On March 29, Shanghai Jinfeng Liquor Co., Ltd. (hereinafter referred to as “Jinfeng liquor”) released its annual report for 2020, saying that in 2020, the company will achieve revenue of 608 million yuan, a year-on-year decrease of 35.61%, net profit of 12239700 yuan, a year-on-year decrease of 58.44%, and cash flow from operating activities of – 27192600 yuan, a year-on-year decrease of 126.65%. For the decline in performance, the Beijing Business Daily reporter called the Dong Secretary of Jinfeng liquor, as of press, the phone was not connected. Jinfeng liquor said in the announcement that affected by the epidemic situation, the sales volume of the company’s products in major channels such as catering and retail in Shanghai’s core market dropped sharply, resulting in a decline in revenue. In terms of operating activities, net cash flow decreased by 126.65%.
Baijiu yellow wine market is different from liquor market. China’s yellow wine market is restricted by regional factors all the year round. Although the enterprises are continuously nationally oriented, the market has not yet been opened. Jinfeng liquor said in the announcement that the company will continue to optimize and upgrade its brand in 2020 and increase the development of new products. At the same time, optimize the product structure system to strengthen the brand market effect. Develop expansion plans for Jiangsu, Anhui, Zhejiang, Anhui and other regions, and actively explore the market outside Shanghai. But from the annual report data, the main revenue of Jinfeng liquor industry still comes from Shanghai.
Specifically, in 2020, the sales revenue of Jinfeng liquor in Shanghai will reach 395 million yuan, a year-on-year decrease of 42.06%, accounting for 66.35% of the total revenue. Jiangsu achieved sales revenue of 163 million yuan, a year-on-year decline of 6.5%, accounting for 27.35% of the total revenue. Zhejiang achieved a sales revenue of 6.177 million yuan, a year-on-year decline of 70.88%. Other regions achieved sales revenue of 31.3741 million yuan, a year-on-year decrease of 17.88%. Through the data, it is not difficult to find that the main market of Jinfeng liquor industry is still in Jiangsu, Zhejiang and Shanghai, but in 2020, the regional sales revenue will decline to varying degrees.
Zhu danpeng, an analyst of China’s food industry, said that China’s rice wine market has not been able to make a nationwide layout, mainly because the size of rice wine enterprises is relatively small and they do not have the strength to make a nationwide layout. On the other hand, because the retail price of rice wine is too low, the overall profit is not high.
Layout of the high-end market, I do not know when it began to become a means to improve the performance of enterprises. Jinfeng liquor also said in the announcement that the company will continue to promote the development of “Shikumen” brand in the high-end direction in 2020. Continue to improve the distribution rate of “high-end catering” and “high-end liquor stores”, but consumers in the northern market do not buy it.
Beijing Business Daily reporter interviewed consumers randomly in Huilongguan Shangchao and learned that many northern consumers think that yellow rice wine is flavored wine, and said that their families have no habit of drinking yellow rice wine. As for the price of high-end rice wine, he said that he did not recognize it. According to the annual report, the sales revenue of medium and high-end products of Jinfeng liquor industry in 2020 was 429 million yuan, a year-on-year decrease of 33.29%, and the output was 42300 kiloliters, a year-on-year decrease of 26.68%. The sales revenue of low-end products was 166 million yuan, a year-on-year decrease of 38.86%, and the output was 28800 kiloliters, a year-on-year decrease of 11.37%. From the above data, Jinfeng liquor industry in high-end products, both in terms of revenue or output, have declined.
As a regional category, the main consumption market of yellow rice wine is in Jiangsu, Zhejiang and Shanghai. Although the distribution is nationwide all the year round, due to the fact that northern consumers are not used to drinking yellow rice wine, yellow rice wine has not been able to open the northern market for a long time. Zhu danpeng said that when consumers have no consumption habits, it is difficult for enterprises to promote unless there are corresponding consumption scenarios. The national scene of yellow rice wine is promoted by the single scene of hairy crabs, and this scene is not universal, so the opportunity and possibility of the national layout of yellow rice wine are not high.
Beijing Business News (reporter Zhao Fengrui)
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