In order to learn from the successful experiences of advanced domestic enterprises and enhance the management level, innovation capability, and market competitiveness of the Xinghuacun Liquor Industry Group, a delegation from the Xinghuacun Liquor Industry Group conducted visits and exchanges from October 27 to November 6, 2024, to leading companies in the industry such as Huawei, Sichuan Liquor Group, Luzhou Laojiao, and Langjiu, as well as companies like 1919 Liquor Platform Technology Company, Oracle Design Company, and the Shanghai Cooperation Organization's multi-functional economic and trade platform. This research deeply understood the practical achievements and excellent practices of various enterprises in strategic planning, organizational structure, technological innovation, production operations, marketing, and corporate culture, providing references and insights for the development of the Xinghuacun Liquor Industry Group.

1. Shenzhen Autumn Sugar and Wine Fair

On October 29, 2024, the annual Autumn Sugar and Wine Fair was grandly held in Shenzhen. In order to connect with liquor distributors and partners from all over the country and promote the brand influence and market position of the Xinghuacun Liquor Industry Group's Lüliang Mountain liquor, the Xinghuacun Liquor Industry Group actively organized participation in the Autumn Sugar and Wine Fair and set up our Lüliang Xinghuacun Liquor Industry Group's booth in a prime location next to the Fenjiu booth. The booth area was twice that of the Xinghuacun World Wine Expo, and the brand image and product display were very impressive, allowing us to connect with many domestic and foreign distributor partners.

The Autumn Sugar and Wine Fair is an important exhibition in the food industry, especially in the liquor industry, and participating in it is of great significance for the Xinghuacun Liquor Industry Group. First, it is about brand promotion; the fair gathers a large number of industry professionals and media, making it an excellent platform for display. The Xinghuacun Liquor Industry Group can showcase its brand image, brand philosophy, and brand culture to distributors, buyers, and consumers nationwide and even globally. Through exquisite booth design, product display, and on-site activities, it enhances brand exposure, increases brand awareness and reputation, and helps the brand stand out among numerous competitors. Secondly, it is about market expansion; at the fair, the Xinghuacun Liquor Industry Group can connect with distributors and potential partners from different regions, expanding sales channels, which helps break geographical limitations and push products into broader markets. Moreover, it allows for direct understanding of the demand characteristics and differences in various markets, providing a basis for precise marketing and market layout, effectively expanding market share. Additionally, it is about product display and communication, where the Xinghuacun Liquor Industry Group can showcase its new and flagship products, allowing industry experts, distributors, and consumers to taste them on-site, collecting feedback on product taste, packaging, pricing, etc., providing first-hand information for product optimization and new product development. At the same time, it also allows observation of excellent products from other companies in the same industry, understanding industry product trends, learning from them, and enhancing the competitiveness of its own products. Furthermore, it is about industry information collection; the fair is a gathering place for industry information, where one can learn about the latest policies and regulations, market dynamics, consumption trends, technological innovations, etc., in the liquor industry. Finally, interacting with industry associations allows for timely understanding of industry standards and norms, and maintaining good relationships with the media helps with subsequent brand promotion. Establishing these networks is of profound significance for the long-term development of the Xinghuacun Liquor Industry Group.

2. Huawei Visit

On the morning before the exhibition, we conducted research at Huawei's headquarters in Bantian, Shenzhen, and Huawei University, and in the afternoon, we visited the Huawei Europe and America Town World R&D Center in Dongguan to learn about the innovative measures in the process of digital transformation of enterprises. We observed advanced digital production processes and intelligent office environments, and engaged in in-depth exchanges with Huawei's technical experts and management team, focusing on learning about Huawei's innovative applications in cloud computing, big data, artificial intelligence, and how to enhance operational efficiency, optimize management processes, and strengthen market competitiveness through these technological means. Additionally, we discussed Huawei's strategies for talent cultivation, ecosystem building, and addressing future challenges during the digital transformation process.

We summarize Huawei's successful experiences in the following aspects:

1. Huawei has always regarded R&D as the core driving force for enterprise development, investing a large amount of funds in technology R&D every year. This high-intensity R&D investment ensures Huawei's leading position in technology, enabling it to continuously launch innovative products and solutions.

2. Huawei values the introduction and cultivation of talent, possessing a high-quality R&D team. The company attracts a large number of outstanding talents by providing good treatment, broad development space, and an excellent working environment.

3. Strong corporate culture core values: "Customer-centric, based on hard work, and long-term persistence in hard work" is Huawei's core value, deeply rooted in the hearts of every Huawei employee. This value guides employees' behavior and decision-making, enabling them to work tirelessly to achieve the company's goals.

