《Investor Network》 Zhang Jingyi

In the third quarter of 2024, the macroeconomic growth slowed down, the consumption demand in the liquor market showed weakness, and the traditional peak seasons of the Mid-Autumn Festival and National Day did not see significant improvement. The baijiu market as a whole is facing problems of increased inventory, price inversion, and shrinking sales volume, with companies facing a more severe external environment. Faced with such a market environment, companies should adhere more to product quality, actively seek innovative development paths to adapt to market changes and challenges.

In this downward cycle, Vats Liquor Chain Store Management Joint Stock has been focusing on stable cooperation with well-known liquor companies, enriching diverse products, while continuing to increase innovation capabilities and digital upgrades to more effectively cope with the economic cycle's impact and prepare for future market recovery.

Win recognition with professionalism and quality.

Having weathered nearly two decades of ups and downs, Vats Liquor Chain Store Management Joint Stock, experienced the vicissitudes of China's liquor industry, has remained true to its original aspirations. While maintaining steady development, it focuses more on long-term planning for the future, especially in the face of the ever-changing liquor market, Vats Liquor Chain Store Management Joint Stock's every move has become an important trend indicator in the liquor circulation field.

Since its establishment in 2005, the company has always adhered to the business philosophy of 'quality, authenticity, service, innovation,' continuously innovating and successfully shaping the brand image of 'buy authentic liquor from Vats, buy branded liquor from Vats.' It has made significant contributions to the liquor industry and consumers, becoming China's most professional liquor circulation platform.

In the minds of consumers, the most important concern when buying liquor products is the guarantee of authenticity and quality. Vats Liquor Chain Store Management Joint Stock deeply understands this need and always insists on providing 'authentic' products to dealers and consumers. In recent years, the company has further upgraded its core strategy, proposing the concept of 'always being a gold-medal sommelier for famous liquor factories,' which has been widely recognized by upstream famous liquor factories.

In recent years, Vats Liquor Chain Store Management Joint Stock has taken multiple measures in innovative development paths. The company has built a liquor circulation platform, integrated upstream and downstream resources, formed a closed-loop supply chain system, maintained long-term stable cooperation with Moutai, Wuliangye, Fenjiu, Lafite, Penfolds, and other famous liquor factories, jointly creating personalized products. It has also deepened cooperation with local cultural liquor brands to help local brands break through. In addition, the company has enhanced interaction with consumers by organizing boutique wine tasting events and other activities to increase brand influence.

Digitization construction is also an important manifestation of Vats Liquor Chain Store Management Joint Stock's innovation capability. The company uses digital means to improve operational efficiency and management level, establishes an efficient digital channel operation management system, achieves refined management of stores, inventory, sales and other links. At the same time, the company also uses big data and ai technology for market analysis and consumer trend research, drives decisions with data, optimizes product structure and market strategy.

In terms of channel construction, Vats Liquor Chain Store Management Joint Stock has already built a 'capillary' omni-channel network nationwide, including chain stores, e-commerce platforms, direct supply terminals, covering approximately 2,000 chain stores and over 30,000 direct supply terminals nationwide. This omni-channel strategy enables the company to reach consumers more widely, whether they prefer online shopping or offline experiences.

In terms of store innovation, Vats Liquor Chain Store Management Joint Stock has launched the 3.0 stores designed for the high-end market, pioneering the new model of 'famous liquor + high-end dining + entertainment ecosystem', using high-end innovative experience space to integrate diverse new experiences such as tasting, purchasing liquor, leisure entertainment. The 3.0 stores adopt advanced digital technology, such as digital golf courses, providing personalized and high-tech shopping experiences, leading the new trend of the liquor industry consumption.

In terms of marketing innovation, Vats Liquor Chain Store Management Joint Stock conducts BC integrated marketing around 'high-quality partners + boutique liquor', extensively seeks high-quality partners nationwide, steadily promotes the layout of 3.0 stores; further strengthens cooperation with upstream famous liquor factories, builds a 'one strong, multiple excellent' boutique liquor matrix, responds to market challenges with a comprehensive and rich product matrix, meets consumers' diverse choices and advanced demands for liquor products.

Meanwhile, around the core spirit of 'Vats Iron Army', actively building an all-round marketing team, strengthening talent selection and cultivation, constructing a dynamic and balanced talent supply chain, providing a continuous source of power for the company's sustainable development.

Recently, Vats Liquor Chain Store Management Joint Stock made important optimization adjustments to the management team. General Manager Li Wei resigned due to job adjustment, and the position of non-independent director was taken over by Wu Qirong. As the son of the controlling shareholder Wu Xiangdong, graduated from the University of Birmingham in the United Kingdom, Wu Qirong has rich experience in digital operation. The role of General Manager was taken over by Deputy General Manager Yang Wuyong. As a senior professional in the liquor industry, Yang Wuyong possesses rich market operation experience and keen market insight. It is foreseeable that the combination of Wu Qirong's digital background and Yang Wuyong's industry experience will bring more strategic opportunities to the company.

After nearly twenty years of accumulation and innovation, Vats Liquor Chain Store Management Joint Stock, with its professional service and high-quality products, continues to attract consumers and win market recognition.

Establishing market position through strength.

In the liquor circulation industry, vats liquor chain store management joint stock has always held an important position, and its strength and influence are undisputed. As China's first A-share listed company in the liquor circulation industry, the company has not only set a benchmark in the capital markets but also continued to empower partners in the industry chain, driving the development and innovation of the liquor circulation market.

In terms of market share, vats liquor chain store management joint stock ranked first in the 2022 Chinese liquor circulation market. With the increasing industry concentration, the company is expected to further expand its market share, continuously consolidate its leading position in the industry.

Brand value is the intangible asset of an enterprise and an important manifestation of its core competitiveness. Vats liquor chain store management joint stock has achieved remarkable results in brand building, being listed in the 'Top 500 Most Valuable Chinese Brands' for many consecutive years. In addition, the company has won the first place in the China Customer Satisfaction Index (C-CSI) list in the 'liquor chain store' subsector for two consecutive years. These honors not only demonstrate the brand strength of vats liquor chain store management joint stock but also reflect consumers' high recognition and trust in the company's brand.

The outstanding achievements of vats liquor chain store management joint stock stem from its relentless pursuit of quality and deep understanding of consumer demands. With the development of the national economy and the improvement of people's living standards, consumers' demand for alcoholic beverages has become more diversified, personalized, and focused on quality. Whether for business banquets, gatherings with relatives and friends, or daily consumption, alcoholic beverages have become an indispensable part.

Data shows that in 2023, China's liquor industry's product sales revenue reached 1,080.26 billion yuan, a year-on-year growth of about 9.3%. The forecast market size will continue to expand, especially the performance of the high-end baijiu market will be more prominent. The scale of strong-aroma baijiu market is expected to exceed 300 billion yuan and maintain an annual growth rate of over 10%.

At the same time, the diversification of liquor circulation models has provided new impetus for the industry's development. In 2023, China's liquor circulation market has reached a trillion level, exceeding 1.1 trillion yuan, with a year-on-year growth of 3.6%. It is estimated that by 2028, the size of China's liquor circulation market will exceed 1.5 trillion yuan, with a compound annual growth rate of about 6% from 2023 to 2028.

The huge development space of the Chinese liquor market, coupled with the increasingly diverse consumer demands, provides strong momentum for the development of liquor enterprises. As a typical representative in the liquor field of the modern service industry, vats liquor chain store management joint stock will continue to rely on its excellent quality and service to create more value for consumers, bring more innovation to the industry, and inject new vitality into the market. (Produced by Sina Finance) ■