Kweichow Moutai Co.,Ltd. (600519.SH) has reduced the ex-factory contract prices for several of its products, with some cuts exceeding one thousand yuan, according to information obtained from Moutai distributors; these price adjustments were implemented at the end of last month.
Specifically, the price of Aged Kweichow Moutai (15) has been lowered from 5,399 yuan per bottle to 3,409 yuan per bottle, a reduction of 1,990 yuan; the price of Premium Moutai has been cut from 2,969 yuan per bottle to 1,859 yuan per bottle, down by 1,110 yuan; and the price of Moutai 1935 has been adjusted from 798 yuan per bottle to 668 yuan per bottle, a decrease of 130 yuan.
The retail prices for these products vary depending on the distributor, but overall, they have also seen a decline. One distributor indicated that following the contract price reduction, the average selling price has dropped by approximately two hundred yuan. Since the price cut, consumer purchases have increased by at least 15%.
Another distributor stated that the current minimum selling prices per bottle for Aged Kweichow Moutai (15), Premium Moutai, and Moutai 1935 are 4,999 yuan, 2,399 yuan, and 738 yuan, respectively, which are 401 yuan, 101 yuan, and 80 yuan cheaper than last month.
On the "i Moutai" app, the retail prices for Aged Kweichow Moutai (15) and Premium Moutai are listed at 4,199 yuan per bottle and 2,299 yuan per bottle, respectively, both lower than the previous prices of 5,999 yuan per bottle and 3,299 yuan per bottle.
Liquor industry commentator Xiao Zhuqing commented that the price reductions for multiple Moutai products represent one of the company's measures to advance its "market-oriented" reforms. This move aims to regulate shipment pace based on market supply and demand while establishing a mechanism for prices to fluctuate according to market conditions, thereby respecting market dynamics and promptly adjusting the pricing policies for relevant products.
From the perspective of investment institutions and individual investors, there is a desire for Moutai to expand its scale, which necessitates increasing production volume. This expansion requires cultivating a broader consumer base and diversifying consumption scenarios, transitioning Moutai liquor from a luxury good to a high-frequency consumer product.
Xiao Zhuqing believes that Moutai's current marketing transformation is intended to win over consumers, a logic consistent with the marketing strategies of brands like Tesla and Apple. As Moutai Group Chairman Chen Hua stated, "Moutai distributors can still make a profit, but the era of exorbitant profits is gone forever."
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