Rebirth of the Wild Age - Chapter 647

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

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

Since 1998, the baijiu-related policies issued every year have caused Chinese baijiu companies to go downhill.

In 1998, it was stipulated that the advertising and publicity expenses of grain (including potato) liquor should not be deducted before tax. In the same year, the liquor industry implemented a production license system to restrict liquor companies from expanding their production scale.

In 2001, the liquor industry implemented compound taxation. Grain liquor was taxed at 25% of the ex-factory price, and potato liquor was taxed at 15% of the ex-factory price. At the same time, a tax of 0.5 yuan per catty of liquor was 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 rebate 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 the mid-to-high-end liquor type and start to win by volume and focus on the low-end market-the market price is a few yuan per catty, and the production cost is particularly low. This development model was fatally hit by the 2002 Compound Taxation Law. The fifty cents tax was specifically levied on low-end liquor. If you charge extra taxes, just ask if you dare to take the measure!

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

Wuliangye’s development route is the most powerful, cooperating with small factories everywhere to engage in OEM, specializing in the production of low-end products to occupy the market, and its own production of high-end products to maintain brand influence. Even if the 50 cents tax is levied, the market share of products at all levels is still there, but the low-end market is shrinking.

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

Maotai’s development route is extremely conservative and effective. It frantically expands military and political channels, engages in group purchases, builds specialty stores, continues to bring wine to the troops for condolences, and continues to promote it to government agencies. There are Moutai specialty stores everywhere near the government and military compound. Through its military and political influence, it continues to radiate to the business community and the public, thereby subtly shaping the “national wine” golden body. In addition, Maotai vintage wines were produced, which increased the value of Moutai and widened the price gap with other high-end wines.

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

Looking directly at the price, it is obvious. Take the 52-degree liquor from last year (2004) as examples: Wuliangye (360 yuan), Maotai (320 yuan), Jiannanchun (158 yuan), Xianjiu (158 yuan), Xiaohutuxian ( 72 yuan), Quanxing Daqu (38 yuan), Jinliufu (16 yuan).

This is the general situation of China’s liquor industry from low-end to high-end brands. Xianjiu has completely mixed into a mid-end brand.

Of course, after the country abolished the preferential tax rebate policy for listed wine companies, there has been no insurmountable gap between mid- and high-end brands. This year, Xianjiu intends to launch new products priced at 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. Which celebrity to endorse is not as suitable as letting you advertise.”

“You really know how to pick people.” Song Weiyang said amusedly.

Song Qizhi began to complain: “Yangyang, anyway, 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 the fraction of subsidiaries engaged in real estate. Xianjiu Group is about to become A real estate company! Now that the liquor industry is finally picking up, we must seize the opportunity, otherwise we will be thrown away by Wuliangye and Moutai.”

“Okay, my current speaker is.” Song Weiyang said.

Song Qizhi smoked a cigarette and said, “The liquor market during the Spring Festival this year is particularly strange. Wuliangye has risen to 380 and Moutai has risen to 360 (the highest prices of their respective brands). Other brands have risen accordingly. If anyone does not increase their prices, sales On the contrary, it will go down. Do you think consumers are too cheap? If it doesn’t increase, they won’t buy it!”

“Haha, this is the case in the mid-to-high-end market. Only buy the expensive ones, not the right ones.” Song Weiyang laughed.

Song Qizhi took out a file bag: “This is the plan of the advertising company, and the advertising script has been written.”

Song Weiyang turned it out and read it roughly. The advertisement was done fairly well. It was to let Song Weiyang appear in a suit and shoes, standing in a very high-end business building, overlooking the city buildings from the window, and giving a close-up of the famous watch on his wrist. The line was “the way of wine, the way of business”.

“What do you think?” Song Qizhi asked.

Song Weiyang said: “If I were to perform this advertisement, coupled with massive publicity expenses, it would definitely be able to achieve some results. But this is my persuasive power, not the persuasive power of Xianjiu. Xianjiu lacks one. core advantages.”

Song Qizhi split his two hands: “The core advantage can’t be changed. People in Maotai washed the wounds of soldiers during the Long March, and Wuliangye also has many old wine cellars. Now the two are all out in the limelight for vintage wine. But what does Xianjiu have? Our three oldest wine cellars were only dug during the Republic of China. The wine cellars of the Qing Dynasty have long been buried.”

“We don’t have one, but we can spend money to buy it!” Song Weiyang said.

“Where can I buy it?” Song Qizhi asked.

Song Weiyang asked, “Is Wenjun Wine a little bad now?”

