A model poses with the Moutai wine during the opening ceremony of the Kweichow Moutai's first flagship store in Hong Kong, June 18, 2019. (PARKER ZHENG / CHINA DAILY)
Kweichow Moutai stepped up its overseas business thrust on Tuesday as the Guizhou-based distiller – a household name – launched its first flagship store in Hong Kong.
Shares of Moutai picked up 0.59%, or 5.4 points, to 917 yuan apiece at the close of trading on the Shanghai Stock Exchange
The store serves an important role for the distiller’s multiple business strategies, such as raising its global recognition and influence, said Zhao Xiaoyi, chairman of Everrise International Trading Co -- Moutai’s Hong Kong distributor.
He made the remarks at the opening ceremony of the baijiu maker’s first flagship store in the special administrative region. The event was held at the Fortune Metropolis shopping mall in Hung Hom.
Moutai – billed a “business card” of China – also led the charge by Chinese mainland privately-owned enterprises going abroad, said Zhao, noting that the new store would be a brand new platform for overseas customers to know more about the liquor maker for State banquets.
Despite subdued economic growth, which has capped its ability to raise prices, Moutai's premium brand image would help it maintain a high level of profitability and return on capital in the medium-to-long term, according to Shen Li, Bloomberg’s Asia Pacific consumer staples analyst.
With its signature Flying Fairy product selling for more than 2,000 yuan (US$289) per half-liter bottle, its status as a prestigious gift and China’s national spirit should allow the liquor giant to rake in industry-leading profit margins, Shen said.
Shares of Moutai – one of the most expensive among some 3,500 stocks listed on mainland bourses – picked up 0.59 percent, or 5.4 points, to 917 yuan apiece at the close of trading on the Shanghai Stock Exchange on Tuesday.
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