China News Service Client Beijing, May 8 (Zuo Yukun) Recently, the wine leader Yantai Changyu Grape Wine Co., Ltd. (stock referred to as "Zhangyu A") released its 2019 annual report, achieving operating income of 5.031 billion yuan, down 2.16% . At the same time, Changyu also lowered its revenue target for 2020.
"2020 will be the most difficult year for the domestic wine market in the last decade." Sun Jian, general manager of Changyu A, once said. With the disclosure of Changyu A2019 annual report, the trend of the whole wine industry's continued downturn is more clear.
Data map: Changyu Wine.
After a difficult 2019, it is a difficult 2020
2019 is a painful year for the wine industry.
In 2019, Changyu A achieved operating income of 5.031 billion yuan, a decrease of 2.16% from the previous year; realized a net profit attributable to shareholders of the parent company of 1.130 billion yuan, an increase of 8.35% from the previous year; net profit after deducting non-recurring gains and losses of 892 million Yuan, a year-on-year decline of 7.6%. In addition, net cash flow from operating activities was 838 million yuan, a year-on-year decrease of 14.15%.
Not only Changyu A, but other companies in the same industry are not very good. The output of domestic wine has fallen, and many importers and distributors have experienced a decline in sales.
Known as "the pride of domestic wine", Yiyuan Wine has a revenue of about RMB 72.71 million in 2019, a slight increase compared to 2018. The cost of sales decreased by more than 6 million yuan, the annual gross profit was about 31.91 million yuan, and the gross profit margin increased from 35.1% in fiscal 2018 to 43.9% in fiscal 2019.
However, in the section "Profit for the year and profit attributable to owners of the company", Yiyuan Wine's full-year net profit in 2019 was 30,000 yuan, a decrease of 99.5% from 6.161 million yuan in 2018.
On the verge of delisting, * ST Sino-Portuguese finally turned losses into profits through various operations, but the net profit was only in the scale of 10 million yuan. Companies such as Dynasty Wines, Tongtian Wines, ST Veyron, and Tongpu Holdings have suffered substantial losses.
For domestic wine companies, 2019 is a difficult year, but now, the situation in 2020 may be more severe. In addition to facing competition from imported wines, domestic wine companies must now cope with the impact of the epidemic.
According to the statistics of the China Wine Industry Association, in January-February 2020, the sales revenue of domestic wines of wine companies above designated size was 1.288 billion yuan, a decrease of 40.82%; the profit was 51 million yuan, a decrease of 57.95%.
Regarding the revenue plan for the new year, Changyu A said in the financial report that the company will strive to achieve revenue of at least 3.7 billion yuan in 2020. This means that Changyu is well prepared to reduce revenue by nearly 30% in 2020.
Why is wine "the hardest in the wine world"?
"The wine industry is at the forefront of the epidemic impact, and the macro data is definitely poor." Ling Chunming, chairman of Zhongxi Wine Industry and executive vice chairman of the Guangdong Wine Industry Association, told reporters, "Taking my own company, we are in About 900 cooperation points across the country have so far been determined not to do so, close to 20%, and more than 50% are in a loss state. "
National wine production data from January to March 2020 released by the National Bureau of Statistics showed that wine production in the first quarter was 58,000 kiloliters, a year-on-year decrease of 40.8%. Relative to the 33.8% and 15.9% declines in beer and liquor, respectively, the turmoil in the wine industry is more pronounced.
Data source: National Bureau of Statistics.
"Hundreds of bottles of Moutai can be sold every day in the store, and it's really true. But for the wine, I worked in the store for a week after resuming work, and only opened two bottles for the first time. "" Xiaofu, who sells in a liquor store, also agrees with this trend.
"I used to work in e-commerce. Although the daily order volume is very large, they are tens or hundreds of dollars. Now in the store, there are a lot of large orders of more than one hundred and two hundred thousand, but It is mainly based on liquor like Maotai. "Xiaofu said.
The same is all wine, why is the wine industry affected more seriously?
In the opinion of the industry, first of all, domestic consumers have not yet formed a wide range of wine consumption habits. In countries such as France and the United States, wine is a daily consumer product and its drinking frequency is relatively high. During the epidemic, many foreigners were keen to buy wine, it is not difficult to see that foreign consumers' demand for wine is relatively greater.
