After the pandemic, mass-market baijiu consumption focuses more on high cost-performance and a more comfortable drinking experience. The guangping wine industry, having secured its place in the hundred-billion-yuan track, is now expanding toward a 150 billion yuan market capacity. "Upgrading" has become the keyword for many guangping wine brands this year. On February 9, Wuliangye series wine launched the single product "Jianzhuang·Rongguang" to seize the high-end guangping wine price band. On the same day, at the national distributor conference of Xiaolangjiu, the slogan "Expand the first advantage of small-bottle baijiu, create the banner of urban guangping wine" was proposed. Around the Spring Festival, Luzhou Laojiao Heigai, Jinshiyuan's Gaogou, and Shanxi Fenjiu's Bofen also strengthened interaction with consumers through various channels. New and old brands that started with guangping wine are also preparing. Responsible persons from Jiangxiaobai and Guangliang both revealed to "Jiu Zhouzhi" that they will release brand or product upgrades during the Spring Sugar Fair. The rekindled battle in guangping wine stems from the strong recovery of offline scenarios after the pandemic. Besides business occasions, the mass-market baijiu market, which has restarted, is one of the most active consumption scenarios in the baijiu industry. Multiple responsible persons from guangping wine brands analyzed that post-pandemic mass-market baijiu consumption focuses more on high cost-performance and a more comfortable drinking experience. According to industry data, the compound annual growth rate of the guangping wine industry exceeds 13%, and it is expected that the market size will exceed 150 billion yuan in 2024. On one hand, there are new demands for baijiu consumption; on the other hand, the rapidly expanding market scale means the guangping wine industry in 2023 is destined for fierce competition. But this is also forcing the overall "quantity and quality to rise together" in guangping wine, and cost-performance will be the ultimate trump card for each brand.
Market Ushers in a "High Opening"
"Long time no see, let's get together"—after the New Year, it has become the norm to gather with friends and family for small gatherings and drinks. The "Jiu Zhouzhi" team surveyed the catering market and guangping wine consumption in Beijing, Tianjin, Zhengzhou, etc., and found that the market is rapidly recovering. In Zhengzhou, the head of a local chicken pot chain brand told "Jiu Zhouzhi" that at the peak dinner time, a single store sold more than 130 bottles of guangping wine, with an average price of about 40 yuan, mainly Erguotou and Jiangxiaobai. "In the mass catering market, the price of guangping wine is very transparent, and few people bring their own alcohol." Another Hunan cuisine brand head revealed that due to the just-recovering economy, this year's consumption trend indeed favors guangping wine. Zhengzhou baijiu distributor Mr. Meng analyzed to "Jiu Zhouzhi" that there are two reasons for the high sales of guangping wine after the New Year: on one hand, during the anti-epidemic home period, many consumers chose cost-effective guangping wine for self-drinking, which cultivated their taste. On the other hand, after the Spring Festival, there was a wave of emotional gatherings mainly with friends and family, and in such occasions, more cost-effective guangping wine is obviously more affordable. Mr. Meng's judgment also resonated with multiple guangping wine brands. A responsible person from Guangliang Wine said that in Guangliang's strong regions, sales data has seen considerable growth. "During this Spring Festival, Luzhou Laojiao·Heigai achieved good market sales." A responsible person from Luzhou Laojiao told "Jiu Zhouzhi" that currently, the domestic consumption market structure is shifting from subsistence to improvement-oriented consumption. Under the influence of rational consumption concepts and the return of baijiu value, consumers' demand for high-quality, high cost-performance alcoholic beverages is a trend. This trend is also perceived by the baijiu industry, which is increasing investment and seizing opportunities. Many well-known liquor companies are accelerating their penetration into the guangping wine market. On February 9, Wuliangye series wine launched the single product "Jianzhuang·Rongguang" priced at 59 yuan per bottle, seizing the high-end guangping wine market. On the same day, at the Xiaolangjiu national distributor conference, it was stated that Xiaolangjiu will expand its advantage as the number one small-bottle baijiu, while Shunpinlang will create the banner of urban guangping wine. Facing the "dimensionality reduction attack" of famous liquor brands, Jiangxiaobai and Guangliang, which started with guangping wine, have also started "upgrade" modes. According to insiders, the two liquor companies are focusing on preparing for this year's Spring Sugar Fair and will have heavyweight releases around it. An insider from Jiangxiaobai told "Jiu Zhouzhi" that Jiangxiaobai has internally proposed the concept of "revival" for guangping wine, "In May, Jiangxiaobai may usher in the largest product upgrade iteration in nearly a decade." "We will hold a brand launch event during this year's Spring Sugar Fair, during which we will undergo a brand upgrade; it is still in preparation." said a responsible person from Guangliang.
