Finance–What is the reason for the collective price increase of low-end liquor?
Every summer, it is the off-season of white wine. At this time of the year, many liquor companies began to crouch and look forward to making a difference after entering the fall.
However, in the summer of this year, the liquor market has been somewhat instigated. Both the famous wines and the regional wines have started the price adjustment model.
Low-end liquor brands have raised prices
Recently, Jiugui Liquor (000799) issued a notice to the national channel dealers. Since July 15, 2018, the 52-degree highly soft red altar and the purple altar alcoholic spirits have increased the ex-factory price by 22 yuan and 20 yuan respectively. .
prior to this, there have been a number of wine companies to raise prices.
On June 1, 2018, Henan Yangshao Marketing Co., Ltd. issued a price adjustment notice, starting from 0:00 on June 11th, raising prices for some of its products: painted pottery and National Edition, people and Zhengzhou Edition, Renzhiyun 2018 The version of the wine is raised by 5 yuan per bottle. The pottery square, the national version of the land, the Zhengzhou version of the land, the rhyme of the 2018 version of each bottle of wine rose 10 yuan.
The reporter learned that in November 2017, Luoyang Dukang Holdings also carried out the channel supply price and suggested retail price of the products of Duzuo Kangcang, Jiuzu Dukang 6 窖 District, Jiuzu Dukang 9 窖 District, Jiuzu Dukang 12 窖 District. Adjustment.
The channel supply price was raised on the original basis, of which the wine ancestor Dukang sang was raised by 25 yuan/piece, the wine ancestor Dukang 6 窖 area was raised by 30 yuan/piece, and the wine ancestor Dukang 9 窖 area was raised by 40 yuan/piece, Jiuzu Dukang 12 / The area is raised by 45 yuan / piece.
At the same time as the price of dealers rose, Dukang Holdings also suggested that the retail price should be raised in the same proportion on the original basis.
Shanxi Xiangyang Wang Wine Co., Ltd. Zhengzhou City General Agent, Zhengzhou Tianteng Trading Co., Ltd. General Manager Kong Xiangbin told reporters that the company’s agent of Xiangyang Wangjiu is a price of 20 yuan light bottle wine, since the end of last year The bottle price is 5 yuan.
In addition, the Maotai Group Tianchao Shangren Liquor, Mouth (603589), Xifeng Liquor, etc. have different levels of price increases. The prices of these wines are basically between 50 yuan and 200 yuan, belonging to the low-end market.
price increases due to rising labor, raw materials, and logistics costs
The price increase of liquor is a normal thing, but the price increases in previous years are concentrated before the peak season, and most of the high-end liquor.
The reporter noted that this price hike, which is dominated by low-end and mid-range white spirits, began before the Mid-Autumn Festival last year. In this regard, a person in charge of a liquor company in Zhengzhou said that the price increase was mainly caused by the sharp increase in costs such as labor, brewing raw materials, warehousing logistics and packaging materials.
„The low-end area liquor has limited profit margins, and its market share is also small. The sales volume is not up to the cost, but it can only be increased.“ The person in charge said.
A liquor dealer in Zhengzhou said that the price increase of low-end white wines, although there are cost-driven factors, is mainly driven by favorable market conditions and has a certain relationship with consumption upgrades. Take urban white-collar workers as an example. If you take a bottle of 20 yuan to entertain friends, I guess I am embarrassed, and my friends will not drink. The reason is that the psychological suggestion for everyone is that a bottle of 20 yuan will definitely not Where are you going? When the consumption upgrade becomes the general trend, no one wants to bottom out.“
The reporter noticed that compared with the previous Maotai 100 yuan as the price increase unit, these low-end liquor prices rose by 5 yuan to tens of yuan.
„In recent years, Moutai has been rising, and every price increase will bring other wine brands to follow suit.“ Zhangzhou Laojiao (000568) dealer Zhang said that the sales price of low-end liquor is low, and the profit is thin. The price is also fine-tuned on this basis, and it is impossible to double the price.
The price of low-end white wine should be cautious
Some industry experts said that the price increase of low-end white wine should be considered by its consumer groups to evaluate the brand and consumption value of the product. „Consumers of low-end and mid-range wines are more sensitive to price changes. Therefore, when these prices increase, they should assess their own price.“
Liang Chao, chairman of Zhixing Liquor Strategic Marketing Escrow Consultant, believes that it is difficult for consumers to agree on the price of liquor brands that are not recognized by consumers: „High-middle and low-end liquor products, each with market demand, which is related to different spending power, but whether it is High, medium or low-grade liquor, and miscellaneous branded wines will be eliminated.“
Kong Xiangbin told reporters that Xiangyang Wang wine itself is a niche market in Zhengzhou, and it can sell some before the price increase. After the price increase, sales have dropped a lot.
The reporter learned that there are still some liquor brands, in order not to reduce their sales, only the dealers and retail terminal providers to raise prices, but still maintain the original price for consumers. But this undoubtedly cuts the profit margin of the dealers.
In addition, in order to protect the interests of dealers and consumers, some liquor producers began to reduce expenditures internally and use the savings to offset the increase in costs. For example, Shuijingfang (600779) had an impairment of about 80 million yuan in bulk liquor assets in the first half of 2017.
Liquor expert Wan Xinggui believes that under the background of rising cost and low-end liquor living space, liquor companies should moderately increase their prices to survive their survival time. On the other hand, they should actively seek new consumption positioning and space.
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