China Food

Maotai, Guizhou, quietly “cut the fan”

Guizhou Maotai, which earned 160 million yuan on
, had a brilliant performance in the first half of the year, but the dealers who had made great contributions were not happy, and their territory was gradually shrinking by Guizhou Maotai.

Author: Zhang Jikang, editor: Zhang Fang

Source: AI financial agency (ID: aicjnews)

The gold absorption ability of Guizhou Maotai, the “wine king”, has reached a new level. Not long ago, the news that Guizhou Maotai earns 160 million yuan a day hit the microblog hot search. Netizens commented that it was the well deserved “king of a shares” and even joked that “Maotai technology really prospered the country”.
The data are from the report card of the first half of the year submitted by Guizhou Maotai in early August: the revenue in the first half of the year was 57.617 billion yuan, an increase of 17.38% year-on-year; The net profit attributable to the parent company was 29.794 billion yuan, a year-on-year increase of 20.85%, and the daily net profit was 163 million yuan. In the same period of last year, this figure was 135 million yuan, and the gold absorption capacity has jumped significantly in just one year. Five years ago, the daily net income of Maotai in Guizhou was only tens of millions of yuan.
Although the performance of Guizhou Maotai is brilliant, the dealers who have made great contributions are not happy. Since the second half of 2016, Guizhou Maotai has gradually weakened their influence. Up to now, Guizhou Maotai has made qualitative progress in “reducing fan”.
In the first half of 2016 and before, there was only one source of revenue for Guizhou Maotai, that is, relying on the wholesale agency channels represented by dealers. However, the situation has changed quietly since then.
Since the 2016 annual report, Guizhou Maotai first disclosed the income of direct sales channels represented by self-employed. At that time, the direct sales channels were unknown, and the annual income was only 3.48 billion yuan, while the wholesale agency channels were ten times as many as the direct sales channels, reaching 35.36 billion yuan. After six years of efforts, Guizhou Maotai achieved remarkable results in “cutting off the vassal state”.
In the first half of 2022, the direct sales channel income of Guizhou Maotai made a great leap forward, with an increase of 120% from 9.5 billion yuan in the same period of the previous year to 20.95 billion yuan, contributing 36.4% to the total revenue. On the contrary, after two years of slight growth, the wholesale agency channels, which had maintained double-digit growth for consecutive years, declined for the first time, with revenue of 36.61 billion yuan, a year-on-year decrease of 7.32%.
Behind this, the number of dealers in Guizhou Maotai is declining sharply. According to the financial report data, in the third quarter of 2018, the number of Maotai dealers in Guizhou was as high as 3433, but in the first half of 2022, this number directly dropped to 2188, which is equivalent to a reduction of more than 1000 in less than four years, a decrease of 36%.

Maotai’s “cutting fan” is in progress

Pan Ting is a liquor seller located in Chaoyang District, Beijing. Her store covers an area of about 70 or 80 square meters, half of which is Maotai. The 53 degree flying Maotai has a whole cabinet. Many people are always attracted by the red and white wine bottles in this cabinet when they pass by, and then stop to watch.
Pan Ting at the beginning of the year
In those years, the revenue source of Guizhou Maotai still relied on dealers all over the country, and the wholesale agency income has always accounted for the majority, contributing about 90% of the total revenue. However, the change has been taking place quietly. The growth rate of Maotai direct sales channels is increasing year by year, but the income from wholesale agency channels is shrinking.
This is a deliberate result of Guizhou Maotai. According to the 2017 annual report, the wholesale agency channel income of Guizhou Maotai was 51.92 billion yuan, a year-on-year increase of 46.8%. Since then, the growth rate of this income has been declining year by year. However, before 2019, the income of Guizhou Maotai from wholesale agency channels can still maintain a double-digit high-speed growth. Since 2020, the growth rate of this income has been negligible by Maotai, and it has dropped from two digits to single digits.
In the first half of 2020, Guizhou Maotai wholesale agency channel revenue was 38.76 billion yuan, an increase of only 2.4% year-on-year; By the end of 2021, the revenue of wholesale agency channels was 82.03 billion yuan, with a year-on-year growth rate of 0.55%. The first half of 2022 will be a historic turning point.
According to the semi annual report just released by Guizhou Maotai, the revenue from wholesale agency channels was 36.61 billion yuan, which declined for the first time, with a year-on-year decrease of 7.32%, and the contribution to Maotai’s revenue dropped sharply to 63.6%. On the contrary, Guizhou Maotai’s direct sales revenue reached a record high, breaking the 20 billion yuan barrier, reaching 20.95 billion yuan, which was close to the annual revenue of 2021, and its contribution to the total revenue soared to 36.4%. Among them, I Maotai contributed 4.4 billion yuan in the three months since its launch.
Behind the change in the performance structure of Guizhou Maotai, it means that there has been a qualitative progress in Maotai’s “cutting off vassal ships”. In the past four years, although the leadership of Maotai has been changed several times, from Li Baofang, Gao Weidong to Ding Xiongjun, the strategy of “cutting off the fan” has remained unchanged. The number of Maotai dealers has been cut down again and again. In less than four years, it has decreased by more than 1000, and only 2188 in the first half of 2022.
Once made great contributions
Zhou Wen told Caijing Tianxia weekly that the main purpose of Guizhou Maotai’s reduction of dealers is to recover the quota. According to his understanding, the quota of the dealers that have been cut ranges from 5 tons to 20 tons. Maotai will distribute the recovered quota to the direct sales channels, thereby increasing the supply of direct sales channels.
The reasons for being laid off are different. Some do not pay on time, and some violate the provisions of Maotai that forbids transfer in different places. For these dealers, the steps of Maotai are also very “humanized”. Generally speaking, the first step is to reduce the quota, and the second step is to completely cancel their dealer qualification.
When Guizhou Maotai dealers receive the layoff documents, it means that another dealer has lost a fixed annual income of 10 million yuan. At the same time, he will also face the crisis of performance contraction across the board. Dealers who can’t wring their arms can only choose to accept this fact.
There are many star dealers in the dealer team that have been “cut off”. For example, he served as Deputy Secretary of the Maotai Guangdong Friendship Association
At the end of 2013, at the annual dealer conference of Maotai, the key word of the conference was “weather together”. Chen Min, the then Secretary of the Party committee of Maotai Group, said, “the dealers here are no longer discussing the extraordinary achievements as in previous years, but jointly making suggestions for Maotai.”
From the perspective of many old dealers, Maotai is a “warm” and “emotional” enterprise. At the annual dealer conference, Maotai will issue the dealers who have cooperated for more than 20 years with the “through thick and thin” award. For the dealers who grow up together with Guizhou Maotai, this honor is very heavy.
In 2016, with the gradual recovery of the market, the relationship between Maotai and dealers became tense with hoarding and speculation. Affected by the Maotai quota system, dealers in various regions have a very high right to speak. Some dealers use the distribution right to raise prices from time to time. Feitian Maotai, whose ex factory price remains unchanged, is sold at a sky high price step by step. The terminal price is nearly out of control, and even the situation of more regulation and control.
A person close to the dealers told Caijing Tianxia weekly that after 2016, Maotai strengthened its management of dealers, and almost all dealers whose distribution rights were cancelled were affected by the gray channels in the past.

