Liquor companies collectively "move downward"! The 100-yuan price range returns to a strategic high ground, and the battle over cost performance is heating up | Spring Sugar Trends

How AI · How does consumption downgrade reshape the competitive landscape of the Baijiu industry?

(It is already noon, and the Global Center InterContinental Hotel is somewhat quiet)

Our reporter (chinatimes.net.cn), Zhou Mengting, reports from Chengdu

In March, Chengdu’s Spring Sugar Fair arrives as scheduled. Although the weather has warmed, the actual temperature of the Baijiu industry remains far from catching up. On March 22, the reporter visited the main exhibition areas of Baijiu at the Global Center InterContinental Hotel and Minshan Hotel and observed that there weren’t many visitors inside. However, beneath the quietness, the industry’s trend has already shifted. The 100-yuan price range has replaced the traditional high-end prices as the main competitive segment this year.

During the Spring Sugar Fair, a sales representative from a Baijiu brand told Huaxia Times that the trend of consumption downgrade in the Baijiu market is obvious. “The 100-300 yuan segment saw significant growth during the Spring Festival, while prices above 500 yuan generally declined, and those around 1,000 yuan have plummeted.” A staff member at the Xifeng Liquor booth also told reporters that products in the 100-yuan range have become bestsellers. This Spring Sugar Fair, Xifeng Liquor launched two new products in the 100-yuan price range.

But the 100-yuan segment is not a blue ocean. As famous brands move into this price range, it has become crowded with several nationwide brands. For smaller, lesser-known distilleries, this intensifies the pressure. To cope, many small and medium-sized companies at this Spring Sugar Fair are not only relying on the traditional tactic of high gross margins but also lowering their procurement thresholds further, trying to gain survival space through concessions.

Competing for the 100-Yuan Price Range

This Spring Sugar Fair, Baijiu companies are focusing on products priced in the hundreds. The aforementioned sales representative recalled that a few years ago, all brands aimed to capture the 500+ yuan high-end and thousand-yuan segments. “But now, with consumption downgrade, not only are prices above 1,000 yuan falling sharply, but products over 500 yuan are also under pressure. Only a few top-tier products perform well nationwide, while others are declining,” he said. He also revealed that his brand’s mid-to-high-end products are actively adjusting prices to adapt to the trend.

Regarding the 100-yuan price range, he pointed out that the 120-150 yuan segment is “a very big market, with fierce competition. All manufacturers are trying to carve out their share.” “The 100-yuan price point has become very important again, almost returning to its previous strategic position. Companies are now investing more resources into this segment.”

Corporate strategies also reflect this trend. At an investor research meeting on January 31, Jinshiyuan revealed that “its elegant product has recently surpassed the other flagship in the first one or two months, becoming the company’s second-largest single product. By 2026, we plan to upgrade packaging, improve quality, and even adjust the pricing system for Danya within the province to further strengthen its advantage in the 100-yuan segment.”

At this year’s Spring Sugar Hotel Exhibition, Xifeng Liquor also increased its focus on the 100-yuan segment, launching two new products: 52-degree Xifeng Liquor Haichen Cang (Standard) and 52-degree Xifeng Liquor Haichen Cang (Xi), with suggested retail prices of 168 yuan. The series’ other product, Haichen Cang 7, is priced at 198 yuan and is quite competitive in banquet scenarios. This time, the company continued this approach by launching new products in the 100-yuan range. Opposite the Xifeng booth, Xinjiang Baijiu company Yili Te also showcased its upgraded 100-yuan product, Yili Te Qu T10, which is a strategic move to build core competitiveness in this price segment.

Regarding the competitive situation in the Baijiu industry, alcohol analyst Cai Xuefei told our reporter, “The 120-150 yuan range is indeed the core price segment for banquets and mass upgrades. It has a broad consumer base, high frequency, and large volume. It is now the refined battleground for the sinking of famous brands and regional brands.”

Layered Competition

However, the 100-yuan segment is already crowded with famous brands, including Wuliangye’s Wuliang Tequ, Shanxi Fenjiu’s Lao Bai Fen 10, Yanghe’s Hai Zhi Lan, Xijiu’s Yin Zhi Xijiu, Jiannanchun’s Jin Jian Nan K6, Gujinggong’s Gu 5, and others.

The industry’s competitive landscape has become distinctly segmented. According to data from multiple brokerages on the Spring Festival market, the 2026 Spring Festival Baijiu market shows significant differentiation, with the 100-yuan segment standing out structurally. Our understanding is that competition within this price range is clearly layered. “For example, nationwide famous brands like Hai Zhi Lan have very transparent price differences and profits, and don’t need extensive promotion,” explained the sales representative. These products follow a low-margin, high-volume strategy. The real fierce competition is among regional brands trying to carve out their share by offering high profits to attract distributors.

From the Xifeng booth, it was learned that the suggested retail price for the two new products, 52-degree Xifeng Liquor Haichen Cang (Standard) and (Xi), is 168 yuan, but distributors purchase at around 80 yuan. The other product, priced at 198 yuan, is bought at about 110 yuan, with a gross profit margin exceeding 80%.

As nationwide brands and regional distilleries continue to lower prices and offer concessions, the survival space for lesser-known small and medium-sized brands is further squeezed. To cope, they are not only offering high margins but also quietly lowering their procurement thresholds. On March 22, our reporter learned from a sauce-flavor liquor company in Maotai Town, Guizhou, that its best-selling product is priced at 99 yuan per bottle for wholesale, with a suggested retail price of 258 yuan, and a minimum control price of no less than 128 yuan. “Considering the tough market conditions, distributors can now purchase 10 bottles at a time, which was unimaginable before,” said the company. They also offer support policies such as brand authorization and material support.

Behind this “price reduction and threshold lowering” by small and medium-sized companies lies the increasingly harsh survival environment of the Baijiu market. With top brands facing downward pressure and mountains of inventory, how can regional and lesser-known brands break through? Cai Xuefei told us, “Regional brands need to focus on becoming big fish in small ponds. First, they must defend their local markets and extend channels into county and township levels. Second, they should create a distinctive regional cultural symbol, linking to local banquet customs or historical IPs, fostering emotional recognition with ‘locals drinking local liquor’ and offering genuine cost performance to counter the abstract fame of national brands.”

Industry researcher Ouyang Qianli also offered micro-level advice. He analyzed that “the 100-yuan price range is a profitable and scalable segment, always highly competitive. Lesser-known brands should focus resources on smaller markets, shrinking from a city to a county, then to a township or even a street, to establish a foothold. Additionally, they should incorporate local culture and engage more frequently with local circles—be it wineries, scenic spots, or clubs—to avoid direct competition with big brands.”