The supermarket channel is one of the four traditional channels for baijiu, and it was once a key battleground for liquor companies. Later, with the diversification of channels, the supermarket channel, due to its special pricing mechanism, gradually became a 'price benchmark' for baijiu brands to build their image, and the industry's attention to it significantly decreased. However, in recent years, many famous liquor companies, represented by Moutai, have gradually increased their investment in direct-operated supermarket channels, and the baijiu category is showing a trend of value return in this channel. It is worth noting that changes in consumption habits and the emergence of new channels are also forcing traditional supermarket channels to reform, which means that the former 'price benchmark' channel is experiencing both pain and rebirth. Counter-trend Growth Have Supermarkets Emerged from the 'Swamp'? After three years of 'winter,' the economic recovery is not obvious, and the public generally lacks consumption confidence. The market environment shows consumption contraction and downgrading, and the baijiu industry has entered a deep adjustment. However, some liquor merchants with supermarket channels have managed to take a different path and achieve counter-trend growth. On the one hand, this gives the market more confidence; on the other hand, it makes the industry re-focus on the development value of the supermarket channel. Lao Zhang (pseudonym), who has been in the baijiu industry for over 20 years, considers supermarket channel resources his core asset. According to Lao Zhang, last year the company's revenue achieved 60% growth, and this year it is expected to reach the same level of growth. This is partly due to the expansion of channels and the diversified layout of product categories. Over the years, from chain supermarkets like Wufeng, Hongqi Chain, and Laolinju to KA hypermarkets like RT-Mart and Dehui, as well as Shell and online instant retail, Lao Zhang has developed from a single chain channel to a diversified channel model and product structure. His company has also grown from a few people to hundreds. On the other hand, it is about providing ultimate service. In fact, in the city where Lao Zhang is located, there used to be more than ten liquor suppliers for the same chain supermarket, but now Lao Zhang has become the exclusive liquor supplier for that channel. Lao Zhang mentioned that they have four major advantages in operations that are difficult for others to replicate. First, internally, the company has a systematic product planning strategy and has set up a special team for employee training; second, for supermarkets, the company has the strength to fulfill the promise of 'return if not sold'; third, it has relatively complete after-sales service, solving most of the problems for supermarkets. 'Let the supermarket only be responsible for stocking, and we solve a series of problems such as sales and after-sales, so even if our product purchase price is higher than others, supermarkets are more willing to choose our products.' In addition, a particularly important point is actively embracing new retail. Now instant retail platforms offer many subsidies and discounts, and many stores such as Yonghui and Sam's Club have also opened online shopping channels, blurring the line between supermarkets and new retail. 'This year, the turnover on the Waima platform has reached 20 million yuan, and we have also cooperated with Jiu Xiaoer,' Lao Zhang mentioned. Starting from the supermarket channel, with annual revenue growing from hundreds of thousands to hundreds of millions, Lao Zhang firmly believes that supermarkets have irreplaceable operational value, and on this path, he has also taken steady and upward steps. New Retail 'Rampage' Why Is the Supermarket Channel Irreplaceable? Nowadays, Hema's 30-minute cold-chain delivery to home, and liquor delivery services like Jiu Xiaoer, Jiu Shanshan, and Waima Songjiu have become choices for many consumers, and these platforms have recently launched various subsidies to compete for the market. A consumer revealed that last month, using various coupons and expansion coupons on Meituan's Waima platform, they bought Wuliangye for just over 800 yuan, while the channel transfer price for this product is currently around 930 yuan per bottle. At the same time, 'Brave the World' is priced at 60 yuan per case on the platform, and consumers can use expansion coupons to buy it at 40 yuan per case. The intermediate liquor merchant's selling price is 50 yuan per case, so the 10 yuan difference is the platform's actual investment. So, will new retail channels gradually replace supermarket channels? Lao Zhang believes 'no.' First, the consumer's demand for physical product experience will not change. This is also why supermarkets have persisted for so many years. Second, the supermarket channel has irreplaceable product stability and price stability. Product supply in the supermarket channel is mostly directly supplied by manufacturers, ensuring the authenticity and stability of goods. An industry observer mentioned that in a market environment where counterfeit liquor is rampant in various live streams, more and more consumers are willing to pay a 'slightly higher' price for 'authentic' products. In this regard, another supermarket channel distributor said, 'In the current environment, if we were distributors, life would be quite comfortable.' But Lao Zhang mentioned, 'The industry situation is constantly changing. Although the current environment is favorable to distributors, it is not stable. Long-termism requires us to take a long-term view of the industry's development.' Third, supermarkets are now also carrying out various promotional activities such as buy-one-get-one and price reductions. The prices of famous liquor brands are gradually approaching those of cigarette and liquor stores, rather than blindly raising prices, accelerating the transformation from display to sales. Fourth, the current supermarket channel has begun to integrate with new retail, maximizing the value of both channels. According to the latest data, in the first half of 2024, China's online retail market growth rate reached 20%, while the growth rate of traditional supermarkets has declined year by year. Therefore, many supermarkets have joined the digital model, not only providing online shopping services but also using apps to push shopping recommendations, special offers, points, and coupons to attract customers to shift from offline to online. The Way Out for Supermarkets Is Transformation Where Is the Way Out for Transformation? The changes in supermarkets are not limited to changes in market size, but also a major transformation in consumption patterns. Last year, there was a wave of supermarket closures in China. Brand supermarkets such as Carrefour, Walmart, and Yonghui closed many stores under the impact of the epidemic, and many small supermarkets in various places also closed. So, where is the way out for supermarkets? Through interviews and observations, Micro Alcohol believes that, on the one hand, the transformation of the supermarket model is very important. On the other hand, more attention should be paid to the transformation of thinking. Dehui Supermarket has formed a relatively benign sales by referring to Pangdonglai's product and layout approach. However, many supermarkets still remain in the old fixed thinking. 'Many supermarket managers do not understand the market. They come with the old tricks, asking for high entry fees and profit margins, without any idea of joint operation with distributors. Even the salespeople assigned by distributors are reduced to movers,' a distributor mentioned. Moreover, supermarkets like RT-Mart have strict restrictions on tasting events, which makes many distributors feel 'unable to use their strength.' Lao Zhang added, 'In some supermarkets, baijiu tasting works very well, but it is difficult to implement in RT-Mart.' In fact, compared with online instant retail channels, supermarkets have experiential advantages; compared with e-commerce platforms, supermarkets have timeliness advantages; and the 'authenticity' feature of the supermarket channel determines its irreplaceability. Moreover, the current crazy 'price war' online is not a long-term solution, and the value of supermarkets will become more obvious in the future.