Currently, the Baijiu Industry in China is undergoing the dual test of structural adjustment and stock competition. With consumer confidence stabilizing and the demographic dividend declining, the industry is exhibiting characteristics of "strong concentration and strong diversification," with market share rapidly consolidating towards leading brands. Although strong aroma Baijiu still dominates, the consumption logic has undergone a profound shift—from pursuing "utilitarian value" to focusing on the quality of the liquor and emotional resonance. At the same time, the traditional incremental dividend centered on business banquets is gradually receding, and rational consumption is forcing a redefinition of growth logic in the industry. Under the intertwining of multiple variables such as a rise in cultural confidence, penetration of technological innovation, and global competition, the Baijiu industry faces both adjustment pressures and opportunities for breakthroughs. In response, Sichuan Swellfun gave a positive response at the 2025 strategy launch conference: adhering to a consumer-oriented approach, actively seeking change, welcoming new opportunities and challenges, and announcing the overall goal for the next five years: "an ultimate consumer experience, expanding growth momentum, achieving healthy and leapfrog development."

Anchor consumer mindset, break through stock competition.

To respond to the current industry development trends and achieve the five-year development goals, Sichuan Swellfun proposed a series of key measures at the 2025 strategy launch conference, focusing on the collaboration between "First Fang" and "Sichuan Swellfun." The premium positioning of Sichuan Swellfun is not just about raising prices but is a bi-directional reconstruction based on brand assets and consumer demand. On one hand, "First Fang" leverages its historical endorsement as "the first Baijiu in China" and ancient cellar resources as core selling points, satisfying consumers' pursuit of scarcity and personalization through limited releases and cultural experience activities. On the other hand, closely aligned with the emotional claim of celebrating beautiful moments with good liquor, "Sichuan Swellfun" shares the core cultural genes and visual symbols of "First Fang" while focusing on the sub-premium market, solidifying sales foundations and deeply binding high-end brand concepts with important life moments such as weddings and anniversaries, thereby reinforcing consumers' recognition of "Sichuan Swellfun" and "First Fang" as carriers of ritual significance.

This initiative is not only a necessary choice to respond to the industry's differentiation but also a crucial link to activate the brand's scarce assets. As "the first Baijiu in China" with a 600-year brewing history, Sichuan Swellfun relies on unique resources such as the "Double National Protection" (the nationally key cultural relics protection unit of the Sichuan Swellfun Brewery site, and national-level intangible cultural heritage brewing techniques) and the "No.1 Microbial Strain," which endows it with profound high-end genes. In this strategic upgrade, the "First Fang" brand is positioned as the core carrier for the high-end market above 800 yuan, enhancing brand recognition through the creation of "museum-level" high-end Baijiu and scarce collectible products, while also nurturing the competitiveness of "Sichuan Swellfun" in the sub-premium market, forming a synergistic effect between "Sichuan Swellfun" and "First Fang."

Consumer-oriented, exploring new growth engines.

Faced with challenges of high channel inventory and market diversification, Sichuan Swellfun simultaneously promotes refined channel management and organizational capability upgrades. By categorizing the national market into three categories: fortress, pioneer, and potential, and implementing a "one city, one policy" strategy, the brand customizes distribution, banquet support, and group purchase plans based on different regional consumption characteristics, using digital tools to monitor sales data in real-time and optimize inventory turnover efficiency. Currently, consumption scenarios have also undergone profound changes: the demand for business banquets is gradually decreasing, while social consumption demand begins to emerge, with consumers paying more attention to life enjoyment. Baijiu consumption is seeing growth in family gatherings and social banquets, and the sub-premium Baijiu (price range of 300-800 yuan) is encountering significant opportunities. Therefore, Sichuan Swellfun will focus on the price range of 300-800 yuan, launch a second star product, and form a "twin star" growth engine to inject new momentum for the continuous growth of the company’s performance. Additionally, Sichuan Swellfun continues to strengthen production capacity and cultural foundation construction: the release of high-quality capacity at the Qionglai base guarantees the supply of high-end products, while the promotion of the non-legacy inheritor team and ESG goals enhances the brand's sustainable development capacity.

This strategic upgrade for Sichuan Swellfun not only accurately responds to the industry's changes but also demonstrates its long-term commitment to being "consumer-centered." In the future, the company will use its brand cultural heritage, a complete product matrix, a refined channel network, cultural empowerment, and ESG practices as core leverages to provide an ultimate consumer experience, expand growth momentum, and achieve healthy, leapfrog development. As the strategy gradually takes shape, Sichuan Swellfun, as a company with long-term investment value, will create new high-end increments within the stock market, providing an important model for the transformation of the Baijiu industry in China.