4. Huawei emphasizes teamwork, encouraging mutual support and collaboration among employees. The company cultivates employees' team awareness and cooperative spirit by organizing various team-building activities and training, enhancing team cohesion and combat effectiveness.

5. Excellent product quality and a strict quality management system: Huawei has established a comprehensive quality management system, with strict quality control at every stage from product design, production, to sales and after-sales service. By adopting advanced quality management methods and technologies, it ensures stable and reliable product quality, winning customer trust and praise.

6. Customer-centric: Huawei always adheres to the customer-centric concept, focusing on customer needs and feedback, continuously optimizing products and services. The company provides customized solutions for customers by deeply understanding their business scenarios and pain points, meeting their personalized needs, thereby improving customer satisfaction and loyalty.

7. Global layout and international market expansion: Huawei has established a wide sales and service network globally. The company collaborates with local operators, enterprises, and governments to set up R&D centers and production bases around the world, fully utilizing local advantageous resources to enhance the company's competitiveness.

3. Sichuan Liquor Visit

During the discussion with Sichuan Liquor Group, Chairman Cao Yong introducedthe development process of Sichuan Liquor Group.Sichuan Liquor Group was established in June 2017, with the approval of the Sichuan Provincial Party Committee and Provincial Government, as a large comprehensive state-owned enterprise. The group is tasked with the mission of "integrating liquor enterprises and strengthening Sichuan liquor," actively uniting high-quality raw liquor enterprises for collective development, jointly maintaining the concept of high-quality raw liquor production areas in Sichuan, promoting the clustering, standardization, normalization, and branding of the raw liquor industry, and constructing production bases in key liquor production areas such as Luzhou, Yibin, and Chengdu, forming a raw liquor production layout covering the core production areas of the Golden Triangle and the fragrant type.

Mr. Yang Guanrong, General Manager of Sichuan Liquor Group, believes: We cannot fully learn from Sichuan Liquor Group's model of selling raw liquor to state-owned liquor enterprises in Shanxi, as there are fewer large enterprises in Shanxi's liquor industry, with Fenjiu dominating. Now Fenjiu is also building a 100,000-ton production base; Sichuan already has six strong brands, making it very difficult to build a brand in Sichuan, while Shanxi is different, with many market opportunities. He expressed willingness to cooperate in establishing a joint venture to jointly develop and build a brand for the national market.

The operation model and experience of Sichuan Liquor Group can be summarized in the following aspects:
1. Resource integration advantages. After the establishment of the Sichuan Liquor Group, it actively carried out the integration of raw liquor resources, forming the Sichuan Raw Liquor Alliance, which gathered high-quality resources from numerous liquor enterprises. Currently, it has integrated over 260 liquor enterprises, owns 50,000 fermentation pits (of which more than 20,000 are over 30 years old), with a raw liquor production capacity of about 600,000 tons and a storage capacity of 1 million tons. This has made it the largest raw liquor producer and supplier in China, solving the problems of small scale and scattered layout in the raw liquor industry, occupying an important position in the raw liquor market, and holding the discourse power and pricing power in the industry.

2. Brand resource integration. In addition to raw liquor resources, the Sichuan Liquor Group also actively explores and integrates national excellent brands and regional famous liquor brands. Through the reshaping, upgrading, and operation of these brands, it has created a diversified brand matrix that meets the needs of different consumers and provides new opportunities for the development of local famous brands.

3. Technological innovation and talent cultivation. The Sichuan Liquor Group values technological research and development and innovation, possessing a renowned technical team led by national academicians, continuously exploring new brewing processes and liquor body designs to enhance product quality and taste. In terms of talent, it implements three major talent projects: "Building a Nest to Attract Phoenixes," "Solidifying the Nest to Nurture Phoenixes," and "Strengthening the Nest to Produce Phoenixes," cultivating the strongest liquor technology team in China, providing strong technical support and talent assurance for the group's development. The gathering of talent has promoted the modernization, technological advancement, and digitalization of Sichuan liquor, making "China's Baijiu Chip" the core of the Sichuan liquor brand.

4. Strict quality control. The Sichuan Liquor Group has established the strictest quality control system for Baijiu in China, strictly controlling quality at every stage from the production of raw liquor to the processing, packaging, and sales of finished liquor, ensuring that consumers can taste high-quality and safe Baijiu. High-quality products are the lifeline of the brand, and the Sichuan Liquor Group's strict requirements for quality have won the trust and reputation of consumers.

