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internationalization of baijiu: how to go from niche to mainstream?

in the past two years, many liquor companies have accelerated their overseas expansion. although overseas markets are full of opportunities, the road to large-scale overseas expansion of chinese liquor is still full of challenges.

according to data from the general administration of customs, china's liquor exports in 2023 will be about 15,000 kiloliters, accounting for only 0.2% of the total output, with a total export value of us$800 million, equivalent to less than rmb 6 billion. these data show that although chinese liquor has a huge market share in china, it is still a "niche" product in the international market. for this industry with a scale of more than 600 billion yuan, the potential of overseas markets has not yet been fully tapped.

in the process of going international, baijiu not only has to face competition from global spirits such as whiskey and vodka, but more importantly, it has to overcome multiple challenges such as cultural differences, taste preferences and market perceptions.

how can moutai overcome these obstacles and become a leader in leading chinese liquor to the international market? in this global competition, moutai is gradually overcoming difficulties and writing its own international story.

continuously benchmarking against “world-class companies”: embracing global standards and esg commitments

in today's globalized world, if companies want to succeed in overseas markets, they must not only promote their products and services to the global market, but also focus on achieving globally recognized standards in management, culture and responsibility. it is by connecting with global standards that moutai has achieved the leap from a traditional liquor brand to a world-class company.

since the united nations global compact (ungc) proposed the esg concept in 2004, moutai has actively responded and established a three-level management structure with decision-making by the board of directors, management by the esg promotion committee, and execution by three subcommittees: environment, society, and governance. for example, moutai actively protects the chishui river basin, where it produces its environment, and improves the ecological environment of the river through the "qingqing chishui" volunteer river patrol campaign, and conducts fishing ban propaganda, garbage cleaning, and biodiversity protection. such environmental protection measures are not only in line with china's "dual carbon" goals, but also in line with the mainstream trend of global environmental protection.

in august this year, the world's leading index agency morgan stanley capital international (msci) announced the latest esg rating results. kweichow moutai's rating rose by two levels to bbb, which accounts for less than 1% of the msci esg annual rating.

in addition, in june this year, moutai won the european foundation for quality management (efqm) global award (seven diamonds), the most prestigious organizational excellence award in europe, and the outstanding achievement award for "inspiring culture". this is the first time that the seven diamonds honor has been given to a chinese company after the efqm global award adopted the new standard for evaluation. this is a reflection of moutai's full integration with international excellence management standards, and also provides an international benchmark for other chinese companies.

maintaining traditional characteristics and actively responding to the challenges of cultural differences

russell langmuir, ceo of the european foundation for quality management (efqm), was deeply impressed by moutai's development philosophy, corporate culture, social responsibility and long-term vision. regarding moutai's international brand building, his opinion is that "culture comes first. moutai has a long history and has been drunk by dignitaries from various countries for many years. the cultural heritage displayed by moutai is impressive."

wine is a commodity with strong cultural attributes. british whiskey and french champagne are both "cultural brands on the tip of the tongue". fine wine in a glass is a natural medium for cultural dissemination, communication and integration.

wang li, deputy secretary of the party committee, vice chairman and general manager of china kweichow moutai group co., ltd., stressed: "we are not just selling a kind of wine, but also conveying chinese culture to the world."

by the end of 2023, moutai's overseas business has covered 64 countries and regions, with 106 international channel dealers, 44 specialty stores and 3 cultural experience halls. through the in-depth research of overseas markets by an excellent marketing team, moutai can occupy a high-end position in the overseas mainstream circle.

at the same time, moutai actively participates in major international exhibitions and cross-cultural promotion activities, such as the davos forum and the world chinese entrepreneurs convention, to showcase its unique brand value, convey its cultural business card, and gradually establish its role as a chinese cultural ambassador.

at the moutai dinner held at the world chinese entrepreneurs convention this year, moutai received praise from many chinese business representatives. this is not only a recognition of the taste of the liquor, but also a respect for the profound cultural value behind it.

overseas, chinese and chinese businessmen are not only an important part of the local society, but also natural messengers of cultural communication. many chinese businessmen have extensive business networks and deep social relationships in the local area. they can bring moutai into the mainstream society, help expand the brand's recognition and market acceptance, and build a bridge for cultural exchanges between china and foreign countries.

make foreign consumers fall in love with liquor through product innovation and international cooperation

in addition to cultural differences, baijiu also faces the challenge of taste preferences. baijiu has a strong flavor and a strong taste, which often makes international consumers who are used to whiskey and vodka feel uncomfortable when they first come into contact with it. how to make global consumers accept this unique chinese drink without losing the traditional flavor of baijiu has become a major problem for moutai in the international market.

to solve this dilemma, moutai has strengthened its cooperation with world-renowned spirits brands, such as pernod ricard and lvmh. for example, moutai has cooperated with the well-known french wine company pernod ricard to jointly explore how to launch innovative products suitable for the international market. li jiaqi, chairman of pernod ricard, is full of expectations for the cooperation with moutai. he said: "moutai has become a very important and famous brand all over the world. i have tasted moutai and i like it very much."

facing the international market, moutai no longer relies solely on traditional liquor sales, but has launched a series of innovative products. through these innovative attempts, moutai is redefining the liquor experience in the international market. for example, derivatives such as moutai ice cream and liquor-filled chocolate cleverly incorporate the flavor of moutai into these innovative foods. such innovations not only make liquor compatible with daily consumption, but also allow more international consumers to experience the flavor of moutai in a more relaxed way.

moutai's global vision

in the future, moutai will not only be the representative of chinese liquor, but also an important force in the global spirits market. in this competition between culture and market, moutai is undoubtedly the "leader" of the internationalization of liquor. through continuous innovation, telling brand stories and deeply integrating with local culture, moutai is gradually winning the favor of global consumers.

the story of moutai is much more than just a bottle of wine. as international consumers become more familiar with moutai, the future of chinese liquor is already on its way to global glory.