On March 18, during the "New Consumption Forum: Understanding Consumption Logic" session at the 2026 Annual Meeting of the China Entrepreneurs Forum, Tang Hui, President of Shede Spirits Co.,Ltd., shared his insights.
Discussing the pressures facing the baijiu industry, Tang Hui remarked that while some consider this the most challenging year in two decades, opportunities still exist despite the difficulties. He pointed to several key factors. Firstly, the broader economic environment has led to consumption downgrading, where consumers who previously purchased 1,000-yuan bottles are now opting for those priced between 500 and 600 yuan. Secondly, the industry is undergoing a cyclical adjustment, with total production declining as advanced production capacity replaces outdated capacity. The issue is not a shortage of baijiu, but a lack of high-quality baijiu. Lastly, policy influences, such as restrictions on alcohol consumption, are also impacting baijiu sales.
Tang Hui expressed his view that Chinese baijiu has strayed from the fundamental attributes of a typical consumer product, resulting in unreasonable price premiums. He believes the industry will eventually return to these normal consumer goods characteristics. To overcome current challenges, he emphasized the need to attract more users and create more consumption scenarios.
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