Suspension of supply of the sixth-generation Haizhilan in Yanghe’s core market: Maintain the product price system and pave the way for new products to be launched

Blue Whale News, February 8 (Reporter Zhu Xinyue)After the Spring Festival holiday, Yanghe Co., Ltd.(002304.SZ) was exposed to goods control. Its core market, Jiangsu Province, has suspended receiving sales orders for the sixth-generation Haizhalan. This move is regarded as a listing of the seventh-generation Haizhalan. Paving the way. At the same time, Yanghe will also strengthen quota control over Dream Blue M6+.

As early as the beginning of January this year, Yanghe had stopped supplying Haizhilan and Tianzhilan products to various online platforms. Sea Blue, Sky Blue, and Dream Blue, referred to as Haitian Dream for short, are the three core items of Yanghe. As early as 2021, these three products accounted for more than 75% of sales, which shows their important position in the Yanghe product line. Among them, Haizhilan and Tianzhilan both have only one product, and Dream Blue has three products, namely Dream 3, Dream 6+ and Dream 9.

Yanghe has adopted a heavy-handed strategy on core markets and core products this time, and its purpose is obvious.

Cai Xuefei, an analyst in the liquor industry, pointed out that volume control is to reduce pressure on the market and channels, and appropriately reduce supply by exchanging time for space to maintain the product price system. This is also a necessary measure for famous wines to actively adapt to the adjustment cycle, relieve pressure on channel merchants, and ensure continued healthy growth of the market.

According to dealers, the current price of Haizhilan in the channel is around 110 yuan. If the purchase volume is large, the price can even be as low as 100 yuan.

In addition, some dealers also reported that during the sales process, Tianzhilan has multiple specifications, including 480ml, 500ml and 520ml, and the channel prices of these different specifications are maintained at around 300 yuan. In addition, the 500ml Tianzhilan further distinguishes between different packaging forms in 4 bottles and 6 bottles. Similarly, Sea Blue also comes in two different specifications: 480ml and 520ml. This diverse specification setting makes it difficult for consumers to distinguish.

This obviously poses a challenge to Yanghe’s brand image and profit margin, so it is imperative to stop goods and control prices.

A random inspection by Blue Whale News reporter at a Yonghui supermarket in Beijing found that there are only 4 bottles of Haizhiblue and only 2 bottles of Tianzhilan displayed on the shelves; the production date of Haizhiblue is September 5, 2024; the production date of Tianzhilan is July 2, 2024; the production date of other liquor products such as 52 ° Jinjiannan is August 23, 2024; The production date of Luzhou Laojiao Special Qu is May 7, 2022, the production date of Luzhou Laojiao Special Qu Crystal Color is October 9, 2024, and the production date of Fenjiu Blue and White 20 is May 21, 2024.

The production dates of these two products of Yanghe in supermarkets are relatively fresh, and the Spring Festival sales in Yanghe in this supermarket are relatively good.

In an interview with Blue Whale News, some industry insiders pointed out that Yanghe’s measures to stop goods are expected to have a positive impact quickly, but Yanghe’s action is slightly delayed and should be taken in 2024. Corresponding measures to respond to market changes.

As a wine company known for its deep distribution, Yanghe’s unique 1+1 deep distribution model has helped it successfully expand the national market. This model combines the dealer system and the manufacturer’s own sales personnel. Yanghe sets up branches or offices in various places to be responsible for market development, brand maintenance and other work within its jurisdiction, while dealers are mainly responsible for logistics and capital turnover and other services. Under this model, Yanghe uses dealer funds while still maintaining control over market development, similar to a trusteeship or direct management model.

An industry insider who declined to be named said that under the deep distribution model, the role of dealers gradually degenerates into distributors, and channel profits are relatively low, resulting in weak subjective initiative. Once competing products with higher profits appear on the market, dealers will easily become unstable. Especially during the market adjustment period, the adaptability of wine companies under the deep distribution model is relatively weak, which is also one of the important reasons for the fluctuations in Yanghe’s performance in recent years. In addition, as liquor companies generally promote the nationalization strategy, the low-cost liquor market that Yanghe used to be good at has also been impacted by liquor companies such as Fenjiu, Langjiu, and Luzhou Laojiao.

Therefore, Yanghe has continued to make strategic adjustments and innovations in recent years. For example, this time, a comprehensive upgrade has been carried out for Haizhilan products whose supply has been suspended in the provincial market, aiming to closely align with the current consumption trend and strengthen the competitive advantage of the province’s 100-300 yuan price band. This move is to promote Haizhilan to have a higher weight in this price band and tap more structural market opportunities, thereby promoting the steady development of its price system and achieving natural stability.

As Yanghe Chairman Zhang Liandong said at the recent annual work conference, he called on all cadres and workers to inspire the spirit of innovation and innovation, mobilize the motivation to dare and do, and jointly gather strong impetus for creating a new situation of high-quality development.“”“”“”“”

Zhong Yu, deputy secretary of the Party Committee and president of Yanghe Co., Ltd., also pointed out that the company will go all out around the six core areas of brand improvement, market expansion, product optimization, management upgrading, cultural deepening, and organizational optimization, and vow to win this company. The key battle of transformation.