Compared with the prosperity of Xifeng Group, the Song family’s Xianjiu Group is worse.

The worst thing is that in 2002, if the liquor business is calculated only, the annual net profit was less than 50 million yuan. It was also that year that the net profit of the national liquor industry was only 3.2 billion yuan, and the annual output of national liquor dropped sharply to 3.8 million kiloliters (more than 8 million liters at its peak).

Since 1998, the liquor-related policies issued every year have brought Chinese liquor companies to a downward trend.

In 1998, it was stipulated that the advertising fees for grain (including potatoes) liquor shall not be deducted before tax. In the same year, the liquor industry implemented a production license system to restrict liquor enterprises from expanding production scale.

In 2001, the liquor industry implemented a compound tax, with grain liquors being 25% at the ex-factory price and potato liquors being 15% at the ex-factory price. At the same time, a 50-cent tax of 0.5 yuan per kilogram of liquor was also levied. In the same year, the advertising expenses of liquor companies shall not exceed 2% of sales, and the excess shall not be deducted before tax (including non-grain liquor).

In 2002, the 18% tax refund discount for listed liquor companies was cancelled.

Over the years, liquor companies have chosen different development paths.

Because the tax rate is too high and the competition is fierce, more than 90% of liquor companies directly abandon mid-to-high-end liquor models and start to win by volume to focus on the low-end market - the market price is a few dollars per catty, and the production cost is particularly low. This development model was hit hard by the compound tax law in 2002. The 50 cents tax is specifically targeted at low-end liquor. The extra tax is collected by pounds, so I ask if you dare to take the volume!

So in 2002, a large number of liquor companies died collectively.

Wuliangye's development route is the most awesome. It cooperates with small factories everywhere to develop OEMs, specializing in the production of mid- and low-end products to occupy the market, and it produces mid- and high-end products to maintain its brand influence. Even if it is levied 50 cents tax, the market share of products at all levels is there, but the mid- and low-end markets are shrinking.

By 2004, Wuliangye was the most expensive, even a lot more expensive than Moutai as a whole.

Moutai's development route is extremely conservative and effective, and it is crazy about expanding military and political channels, conducting group buying, building specialty stores, constantly bringing wine to the troops to express condolences, and constantly promoting it to government agencies and units. There are Moutai specialty stores everywhere in governments and military courtyards. Through its influence in military and political aspects, it continues to radiate to the business world and the people, thus subtly shaping the golden body of "national wine". In addition, Moutai vintage wine is created to increase Moutai's value and widen the price gap with other high-end wines.

Because there is no 18% tax refund discount for listed wine companies, some wine companies, including Xianjiu, can only focus on the mid-range market after the 50 cents tax collection and steadily launch high-end wine models.

It is obvious that the price is obvious, just take the 52-degree liquor from last year (2004) as an example: Wuliangye (360 yuan), Maotai (320 yuan), Jiannanchun (158 yuan), Xianjiu (158 yuan), Xiaohutu Xian (72 yuan), Quanxing Daqu (38 yuan), and Jin Liufu (16 yuan).

This is the general situation of the current Chinese liquor industry, from low-end to high-end brands, Xianjiu has completely become a mid-range brand.

Of course, after the country canceled the tax refund preferential policies for listed wine companies, there was no insurmountable gap between mid-to-high-end brands. This year, Xianjiu plans to launch new products with a price of more than 300 yuan, focusing on the high-end business banquet market.

"Let me advertise?" Song Weiyang asked.

Song Qizhi said: "Yes. The new product is a high-end business wine. It is better to ask you to advertise if you want to endorse it."

"You really know how to pick people." Song Weiyang said hilariously.

Song Qizhi began to complain: "Yangyang, no matter what, you are also a shareholder of Xianjiu Group. In the past few years, the liquor industry has been struggling. The profit of Xianjiu every year is not as good as a fraction of the real estate of its subsidiary. Xianjiu Group is almost becoming a real estate company! Now the liquor industry has finally recovered, and we must seize the opportunity, otherwise we will be left farther and farther away by Wuliangye and Moutai."

"Okay, I am the spokesperson." Song Weiyang said.

Song Qizhi smoked and said, "The liquor market this year's Spring Festival is very strange. Wuliangye has risen to 380, and Moutai has also risen to 360 (both the highest prices of their respective brands). Other brands have risen, and if anyone does not raise the price, sales will decline. Do you think consumers are so cheap? They won't buy them if they don't raise the price!"

"Haha, this is the case in the mid-to-high-end market. You only buy expensive ones, not the right ones." Song Weiyang smiled.

Song Qizhi took out a file bag: "This is the advertising company's plan, and the advertising scripts have been written."

Song Weiyang took it out and read it roughly. The advertisement case was done in a normal manner. It was to let Song Weiyang appear in a suit and tie, stand in a very high-end business building, look at the city building complex by the window, and give a close-up of the famous watch on his wrist, what is the line "the way of wine, the way of business".

"What do you think?" Song Qizhi asked.

Song Weiyang said: "If I were asked to act in this advertisement, combined with the massive publicity costs, I would definitely achieve some results. But this is my persuasion, not the persuasion of Xianjiu. Xianjiu now lacks a core advantage."