New and Old Confrontation and Iteration
Old guangping wine brands launch "dimensionality reduction attacks," while new forces in guangping wine engage in "dimensionality escalation confrontation." The confrontation in the guangping wine market has also driven a new round of expansion in the guangping wine track. According to the market survey report of the China Alcoholic Drinks Association, the guangping wine industry entered the fast lane in 2013, with the market size growing from 35.2 billion yuan to 98.8 billion yuan in 2021, with a compound annual growth rate as high as 13.8%. It is expected to maintain a 16% annual growth rate from 2022 to 2024, and the market size will exceed 150 billion yuan in 2024. With such a huge market scale exceeding one hundred billion yuan, how to open the market with the correct posture is also reflected in the market strategies of various liquor companies. With the implementation of the new national standard, many products of the first-generation guangping wine representatives such as Erguotou and Laocunzhang have been classified as blended baijiu. More standardized industry regulations have also brought them a painful period of market adjustment. During this period, guangping wines under famous liquor camps have experienced an explosive growth period. However, compared with the previous low-price strategy in the guangping wine market, the guangping wine brands under the famous liquor camp hope to complete the transformation from pursuing low prices to pursuing quality. Luzhou Laojiao·Heigai took the lead in raising guangping wine to the hundred-yuan price band, and later Bofen also launched corresponding hundred-yuan price band products. Industry insider Mr. Jiang told "Jiu Zhouzhi" that with the upgrading of consumption, the hundred-yuan price band is a very attractive price band, but it is also the most fiercely competitive price band. "Taking Bofen as an example, it has established itself as the king of cost-performance in the 50-yuan price band. If a product at the hundred-yuan price band cannot bring an intuitive quality upgrade, it is obviously impossible to succeed." Compared with old famous liquor companies, Jiangxiaobai, which started with guangping wine, has also sounded the battle cry of "hundred-billion new famous liquor." "Jiu Zhouzhi" learned that on February 10, Jiangxiaobai held its annual meeting, setting the theme as "Passionate Creation." It is understood that over the past 10 years, Jiangxiaobai has been committed to building the entire industry chain, and this industrial internal strength has also gained the favor and entry of state-owned capital. An industry insider close to Jiangxiaobai told "Jiu Zhouzhi" that after strengthening its industry chain capabilities, Jiangxiaobai will deeply integrate with catering merchants in terms of consumption atmosphere, dining and drinking experience, and user interaction this year. Just like the sudden rise of Jiangxiaobai back then, in the seemingly solidified baijiu world, new species always emerge. Guangliang, as a new species in the guangping wine industry, has become a new choice for consumers through its product positioning of "national self-use liquor" and its brand core of "not pretending." "The fully competitive market environment has also brought a new situation of 'volume and price rising together' for guangping wine. How to improve quality, find the right price positioning, and capture consumers' minds requires a combination of quality and brand." a responsible person from Guangliang frankly said. It can be said that cost-performance is an important standard for measuring the guangping wine industry. Future Competition Points From a single low-price strategy to multi-dimensional competition in brand and quality, the competition in the guangping wine industry also reflects new baijiu consumption trends. Marketing planning expert Meng Zhigang told "Jiu Zhouzhi" that mid-to-high-end baijiu in business scenarios has social currency attributes, pursuing a stable price system and brand image. "The competition in the guangping wine industry lies in circle consumption and emotional consumption, depending on who can hit consumers' purer social and emotional needs." From the market feedback of multiple guangping wine brands, how to achieve digital