Luzhou Laojiao discusses volume and price strategies: The pricing system of a mature brand should not fluctuate with short-term changes in competitors.

Recently, Luzhou Laojiao released an investor relations management information bulletin. It states that, in recent years, an increasing number of young consumers have preferred drinking lower-proof baijiu, and lower-proofing is one of the development trends in China’s baijiu industry. We hope that more baijiu companies will participate in the R&D and market expansion of low-proof products, so that we can jointly grow the industry “pie” larger.

As a leading company that got an early start and has focused deeply on the low-proof liquor segment, the company’s core advantages are concentrated in three areas: first, it has built a solid technical moat; leveraging long-term technical accumulation has achieved a core breakthrough in the quality and taste of low-proof liquor; second, it sticks to the traditional “single-grain” brewing process, delivering a purer, richer taste—product quality stability that has been tested by the market over the long term, forming a differentiated competitive barrier; third, market validation is strong—the acceptance of low-proof products in key regions such as North China, East China, and Southwest China, as well as more emerging markets, continues to rise, fully demonstrating consumers’ growing fondness for the company’s low-proof products.

Based on the consumption preferences of young groups for self-fulfillment and their needs for emotional value, the company advances the national rollout of low-proof products steadily, with product innovation at the core, scene alignment as the vehicle, and emotional resonance as the bond—continuing to lead the low-proof baijiu track.

On pricing and volume strategies, the bulletin states that the brand positioning of Guojiao 1573 is a strategic choice the company makes based on long-term brand value and market rules, with the core logic as follows: First, historical experience underpins strategic resolve. From the company’s development experience, the pricing system of mature brands cannot swing due to short-term fluctuations from competing products, and especially for premium brands, maintaining strategic firmness is necessary to protect the brand’s long-term vitality.

Second, brand value and user needs determine the pricing logic. The core consumer group for baijiu values brand identity recognition and value stability. Guojiao 1573 has scarce production capacity and excellent quality; during this round of industry adjustment, its price platform remains stable, which is a reasonable performance consistent with its brand positioning and market expectations.

Third, differentiation should be used to respond, not merely to “hold the line on price.” The company needs to create more added value for users by improving service quality, optimizing the consumption experience, and other measures to respond to market changes. The company will continue to adhere to its brand positioning, strengthen brand value delivery and upgrade user services, and, from a long-termism perspective, protect Guojiao 1573’s brand assets.

(Company bulletin)

(Editor: Lin Chen)

Keywords:

                                                            Luzhou Laojiao
                                                            Baijiu