5. Innovative marketing models and personalized customization services. Seizing the trend of personalized consumer demand, it offers small batch customization and personalized services, allowing orders to start from one bottle, meeting the special needs of different consumers and opening up new market areas.

6. Digital marketing layout. Utilizing big data to analyze consumer behavior, it conducts precise marketing targeting different drinking habits of various groups. At the same time, it increases investment in new media platforms, collaborating with influencers to launch co-branded products, attracting consumer attention and enhancing brand awareness and influence.

The meeting conducted in-depth discussions on the integration of liquor enterprises, improving industry concentration, enhancing product quality and market competitiveness, and creating a new flagship in the Baijiu industry. It also engaged in in-depth exchanges on jointly creating regional brands, refined market operations, and national brand layout, reaching preliminary cooperation intentions, with plans for future collaboration on multiple levels.

4. Tianmu Liquor Industry Investigation

1919 is a relatively successful company in the operation of liquor supply chain channels and its own product brands in China. Tianmu Liquor Industry Co., Ltd. is its parent company, an innovative liquor group whose business spans all categories including Baijiu, foreign liquor, wine, beer, and fruit wine, dedicated to providing high-quality liquor products and services to global consumers. The group uses the Chinese market as an incubation base, exploring and acquiring brands with quality history and potential in global core liquor production areas.

The investigation team summarized the brand communication and marketing strategies of the 1919 liquor platform technology company as follows:

1. Product positioning strategy. Clearly positioning Du Mu liquor as a "Chinese high-end fragrant Baijiu" brand, targeting the mid-to-high-end consumer market, with a price range of 499 to 1699 yuan, to meet consumer demand for high-quality Baijiu, while forming differentiated competition with other mid-to-low-end fragrant Baijiu brands. With poet Du Mu as the core of brand culture, it integrates poetry and liquor culture, emphasizing the brand proposition of "Chinese elegance in poetry and liquor," endowing the product with profound cultural connotations, attracting consumers interested in traditional Chinese culture.

2. Brand communication strategy. Utilizing the advantages of all-media to quickly achieve brand promotion coverage, establishing a high-end fragrant market image. Through large-scale advertising investments, it increases brand awareness, allowing consumers to quickly understand and recognize the brand. Hosting tasting events and inviting industry experts and scholars to participate in evaluations, gaining recognition and high praise from experts, not only enhances the professional image and quality recognition of the product but also promotes traditional Chinese liquor culture through event dissemination, driving the brand's rise in the liquor industry. Utilizing online and offline integrated sales strategies on internet platforms, innovating Baijiu marketing models, and accurately grasping consumer needs, providing valuable insights and industry insights for the diversified development of the Baijiu industry.

3. Channel expansion strategy. Innovating the dealer cooperation model, customizing exclusive policies for key markets, providing dealers with reasonable profit margins, and offering professional marketing team services to assist dealers in market expansion, establishing a community of shared economic destiny between manufacturers and dealers. In addition to traditional dealer channels, actively expanding e-commerce channels and other diversified sales channels, enhancing product market coverage and sales convenience, meeting the purchasing needs of different consumers.

5. Luzhou Laojiao Investigation

Summarizing the successful experiences of Luzhou Laojiao Group mainly includes the following aspects:

1. Brand culture construction. Luzhou Laojiao has well preserved and protected the Chinese Baijiu cultural heritage represented by the living fermentation pool and living techniques, making it a highlight of the brand. The old fermentation pits and traditional brewing techniques are the core advantages of Luzhou Laojiao. This emphasis on cultural heritage provides the brand with profound historical depth and unique value. Hosting cultural activities, continuously carrying out sealing ceremonies, international poetry and liquor culture conferences, "Let the World Taste China" global cultural tours, and "Luzhou Sorghum Turns Red" cultural activities, constantly digging deep into the brand's cultural context and conveying the brand's cultural genes. These activities not only enhance the brand's visibility and influence but also strengthen consumers' recognition and loyalty to the brand. Developing innovative liquor products and creating distinctive brand marketing activities continuously enriches and enhances the cultural connotation of Chinese Baijiu. Cultural elements are integrated into product design and packaging, launching culturally distinctive product series, making the brand image more prominent.

2. Clear brand system. Successfully constructed a clear and focused "dual brand, three product lines, and major products" brand system. The "dual brand" refers to the Luzhou Laojiao brand and the Guojiao 1573 brand, covering the mid-to-high-end and high-end markets respectively; the "three product lines" refer to product series at different price points to meet the needs of different consumers; the "major product" strategy has made products like Luzhou Laojiao Tequ and Guojiao 1573 star products in the market, significantly enhancing brand recognition and value.