transformation, achieve product and market positioning differentiation, and complete dialogue with the young generation all determine whether a brand can win in this round of market competition. First, digital marketing and product youthfulness have become the necessary path. A relevant person from Luzhou Laojiao told "Jiu Zhouzhi" that the core consumer group of baijiu is undergoing generational change, with the post-80s to post-95s becoming the backbone of mass consumption. Their evaluation of baijiu value focuses more on the product itself, showing increasingly youthful, personalized, and quality-oriented consumption trends. Heigai, targeting the youthful market, is trying to achieve dialogue with young consumers through digitalization. For example, last year Heigai launched the marketing strategy activity "Scan the Lid to Win a Free Bottle," achieving digital empowerment in product traceability, code scanning marketing, channel control, and member operations, creating a brand-new consumption experience for consumers from aspects such as reach, scenarios, community, and experience. On platforms where young people gather, such as Douyin and Xiaohongshu, more and more young users are sharing "Heigai," achieving two-way interaction. Second, achieve differentiated competition in products and brands. Currently, Langjiu is trying to achieve two-level growth in sauce-flavor and mixed-flavor baijiu, which is inseparable from Xiaolangjiu's education of the mixed-flavor market. An industry insider close to Langjiu believes that Xiaolangjiu, which holds the title of the number one small-bottle baijiu, may also usher in a wave of growth this year with the support of Langjiu's mixed-flavor grand strategy. "China's demand for alcoholic beverages is becoming more and more diversified. Langjiu's development of mixed-flavor is also seeking category segmentation and a leading position." Meng Zhigang believes that future baijiu companies should also develop horizontally, seeking development in categories including low-alcohol beverages. Echoing Meng Zhigang's view, besides intending to revive in the guangping wine field, Jiangxiaobai's new wine drinking track represented by Meijian is also an important force for Jiangxiaobai to achieve its "hundred-billion new famous liquor" strategy. Third, circle marketing and emotional consumption have become important tools for guangping wine to break out of the circle. Previously, relatively low-priced guangping wine, unlike traditional baijiu distributor models, focused more on "channel is king." With roughly similar prices, whoever is closer to consumers may have better sales. Nowadays, choosing favorite guangping wine brands through e-commerce platforms has quietly become a new trend for modern consumers to buy alcohol. Taking Guangliang as an example, last year Guangliang cooperated with more than a dozen hit dramas. As long as there is a dining scene in the film and television shots, there is an implantation of Guangliang wine. The "black gold bottle" that everyone talks about is the big single product Guangliang 59. "Jiu Zhouzhi" found that this kind of immersive mind-planting can also promote consumers' purchase decisions to a certain extent. Some young people will leave messages on its official e-commerce platform after placing orders, saying they fell in love with Guangliang wine because of a certain drama. A responsible person from Guangliang said that in addition to planting through popular film and television dramas, Guangliang also continues to carry out circle marketing activities offline such as "I Drink Guangliang Wine at the Night Market" and "A Table of Good Food," allowing consumers to experience excellent quality and feel the brand connotation of "not pretending" in a purer social atmosphere. It is through these lifestyle scenario interventions that Guangliang further consolidates its positioning as "national self-use liquor," and its practices also provide reference and paths for other brands. Different gameplay and different ideas are giving rise to a hundred flowers blooming in the guangping wine industry. If 2022, after the introduction of the new national standard for baijiu, was the first year of quality improvement for Chinese guangping wine, then 2023 will be a big year for brand marketing of guangping wine.