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On May 20, Changyu released a record of investor relations activities, showing that in the past year, Changyu has improved its market position, but there are no obvious signs of improvement in the wine industry. Let more consumers develop the habit of drinking wine and brandy, Changyu is now facing the biggest obstacle, but also the key to break the game.

According to data cited by Changyu, the number of enterprises in the domestic wine industry with a scale of more than 20 million yuan peaked at 244 in 2017 and has been reduced to 104 by 2023. In 2023, the country's bottled wine imports decreased by 29.8% year-on-year, and the import value decreased by 18.2% year-on-year; Brandy imports amounted to $1.751 billion, twice the amount of imported wine. From the perspective of listed companies, in 2023, in addition to Changyu, the total annual revenue of the remaining 10 companies was 1.521 billion yuan, down 6% year-on-year, of which 6 companies had a total loss of 430 million yuan, and 4 companies had a total profit of 35 million yuan.

Combined with the above data, Sun Jian, director and general manager of Changyu, believes that the wine market environment in 2024 is still not friendly. From the perspective of the proportion of wine, there are about 88.3 billion bottles of various drinks sold in 2023, and wine accounts for less than 1%. In the pattern of the wine industry in the next few years, it is difficult for Changyu to make the "cake" bigger. Let more consumers develop the habit of drinking wine and brandy, Changyu is now facing the biggest obstacle, but also the key to break the game.

For how to break the game, Sun Jian said that first, there should be a big breakthrough in circle marketing. China's alcohol market has at least 300 billion to 500 billion yuan retail price of wine. The best way to "break the circle" is to find and cultivate a multi-shareholder, cross-border, empowered dealer system, rather than making a few small circle layers. Second, there is a big breakthrough in the promotion of banquets. In 2023, Changyu Cabernet banquet promotion has reached more than 80,000, and from January to April 2024, it has reached more than 40,000. Third, there is a breakthrough in the brandy products in Shandong base camp, and it is planned to use a few years to achieve 1 billion brandy scale in Shandong. The fourth is to innovate the operation of low-alcohol wine, especially the "small Portuguese" for young people.