China Liquor Industry Report, 2009-2010
Chinese liquor industry characterizes a relatively high concentration degree since the liquor output of Top 10 provinces in 2009 occupied 79.47% of national total output, of which Sichuan, the largest province of liquor brewage, enjoyed a share of 22.06% by output. China’s high-end liquor brands are mostly distributed in Sichuan and Guizhou.
Luzhou-flavor, Maotai-flavor and Fen-flavor liquor are the mainstream of liquor market. Kweichow Moutai liquor is dominating the Maotai-flavor market, Wuliangye liquor takes the lead in the Luzhou-flavor market, and Shanxi Fenjiu liquor is the representative of the Fen-flavor market.
The operation of liquor enterprises is featured by a ‘pyramid’ shape of output ranging from high to low-grade liquor and an ‘inverted pyramid’ model of sales profit. Concretely, high-grade liquor enjoys a small share by output but with the most remunerative profit; medium-grade liquor have relatively balanced output and profit; and low-grade liquor is with the largest output proportion but the least profit. The enterprises seize the market mainly by low-grade liquor to strengthen brand awareness and then make more profits through high-grade liquor.
As far as regional development is concerned, Shandong Province holds the largest output of liquor in East China but with certain fluctuation. Sichuan Province possesses large ever growing output of liquor.
Regarding the development of liquor enterprises, high-grade liquor companies have intensified the development and propaganda of their medium-grade liquor, while medium-grade liquor enterprises have promoted the marketing work so as to popularize their high-end liquor. Along with the growing income of residents and the expansion of the middle class, the demand for medium-grade liquor increases in China. In 2010, Wuliangye Group gives priority to the development of medium and high-priced liquor and focuses on the marketing of ‘Liuheye Liquor’; Kweichow Moutai Company energetically promotes ‘Moutai Prince Liquor’ and ‘Moutai Ying Bin Liquor’; Lu Zhou Lao Jiao Co., Ltd transfers to ‘Tequ Liquor’; while Yanghe Brewery and Lang Jiu Group attach importance to their high-end liquor of Yanghe Blue Classic series and Honghua Lang Liquor.
Having an insight into the potential growth of Chinese liquor industry, TCC, Diageo, Hennessy, Goldman Sachs Group Inc., etc. have successively bought the shares of Chinese liquor enterprises.
The report not only analyzes the scale and development trend of Chinese liquor market, the characteristics and brand development of regional markets, and the competition between high-end and medium-end liquor markets, but expounds at length the operation, product features, marketing strategy and development orientation of the 16 major liquor enterprises in China.
Table of contents
1 Chinese Liquor Market, 2009-2010
1.1 Industry Characteristics
1.2 Brand Competition
2 Regional Liquor Markets in China, 2009-2010
2.1 North China
2.2 Central China
2.3 East China
2.4 Northwest Region
2.5 Southwest Region
2.6 Northeast Region
3 Competition in Chinese Liquor Industry, 2009-2010
3.1 High-end Liquor Market Competition
3.2 Medium-grade Liquor Market Competition
4 Major Liquor Enterprises
4.1 Kweichow Moutai Co., Ltd.
4.1.3 Development Strategy
4.2 Wuliangye Group Co., Ltd.
4.2.3 Development Strategy
4.3 Lu Zhou Lao Jiao Co., Ltd
4.3.3 Business Mode of Qiquan Company
4.3.4 Development Strategy
4.4 Shanxi Xinghuacun Fen Wine Factory Co., Ltd
4.4.3 Development Strategy
4.5 Hebei Hengshui Laobaigan Liquor Co., Ltd.
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