Wuliangye Cuts Prices as Baijiu Bubble Keeps Deflating

China's anti-corruption campaign put the hurt on luxury baijiu brands. Wuliangye is still cutting prices in an attempt to grab market share——prices at the high end are coming down 30% and wholesale prices are back to levels seen 3 years ago.

五粮液多款产品降价抢市场

Cape V. prices fall, it seems only Wuliangye (000858.SZ) a start price behavior. Recently, Wuliangye to large distributors Silver Base Group (00886.HK) "relaxation", lowered 45 degrees and 68 degrees Wuliangye liquor supply price.

"First Financial Daily" correspondent was informed that this is the recent series of Wuliangye liquor "relaxation" of a signal. A series of anonymity, told reporters yesterday wine distributors, wine blessing recently to celebrate another series of doors also reduce the supply price, "high-end product prices lowered by 30%."

Chengdu Shangshan Brand Management Consulting Co., iron plows, chief strategic adviser, said the price adjustment and price adjustment before the S & P five is the same strain: "With the S & P five series of wine price adjustment is the trend, including the underwriting of products will be adjusted before the estimated not For a silver-based behavior. "For the price adjustment, the reporter yesterday asked Wuliangye relevant person in charge, but the other side has not yet responded to the deadline.

Wholesale price night back 3 years ago

Recently, Silver Base Group announced that, Yibin Wuliangye liquor sales company, and a wholly-owned subsidiary of Silver Base Trading and Development (Shenzhen) entered into a supplemental agreement, the company of 45 degrees and 68 degrees Wuliangye liquor supply price will be reduced to September 2011 price before the company believes will have a positive impact on margin improvement. It is understood that the current market price of 45 degrees Wuliangye between 500 to 600 yuan, 68 degrees Wuliangye prices below $ 700.

Although Silver Base Group did not disclose the specific amplitude adjusted, but industry insiders believe the move will help Silver Base Group reduced losses. Wine marketing experts 晋育峰 "First Financial Daily" reporters, said:. "Currently silver-based provision 999 million yuan for two consecutive years, the existing inventory 796 million yuan, is expected next year to reduce costs after a relatively favorable" Although This news release late, but still Silver Base Group will help reduce inventory costs and reduce losses. As Wuliangye big business, has been doing high-end liquor Silver Base Group caught under the limit "Three consumption" loss, the huge loss of HK $ 1.134 billion in 2013, 2014 continues to incur losses, losses amounted to HK $ 788 million.

In fact, in addition to these two exclusive agent by the silver-based Wuliangye products, the reporter learned from other sources, Wuliangye series of wine products also recently adjusted prices. "In recent days it lowered the supply prices," the dealer said above blessing celebrate the door, "high-end product supply price reduced by 30%, we are satisfied with the price." Previously, crystal bottle 52 degrees Wuliangye The price cut is 16.46%.

There are brokers who declined to be named to the "First Financial Daily" correspondent said that this is mainly because the main brand Wuliangye price from 729 yuan five P dropped to 609 yuan, the wine itself is a reference to the original series of the price system, therefore had to be adjusted. If the series of wine prices significantly higher than the S & P five, their performance will be poor, this adjustment should be to drop the price of the S & P after five, "the end of the upside is the ultimate goal."

Control the amount insured has changed abandoned trick

In fact, as early as last Friday on Wuliangye "spoilers" a series of wine will take action. Wuliangye aspects of the exchange after the shareholders' meeting with investors when it admits: "Competition has a new series of wine changes, the high-end wine prices down, the price squeeze on family liquor Wuliangye series of wine are also under pressure, with the real estate wine to be. indisputable share. "Thus," in the second half to strengthen the focus of the market breakthrough series of wine, resources have been arranged. strive series of wine there are no major decline. "

Wuliangye case revealed the flagship product of the same date, "the company to take measures to restore market order to get good prices have stabilized and rebounded terminal performance in the off-season is within the expected range."

Notably, when specifically mentioned in the second half to begin to grab market. Wuliangye side said: "This year, stocks are kept relatively low state marketing system do not give businesses yahuo hope businesses have annual sales of around 10% to 20% of the inventory.." Wuliangye Group chairman Tang Bridge admits: "The problem is not the price enterprises have the final say again, this will be reflected in the current round of adjustment. "

"Maotai, Wuliangye to ensure that the price of 2,000 yuan, the market shrinking, slowly we'll probably forget this brand, then what is the value of the brand? So, to expand your market share, the price is determined by the market." Don Bridge said.