Li Baofang, the then chairman of Guizhou Maotai, also said in public that “a very small number of dealers have added fuel to the flames, openly obeying but secretly disobeying, thinking that it is the ‘profit harvest period’ and advocating the deregulation of the market. They are not satisfied with the profits they have earned, and they are as crazy as drug trafficking.”

This made Maotai firm its determination to “cut off the fan”, and since then, Maotai has vigorously promoted the direct sales channel; On the one hand, the wholesale agency channels were vigorously suppressed.
Huge interest margin behind
Affected by the environment, the core product of Guizhou Moutai, 53 degree flying Moutai, is a scarce resource, and the annual output is fixed.
From 2018 to 2020, the output of Maotai liquor was stable at about 50000 tons. Until 2021, affected by the expansion of production capacity, the production capacity of Maotai liquor was expanded to 56500 tons. However, due to various factors, it is difficult for Maotai to continuously expand production capacity.
Therefore, if Guizhou Maotai wants to increase its revenue growth, it must start from other places. Zhongtai Securities said in the Research Report: “the inability to raise the price freely is one of the main reasons for the slowdown of Maotai’s growth. The growth space of Maotai liquor in the future mainly depends on the price. How to flexibly raise the price per ton in a market-oriented manner is an important reform direction of Maotai.”
Compared with the traditional wholesale agency channels, the gross profit rate of direct sales channels is higher. According to the 2021 annual report, the gross profit rate of Maotai wholesale agency channel is 90.3%, which is as high as 96.12% compared with that of direct sales channel.
The gross profit rate of 6% is enough to contribute a considerable increase in performance. If the sales in 2021 are all used in direct sales channels and the average price remains unchanged, Maotai’s liquor revenue in 2021 will directly double. It can be seen from the 100ml Feitian Moutai sold on I Moutai that the official guiding price of each bottle is 399 yuan
Xiao Zhuqing, an analyst in the liquor industry, believes that due to the social attribute of Maotai liquor, the traditional dealers of Maotai in Guizhou can be regarded as a platform for business communication with high-end people in other regions, and this has also become the core competitiveness of dealers’ online and offline channel networks.
Nowadays, Guizhou Maotai is facing the problem of “to be, or not to be” by Shakespeare. If it still relies on dealers as in the past, Guizhou Maotai will never be able to obtain the market price control right and its revenue will not be able to increase; However, if we start to carry out the reform of direct sales channels, it may completely affect the interests of dealers, and the core basic market of Maotai’s revenue will be greatly affected.
How to find a balance between direct selling and wholesale agency will test the management wisdom of Guizhou Maotai.
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Maotai, Guizhou, quietly “cut the fan”


如今贵州茅台面对的是莎士比亚“to be, or not to be”式的难题,如果仍然像过去一样依靠经销商,贵州茅台永远无法获得市场控价权,营收无法提速;但如果开始大刀阔斧进行直销渠道改革,则有可能彻底动了经销商的利益,茅台营收的核心基本盘将受到巨大影响。




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