Song Qizhi spread his hands: "The core advantage cannot be changed. Maotai has washed the wounds of soldiers during the Long March, and Wuliangye also has many old wine cellars. Now the two companies have made vintage wine all the time. But what is the fairy wine? Our oldest three wine cellars were just dug during the Republic of China. I don't know where to bury the wine cellars in the Qing Dynasty."

"We don't have it, but we can buy it for money!" Song Weiyang said.

"Where can I buy it?" Song Qizhi asked.

Song Weiyang asked: "Is Wenjun wine a little bit unsatisfied now?"

Song Qizhi said: "It's not that it's a bit bad, it's very unbelievable. When Wenjun Liquor was the most popular, it was ranked among the top three in the province, and its market share was even second only to Wuliangye. But they were all foolish. This wine had no market position at all, and both the high- and low-end markets wanted it. With such a big reputation and such high-end brands, they didn't change their brands, and they directly sold a few dollars a bottle in the countryside under the name of "Wenjun Liquor".

"The sign was destroyed?" Song Weiyang asked.

"It has been ruined long ago," said Song Qizhi. "I spent 100 or 200 yuan to buy Wenjun wine, and farmers can buy Wenjun wine for a few yuan. What do you think about me? Now the high-end wine type of Wenjun wine can no longer be sold, and the low-end wine type has also been killed by the 50 cents tax. It is all 30 or 40 yuan per bottle. The brand is probably the high-end one in the low-end one in the mid-end one, and it is not awkward anyway."

Song Weiyang asked again: "Is anyone buying Wenjun Liquor?"

Song Qizhi was familiar with the liquor brand in the province. He said as much as possible: "Wenjun Liquor was acquired by Lan Jian in 2000 due to serious losses. However, the loss momentum could not be suppressed. Lan Jian sold Wenjun Liquor to Jian Nanchun. It was not until last year that it turned a profit, but the annual profit was very low, so it can only be said that there was no loss."

"Then let's buy Wenjun Liquor and specifically build it into a high-end brand under Xianjiu Group!" said Song Weiyang.

Song Qizhi waved his hands repeatedly: "No, no, Wenjun wine has become a garbage brand. Especially in the province, if you buy Wenjun wine to visit your mother-in-law's house to pay New Year's greetings, you will be looked down upon. The current market image of the wine is only one step higher than that of Jin Liufu, and it is almost the same as Quanxing Daqu."

Song Weiyang said: "But there is an old wine cellar in Wenjun wine cellar, and there is also the story of Feng Qiuhuang from Sima Xiangru and Zhuo Wenjun. Putting aside the old wine cellar, this story is worth buying. Now, who is not trying to make up stories by making products? The story of Feng Qiuhuang is true. It really happened in the place where Wenjun wine was produced, and no one can pick out the thorns!"

"If you want to buy Wenjun wine, it may be a bit expensive." Song Qizhi said.

"How many can I buy it?" Song Weiyang asked.

"It's not sure," said Song Qizhi. "In 2000, Wenjun Liquor was already insolvent, but Lan Jian spent 120 million yuan to acquire it. Now Wenjun Liquor turns losses into profits. If the price is not high, Lan Jian and Jian Nanchun will definitely not be willing to sell it. I guess, if the acquisition can be successful, it may cost 150 million to 180 million yuan, or even 200 million yuan. Xianjiu doesn't have that much money on the books, so she can only find a bank loan. In addition, the subsequent brand building promotion costs, once the market reacts poorly, Xianjiu Group will fall into a serious crisis."

"It's okay, I'll accompany you if you're with me," Song Weiyang said with a smile. "Anyway, Xianjiu Group has made a lot of money in real estate."

Song Qizhi said speechlessly: "Real estate companies are independent subsidiaries, and they all have their own accounts. How can they be confused? Besides, the real estate companies are our father's company, so can I still ask him for money?"

Song Weiyang put away his smile: "This is a once-in-a-lifetime opportunity. Now that the domestic liquor market is recovering, every important decision will determine the company's development in the next 10 or 20 years. Once you miss this opportunity, if you want to build a high-end liquor brand in the future, it will be ten or a hundred times more difficult than now, and the funds you need will be ten or a hundred times more. Make your own choice. If you succeed, Xianjiu is a first-tier high-end brand; if you fail, you can also use the money from real estate companies to subsidize. If you miss this opportunity, Xianjiu may always be on the second level."

The pattern of China's liquor industry was decided from 2004 to 2005, and there will be no changes in the next ten years, including complex factors such as production licenses, sales channels, brand positioning, and market popularity.

Especially sales channels.

From September 2004 to March 2005, the central government carried out special rectification nationwide, on the one hand, to crack down on counterfeit and shoddy liquor, and on the other hand, to eliminate local protection and regional blockade of the liquor market. The key point is the second, which led to the disappearance of local market barriers for liquor, and major brands immediately began to conquer cities and land, and sales channels in various places were thus mastered and solidified. Later, new brands could not be entered at all, and it was difficult for mid- and low-end brands to transform if they wanted to sell high-end liquor.

If you miss this opportunity, there is almost no possibility of turning around.

Wenjunjiu, another time and space, missed it. It was acquired by France Hennessy in 2006 and wanted to become a top luxury brand. As a result, it was only one year later, and the foreign father couldn't take it, so it was useless to find Jiang Wen as the spokesperson.

Song Qizhi thought for a long time and finally made a decision: "I'm going to ask someone to make an acquisition plan!"
Chapter completed!