The "liquor industry veteran" has gone live again. On December 9, Wu Xiangdong, Chairman of ZJLD Group, hosted a livestream that attracted nearly 9.8 million views. During the session, he shared updates on the "Ten-Thousand Merchant Alliance" initiative, new product strategies, and future plans. He also recounted his personal journey of building his "individual brand," describing it as a transformation from "I don’t dare" to "I can." Wu’s engaging and viral-worthy content on his personal video channel has amassed 118 short videos since July, with total views exceeding 300 million. Eight videos have surpassed 10 million views, with one peaking at 51 million.
In just 200 days, Wu has leveraged short videos, livestreams, and offline forums to recruit 3,800 alliance merchants, turning his personal brand into the company’s most powerful marketing tool. However, behind the buzz lies a stark reality: ZJLD’s high-traffic strategy is a desperate bid for survival amid a challenging market.
**High-End Market Cools** 2025 has ushered in a "triple adjustment period" for the liquor industry, marked by policy shifts, consumption restructuring, and intensified competition. Leading liquor companies are experiencing significant slowdowns, while smaller players face deepening losses. Against this backdrop, resources are increasingly concentrated among top-tier brands, reinforcing the "winner-takes-all" effect.
ZJLD’s latest half-year report, its worst since going public, revealed a 39.6% year-on-year revenue decline to RMB 2.497 billion and a 23.5% drop in net profit attributable to shareholders to RMB 575 million. Adjusted net profit fell 39.8% to RMB 613 million. The core brand, Zhenjiu, fared particularly poorly, with revenue halving to RMB 1.492 billion and sales volume dropping from 6,932 tons to 4,612 tons. Average selling prices also slid from RMB 389,800 to RMB 323,400 per ton, signaling a "sell less, earn less" downward spiral.
Zhenjiu, once the group’s growth engine (contributing over 70% of revenue growth from 2020–2022), now struggles with cooling high-end demand. Revenue from premium products plunged 47.3% to RMB 575 million, as corporate banquets, gifting, and other consumption scenarios dwindled. Tighter "alcohol restrictions" policies further eroded bulk orders, while competitors like Moutai 1935 and Xijiao 1988 slashed distributor prices by RMB 50–80, squeezing Zhenjiu’s market share.
**Price System Collapse** Zhenjiu’s official pricing (e.g., Zhen 15 at RMB 899 and Zhen 30 at RMB 1,888) starkly contrasts with actual wholesale prices (RMB <300 and <700, respectively), reflecting over 50% price inversion. This has left distributors reluctant to sell, exacerbating inventory pressures.
Other brands under ZJLD also faltered: Lidou saw a 29% drop in average selling price, Xiangjiu’s market share in Hunan dipped below 10%, and Kaikouxiao’s revenue halved amid fierce competition from budget rivals like Luzhou Laojiao and Fenjiu.
**Rescue Efforts** To counter these challenges, Wu launched the "Ten-Thousand Merchant Alliance" in May, aiming to tighten manufacturer-distributor ties. Zhenjiu has since signed 3,900 alliance merchants, with its "Da Zhen" strategic product leading sales in its price range across 250 cities.
In October, ZJLD appointed Tang Xiangyang, a 34-year Moutai veteran credited with stabilizing prices during the 2013–2016 industry downturn, as CEO. Tang’s expertise in price control and direct sales is seen as critical to reviving Zhenjiu’s premium positioning and rebuilding distributor confidence.
However, with ZJLD mired in price inversion and weak sales, Tang’s success hinges on restoring wholesale prices above inversion levels within a year—a reprise of Moutai’s historic "price defense" and the ultimate test of his career.
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