Compared with the prosperity of the Xifeng Group, the Song family's Xianjiu Group is relatively bad.

The worst thing was in 2002, when only the liquor business was counted, the annual net profit was less than 50 million yuan. Also in that year, the net profit of the national liquor industry added up to only 3.2 billion yuan, and the annual output of liquor in the country plummeted to 3.8 million kiloliters (more than 8 million liters at the peak).

Since 1998, the annual liquor-related policies have brought China's liquor companies downhill.

In 1998, it was stipulated that the advertising and publicity expenses of grain (including potatoes) liquor shall not be deducted before tax. In the same year, the liquor industry implemented a production license system to restrict liquor enterprises from expanding their production scale.

In 2001, the liquor industry implemented compound taxation, with grain liquor taxed at 25% of the ex-factory price and potato liquor at 15% of the ex-factory price, and a five-cent tax of 0.5 yuan per catty of liquor was also levied. In the same year, the advertising expenses of liquor enterprises shall not exceed 2% of sales, and the excess part shall not be deducted before tax (including non-grain liquor).

In 2002, the 18% tax rebate for listed liquor companies was cancelled.

Over the years, liquor companies have chosen different development paths.

Because the tax rate is too high and the competition is fierce, more than 90% of the liquor companies directly give up the mid-to-high-end liquor type and begin to win by volume, focusing on the low-end market - the market price is a few yuan a catty, and the production cost is particularly low. This development model was fatally dealt a blow by the compound tax calculation law in 2002, and the five-cent tax was specifically levied on low-end liquor. On the extra tax collection by catty, I will ask you if you dare to go to the amount!

So in 2002, a large number of liquor companies died en masse.

Wuliangye's development route is the most awesome, cooperating with small factories everywhere to engage in OEM, specializing in the production of low-end products to occupy the market, and its own production of high-end products to maintain brand influence. Even if the five cents tax is levied, the market share of products at all levels is there, but the low-end market is shrinking.

By 2004, Wuliangye was the most expensive, even a lot more expensive than Moutai as a whole.

Moutai's development route is extremely conservative and effective, frantically expanding military and political channels, engaging in group buying, building special stores, constantly bringing wine to the troops to express condolences, and constantly promoting it to government agencies and units. Near the government and military compounds in various places, there are Moutai stores everywhere. Through its influence in the military and politics, it continues to radiate to the business community and the people, so as to imperceptibly shape the golden body of "national wine". In addition, Moutai vintage liquor was created to raise the value of Moutai and widen the price gap with other high-end liquors.

Because there is no 18% tax rebate for listed wine companies, some wine companies, including Xianjiu, can only focus on the mid-end market after the collection of the five cents tax and steadily launch high-end wine types.

Just look at the price is obvious, take last year's (2004) 52 degree liquor as an example: Wuliangye (360 yuan), Moutai (320 yuan), Jiannanchun (158 yuan), Xianjiu (158 yuan), Xiaomu Tuxian (72 yuan), Quanxing Daqu (38 yuan), Jinliufu (16 yuan).

This is the general situation of China's liquor industry, from low-end to high-end brands, Xianjiu has completely mixed into a mid-range brand.

Of course, after the state canceled the preferential tax rebate policy for listed wine companies, there is no insurmountable gap between mid-to-high-end brands. This year, Xianjiu plans to launch a new product with a price of more than 300 yuan, focusing on the high-end business banquet market.

"Let me advertise?" Song Weiyang asked.

Song Qizhi said: "That's right. The new product belongs to high-end business wine, and it is not as appropriate for you to advertise which celebrity endorsement you want. ”

"You're really picky. Song Weiyang said with a smile.

Song Qizhi began to vomit bitterness: "Yangyang, no matter what, you are also a shareholder of Xianjiu Group. In the past few years, the liquor industry has been struggling, and the annual profits of Xianjiu are not as good as a fraction of the real estate engaged in by its subsidiaries, and the Xianjiu Group is about to become a real estate company! Now that the liquor industry is finally picking up, we must seize the opportunity, otherwise we will be thrown farther and farther away by Wuliangye and Moutai. ”

"Okay, that's what I'm a spokesperson for. Song Weiyang said.

Song Qizhi smoked a cigarette and said: "The liquor market during the Spring Festival this year is particularly strange, Wuliangye has risen to 380, and Moutai has also risen to 360 (both are the highest prices of their respective brands). Other brands are following suit, and if anyone doesn't increase the price, sales will decline. Do you say that consumers are so cheap that they won't buy it if it doesn't go up!"

"Haha, the mid-to-high-end market is like this, only buy the expensive ones, not the right ones. Song Weiyang said with a smile.

Song Qizhi took out a document bag: "This is the plan of the advertising company, and the advertising script has been written." ”

Song Weiyang flipped it out and roughly read it, and this advertising case was done decently. It is to let Song Weiyang appear in a suit and leather shoes, standing in a very high-end business building, overlooking the city buildings from the window, and giving a close-up of the famous watch on his wrist, what is the line "The way of wine, the way of business".

"What do you think?" asked Song Qizhi.

