On August 14, 2017, Moutai (Guizhou Renhuai) Marketing Co., Ltd. issued the "Notice on Fully Activating the Moutai Cloud Platform," requiring that from that day forward, exclusive stores, special dealers, and self-operated companies must sell more than 30% of their unexecuted contract volume through the cloud platform.

In the next six months, marketing work will include special training on the cloud platform, and the activation and operation management of cloud platform outlets in each province will be included in the provincial work assessment. The use of the Moutai Cloud Platform is seen as an important measure for the company to use the internet to shift from channel-oriented to direct-to-consumer.

Recently, a consumer said, "I registered multiple demand requests on the Moutai Cloud Platform for ten consecutive days, but no outlet accepted the order," raising questions about the platform's effectiveness. In many markets, the wholesale price of Moutai remains around 1650 yuan, up 20-30 yuan. On one hand, the cloud platform is not accepting orders; on the other hand, the wholesale price exceeds the 1499 yuan limit. What games might be behind the 'price without market' phenomenon?

10 Consecutive Days of Applications Without Response Exposes 'Price Without Market' on Cloud Platform

The Moutai IoT Cloud Platform, abbreviated as Moutai Cloud, is an integrated platform built for Moutai Group, dealers, exclusive stores, and consumers, integrating online and offline, relying on IoT and map positioning, supporting B2B, B2C, O2O, social marketing, and industrial financial services. The Moutai Cloud is a mobile app developed for consumers to purchase Moutai products, supporting iOS and Android systems. Currently, its core business is to enable quick purchase and traceability anti-counterfeiting.

In the midsummer of June, which is the off-season for liquor consumption, some consumers reported that 1499 yuan Moutai is hard to buy in the offline market, and multiple applications on the cloud platform also result in "no outlet accepting orders."

This phenomenon of "no outlet accepting orders" after placing an order had already appeared in April. At that time, a consumer posted about this situation in the "Moutai Cloud Bar."

It seems that the Moutai Cloud has not fully solved the problem of "difficulty buying liquor." What is the reason behind this, and who is gaming the market?

System Maintenance and Price 'Scissors Gap': Who Is Behind 'No Outlet Accepting Orders'?

Regarding the inability to buy Feitian Moutai on the cloud platform, which is positioned to connect consumers and Moutai, dealers and consumers have expressed different reasons.

A dealer said, "With increased supervision of Moutai's market and product flow, most authorized Moutai dealers are willing to sell at 1499 yuan on the Moutai Cloud as per company regulations. After all, there is already a 500 yuan profit, and it is safe. In the current trend, following Moutai and stabilizing the dealership qualification is more important."

As for why no outlet accepted orders after 10 consecutive days of applications on the Moutai Cloud, a few dealers said, 'During this period, the Moutai Cloud platform is undergoing system maintenance, making delivery difficult.'

An anonymous dealer said that due to the scarcity of Moutai supply, even when selling at 1499 yuan offline, merchants will prioritize old customers or comprehensive procurement customers. If you are not such a customer, it is often difficult to buy at 1499 yuan. Giving preferential treatment to old customers is also common market practice.

Some consumers said it might be that the order quantity is 'wrong' and suggested trying 'ordering 4 bottles.' Other consumers commented that there is a bundling phenomenon, and you cannot buy without purchasing other liquor.

A person dealing in Moutai said that under the 'high pressure' supervision of the Moutai distillery, a considerable number of dealers are 'rule-abiding' in selling on the cloud platform, especially key customers of Moutai, who have no need to cross the 'red line.' However, compared with the current retail transaction price of over 1700 yuan, the 1499 yuan limit creates a 'scissors gap' of over 200 yuan, and it cannot be ruled out that some individuals may 'violate rules' by bundling sales.

Moutai's Wholesale Price Slightly Rises; 'Wu Wei Er Zhi' Contains Dialectics

Just as consumers reported that they applied on the Moutai Cloud for 10 consecutive days without any outlet accepting orders, with the Dragon Boat Festival approaching, some markets reported a slight increase in Moutai's wholesale price.

Regarding the sensitive Moutai price, on June 4 and 5, Moutai Group Chairman and General Manager Li Baofang emphasized during a survey in Jiangsu market that the current price of Moutai well balances the interests of all parties. In a considerable period, 'Moutai will not adjust the ex-factory price, but it will definitely manage the terminal price, and it will definitely manage it well. The best way for Moutai's marketing work in the near term is Wu Wei Er Zhi (governing by doing nothing that is against nature).'

Li Baofang also said, "Moutai has now shifted from a buyer's market to a seller's market, and this will become the norm, lasting for a considerable time. With consumption upgrades and the acceleration of the moderately prosperous society process, consumers will grow geometrically, and the contradiction between supply and demand will intensify, making Moutai increasingly scarce."

In the context of the 'increasingly scarce' market, what dialectics does Moutai's recent adoption of 'Wu Wei Er Zhi' to 'manage and manage well' prices reveal?

First, Moutai is basically satisfied with the existing price system and its operation, and will not resort to a sudden 'open the granary and release water' style increase in supply to suppress prices as it did last year.

Second, the focus of Moutai's price control is the 'terminal price.'

Third, dealers are the main body of price stability and maintenance. Moutai mainly manages and regulates dealers to achieve the stability of the entire price system.

Fourth, the term 'near term' indicates that the market's 'Wu Wei Er Zhi' may be a dynamic concept. Once the 'Mid-Autumn Festival and National Day' arrive, it will depend on market conditions.

Has Moutai's 'Wu Wei Er Zhi' prescribed the right 'medicine,' and what is its 'efficacy'? It can only be tested by the market and time.

Source: Zhongshi Finance (ZSCJ-360)

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