One of the largest A-shares listed firm in the Chinese wine industry, Moutai, achieved excellent results for the first half of 2022.
Chinese winery brand Moutai disclosed its interim report for 2022 on August 2. The financial report shows that the firm achieved operating income of CNY 57.617 billion in the first half of the year, an increase of 17.38% year-over-year. While other indicators all maintained double-digit growth close to 2019 levels.
In terms of the firm’s net profit attributable to shareholders of listed companies, it surged by 20.85% from the same period last year to reached CNY 29.794 billion. The growth is primarily attributable to the increase in sales volume and the optimization of sales channels during the period.
Furthermore, Moutai ramped up its marketing efforts. During the first half of the year, it achieved precise product placement and promotion. Second, the firm launched a digital marketing platform, with more than 20 million registered users and 4 million daily active users. At the same time, the firm hopes to reach a new consumer group of the younger generation. Therefore, it introduced Moutai ice cream on May 29.
China Post Securities believes that the successful implementation of digital marketing is a result of several factors. It requires a combination of marketing system, price system, product system reform to carry out efficient, high-quality landing promotion.
The outcome of these direct selling initiatives is reflected in the interim report. Direct sales accounted for a larger share of the total sales and achieved revenue of CNY 20.949 billion, up about 120% year-on-year.
Nonetheless, the Chinese wine industry is competitive. There are domestic rivals such as WULIANGYE (Chinese: 五粮液) and Fenjiu Group (Chinese: 汾酒集团).