【Epoch Times news on December 29, 2024】Guizhou Maotai Distillery, the parent company of Maotai 1935, one of its main products priced at around 1000 yuan per bottle, has seen a significant drop in price in some regions to 690 yuan per bottle, compared to its peak price of 1800 yuan per bottle.
According to the Lu Whale Financial news on October 28, since the Chinese New Year in 2023, the market price of Maotai 1935 has been steadily declining from 1200 yuan to a range of 800 to 1000 yuan. In the second half of this year, the price of Maotai 1935 has dropped even further, with wholesale prices dropping to 740 yuan per bottle in October, and some data showing prices as low as 690 yuan per bottle. Compared to the peak period when it was priced at 1800 yuan per bottle, the price of Maotai 1935 has significantly dropped, earning it the nickname “diving champion” in the industry.
In a report by Taishan Financial on December 29, the actual retail price of Maotai 1935 has fallen below 700 yuan per bottle, nearly halving from the retail price guidance of 1188 yuan per bottle.
A liquor distributor in the central district of Jinan revealed to the media: “Maotai 1935 is now 700 yuan, it used to be over a thousand.” This is currently the cheapest time to buy, and prices may rise around the Chinese New Year.
Several tobacco and alcohol recycling stores also mentioned to the media that the buyback price for Maotai 1935 generally ranges from 550 to 600 yuan. An employee at a tobacco and alcohol recycling store commented: “This series of liquor is not valuable. We are buying it now at only 620 yuan.”
Second-hand recycling businesses also noted, “A year ago, we could buy this liquor for over a thousand yuan, but not anymore.” The market saw a high demand in 2022 and 2023, but the current buyers are fewer, and prices have decreased along with the price of Maotai.
However, at a direct sales store of Guizhou Maotai in Jinan, the price of Maotai 1935 remains at 1188 yuan.
Online, a self-operated supermarket on an e-commerce platform is selling Maotai 1935 for 808 yuan per bottle. In the platform’s Guizhou Maotai flagship store, the price of Maotai 1935 is at 859 yuan per bottle.
Maotai 1935 is a key product with a price point of around 1000 yuan launched by Guizhou Maotai. When it first hit the market in 2022, it achieved sales of 16 billion yuan within two years.
The initial market price for Maotai 1935 was set at 798 yuan per bottle (planned distributor settlement price), with a retail guidance price of 1188 yuan per bottle. Fueled by market promotion, its price skyrocketed to over 1800 yuan per bottle at one point.
A tobacco and alcohol store owner on Weiyi Road in Zhengzhou, Henan, revealed to Daxiang News on December 19: “When Maotai 1935 was popular, we used to sell it for over a thousand yuan per bottle. Now, we can only sell it for 750 yuan per bottle, and it’s still not selling well.” He also mentioned that in previous years, the Mid-Autumn Festival was a period of price increase for alcohol, but this year there have been no price hikes. He does not hold optimistic views for the upcoming New Year and Chinese New Year.
A regional distributor in Zhoukou, Mr. Peng, shared that he used to sell Maotai 1935 for 1250 yuan per bottle, but now can only sell it for 700 yuan per bottle. He added, “The entire Maotai series is decreasing in price. We have excess inventory that we urgently need to sell off. Selling Maotai 1935 now hardly brings any profit.”
Regarding the significant drop in the price of Maotai 1935, a liquor distributor in Jinan told Taishan Financial that it’s due to large production from the manufacturers, but low market demand, leading to oversupply and continuous price decline. “Selling Maotai 1935 now hardly brings any profit. The profit from the Maotai brand can cover some of the losses, but even that profit is being squeezed.”
Lu Whale Financial believes that the plummeting price of Maotai 1935 is a result of the brand overextending the market trust. The initial success of Maotai 1935 relied on brand prestige and speculative mentality but lacked a solid market foundation and differentiated positioning. Consumers quickly realized that this liquor lacked the core cultural essence of Maotai and a unique value proposition. With the return of market rationality, speculation waned, and the bubble of Maotai 1935 burst inevitably.
Furthermore, the overall decline in the price of Feitian Maotai this year has directly impacted Maotai 1935. Data from “Today’s Liquor Price” shows that the retail price of Feitian Maotai dropped from 2700 yuan per bottle at the beginning of the year to 2200-2400 yuan per bottle in October, with wholesale prices even falling below 2300 yuan per bottle. Many analysts in the industry predict that the price of Feitian Maotai may continue to drop below 2000 yuan per bottle, signaling the inevitable decline in the price of Maotai 1935.
Although Maotai 1935 has been marketed as a “lite version” of Feitian Maotai, consumers understand that it does not match its predecessor in brand value and quality. As the price of Feitian Maotai decreases, the burst of this bubble ultimately leads to the market’s rational return and the collapse of Maotai 1935.
Lu Whale Financial also mentioned that the length of time it will take to clear Maotai 1935’s stock remains unknown. It is certain that to restore its price, Maotai 1935 will face significant challenges. Sales myths that quickly rose through hype and channel pressures are just short-term prosperity, and the market will naturally return to rationality.
Netizen “Aixin Baking Shop” expressed: “The collapse of the Maotai 1935 bubble is due to ‘overreliance on the brand’. When consumers don’t buy it, prices naturally drop. A strong brand alone is not enough; the product itself must deliver!”
“Clubber Duke” added: “The sharp price drop of Maotai 1935 is ultimately due to internal issues within Maotai, as they did not manage production capacity and market control well, leading to a market supply-demand imbalance and price collapse.”
Regarding when Maotai 1935’s price will hit the bottom, netizen “Bottom Support” believes: “The distributors have high inventory, failed to push sales, so a significant price drop is inevitable. The exact amount will depend on how much the distributors need to collect payments, but currently, prices are certainly on a downward trend, as few young people are willing to spend on white spirits.”