China News Service, January 31 (China News Business Reporter Xie Yiguan) Wuliangye is going to increase in price!
Recently, there is news that Wuliangye has decided to increase the ex-factory price of the eighth-generation Wuliangye by 50 yuan from the current 969 yuan/bottle to 1,019 yuan/bottle starting from 0:00 on February 5. The suggested retail price remains at 1,499 yuan/bottle.
On January 31, a reporter from Sino-Singapore Finance asked Wuliangye about this matter, and the other party confirmed the news, which also means that the ex-factory price of the eighth-generation Wuliangye will exceed the thousand yuan mark.
The picture shows Wuliangye. Photo by Gong Hongyu
The price has been raised again after two years, and the ex-factory price exceeds 1,000!
A reporter from Sino-Singapore Finance found out that this is the second price increase for the eighth-generation Wuliangye after two years. The last price increase was at the end of 2021.
According to media reports, in the new contract signed by Wuliangye dealers in 2022, the unplanned price for the 52-degree eighth-generation Wuliangye was increased from 999 yuan/bottle to 1,089 yuan/bottle. According to calculations, the ex-factory price of the eighth-generation Wuliangye increased from 889 yuan to 969 yuan at that time, an increase of nearly 9%.
In recent years, Guojiao 1573, Feitian Moutai, etc. have successively increased their ex-factory prices. As Wuliangye’s core product, when the eighth-generation Wuliangye will announce a price increase has attracted much attention.
The reporter noticed that Wuliangye’s “12·18” conference held at the end of 2023 had already released a signal. At that time, Zeng Congqin, chairman of Wuliangye Group, said that he would choose an opportunity to appropriately adjust the ex-factory price of the eighth-generation Wuliangye.
More than a month after the conference, the ex-factory price increase of the eighth-generation Wuliangye became a reality.
Data map photo by Xie Yiguan
The industry says it will help drive consumer enthusiasm in the market
The price increase started on February 5, just before the Spring Festival holiday. Why did Wuliangye choose to adjust the price at this time?
Liquor industry analyst Cai Xuefei told Sino-Singapore Finance reporters that liquor has the characteristics of crowd consumption. During the Spring Festival, alcohol consumption is high, the consumption is large, and the willingness to consume is strong. Famous liquors such as Wuliangye themselves are popular in banquets, gifts, collections and other markets. With rigid demand, Spring Festival consumption further amplifies market demand, laying the foundation for Wuliangye's price increase.
In his view, alcohol consumption during the Spring Festival is still a typical social consumption, so it has high requirements for the brand value and image of the product. Appropriate price increases can enhance consumers' sense of experience and increase market value-added expectations to a certain extent. This will drive market consumption enthusiasm and accelerate product sales, which is conducive to the overall sales of Spring Festival products. "At the same time, Wuliangye is in a low value position in both the capital market and the consumer market. A small price adjustment will help push the price of Wuliangye products to gradually return to the value of famous wines."
Liquor analyst Xiao Zhuqing believes that Wuliangye's price adjustment at this time is the result of in-depth and extensive market research.
“This move will not only boost domestic demand, improve the confidence of the consumer goods market, related industrial chains and capital markets, lead the strong-flavor liquor camp and the ex-factory price of the main products of the Sichuan liquor sector into the thousand-yuan era, but also drive the development of the strong-flavor liquor camp and Sichuan liquor sector. The high-quality development of the liquor industry should be planned in advance to seize the new round of development opportunities in the liquor industry." Xiao Zhuqing said.
Price increases for famous wines further open up the price ceiling
In recent years, front-line liquor companies have frequently raised prices.
In August last year, the dealer settlement price of 52-degree Guojiao 1573 Classic Pack (500ml*6) increased to 980 yuan/bottle; since November last year, the ex-factory price of Feitian Moutai, Moutai’s main product 53%vol500ml, increased from 969 yuan Increased to approximately 1,163 yuan.
Data map: Citizens get information at the Kweichow Moutai counter in a supermarket in Fuzhou, Fujian. Photo by China News Service reporter Lu Ming
Earlier, in April 2022, the planned ex-factory price of 53-degree Qinghualang 500ml was increased by 100 yuan/bottle to 1,009 yuan/bottle.
Judging from the price-increased products, these are all famous wines priced at 1,000 yuan. The market generally believes that the thousand-yuan wine price band is the core competitive price band and will also be the main consumer price band in the future. Therefore, famous wines including Maotai, Wuliangye, and Luzhou Laojiao compete here.
As Moutai, Wuliangye and others take the initiative to raise prices, they will further open up the price ceiling and drive the liquor industry to expand upward with a thousand-yuan price band.
After the prices of core single products of first-line wine companies have been raised one after another, will more wine companies join in in the future?
Cai Xuefei said that at present, the industry generally believes that the entire wine industry will still face problems such as high inventory, price inversion, and insufficient demand in 2024. It will take 1-2 years to achieve channel flexibility and consumer confidence to restore the industry, so the market lacks The consumer base for price increases.
"Even if the price increases, it will be a small follow-up price increase. The brand attitude is greater than the product sales value." Cai Xuefei believes that from a positive perspective, famous wines have rigid demand in banquets, gifts and other markets. The characteristics of this category have not changed, and consumption has upgraded. Under the trend, famous wines still have good development prospects. (over)