How Liquor Dealers Deal with Market Changes in the B2C Era

On September 10, 2011, Wuliangye’s white spirits officially raised prices by 20% to 30%. On September 13, the factory price of Yanghe Daqu increased by 5% to 10%. As the “leader of the liquor industry” in the liquor industry, Maotai wine has also been reported to have risen by 20% to 30% before the National Day. In the past two years, mid-to-high-end liquor has gained momentum. Following Maotai and Wuliangye becoming luxury wines, Luzhou Laojiao, Jiannanchun and other brands also followed. In the second half of the festive season, the rising tide of liquor price surges.

The retail price of Maotai Maotai nearly 2,000 knots has been seen as a time for liquor companies to increase their prices. After entering September, brands such as Jiannanchun, Luzhou Laojiao, Yanghe and Wuliangye have joined the ranks of rising prices, and stopped for a while during the year. The rise of high-end liquor prices again. The Maotai company did not raise the ex-factory price even after raising prices on January 1st this year. However, due to tight supply, dealers frequently broke the limit order price of 1,099 yuan, and their retail prices rose several times.

"Flying Maotai is now 1480 yuan a bottle, I suggest you buy early, or by the end of the year, not only the price will rise, but also may not be able to carry the money." A liquor dealer said yesterday that the advance of the Mid-Autumn Festival Maotai The price has gone up again, and this is what they had expected for a long time.

In the past two years, Maotai will have to increase its price every holiday, and 1480 yuan is still the price that some dealers sell on the Internet. If they want to buy Feitian Maotai in a supermarket or a tobacco and alcohol store, their price ranges from 1598 yuan to 1,800 yuan. Far above the limit of 1099 yuan.

After Wuliangye raised the ex-factory price, media reports recently said that Maotai was prepared to raise the ex-factory price before the National Day, and the price increase ranged from 20% to 30%. Since then, the retail price of flying Maotai is likely to break the 2000 yuan mark. In this regard, the relevant person in charge of Maotai Company denied that it would increase prices, saying that it had not heard that prices would have to be adjusted, and that the ex-factory price had not been raised after the Spring Festival.

The dealers' high profit has been spurred by Maotai. In the past two years, Maotai's price cycle has been significantly shortened and its frequency has increased, but it has remained at one or more years. Therefore, Zhou Sianran, a food industry researcher at China Investment Consulting Group, believes that Maotai’s potential to increase again in the second half of the year. Less sexual, even if the price increase will be more cautious. The price increase is closely related to the terminal price. The more the difference between the retail price and the ex-factory price, the greater the adjustment.

Sun Yanyuan, a senior expert in liquor industry, believes that the high profit of dealers is one of the important reasons why Maotai keeps increasing prices. Pre-holiday dealers have raised their prices, and if the Moutai ex-factory price does not increase, all the profits will be given to the distributors.

“The lack of production of Moutai and the strong market demand, resulting in a supply gap coupled with the dealer’s stock-picking behavior, will inevitably drive up the terminal price of Maotai, and the continuous rise in terminal prices has gradually opened the price difference with Moutai’s ex-factory price. It is bound to bring greater profit margins to dealers, and also create opportunities and space for manufacturers to increase ex-factory prices." But Zhou Siran believes that this increase in ex-factory prices will eventually extend to consumers and consumers. Become the ultimate bidder for the company's price increase.