Liquor middling or cause product homogenization

The current price decline is within a reasonable range and will not jeopardize product brewing. It is also impossible for a liquor company to reduce the production cost by reducing the quality of liquor because of the drop in liquor prices. This is undoubtedly a self-inflicted practice and has accelerated the demise of enterprises. For wine companies, representative flagship products often mark the highest level of their brewing process. Under normal circumstances, it is difficult to raise the price of quality, and price reduction does not reduce quality. Prices are only linked to market demand. Therefore, wine is still the wine, and after the price reduction, it earns less and has nothing to do with homogenization. The real possibility of homogenization lies in: Seeing the development potential of the mid- to low-end market, the wine enterprises are rushing to explore new products and launch low-end, mid-range products are unprecedentedly rich, and products with new product development bases and unique brand positioning are rushed to be listed. , resulting in product homogenization, brand indiscriminate competition.

Last year, the sales of high-end liquors declined significantly. First-tier liquor brands have made strategic adjustments this year to enrich their low-end product lines. As the Mid-Autumn Festival approaches, the mid-end liquor product line will face fierce competition.

However, some people in the industry believe that there has been no significant increase in low-end liquor products. Experts believe that the overcapacity in the liquor market will cause homogenization of the product in the mid-end of the white spirit, which may cause price vicious competition and trigger a reshuffle in the liquor industry; while the high-end product price cut will benefit the people, either by not drinking or drinking. it is good.

For today's low-end market, white wine, relevant stakeholders believe that this situation is related to liquor in a strategic adjustment period. The expansion of front-line brands to the low-end market will trigger a “domino effect”—the downward adjustment of Wuliangye will encroach on the market for second-tier brands such as Jiannanchun; Jiannanchun will also have to lower prices to account for the market of Luzhou Laojiao; When the price cuts, the market for Langjiu and Yanghe will be invaded, and the Yanghe River will be downgraded, which will invade the market for alcoholism. When alcoholism goes down, it will invade the market of local famous wines. If everyone lowers costs, there will be a trend toward product homogenization. Therefore, it is predicted that during the Mid-Autumn Festival, there may be taste and homogenization of low-end white wine, resulting in price competition.

The price reduction war may lead to the homogenization of low-end and high-end liquor, because when prices fall, profits fall, and costs have to fall, they may be blended with edible alcohol. If all use grain fermentation, prices cannot fall. When the low-end and mid-range products compete, some companies will not be able to bear the cost, and the quality will fall, and they will die when they fall to the bottom. Now that the Chinese liquor industry has overcapacity of more than 4 million tons, the industry reshuffle triggered by a price cut is inevitable.