(Original title: Is winter coming to spring? Expansion of domestic demand releases a positive signal Industry looks forward to new opportunities for wine industry strategy | Hit the wine fair directly)
December 18 Financial Associated Press news (Reporter Wu Weiling)“Yibin, the capital of wine and beauty in the world”, the 2022 China International Famous Wine Expo (hereinafter referred to as “Wine Expo”) opened in Yibin, Sichuan on the morning of December 17th. A Financial Associated Press reporter learned from the forum at the opening ceremony that after a period of adjustment in the liquor industry, coupled with the recent adjustment of the epidemic prevention policy, confidence in the industry has undergone a positive change. Song Shuyu, chairman of the China Alcohol Industry Association, said at the meeting, “To expand domestic demand, consumption is the first. The wine industry in the long-term development is about to usher in a new round of strategic opportunities.”
The liquor industry is now a positive sign
Unlike the haze that has engulfed the liquor industry in recent months, people in the industry took on a more positive attitude towards the industry at the opening ceremony of the wine expo.
At the opening ceremony, Song Shuyu delivered a keynote speech entitled “Harmony in Difference and Great Harmony”. She said that with the adjustment of epidemic prevention and control, although the industry will experience birth pains in the short term, it is within reach to fully restore its pre-epidemic vitality.
Song Shuyu, chairman of the China Alcohol Industry Association, gave a keynote speech and was photographed by a reporter from the Financial Associated Press
Looking forward to a recovery in consumption after the epidemic, what kind of opportunities are the new opportunities in the liquor sector? In the post-meeting interview, Song Shuyu told Financial Associated Press reporters that after the adjustment of the epidemic policy, it is imminent to stimulate consumption. Alcoholic products play an important role in consumption, and play a very important role in stimulating the consumption. “I believe that during the Spring Festival this year and also in 2023, the whole consumption will become a major theme of the market.”
From this point of view, the recovery in consumption can represent an important prerequisite for new opportunities in the wine sector. It is noteworthy that recently the State Council released the “Strategic Planning Outline of Domestic Demand Expansion (2022-2035)” and the National Development and Reform Commission subsequently released the “Implementation Plan for “14th Five-Year Plan” strategy for expanding domestic demand”. By targeting the main factors limiting the expansion of domestic demand, the plan clarifies key tasks and important measures.
The China Alcoholic Drinks Association recently issued a document noting that the December Politburo meeting proposed to “integrally combine the implementation of the strategy of expanding domestic demand with the deepening of supply-side structural reforms,” and consumption has become an extremely important part of the troika driving the economic recovery. It is believed that with the liberalization of policies, the offline consumption scene will gradually recover.
The China Alcoholic Drinks Association also said that towards the end of the year, liquor terminal sales actually recovered, and the procurement departments of some enterprises and institutions began to purchase and stockpile for the annual meeting and passenger flow of terminal shops has increased significantly. According to the basic research report, with the recent optimization of epidemic prevention and control, some enterprises and institutions have resumed their annual meeting activities, which further stimulated the atmosphere of local liquor sales.
The structural prosperity model remains unchanged
This year, the liquor industry’s terminal consumption is under pressure, and the differentiation of liquor companies has intensified. Song Shuyu said that the current pattern of structural prosperity in the industry remains unchanged.
Song Shuyu said in an interview that from January to October this year, the number of listed enterprises in the liquor industry decreased slightly, and production also decreased slightly, but both sales revenue and profit recorded a double-digit growth. This means that the model of the liquor industry that focuses on famous wine producing areas and famous wine brands hasn’t changed.
According to data released by the National Bureau of Statistics, from January to September this year, liquor enterprises above the designated size achieved an output of 4.879 million kiloliters, a year-on-year decline of 2.5 percent . As the main production area of high-quality Luzhou-flavored liquor in Yibin, it is estimated that the annual operating income of liquor companies will exceed 180 billion yuan, an increase of 10.11% year on year.
Song Shuyu told reporters from the Financial Associated Press that wineries currently need to be fully prepared to cope with the recovery in consumption. After the adjustments in recent years, the size of the market will become a very important competitive factor in the future. Under this premise, for famous and high-quality wines, fully preparing for the next consumption cycle will be a good strategic opportunity. He also said, “With the adjustment of the epidemic policy, we will have more expectations in the future for companies that have survived for three years and still perform so well.”
As a leading winery, Wuliangye (000858.SZ) put forward a more specific idea. Zeng Congqin, party committee secretary and chairman of the company, delivered a keynote speech entitled “Conspiring for Industrial Integration and Co-Creating a Harmonious Ecology” at the opening ceremony, saying that famous wineries should seize the historical lead, develop with their own high quality and create new opportunities for the industry.
Zeng Congqin, party committee secretary and chairman of Wuliangye Group (Share) Company, delivered a keynote speech Photo by Financial Associated Press reporter
In particular, in terms of products, Zeng Congqin stressed that it is necessary to enhance traditional crafts with modern technology to create a diversified, high-quality and personalized product system; in terms of marketing, famous wineries must always follow the commercial logic of consumer sovereignty, restructure the consumer-centric marketing organization and system, and recommend the construction of a modern market system that is unified, open and competitive.
(Editor Liu Yan)