3. Marketing strategy innovation. In addition to traditional dealer channels, actively expanding online sales channels, collaborating with e-commerce platforms to conduct online marketing activities. At the same time, utilizing emerging channels such as social media and short videos for brand promotion and product sales, expanding the brand's influence and market coverage. Launching distinctive marketing activities such as "Paying for Phone Bills to Get Liquor" attracted consumer attention and participation, increasing product sales. Event marketing: Participating in important domestic and international events and competitions for event marketing, enhancing brand awareness and reputation. For example, signing contracts for the Australian Open and international sports events like golf, bringing the Luzhou Laojiao brand image to the international stage.

4. Product quality control. The traditional brewing techniques of Luzhou Laojiao have been passed down through generations, and the adherence to traditional craftsmanship ensures the stability of product quality and flavor. Its unique brewing process and strict quality control system give Luzhou Laojiao products a rich aroma and mellow taste, making them popular among consumers. Promoting technological innovation: While adhering to traditional craftsmanship, continuous technological innovation and improvement are carried out to enhance production efficiency and product quality. For example, modern technological means are used to precisely control parameters such as temperature and humidity during the brewing process to ensure that each batch of products meets high-quality standards.

5. Social responsibility. Actively engaging in poverty alleviation, education support, disaster relief, and epidemic prevention and control demonstrates the company's sense of social responsibility, enhancing the brand's image and social recognition. Advocating the "Five Consistencies" (cultural origin, standard agreement, market expansion, rule adherence, and shared challenges) in industry leadership and cooperation, gathering the "Five Hearts" (not forgetting the original intention, firm confidence, dedication to craftsmanship, establishing ambition, and contributing love) to accumulate positive energy for the healthy development of the industry, establishing a good reputation and image within the industry.

6. Investigation of Langjiu Group:

Deeply experienced the largest winery in the country, Langjiu Winery.

Summarizing Langjiu Group's brand marketing strategy mainly includes the following aspects:

1. Product positioning strategy. Firmly implementing the three-product strategy: quality, brand, and taste. Langjiu has built a full-price product matrix covering ultra-high-end, high-end, sub-high-end, mid-high-end to large terminal products, meeting the needs of different consumers and deeply occupying various consumer levels. Clearly developing sauce aroma and mixed aroma as core categories. In the sauce aroma segment, continuously improving product quality and brand image, occupying different sub-markets with products like Qinghua Lang and Honghua Lang; in the mixed aroma field, creating differentiated products through unique brewing processes and flavors.

2. Brand communication strategy. Proposing the value proposition of "the left bank of the Chishui River, the winery's sauce liquor," emphasizing Langjiu's unique origin and brewing environment, enhancing the brand's high-end image and cultural connotation. For example, Qinghua Lang and Hongyun Lang use this as a value point for communication; large-scale advertising investment: advertising on various media channels such as CCTV, outdoor, elevators, etc., to increase brand awareness. In the past, it used the slogan "Qinghua Lang, one of China's two major sauce aroma liquors" for large-scale promotion, quickly gaining high attention for the Langjiu brand in the sauce aroma liquor market. Langjiu focuses on exploring the historical and cultural heritage of the brand, integrating the title of "one of China's two major sauce aroma famous liquors" into brand characteristics, making it a rare cultural symbol. Additionally, relying on Langjiu Winery, cultural experience activities are conducted, such as inviting consumers to visit the winery and learn about the brewing process, enhancing consumers' recognition and identification with the brand.

3. Market expansion strategy. Continuously increasing sales channels, actively expanding e-commerce channels in addition to traditional distributor channels, enhancing product market coverage and sales convenience. Collaborating with major e-commerce platforms to conduct online sales activities, attracting young consumer groups. Conducting market layout nationwide, strengthening the cultivation of key regional markets while actively exploring emerging markets. By holding tasting events, investment promotion meetings, and other activities, attracting distributors and partners to expand the brand's market influence.

4. Brand cooperation strategy. Participating in the formulation of national standards for sauce and mixed aroma liquor, enhancing the brand's voice and influence in the industry. Promoting the development of the liquor industry through communication and cooperation with other enterprises in the industry, while also creating a good external environment for the development of its own brand. Engaging in cross-industry cooperation with enterprises or brands from different fields to expand the brand's communication range and consumer groups. For example, collaborating with cultural arts, sports events, etc., to hold related activities or launch co-branded products.

