1.1 Threat of potential entrants
The threat of potential entrants faced by high-end brands in liquor industry is relatively small, and brand awareness is the most obvious barrier to entry. Liquor, as a special consumer product, contains a strong cultural heritage and has already formed a profound influence among consumers. Then if new entrants want to enter the liquor industry and attract customers to buy their products instead, so as to establish their own loyal customers, liquor companies must establish their own brands. The problem is that the establishment of a brand is not achieved overnight. It requires not only strong financial strength, but also a long period of intensive cultivation (most well-known and high-end brands have a history of 1 years and have relatively stable "fans"). This huge barrier to entry may make a large wave of potential entrants "daunting".
in addition, technical factors will also increase barriers to entry. This is because high-quality liquor requires high natural environment for production, including climate and water quality. And those places suitable for producing high-quality liquor have long been occupied by famous liquor enterprises. [1]
In addition, the low-end brands in the liquor industry, especially the low-end brands, are facing great threats from potential entrants. The low-end liquor market is full of more than 1, large and small enterprises, which do not have a strong brand effect and fail to form a large number of loyal customers. There is little difference between brands, and the switching cost of consumers is not high. Therefore, if the new entrants have abundant capital, the barriers to entry will be relatively low.
1.2 the threat of substitutes
beer, red wine, health wine and alcoholic drinks are all substitutes for liquor. Among them, the drinking occasions of beer are wider, the price is relatively cheap and more popular, so the per capita drinking amount is much higher than that of liquor, and the substitution threat is relatively great.
From the health point of view, red wine (which is helpful for the prevention of cardiovascular and cerebrovascular diseases, as well as health preservation and beauty beauty) is more attractive. Especially with the continuous improvement of people's material living standards, the pursuit of high-quality and healthy life will become more and more intense, and Chinese people may prefer red wine, which has great market potential.
Based on the demands of health care and health preservation, health wine is also quite attractive in the middle-aged and elderly market. Alcoholic drinks have a good taste and modern packaging, representing vitality and fashion, and are favored by young people and female consumers. [1]
1.3 buyer's bargaining power
In the high-end market, due to years of careful management, major famous wine enterprises have a strong brand effect, a high degree of product differentiation, low price sensitivity of consumers and high switching costs. In addition, compared with the number of wine merchants, both group consumers and individual consumers are large in number as a whole, but they are at a disadvantage in the negotiation with wine merchants because of their special dispersion, and the buyer's bargaining ability is weak.
but in the low-end market, especially in the low-end market, the situation is just the opposite. There are many small and micro wine enterprises, and their products are lack of differences. Consumers have many choices and low switching costs, so they are in an advantageous position in bargaining.
1.4 bargaining power of the seller
The suppliers of wine enterprises are mainly food crop suppliers, including sorghum, wheat, rice, corn and other grains. Wine enterprises with large scale (output) have certain advantages (there is a lowest price for grain: state price) because of the large amount of raw materials purchased. However, wine enterprises with small scale (output) do not have the advantage of economies of scale because of their small purchase of raw materials, and their sellers have strong bargaining power at this time.
1.5 Competition among existing enterprises
Due to the influence of relevant national policies (the control of "three public funds" and the deepening of anti-corruption work), the overall demand of liquor industry is growing slowly, and there is fierce competition among enterprises in order to compete for limited demand. Relevant data show that there are more than 18, liquor enterprises in China, and about 7, are licensed, but the market share of the top 1 liquor enterprises accounts for 9% of the whole liquor industry. [1] It can be seen that the concentration of liquor industry is relatively high, among which high-end brands such as Maotai and Wuliangye have monopoly positions, and the competition among well-known liquor enterprises is fierce.
Liquor industry can divide enterprises into three strategic groups according to two variables: scale and price: high-end wine merchants, middle-end wine merchants and low-end wine merchants. The products provided by wine merchants within each strategic group are highly substitutable, so there is fierce competition within each group. Although there is no direct competition among the three groups, due to the continuous economic decline in China in recent years, some changes have taken place in the consumption structure of liquor: some of the original high-end liquor consumers will turn to middle-end liquor consumption; Similarly, some middle-end liquor consumers will turn to low-end liquor consumption. Therefore, the products among the three groups also have a certain substitution relationship and there is a certain competition.
hope to adopt it.