai successively launched a series of price protection measures such as canceling the launch of 12 bottles of Feitian Moutai on the market, canceling the unpacking policy of Feitian Moutai, and suspending the delivery of 15-year-old Moutai and boutique Moutai in some regions, in order to stabilize market confidence. As early as before, Zhang Deqin, chairman of Moutai Group, rushed to many places to hold dealer symposiums and carry out market research. Moutai officials also announced the suspension of the synthetic exercise of its Xunfeng 375ml Moutai digital collection, and tightened the supply of 1,499 yuan direct group purchase in some provinces.
The official measures to control the price of goods have released a positive signal to the market, and at the same time, the confidence has been transmitted to the channels, and the transaction price of Moutai has gradually begun to stop falling and rising. A week after the combination punch, the price of the original box of Feitian Moutai rose to 2,550 yuan/bottle, an increase of more than 100 yuan within a week, and the price of loose bottles rebounded to 2,290 yuan/bottle. Under his leadership, the price of Moutai Golden Prince and Guizhou Daqu in the 80s also rose by 50 yuan per case. It can be seen that Moutai's price adjustment policy has been digested and absorbed by the market and has begun to show results.
Related stock markets are also recovering. The price of Feimao plunged, which made the share price of Kweichow Moutai fall all the way, and once fell to 1414.01 yuan on June 24, during which the total market value shrank by more than 360 billion yuan. However, with the introduction of the price protection measures, the market sentiment has warmed up, and the stock prices of companies have begun to bottom out. This means that the market's confidence in Moutai is returning, and it has also greatly boosted the confidence in the overall development of the liquor industry.
"Compared with the past, although the current situation is more complex, the current Moutai has stronger core competitiveness, better market channel ecology and more resilience for risk prevention, and has the confidence, strength and ability to go through this cycle." At the market work meeting of the three provinces and regions of Jiangsu, Shanghai and Anhui and the seven provinces and regions of Beijing, Tianjin, Hebei, Mongolia and Heiji and Liaoning held on June 30, Moutai Group publicly expressed to the society.
Zhongtai Securities and others also believe that Moutai's current round of price protection measures is expected to break the market's wait-and-see attitude under the price break, and the buying mentality will continue to promote sales in many places. As the Mid-Autumn Festival peak season approaches, the year-on-year performance of Moutai's demand in July and August is expected to be better than that in the second quarter.