Rebirth of the Wild Age

Compared with the thriving Xifeng Group, the Song family's Xianjiu Group is in a worse situation.

The worst thing was in 2002, if only counting the liquor business, the annual net profit was less than 50 million yuan. Also in that year, the total net profit of the national liquor industry was only 3.2 billion yuan, and the annual national liquor production dropped sharply to 3.8 million kiloliters (more than 8 million liters at the peak).

Since 1998, the liquor-related policies issued every year have caused Chinese liquor companies to go downhill.

In 1998, it was stipulated that the advertising expenses of grain (including potato) liquor shall not be deducted before tax. In the same year, the liquor industry implemented a production license system to restrict liquor companies from expanding their production scale.

In 2001, the liquor industry implemented a compound tax calculation. Grain liquor was taxed at 25% of the ex-factory price, and potato liquor was taxed at 15%. At the same time, a 0.5 yuan tax was imposed on liquor. In the same year, the advertising expenses of liquor enterprises shall not exceed 2% of sales, and the excess part shall not be deducted before tax (including non-grain liquor).

In 2002, the 18% tax rebate for liquor listed companies was cancelled.

Over the years, liquor companies have chosen different development paths.

Because the tax rate is too high and the competition is fierce, more than 90% of liquor companies directly abandon the middle and high-end wine types, and start to win by volume and focus on the low-end market-the market price is only a few yuan per catty, and the production cost is extremely low. This development model was dealt a fatal blow by the compound tax law in 2002. The 50 cents tax was specifically levied on low-end liquor. If you pay extra tax by catty, I ask you if you still dare to take the amount!

So in 2002, a large number of liquor companies died suddenly.

Wuliangye's development route is the most powerful. It cooperates with small factories everywhere to engage in OEM, specializing in the production of low-end products to capture the market, and produces high-end products by itself to maintain brand influence. Even if the 50 cents tax is imposed, the market share of products at all levels is still there, but the low-end market is shrinking.

By 2004, Wuliangye was the most expensive, even more expensive than Moutai as a whole.

Moutai's development path is extremely conservative and effective, frantically expanding military and political channels, engaging in group buying, building specialized stores, constantly bringing wine to the troops to condolences, and constantly promoting to government agencies. There are Moutai specialty stores everywhere near the government and military compounds in various places. Then, through its influence in the military and politics, it continues to radiate to the business community and the public, thus subtly shaping the golden body of national wine. In addition, Moutai vintage wine was produced to raise the value of Moutai and widen the price gap with other high-end wines.

Because there is no 18% tax rebate for listed wine companies, some wine companies, including Xianjiu, can only focus on the mid-end market after the 50 cents tax is imposed, and steadily launch high-end wine types.

It is obvious to look directly at the price. Take the 52-degree liquor of last year (2004) as an example: Wuliangye (360 yuan), Moutai (320 yuan), Jiannanchun (158 yuan), Xianjiu (158 yuan), Xiaomudaoxian ( 72 yuan), Quanxing Daqu (38 yuan), Jinliufu (16 yuan).

This is the general situation of the current Chinese liquor industry, from low-end to high-end brands, Xianjiu is completely mixed into a mid-end brand.

Of course, after the state cancels the preferential tax rebate policy for listed wine companies, there is no insurmountable gap between mid-to-high-end brands. This year, Xianjiu plans to launch a new product with a price of more than 300 yuan, focusing on the high-end business banquet market.

Let me advertise? Song Weiyang asked.

Song Qizhi said: That's right. The new product is a high-end business wine. It would be better to ask any celebrity to endorse than to let you advertise.

You really know how to pick people. Song Weiyang laughed.

Song Qizhi began to complain: Yangyang, no matter what you say, you are also a shareholder of Xianjiu Group. In the past few years, the baijiu industry was struggling, and the annual profit of Xianjiu was not as good as the fraction of the subsidiary's real estate business. A real estate company! Now that the baijiu industry is finally recovering, we must seize the opportunity, otherwise we will be left further and further behind by Wuliangye and Moutai.”

All right, I will be the spokesperson. Song Weiyang said.

Song Qizhi smoked a cigarette and said: The liquor market during the Spring Festival this year is very strange. Wuliangye has already risen to 380, and Moutai has also risen to 360 (the highest prices of their respective brands). Other brands have followed suit. On the contrary, it will go down. Do you think consumers are too cheap? They won’t buy it if it doesn’t go up!”

Haha, the mid-to-high-end market is like this, only buy the expensive ones, not the right ones. Song Weiyang laughed.

Song Qizhi took out a document bag: This is the plan of the advertising company, and the advertising script has already been written.

Song Weiyang dug it out and had a rough look at it, and found that the advertisement was well done. It is to let Song Weiyang appear on the stage in a suit and leather shoes, stand in a very high-end business building, look out at the city buildings from the window, and take a close-up of the famous watch on his wrist. The line is the way of wine, the way of business.

What do you think? Song Qizhi asked.

Song Weiyang said: If I were to act in this commercial, with the massive publicity expenses, I would definitely be able to achieve some results. But this is my persuasive power, not that of Xianjiu. Xianjiu now lacks a core advantages.

