Not all but the Chinese wine (baiju) is less discretionary spend than wine in the western world. Many are tied to business deals etc and I have a higher confidence in industry than consumer discretionary bounce back.
Yeah it’s more related to business deals or bribes, but may be only for the high end Baijiu. Also they have the same issue with western wines, young ppl are drinking less, and they are very hard to expand to global market. I let my friends try but the flavor always too strong for them.
True, they sell them here in London but only Chinese buyers, or people travelling there. I can't imagine foreign sales ever being more than 2% of Baijiu sales.
Luzhou Laojiao sponsors Australian Open for example, which has been a struggle marketing wise. That said, it maintains the Baijiu moat domestically though.
Disclosure: I own shares in Luzhou Laojiao and may or may not buy Moutai shares soon!
May I know why do you think Chinese wine industry has better chance to recover?
Not all but the Chinese wine (baiju) is less discretionary spend than wine in the western world. Many are tied to business deals etc and I have a higher confidence in industry than consumer discretionary bounce back.
Yeah it’s more related to business deals or bribes, but may be only for the high end Baijiu. Also they have the same issue with western wines, young ppl are drinking less, and they are very hard to expand to global market. I let my friends try but the flavor always too strong for them.
There's a Jack Ma quote about Baiju and young people - they don't like it now but when they experience the hardships of life once they are 45, they'd appreciate Baijiu https://archive.shine.cn/in-focus/Chinese-baijiu-brands-tempting-younger-consumers-with-new-flavors-and-formats/shdaily.shtml?utm_source=chatgpt.com
True, they sell them here in London but only Chinese buyers, or people travelling there. I can't imagine foreign sales ever being more than 2% of Baijiu sales.
Luzhou Laojiao sponsors Australian Open for example, which has been a struggle marketing wise. That said, it maintains the Baijiu moat domestically though.
Disclosure: I own shares in Luzhou Laojiao and may or may not buy Moutai shares soon!