Song Weiyang said: "If I am asked to perform this advertisement, with a large amount of publicity costs, I will definitely be able to achieve some results." But this is my persuasiveness, not the persuasiveness of Xianjiu, which now lacks a core advantage. ”

Song Qizhi spread his hands: "The core advantages can't be changed." Moutai washed the wounds of the soldiers on the Long March, and Wuliangye also has a lot of old wine cellars, and now the two vintage wines are out of the limelight. But what is the immortal wine? Our oldest three-mouth wine cellar was only dug during the Republic of China, and the wine cellar of the Qing Dynasty has long been buried. ”

"We don't have it, but we can buy it!" Mr. Song said.

"Where can I buy it?" Song Qizhi asked.

Song Weiyang asked, "Is Wenjun wine a little bad now?"

Song Qizhi said: "It's not a little bad, it's very unbelievable." When Wenjun wine was the most popular in the past, it could rank among the top three in the province, and its market share was even second only to Wuliangye for a time. But it's all in the way, this wine has no market positioning at all, and the high, medium and low-end markets want it. With such a big reputation and such a high-end brand, they didn't even change their brand, and directly sold a few yuan a bottle in the countryside in the name of 'Wenjun Wine'. ”

"Is the brand ruined?" asked Song Weiyang.

"It has long been ruined," Song Qizhi said, "I spent one or two hundred yuan to buy Wenjun wine, and the peasants can buy Wenjun wine for a few yuan. The brand probably belongs to the high-end of the low-end, the low-end of the mid-range, anyway, it is not embarrassing. ”

Song Weiyang asked again: "Is there anyone buying Wenjun Liquor?"

Song Qizhi said to the liquor brand in the province: "Wenjun Liquor was acquired by Lanjian in 2000 due to serious losses. But the momentum of losses couldn't be stopped, and Lan Jian sold Wenjun Liquor to Jian Nanchun again, and it was not until last year that he turned losses into profits, but the annual profits were very low, so it can only be said that there was no loss. ”

"Then let's buy Wenjun Liquor and make it a high-end brand under Xianjiu Group!" Song Weiyang said.

Song Qizhi waved his hand again and again: "No, no, Wenjun wine has become a garbage brand." Especially in the province, if you buy Wenjun wine and go to your mother-in-law's house to pay New Year's greetings, you will be looked down upon. The current market image of that wine is one level higher than that of Jin Liufu, and it is almost as good as Quanxing Daqu. ”

Song Weiyang said: "However, Wenjun wine has an old wine cellar, as well as the story of Sima Xiangru and Zhuo Wenjun's phoenix. Putting aside the old wine cellar, this story alone is worth buying, and who is not trying to make up a story when making products now? And the story of Feng Qiuhuang is true, it does happen in the origin of Wenjun wine, and no one can pick out the thorns!"

"If you want to buy Wenjun wine, it may be a bit expensive. Song Qizhi said.

"How much can I buy?" Song Weiyang asked.

"I can't say," Song Qizhi said, "In 2000, Wenjun Liquor was already insolvent, but Lanjian also spent 120 million yuan on the acquisition. Now that Wenjun wine has turned losses into profits, if the price is not high, Lan Jian and Jian Nanchun will definitely not be willing to sell it. I estimate that if the acquisition can be successful, it may cost 150 million to 180 million, and maybe even 200 million. Xianjiu didn't have that much money on his books, so he could only find a bank loan. Coupled with the follow-up brand building and promotion costs, once the market response is not good, Xianjiu Group will fall into a serious crisis. ”

"It's okay, I'll accompany you," Song Weiyang said with a smile, "Anyway, Xianjiu Group has made a lot of money in real estate." ”

Song Qizhi said speechlessly: "The real estate company is an independent subsidiary, each with its own account, how can it be mixed up? Besides, the real estate company is our father's business, can I still reach out to him to ask for money?"

Song Weiyang put away his smile: "This is a once-in-a-lifetime opportunity. Now that the domestic liquor market is picking up, every important decision will determine the company's development in the next 10 or 20 years. Once this opportunity is missed, it will be ten times more difficult to build a high-end liquor brand in the future than it is now, and the funds required will be ten times and a hundred times more difficult. The choice is yours. If it succeeds, Xianjiu is a first-line high-end brand, and if it fails, it can also be subsidized with the money of the real estate company. If this opportunity is missed, the immortal wine is likely to linger in the second rate forever. ”

The pattern of China's liquor industry was set from 2004 to 2005, and there will be no change in the next ten years, which involves complex factors such as production licenses, sales channels, brand positioning, and market awareness.

Especially the sales channel.

From September 2004 to March 2005, the central government carried out a nationwide crackdown, on the one hand, to crack down on counterfeit and shoddy liquor, and on the other hand, to eliminate local protection and regional blockades of the liquor market. The focus is on the second, which led to the disappearance of local market barriers for liquor, and the major brands immediately began to conquer the city, and the sales channels in various places were mastered and solidified. Later, new brands could not enter at all, and it was difficult for low-end brands to transform if they wanted to sell high-end wine.

If you miss this opportunity, there is almost no chance of turning over.

In 2006, it was acquired by Hennessy of France, wanting to become a top luxury brand. As a result, it was only a year late, and the foreign father couldn't take it, and it didn't have any effect to find Jiang Wen as a spokesperson.

Song Qizhi thought hard for a long time, and finally made a decision: "I'll let people make an acquisition plan!"

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