5. Quality improvement strategy. Selecting high-quality sorghum as raw material, using traditional solid-state fermentation technology, and continuously innovating and improving. Carefully blending various aged liquors to ensure the quality and unique flavor of the liquor. At the same time, no chemical substances are added during the production process to ensure the purity of the liquor. In terms of production capacity and storage capacity, continuously increasing investment in production and storage, building large-scale brewing bases and storage facilities to ensure product quality. For example, investing over 20 billion to build a 10 square kilometer Langjiu Winery, providing a high-quality environment for Langjiu's brewing and storage.

7. Investigation of Shuijingfang Museum

Shuijingfang Museum is a four-in-one facility that integrates a cultural relic exhibition hall, an intangible cultural heritage demonstration site, a liquor culture experience center, and a high-quality famous liquor origin site, focusing on protecting and displaying the original appearance of the Shuijing Street liquor workshop site, a national key cultural relic with a history of 600 years, recreating the national-level intangible cultural heritage "Shuijingfang liquor traditional brewing techniques" through real production scenes, showcasing the thematic museum of Shuijingfang's unique liquor culture experience.

Through the rich displays and professional explanations in the museum, the investigation team gained an in-depth understanding of the historical inheritance, brewing techniques, and unique liquor culture of Shuijingfang. The main impressions from visiting Shuijingfang Museum include the following aspects:
1. Historical heritage: Shuijingfang has undergone a long period of change, leaving important marks at different historical stages, with numerous cultural relics and ancient texts witnessing its profound heritage, making it a brilliant pearl in the development history of Chinese liquor.

2. Brewing techniques: Detailed learning of Shuijingfang's unique brewing process, from the strict selection of materials to the meticulous control of each link such as making the starter, fermentation, and distillation, understanding the reasons for its rich quality and unique flavor.

3. Liquor culture presentation: The museum presents the liquor culture formed around Shuijingfang in various forms, highlighting the role of liquor in customs and social interactions, as well as the praises from literati, demonstrating that liquor has integrated into many aspects of life, becoming a unique cultural symbol.

4. Deeply realizing that Shuijingfang, as a well-known liquor enterprise, adheres to traditional craftsmanship and values cultural inheritance, which allows it to maintain unique charm in the fiercely competitive liquor market. It is also recognized that liquor is not just a beverage, but a carrier of historical memory and humanistic feelings, worthy of careful tasting and in-depth exploration.

8. In addition,we also visited a well-known oracle bone script design company in the country. The oracle bone script design company is very professional in liquor packaging design nationwide, serving first-line liquor brands such as Jiangsu Yanghe, Moutai 1935, Shuijingfang, and Shanxi Fenjiu. Learning professional knowledge in packaging design and brand image shaping provides new inspiration and ideas for liquor product packaging design. Creating high-end, personalized, and branded products cannot be separated from first-class packaging and creative design.

In Chongqing, discussions were held with the multi-functional economic and trade platform of the Shanghai Cooperation Organization countries to preliminarily plan cooperation paths in areas such as brand internationalization promotion, industry standard formulation, and market expansion. Successful experiences were exchanged, which not only laid a solid foundation for in-depth cooperation in economic trade, culture, and industrial integration in the future but also provided new opportunities and platforms for the Lu Liang liquor industry to enter the international market and achieve industrial upgrading.

During the research process, Huo Huiwen, Secretary of the Party Committee and Chairman of Shanxi Liliu Jiao Coal Group Co., Ltd., stated that we must have a sense of mission, responsibility, and urgency. We must undertake the mission and responsibility for the prosperous development of the Shanxi Lu Liang liquor industry, fully applying the advanced experiences gained from this research, and further optimizing the industrial structure in conjunction with the actual situation of the Xinghua Village Liquor Group. While the group company continues to develop quality in traditional fields, we will integrate regional liquor resources, expand market influence, and strive to seek breakthroughs in the liquor industry, aiming to build the Xinghua Village Liquor Group into the second largest state-owned enterprise in the field of fragrant liquor.

This research deeply understood the development models and successful experiences of well-known domestic enterprises, providing valuable references and insights in areas such as strategic management, innovation capability, operational management, and corporate culture and talent management. The liquor group should learn and apply these experiences in a targeted manner based on its actual situation, continuously enhancing its comprehensive strength to cope with the increasingly fierce market competition challenges and achieve sustainable development. In the future, the Xinghua Village Liquor Group will work hand in hand with major liquor enterprises in Lu Liang, gather development synergy, and strive to achieve the grand goal of building a 100 billion-level liquor industry in Lu Liang, making new and greater contributions to promoting local economic prosperity and social progress.