Introducing digital platforms and attracting retail membership stores, the retail company is introducing a new liquor production and consumption chain to small-town and rural markets.
In November 2020, Huitongda announced strategic partnerships with three liquor companies, BAISHUIDUKANG Liquor, Taizhou Meilanchun Wine Factory, and Shanxi Xinghuacun Fen Wine Factory, and continuously penetrate small-town and rural markets. The logistics service company is building a liquor industrial Internet covering over 19,000 towns in 21 provinces in China.
For the liquor industry, small-town and rural markets have huge potential. China now has a rural population of about 900 million and the population shows rigid and mass demand for liquor, especially 'white spirit' distilled from sorghum. However, in traditional sale and delivery mode, it is hard for rural residents to access cost-effective liquors and small-town and rural markets are glutted with low-cost low-quality liquors. The digitalization degree of these markets remains at a low level for a long time.
Compared with the traditional top-down Internet, Huitongda’s industrial Internet simplifies liquor delivery and largely enhances efficiency by using digital platforms and building digital retail membership stores. After the general high growth stage, China liquor market has entered a new stage of structural growth. The construction of the liquor industrial Internet is accelerating the structural reforms in the liquor industry. It is estimated that Huitongda will keep developing the small-town and rural liquor markets and will introduce a new liquor production and consumption chain in rural areas.