Song Qizhi spread his hands: The core advantage can't be changed. Moutai has washed the soldiers' wounds during the Long March, and Wuliangye has many old wine cellars. Now the two vintage wines have taken the limelight. But what about fairy wine? Our oldest three wine cellars were only dug during the Republic of China, and the wine cellars of the Qing Dynasty were buried somewhere long ago.”

We don't have one, but we can buy it with money! Song Weiyang said.

Where can I buy it? Song Qizhi asked.

Song Weiyang asked: Is Wenjun wine a bit out of order now?

Song Qizhi said: It's not that it's a little bad, it's that I don't believe it. When Wenjun wine was the hottest in the past, it was ranked in the top three in the province, and its market share was even second only to Wuliangye. There is no market positioning, high-end and low-end markets all want it. So famous, such a high-end brand, they don’t even change the brand, and sell it directly in the name of ‘Wenjun Liquor’ in the countryside for a few yuan a bottle.”

The sign was destroyed? Song Weiyang asked.

It has been ruined for a long time, Song Qizhi said, I bought Wenjun wine for one or two hundred yuan, and farmers can buy Wenjun wine for a few yuan. How do you think I feel? Now Wenjun wine is a high-end wine. Types are no longer available for sale, and low-end wines have also been killed by the 50 cents tax. They are all thirty or forty yuan a bottle. The brand probably belongs to the high-end of the low-end, and the low-end of the mid-range. Anyway, it is not embarrassing. of.

Song Weiyang asked again: Is there anyone buying Wenjun Wine?

Song Qizhi knew the liquor brands in the province well, and he said: Due to serious losses, Wenjun Liquor was purchased by Lanjian in 2000. But the loss momentum could not be stopped, and Lanjian sold Wenjun Liquor to Jiannanchun again. It only turned a profit last year, but the annual profit was very low, so it can only be said that it has not lost money.”

Then let's buy Wenjun Liquor and make it a high-end brand under Xianjiu Group! Song Weiyang said.

Song Qizhi waved his hands again and again: No, no, Wenjun wine has become a trash brand. Especially in the province, if you buy Wenjun wine to pay New Year's greetings at your mother-in-law's house, people will look down on you. The current market image of the wine is also It's one level higher than Jin Liufu, and it's almost as good as Quanxing Daqu.

Song Weiyang said: However, Wenjun Liquor has an old wine cellar, and there is also the story of Sima Xiangru and Zhuo Wenjun's phoenix courting a phoenix. Leaving aside the old wine cellar, this story alone is worth buying. Now who makes products? Trying to make up a story? And the story of Feng Qiuhuang is true, it did happen in the place where Wenjun wine was produced, no one can find fault with it!

If you want to buy Wenjun wine, it may be a bit expensive. Song Qizhi said.

How much can I buy? Song Weiyang asked.

You can't tell, Song Qizhi said, In 2000, Wenjun Liquor was already insolvent, but Lanjian spent 120 million yuan to buy it. Now Wenjun Liquor has turned losses into profits, and the price is not higher. , Lan Jian and Jian Nanchun are definitely not willing to sell. I estimate that if the acquisition is successful, it may cost 150 million to 180 million, or even 200 million. Immortal wine does not have that much money on its books, so it can only go to the bank Loans. Coupled with subsequent brand building and promotion expenses, once the market does not respond well, Xianjiu Group will fall into a serious crisis.

It's okay, I'll accompany you if you want, Song Weiyang said with a smile, Anyway, Xianjiu Group has made a lot of money in real estate.

Song Qizhi said speechlessly: The real estate company is an independently operated subsidiary company, and each has its own account. How can they be confused? Besides, the real estate company is our father's business, so I can still reach out to him for money?

Song Weiyang put away his smile: This is a once-in-a-lifetime opportunity. Now that the domestic liquor market is picking up, every important decision will determine the company's development in the next 10 or 20 years. Once this opportunity is missed, I want to build a high-end liquor brand in the future. , it will be ten times and a hundred times more difficult than it is now, and the required funds will also be ten and a hundred times. Make your own choice. If you succeed, Xianjiu will be a first-line high-end brand; if you fail, you can use the real estate company's money to subsidize it. If you miss this Chances are, Xianjiu will probably remain second-rate forever.”

The pattern of China's liquor industry was determined between 2004 and 2005, and there will be no change in the next ten years, which involves complex factors such as production licenses, sales channels, brand positioning, and market popularity.

Especially sales channels.

From September 2004 to March 2005, the central government carried out special campaigns across the country. On the one hand, it was to combat counterfeit and shoddy liquor, and on the other hand, it was to eliminate local protection and regional blockades in the alcohol market. The focus is on the second one, which led to the disappearance of local market barriers for liquor, and major brands immediately began to attack the city, and the sales channels in various places were thus mastered and solidified. Later new brands could not enter at all, and it was difficult for mid-to-low-end brands to sell high-end wines.

If you miss this opportunity, there is almost no chance of turning over.

Wenjun Liquor, another time and space, was missed. In 2006, it was acquired by French Hennessy and wanted to become a top luxury brand. It turned out that it was only a year late, and the foreign father couldn't move it, and it didn't work to find Jiang Wen as the spokesperson.

Song Qizhi thought hard for a long time, and finally made a decision: I'll let someone make the acquisition plan!

Add bookmark for easy reading