Maotai blocked METRO's failure in Shanghai

Due to low-cost sales was blocked Shanghai dealers into METRO's only purchase channel

One month after Kweichow Moutai issued a blockade across the country, Shanghai Metro still sold Kweichow Moutai. The reporter was exclusively informed yesterday that Shanghai Moutai Industrial Co., Ltd. and three local distributors are currently the only purchasing channels for METRO. "Because we are the headquarters of unified procurement, the blockade of Maotai is basically ineffective. Moutai is still regularly supplied in Metro malls around the country," said a person in charge at METRO's China headquarters.

cause

Low price sales annoy distributors

According to Yuan Renguo, Chairman of Maotai Group, the ban on the supply of Moutai national distributors to METRO began at the end of 2005 because Metro sells Moutai liquor during the National Day holiday at a low price, destroying the price system in the regional market, causing many regional distributors and Dissatisfaction with the sales staff. A person from the Kweichow Moutai Co., Ltd. Market Section also revealed that “in the case of 500 ml of 53 degree Maotai, the current market price is 328 yuan, but Metro sells only 288 yuan, or even 276 yuan, only the ex-factory price of 268. Yuan Gaoyi is 20 yuan." Maotai, as the "national liquor" brand, has a guided price system for distributors throughout the country, and Metro sells Moutai liquor at a low price nationwide. Distributors have great opinions if other supermarkets follow suit. Action, the consequences can be disastrous.

The reporter learned yesterday that in addition to the Shanghai area, Moutai dealers in Guangzhou, Beijing, Zhengzhou, Chongqing, Fuzhou, and Jiangsu provinces and cities have ceased to supply METRO.

A person from the Kweichow Moutai Propaganda Department told reporters yesterday that Metro had sent someone to negotiate, but the two sides did not make concessions and negotiations did not make much progress. The person declined to give more details. Metro company public relations officials also said that the closure of the impact of both sides are unfavorable, Metro and Maotai winery are well-known brands, should be calm and irrational behavior.

status quo

Shanghai dealers still supply it

"Our cooperation with Metro has not been interrupted, and we haven't blocked it," said a person in charge of the Shanghai Moutai Industrial Co., Ltd. in an interview with reporters yesterday. In the Shanghai area, Maotai is still supplied to Metro.

The three dealers of Maotai in Shanghai—Haiyan Logistics, Guoji Liyuan Trading Co., Ltd. and Jingteng Trading Co., Ltd. respectively confirmed this statement to reporters yesterday. “There has been no notice to ban the supply of Metro. I don't know why the field wanted to block METRO."

Metro company public relations officials told reporters that Metro did a unified procurement of Moutai Shanghai dealers, and then enter the market sales in other regions, and now Metro in China more than 30 stores in Moutai wine is not out of stock. Because there are advantages in the purchase price, and Metro can effectively control the cost of sales, so the retail price is also low, but this should not be the reason for the manufacturer to stop the stock to Metro.

be surprised

Maotai headquarters do not know the situation in Shanghai

According to industry insiders, METRO store supermarkets are actually in the form of retail sales of wholesale business, their commodity prices are lower than ordinary supermarkets and stores, and its expenses from membership fees, high volume sales, and the elimination of decoration and promotional staff and other expenses Profitability is considerable, and its gross profit can reach about 20%. What the manufacturers can't stand is Metro's unified procurement method. They enter the markets at low prices and form a de facto "chain" behavior that interferes with the manufacturer's regional price system. For example, the procurement of Moutai in Shanghai, Shanghai dealers of course willing to, but when these goods into other regions, will inevitably affect the interests of local dealers, or even unable to complete sales tasks. This kind of practice known as "chained goods" in the industry is hardly accepted by manufacturers.

People from the Kweichow Moutai Propaganda Department said yesterday that it was unclear what the actions of Shanghai Kweichow Moutai Industrial Co., Ltd. and distributors were. The “prohibition of supplying to Metro is a national rule, and Shanghai is no exception.” The person said that the company had always thought that Mouton had sold the Moutai. It was inventory. I did not expect to have such a purchase channel. It was surprising. For the reason of this incident, they had to investigate before they could answer.