Moutai announces price increase; will other liquor companies follow? | Homebody Finance

Ask AI · What is the deeper meaning behind Xiao Zhuqing’s views on Moutai’s expected psychological price point?

【Zhainan Finance | Expert Interview】1499 yuan has become a thing of the past—Moutai officially announced a price increase! On the 30th, Guizhou Moutai issued an announcement that, effective March 31, it would adjust the price of its core product—53-degree, 500ml Feitian Moutai liquor. The sales contract price was raised from 1169 yuan per bottle to 1269 yuan per bottle, and the retail price in its self-operated system was adjusted from 1499 yuan per bottle to 1539 yuan per bottle.

Xiao Zhuqing, an independent commentator on China’s alcohol industry, told Zhainan Finance that Moutai’s counter-cyclical price adjustment releases a clear signal: leading brands still have the ability to use market-based means to adjust supply and demand and optimize the price system, injecting confidence into the industry as it moves through the adjustment period.

Will Moutai’s price increase lead other well-known liquors to raise their prices as well? Xiao Zhuqing believes the likelihood is not high. Guizhou Moutai is not only a high-priced liquor, but also a symbol that satisfies the realization of one’s self-worth. In this state, Guizhou Moutai’s expected psychological price point is the highest. And other well-known liquors—including those in the 1,000-yuan price segment and the secondary high-end liquor segment priced above 600 yuan—have strong substitutability. Once they raise prices, they may be replaced by competing products.

**　　(The opinions in this article are for reference only and do not constitute investment advice. Investing involves risk; proceed with caution when entering the market.)**

(Produced by Zheng Zheng | Responsible Editor Dong Xiangyi | Produced by Zhainan Finance)