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 disclosure announcement. Among other things, it disclosed that in recent years, more and more young consumers have preferred drinking low-alcohol baijiu; low-alcoholization is one of the development trends of Chinese baijiu. We hope that more baijiu companies will participate in the R&D and market expansion of low-alcohol products, so as to grow the industry together.

As a leading company that has made an early move and deeply focused on the low-alcohol liquor sector, the company’s core advantages are concentrated in three areas: first, it has established a deep technological moat, and, through long-term technological accumulation, has achieved a core breakthrough in the quality and taste of low-alcohol liquor; second, it adheres to the traditional “single-grain” brewing process, resulting in a purer, richer palate, and product quality stability has been repeatedly tested by the market, forming a differentiated competitive barrier; third, market validation is solid—the recognition of low-alcohol products in key regions such as North China, East China, and Southwest China, as well as in more emerging markets, continues to rise, fully demonstrating consumers’ fondness for the company’s low-alcohol products.

Based on the consumption characteristics of young groups seeking self-fulfillment and emotional value, the company steadily advances the national rollout of low-alcohol products, with product innovation as the core, scene adaptation as the carrier, and emotional resonance as the bond, continuing to lead the low-alcohol baijiu track.

As for volume-and-price strategy, the announcement states that the brand positioning of Guojiao 1573 is a strategic choice the company makes based on long-term brand value and market规律 (market rules). The core logic lies in: First, historical experience provides strategic steadiness. Judging from the company’s development experience, the pricing framework of mature brands cannot swing due to short-term fluctuations by competing products, especially for high-end brands, which must maintain strategic resolve to safeguard 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 and value stability. Guojiao 1573 has scarce production capacity and excellent quality; during this industry adjustment cycle, the price range remains stable—this is a reasonable reflection that aligns with the brand positioning and market expectations.

Third, respond with differentiation rather than simply “holding the price.” The company needs to create more added value for users by improving service quality, optimizing the consumption experience, and so on, in order to respond to market changes. The company will continue to adhere to its brand positioning, strengthen brand value output and upgrade user services, and, from a long-termism perspective, safeguard Guojiao 1573’s brand assets.

(Company announcement)

(Editor: Lin Chen)

Keywords:

                                                            Luzhou Laojiao
                                                            Baijiu