Introduction The Budweiser 'store-buying' conflict itself is not our main concern; through this incident, we discover that the Chinese beer industry is already facing four major dilemmas: terminal, channel, brand, and market. Recently, the dispute between Budweiser and its distributors over 'store-buying' fees and subsequent verification issues has become a focal point. 'Store-buying' has a long history, dating back over a decade, and while its originator is hard to trace, I personally believe that buying out nightclubs and terminals is not advisable for several reasons: First, it constitutes unfair competition, which can be seen as bribery marketing. However, without doing terminals or buying them out, there seems to be no other option. Second, the reason everyone does this is that there is no better alternative; it is a last resort. Third, buying out terminals is determined by the characteristics of the beer industry. In fact, the issue itself should not be our main concern; we should see the essence behind the problem. Through this incident, we can discover that the Chinese beer industry is facing four major dilemmas. First Major Factor: Terminal Dilemma - Why 'Buy Stores' Since the late 1990s, the Chinese beer market has basically shifted from a buyer's market to a seller's market, with oversupply and excess capacity. Except for some regional strong brands, many small enterprises and small brands are in a loss-making state, and acquisitions and mergers by large enterprises are frequent. Relatively speaking, the beer industry has a high degree of marketization, so marketing tactics are varied, and 'store-buying' was born under such circumstances. In many second- and third-tier cities, most beer is consumed 'on-premise,' meaning it is drunk at the venue. These restaurants, eateries, food stalls, and nightclubs have become the most important terminals that beer manufacturers compete for. Terminal resources are limited in time and space, making them 'non-renewable' resources, so beer manufacturers compete fiercely, pushing the competition to an absolute peak. In addition, beer consumption is habitual; once a taste is acquired, it creates brand 'loyalty.' For example, when you go to Guilin, in restaurants on the streets, you might hear customers ordering beer by saying, 'A bottle of beer.' At that moment, what they want is: a bottle of Liquan Beer. This is habitual consumption, which is also known as brand loyalty. The battle for terminals is actually a battle for a display 'window,' visibility, and consumption trends. If customers don't drink your beer at the terminal, how can it sell well? So it's also a process of taste cultivation. This makes it easy to understand why 'store-buying' was so prevalent at that time. Previously, everyone was 'buying stores'; if you didn't, you naturally had no advantage, especially for brands entering a new market. Currently, the beer market competition has become an oligopoly, and the initial stage of 'store-buying' competition has passed. Second Major Factor: Channel Dilemma - Changes in Channel Models After years of development, the Chinese beer market has still not moved towards the ideal 'manufacturer-distributor alliance' or strategic cooperation. It has evolved from a model dominated by distributors and second-tier wholesalers, to a manufacturer-led deep distribution model, and now to deep distribution. Now deep distribution is no longer viable, and there is a return to key accounts and key second-tier wholesalers. From large circulation to deep distribution, this has been a major innovation in the channel model of the beer industry and even the FMCG industry. The original provincial agents and key accounts have become regional distributors, and the term 'general distributor' is rarely mentioned. A county town may have several distributors, and a city usually has one or two distributors, some focusing on township markets, others on deep distribution in urban areas. This model directly turned distributors into delivery providers, weakening their functions and strengthening the manufacturer's market dominance and leading position. When manufacturers lead, many expenses need to be advanced by merchants, as seen in the Budweiser-distributor conflict. Previously, the smaller and more refined the region, the better the market penetration and profitability; but now, the smaller the region, the more transparent the prices, the more intense the competition, leaving distributors and second-tier wholesalers with little profit, and market growth has reached its limit. As deep distribution declines, manufacturers are turning back to key accounts, focusing on channels and secondary distribution, gradually returning to a model where distributors lead and manufacturers assist. This undoubtedly raises the bar for distributors, who previously handled delivery but now need to lead market operations. Overall, the marketing and sales capabilities of beer companies are improving. As beer giants increase their market share, the previous vicious competition and deep distribution are becoming somewhat outdated. With enhanced marketing power, beer giants focus on overall market control and coverage rather than point-specific competition. This requires a shift from fragmented, overly competitive small regional distribution back to a regional key account system. The benefits of this are lower costs, higher profits, and a more stable market. The 'Budweiser incident' is a signal for the Chinese beer market. Budweiser's brand operations are actually quite good; after years of persistence, they have achieved remarkable results, ranking among the top three in beer sales in the Chinese market. At this point, the strategies of these beer giants have changed. That is, after years of operation, brand concentration has greatly increased, with brand influence and a loyal consumer base. Therefore, 'store-buying' and 'human wave tactics' are clearly not the core work going forward. Overall market control and distributor-led regional market distribution will be the direction, which will affect current manufacturer-distributor cooperation. Different needs lead to different requirements, and the partners and methods of cooperation will also change. In the future, manufacturers may continue to focus on capital and brand, while distributors need to invest more manpower and resources in marketing and market development. Third Major Factor: Brand Dilemma - Beer Brands Held Hostage by Capital What does the Chinese beer industry lack most? There are many answers in people's minds, but the most frequently mentioned can be summarized into two viewpoints: one is capital operation; the other is terminal marketing. However, the truly core factor has been overlooked by the industry, and that is 'brand.' The beer industry has long been fiercely competitive and is a highly marketized industry. But perhaps due to excessive competition, it has gone to two extremes: one is 'fast, good, and economical,' letting capital speak directly through acquisitions and mergers; the other is to fight for immediate market share, resist competition, protect sales, and rack brains over annual promotions and terminal battles. As for what truly works—brand based on consumer mindshare—there seems to be little consideration. This objectively leads to the marginalization of the core resources of brand strategy, planning, shaping, and execution by 'capital' and 'terminals.' Focusing only on capital operations and terminal marketing while ignoring the most fundamental and critical brand strategy planning and control results in short-term sales power. When Chinese beer brands are hijacked by 'capital' and 'terminals,' both Chinese beer companies and the industry are in considerable danger. Facing the covetous eyes of foreign giants and the allure of the international market, how can our companies respond and attack? It is time, and necessary, to return strategy to the brand element. In the Internet age, brands need to be more vibrant, distinctive, and charismatic. Brands belong to consumers; capital can buy companies and brands, but capital can never solve the relationship between a brand and its consumers. This will never change. Fourth Major Factor: Market Dilemma - How to Upgrade Product Structure When Sales Decline Any industry is affected by economic cycles, and beer sales are also affected by weather. Beer companies are no longer facing a scale problem but a profitability problem. Scale and profitability are directly proportional to a certain extent; if scale declines, how can profits be guaranteed? Excluding objective factors such as weather and economic environment, the decline in the beer industry's scale is mainly due to product structure issues. Over the years, apart from pure draft beer, which brought about a product innovation that significantly improved profitability, few products have achieved this. Now, a new ordinary tea beverage retails at 5-6 yuan per bottle, while ordinary beer retails at around 5 yuan per bottle (in small terminals and supermarkets). Compared to the past, the era of low quality, low price, scale, and cost-effectiveness has passed. Consumers need high-quality, even high-taste products. Product innovation is another factor for beer companies to escape their predicament in the future, and it is the most critical one. This requires marketing to return to the origin of the product and to consumer needs. For example, craft beer and other products can elevate the overall consumption level and drive the upgrade of the beer industry, using new products to drive structural improvement and market growth, and escape the scale dilemma of the beer industry. 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