Maotaizi brand will significantly reduce prices?

At the previous Maotai internal work conference, Maotai Group planned to start the downward adjustment of the terminal prices of the four sub-brands of Yingbin Wine, Wangjiu Wine, Hanjinjiu Wine and Renjiu Wine Co., Ltd., and the maximum reduction may reach 50%. The price reduction of high-end liquor has finally reached the low-end sub-brands.

Under the pressure of cracking down on Sangong’s consumption, Maotai’s sales in January-April this year fell by 23.8% year-on-year. For this reason, one month ago, Maotai shouted at the general meeting of shareholders that the power was to change from "official liquor" to "people's drink."

According to reports, prior to this, Maotai’s pricing for its four sub-brands was 109 yuan for welcome drinks, 199 for princes, 599 for beneficiaries, and 799 for Hancock. After the price reduction, the price of benevolence was lowered to 299. Yuan and Han's sauce are only 399 yuan, while the price cuts for Yingbin and Wangjiu have not yet been determined.

Although Beijing Business Daily reporter saw the prices of these four products still found in Maotai's official online store, it was revealed that there have been market prices after the regional market was implemented. Not only that, at present, many online channels have begun to take the lead in price cuts: For example, at Jingdong Mall, the 51-degree Han Chinese sauce in 500ml is priced at 729 yuan, and one-for-one purchases are less than 399 yuan per bottle; The minimum price of 53 degree benevolence wine is 289 yuan; the 53-degree welcome drink in 500 ml is only 82 yuan; the 53-degree Prince wine in 500 ml is from 100-199 yuan. In response, Moutai Group said in an interview with a reporter from Beijing Commercial Daily that "it is not convenient at this time."

“Overweight waist” is a corporate strategy adopted by many high-end liquor companies in the past year. Previously, high-end liquor brands such as Wuliangye also announced the launch of a full-price product strategy. However, the introduction of new price-based products is rarely associated with Maotai’s large scale. Price cuts.

According to industry analysis, the substantial downgrade of sub-brand prices was due to Maotai’s first fire in the transition to “Liquor”. “Under this current environment, Maotai does not waste time developing new low-end products, The market changes, but the prices of existing products are adjusted.It is worth noting that the adjusted products are incomparable with the 53-degree flying in terms of national sales volume, and those products with a relatively low proportion of company sales are used as 'people's wine' endorsements. By disrupting the competitors' positions by lowering the price of mid-to-low-end products, it will go hand in hand with hype, win customers, and expand the market for sauces."

However, in the Moutai transformation, the industry also has different voices: On the one hand, in the long run, many people in the industry believe that the negative impact of the substantial price reduction on the brand is intensifying. Marketing expert Jin Yufeng believes that Maotai’s practice not only implied the pressure of Taishan on the production of low-end liquor in Maotai and Renhuai's other wineries, but also created a huge conflict of interest in the channels of the Moutai dealership system. On the other hand, after the price reduction, Moutai needs to face a series of problems, including how to solve the original inventory price premium, how to deal with the unsold parts of the channel, how to appease the dealers, and how to guide the new market strategy, how to solve, etc. Finally, it is very likely that the dealer will be forced to resign.