"Take liquor, in addition to Maotai drinking all over the country, there are local 'real estate liquor' in each place, it has a fixed consumer group and a good mass base." Ling Chunming believes that liquor can be to some extent Said it is "just needed", and wine is far from this level, in this case, the decline will be greater.
At the same time, unlike many countries that have formed a mature wine industry chain and market very early, in China, wine is still positioned by the market as a high-end consumer beverage that reflects the level, which belongs to the niche market.
"The wine market is small and the" plate "is not large. As long as the consumers are down, the proportion of decline is relatively larger." Ling Chunming said.
After more than ten years of continuous influx, imported wine has occupied half of the Chinese market in 2019. As the quality of national life improves, the demand for high-end wines increases relatively faster. Imported wine has quickly eroded the market share of domestic wine, leading to a continuous decline in Chinese wine production in recent years.
2019 is the seventh consecutive year that Chinese wine production and sales have declined. In 2013, China's wine production reached 1.178 million kiloliters, and since then has been declining all the way. According to the latest data from the National Bureau of Statistics, China's wine production in 2019 was 451,000 kiloliters, a reduction of 178,000 kiloliters compared to 2018.
"The profit of the whole domestic wine is not as good as that of Maotai." In this rising industry, many companies are still struggling to lose money. From January to August 2019, 154 wine enterprises above designated size were included in the scope of the National Bureau of Statistics, of which 41 were loss-making enterprises, with a loss of 26.62%.
Data map: wine.
In 2020, the new positive pneumonia epidemic will hit the golden period of sales in the wine industry. According to media reports, in a speech within the company, Sun Jian introduced that according to industry practice, the peak of wine consumption is 1 to 2 weeks before the Spring Festival and the entire first month of the year, accounting for a large proportion of the annual sales volume. Even individual cities may It reached about 40%, and the epidemic happened exactly at this stage.
Xiaofu also told reporters that at the end of January, a local grape distillery that she had previously practiced with had also temporarily switched to producing 75-degree alcohol.
"Drink liquor in the winter to warm up, drink beer in the summer refreshing." Some wine salespersons lamented that from this year's situation, the domestic wine sales market in February was basically stagnant. Losing the wine industry in the golden period of sales, such a large sales gap is difficult to make up for later.
Under the epidemic, where is the way?
"In general, it is normal for the entire wine industry to go down throughout the year." Ling Chunming believes that the hottest word now is "social distance", even if the epidemic has passed, because of the social distance, everyone gathers together to eat The scene of meat drinking is also difficult to recover, and it will take some time for consumer confidence to reshape.
In the industry chain that has triggered a whole body, many wine-related companies are facing huge financial pressure, especially for relatively small companies. The industry's sluggishness throughout the year has been fatal. of.
Recently, news of some companies' salary cuts, layoffs, and transfers have been continuously reported. However, some in the industry believe that this is not a good way to ease the crisis. "The originally built team fell apart because of layoffs, which resulted in the dispersion of resources, which was not conducive to the stability of the channel and the market."
Where will the troubled wine industry go? Some market participants believe that the epidemic has intensified the competitive situation in the industry, forcing major enterprises to improve product quality, improve product cost performance, and increase marketing investment against the market. Some small and medium-sized enterprises and distributors have high capital occupancy costs and may accelerate their departure, thus showing the phenomenon that consumer preferences are concentrated in head enterprises and head brands.
"From the perspective of the current macroeconomic trends and the impact of the new coronary pneumonia epidemic, the Chinese market has shown new trends and potential development opportunities." Sun Jian said that during the epidemic, the younger generation that grew up with the Internet and "60 The new "middle class" in the "post-70s" is returning to the family more and more, and wine consumption will be more and more brought into the family, which may become a stimulus for the development of an industry.
At such a moment where risks and opportunities coexist, wine companies are also preparing for the next transformation. Among the specific measures planned for 2020, Changyu specifically proposed to "promote the transformation of the company's traditional business into a digital business", which is undoubtedly a revolution for Changyu's sales and marketing. Some netizens believe that the epidemic made this century-old wine company realize that "acquiring customers online" is accelerating to catch up with "traditional customers", and "online shopping" is vigorously impacting "offline shopping".
"The epidemic situation will pass, and the wine industry will always recover. In the past two months, we have recruited more than a dozen people and set up a new retail department." Ling Chunming said that digital marketing is every enterprise's In the future, this epidemic will only speed up this process. (Finish)