Why is Moutai Liquor Favored by Chinese Investors?


Under the impacts of the global crisis and market turmoil caused by the pandemic, consumers in China have been looking for a new way to safely deploy their funds. After fashion accessories and clothing, high-end spirits have now become the safe long-term investments for investors, among which Moutai liquor from the Chishui Valley is favored by Chinese investors. Below lists out a few reasons:

 

1/ Supply – Moutai has a limited annual production output while the increasing market demand for Moutai in recent years exceeds supply, thus establishing the foundation for it to become investment goods. As Moutai generate a stronger aroma with age, it becomes more valuable with time.

 

2/ Market Value – With a market value of over 330 billion U.S dollars (as of December 3rd, 2020), Moutai is the largest listed company in China by market capitalization and the world’s most valuable spirits company. It is also one of the most renowned  baijiu brands in China and even the world.

 

3/ Industry Trends – From the perspective of industry trends, the baijiu industry has evolved from concomitant growth to endogenous growth (driven by domestic demand). Not only as people’s demand for liquor has shifted from functional consumption to quality and spiritual consumptions as well as personalized consumption, Moutai cocktails also show the younger generation and overseas people the possibility of high-end baijiu for personalization.

 

4/ Potential – The financial attribute of Moutai as an investment became obvious to many during the pandemic, and the price of aged Moutai liquor has risen steadily and is now reaching a historical level. Seeing Moutai liquor’s value-added potential, consumers want to be part of it before it is too late.

 

5/ Awards - As stated in the “2020 China’s Top 500 Most Valuable Brands” jointly released by the “Guoying Research Institute” and GYbrand, Moutai was awarded the most valuable baijiu brand.

 

Through years of development, the brand value of Moutai has continued to grow. Its brand value of Moutai has continued to grow. Its brand influence has further expanded in recent years. In consideration of Moutai’s positioning, its multiple attributes as consumer goods and the promising prospect of the baijiu industry and the sustainable growing economic environment, Moutai’s capability of value-increasing should not be underestimated.

 

Source Reference: Issue 30 of Moutai Magazine - International Edition