iMoutai rewrites distribution playbook | WARC | The Feed

iMoutai rewrites distribution playbook

Chinese liquor maker Kweichow Moutai is launching its own app, iMoutai, which goes online today.

Why it matters

With its own sales platform, Kweichow Moutai is seeking to boost slowing profit growth through bypassing the various distributors it currently depends on.

These, the South China Morning Post notes, “reap hefty gains from the difference between wholesale and retail prices”. When bottles of baijiu retail at around 2,000 yuan (US$314), that’s a potentially significant boost from a DTC play, and marketers’ first task will be to get people to download the app. 

Context

• Consumer enthusiasm has already been signalled by the fact the iMoutai app was the most downloaded app on the Apple store on Tuesday. 
• The premium Feitian Moutai product will not be available on the app until May, but four other liquor categories will be (with prices ranging from 1,088 yuan to 4,599 yuan).
• Kweichow Moutai profits growth has slowed along with the country’s economic growth amid pandemic outbreaks. 

Key quote

“In the long run, the significance of launching the e-commerce platform lies in deepening the reform of the distribution channel” – Yang Ji, analyst at Zheshang Securities.

Sourced from South China Morning Post [Image: HunagnTwuai]