Song Qizhi said: “It’s not that it’s a bit frustrating, it’s very unbelieving. When Wenjun Wine was the hottest in the past, it was ranked in the top three in the province, and its market share was even second only to Wuliangye. There is no market positioning, high, middle and low-end markets want it. Such a famous brand, such a high-end brand, does not change the brand, and directly sells a bottle of “Wenjun Liquor” in the countryside for a few yuan.”

“The brand was destroyed?” Song Weiyang asked.

“It was ruined long ago,” Song Qizhi said, “I spent one or two hundred yuan on Wenjun wine, and farmers can buy Wenjun wine for a few yuan. How do you feel in my heart? Types can no longer be sold, and low-end wine types are also killed by the 50 cents tax. They are all 30 or 40 yuan a bottle. The brand is probably the high-end in the low-end, and the low-end in the mid-end. Anyway, it is not embarrassing or embarrassing. of.”

Song Weiyang asked again: “Is that Wenjun wine bought?”

Song Qizhi said to Men Erqing, a liquor brand in the province, that he cherished every family: “Wenjun Wine was acquired by Lanjian in 2000 due to serious losses. However, the loss momentum could not be stopped, and Lanjian sold Wenjun Wine to Jian Nanchun again. Last year it turned losses into profits, but the annual profit was so low that it can only be said that there is no loss.”

“Then let’s buy Wenjun Wine and build it into a high-end brand under the Xianjiu Group!” Song Weiyang said.

Song Qizhi waved his hand again and again: “No, no, Wenjun wine has become a **** brand. Especially in the province, if you buy Wenjun wine to visit your mother-in-law’s New Year, that will be looked down upon. The current market image of the wine is just that. It’s higher than Jinliufu, and it’s almost like Quanxing Daqu.”

Song Weiyang said: “However, Wenjun wine has an old wine cellar, as well as the story of Sima Xiangru and Zhuo Wenjun’s Fengqiuhuang. Aside from the old wine cellar, this story alone is worth buying. Who is not making the product now? Try to make up the story? But the story of Feng Qiuhuang is true. It really happened in the place where Wenjun wine was produced. No one can single out the thorn!”

“If you want to buy Wenjun wine, it might be a bit expensive.” Song Qizhi said.

“How much can you buy?” Song Weiyang asked.

“Maybe,” Song Qizhi said, “In 2000, Wenjun Wine was already insolvent, but Lanjian also spent 120 million yuan on the acquisition. Now Wenjun Wine has turned a profit, and the price is not higher. Lan Jian and Jian Nanchun are definitely unwilling to sell. I guess, if the acquisition is successful, it may cost 150 million to 180 million, or even 200 million. Xianjiu doesn’t have that much money on the books, so I can only find a bank. Loans. Coupled with subsequent brand building and promotion expenses, if the market does not respond well, Xianjiu Group will fall into a serious crisis.”

“It’s okay, I’ll be with you,” Song Weiyang laughed, “Anyway, Xianjiu Group has made a lot of real estate.”

Song Qizhi said speechlessly: “The real estate company is an independently operated subsidiary ~www.mtlnovel.com~ How can we confuse it? Besides, the real estate company is our father’s business, so I can ask him for money. ?”

Song Weiyang put his smile away: “This is a golden opportunity. Now that the domestic liquor market is picking up, every important decision will determine the company’s development in the next 10 or 20 years. Once this opportunity is missed, I want to build a high-end brand of liquor in the future. , It will be ten times and a hundred times more difficult than it is now, and the capital needed is ten times and a hundred times. You make your choice. If you succeed, Xianjiu is a first-line high-end brand; if you fail, you can also use the money of the real estate company to subsidize it. If you miss this Opportunity, fairy wine is likely to linger in second-rate forever.”

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

Especially sales channels.

From September 2004 to March 2005, the central government carried out special rectifications across the country, on the one hand to combat counterfeit and shoddy liquor, and on the other hand to eliminate local protection and regional blockades in the liquor market. The second point is that the local market barriers that led to the disappearance of liquors, major brands immediately began to conquer the city, and the sales channels in various regions were mastered and consolidated. Later, new brands couldn’t get in at all, and it would be difficult for low-end brands to sell high-end wines.

Missed this opportunity, there is almost no possibility of turning over.

Another time and space Wenjun wine was missed. It was acquired by Hennessy of France in 2006 and wanted to become a top luxury brand. In the end, it was only a year late, and Yang’s father couldn’t take it anymore. Looking for Jiang Wen as the spokesperson was also ineffective.

Song Qizhi thought hard for a long time, and finally made a decision: “I’ll let someone make the acquisition plan!”