The marketing success behind China’s Moutai phenomenon
Moutai, dubbed as China’s ‘national liquor’, is a Chinese spirit brand known for its distinguished heritage and exquisite flavor. Once seen as a traditional liquor popular among the old generation, the Moutai brand is gaining momentum and has successfully tapped into the growing segment of Gen Z consumers through innovative brand partnerships.
In partnership with coffee chain Luckin Coffee, Moutai launched alcohol-infused lattes which achieved a remarkable sales feat by selling over 5.4 million cups on the first day of its launch in last early September. Following the commercial success of Moutai alcohol-infused latte, Moutai partnered other brands to launch other Moutai-inspired products such as chocolate and mooncake.
Not only these Moutai-inspired products sold out quickly, they also took social media by storm, revamping the Moutai brand into a trendy and creative one. What made Moutai’s brand partnerships so successful in the Chinese market?
1. Adapting to the Gen Z purchasing power and mentality
Unlike their predecessors, China’s Gen Z shows less interest in traditional Chinese spirits known for their high alcohol content. Moreover, the steep price of each Moutai bottle, exceeding 1,000 yuan (~US 140 dollars), renders it unaffordable for this generation that has limited earning power. Consequently, Moutai’s collaboration with other brands to introduce affordable consumer goods provides an opportunity for Gen Z to experience the liquor without breaking the bank.
In the meantime, China’s Gen Z is inclined to express their individuality through their consumption preferences and subsequent social media posts. The intriguing Moutai-inspired products become highly appealing to them since purchasing and exhibiting these items on social media allows them to showcase their creative spirit on these platforms.
2. Riding on China’s digital economy
The record sales of these Moutai-inspired products can be attributed, in part, to the thriving social media landscape and e-commerce ecosystem in Mainland China. In today’s urban China, cash is almost obsolete as the majority of consumers have embraced mobile payments. Consumers can conveniently make a purchase and share their shopping experience with just a single click, accelerating the sales process and the social media phenomenon around these products.
In the specific case of Moutai-infused chocolate, Moutai and chocolate brand Dove capitalises on the online shopping habits of netizens by promoting its limited quantity special edition, creating a sense of urgency that drives quick sales even at a higher price (a pack of two is priced at RMB 35, ~5 US dollars). By crafting captivating gimmicks and leveraging popular social media platforms such as Xiaohongshu and TikTok, Moutai-infused products have created a social media phenomenon.
3. Rejuvenating Chinese culture on global stage
The marketing success of these Moutai-inspired products is beyond China’s domestic market. Touted as China’s Moutai phenomenon, the Moutai brand has more than 10,000 media mentions across various platforms, according to media intelligence firm CARMA, including international outlets such as Reuters and Wall Street Journal.
Alcohol-infused products are not new in the global market. However, in China, the triumph of Moutai-inspired offerings signifies a significant change in brand strategies to captivate Gen Z consumers through novel marketing tactics, utilising popular social media platforms like Xiaohongshu and TikTok, as well as forging innovative brand collaborations.
All in all, China’s Moutai phenomenon serves as a compelling case study for traditional brands elsewhere seeking rejuvenation and a means to effectively penetrate the burgeoning Gen Z consumer segment. By adapting to the evolving preferences of this demographic, brands can re-establish their market presence and successfully cater to the ever-growing demands of Gen Z consumers.
