The year-end of 2025 saw a seismic shift in China’s liquor industry as Wuliangye Yibin Co., Ltd. unveiled a bold "official subsidy" policy targeting its flagship product—the 52-degree Eighth Generation Wuliangye. While maintaining the ex-factory price at 1,019 yuan per bottle, the company slashed distributors’ invoice price to 900 yuan, effectively reducing their procurement cost by 119 yuan per bottle. With additional rebates, distributors could secure inventory for as low as 800 yuan, significantly alleviating market pressure.
**Subsidies to Boost Sales** The move sparked widespread attention, with analysts highlighting Wuliangye’s strategic intent: preserving brand value by avoiding direct price cuts while revitalizing channel profitability. By keeping the ex-factory price unchanged, the subsidy shields the brand’s premium positioning while easing distributors’ financial burdens and enhancing their margins.
Further sweetening the deal, Wuliangye rolled out incentives like scan-code rebates and sales-performance bonuses—contingent on genuine consumer purchases and zero cross-region violations. This approach ties subsidies directly to sales performance, curbing inventory dumping and improving consumption rates, thereby resolving the chronic issue of "losing money per bottle sold."
**First "Hidden Price Cut" in a Decade** Dubbed the industry’s first covert price reduction in ten years, the policy signals Wuliangye’s proactive response to market headwinds. Prior to the subsidy, market prices for Eighth Generation Wuliangye had plunged to 850 yuan—far below the 1,019 yuan ex-factory price—leaving distributors grappling with losses and bloated inventories (2-3 months’ supply).
This innovative "stabilize ex-factory prices, replenish channel profits" model offers a blueprint for price-system resilience: instead of reactive price cuts, targeted subsidies can reignite channel vitality, balancing brand equity and distributor interests.
**Reclaiming Channel Influence** Amid a 10.26% revenue drop and 13.72% net profit decline in 2025’s first three quarters, Wuliangye’s subsidy-driven strategy marks a pivotal effort to consolidate channel control. Earlier reforms—like piloting direct-to-retail distribution in 20 cities—had already reduced reliance on traditional wholesalers through digitized, flattened supply chains.
The current overhaul presents three key takeaways for the sector: 1. Replace direct price cuts with subsidies to resolve price inversions without eroding brand value. 2. Leverage digital tools for transparent channel data, enabling data-driven marketing. 3. Combine direct sales and distribution to minimize middlemen and strengthen manufacturer-retailer ties.
Under CEO Hua Tao’s leadership, Wuliangye’s multi-pronged approach—from halting traditional supply to purging non-compliant e-commerce vendors—now culminates in this subsidy-led ecosystem reset: defending market share, redefining producer-distributor dynamics, and reigniting channel confidence.
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