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Why is the liquor industry upside down?

According to the information, last year can be sold 1100 + "Puwu", now has fallen below a thousand dollars. Wuliangye chairman also publicly responded that: can not be long-term upside down, to allow dealers to earn money ~

Recently, the liquor industry has appeared in the price of a large area of upside down phenomenon and sales channels, "weir" phenomenon, caused widespread concern and discussion among netizens. For this topic, I went online to check out some information, the following to talk about:

First of all, let's take a look at what is the inverted phenomenon and the "weir" phenomenon, so that it is easy for everyone to understand:

Baijiu inverted phenomenon is that the retail price is lower than the wholesale price of the The situation. The "lake weir" phenomenon in the sales channel means that the product cannot flow smoothly from the manufacturer to the consumer, which also means that their products are backlogged in the distributors or retailers, resulting in a slowdown in sales.

So what exactly causes this phenomenon in liquor? There are probably two reasons:

Online and offline channel issues

The liquor market has always had an online and offline problem. Online channels are prone to low prices because there are no other costs; while offline channels will have higher prices because the market itself is more costly and there are more links. Why does it cost more offline? Because offline brick-and-mortar stores need to pay rent, labor and other costs, which are added to the cost of wine. And online there is no pressure on these costs, so the online price is significantly lower than the offline price, resulting in a larger price difference.

And in the past, the online and offline channel contradiction is actually not so big, but at present a large number of e-commerce are within the roll price, it leads to the online channel price is further compressed, it seems that the price of the offline channel is too high, the two inverted on the very obvious.

Oversupply

There are also annual distilleries have a payback performance requirements for dealers, coupled with a lot of liquor companies have expanded production scale to increase production capacity in the past few years, and finally led to the market supply of liquor greatly exceeded the demand, which is the "Lake Weir" phenomenon. phenomenon.

And off-season liquor consumption is weak, slow sales, distributors of goods can not be piled up in the warehouse, so it will be sold at low prices, or even below the purchase price of sales, and ultimately lead to the phenomenon of upside down.

Multiple dealers to provide information that the current market, in addition to Maotai, the collective price inversion problem. Why Maotai did not appear upside down? Is due to Maotai long-term volume control, coupled with Maotai is hard currency, with financial attributes, relatively speaking, there is no such inversion.

The most serious is said to be Xi Wine, which used to retail at 1,498 yuan and 898 yuan for Junpin Xi Wine and Cellar 1988, respectively. Recent flagship store prices on the Jingdong platform have seen Junpin Xi wine arrive at 1,058 yuan and Cellar 1988 arrive at less than 600 yuan.

A Xi wine agent said helplessly: "There is no way, now the goods are too much pressure, taking up a lot of money can only reduce prices to clear inventory." There is also an eight-year agent of the dealer said: "Now the price has been much better, last year the most serious when a piece of loss of 500 yuan."

Hubei liquor distributor Wang Peng, accumulated more than 3 million yuan of GTI wine inventory, in order to stop the loss in time in May this year, he no longer and GTI liquor cooperation. His total **** goods 6 million yuan, the purchase price is 349 yuan / bottle, while the market price is 280 yuan / bottle, of which more than half did not sell, and sell a bottle of loss of 20%, bitter.

Now there have been a number of companies to make adjustments to start controlling goods. For example, Langjiu issued a notice to take a limited number of placement control sales to control the size of the market supply. There are also a number of liquor companies have also begun to transform and upgrade, the introduction of products more suitable for young people's tastes can make the company profitable.

I am also quite emotional, white wine is very common on our table, my father often drink white wine, my family liquor cabinet is also a lot of white wine, including daily drinking, and collection. As the people, of course, hope to buy cost-effective wine. But the market needs balance and development. So, I hope that the liquor market is getting better and better, towards a healthier direction.