Analysis of the business model and profitability model of Kweichow Moutai
Yihan Qiao · Journal of fintech and business analysis. · 2025
With the advancement of the era, the status of baijiu in China has been progressively elevated, not only facilitating international exchanges but also promoting the development of Chinese culture. However, in recent years, due to the introduction of relevant national policies and transformations in the baijiu industry environment, the sector has entered a phase of profound adjustment. As a leading enterprise in the baijiu industry, Kweichow Moutai's financial performance has consistently attracted significant attention. This paper analyzes the financial reports of Kweichow Moutai from 2022 to 2024, employing methodologies, such as the Business Model Canvas, ratio analysis, and horizontal and vertical comparative analysis, to elucidate the characteristics of its business model and profitability model, which can be summarized as "scarcity + brand moat + channel control." Concurrently, the study identifies risks and challenges faced by the enterprise, including declining inventory turnover, a homogeneous product portfolio, cyclical industry fluctuations, and insufficient appeal to younger consumers. To address these issues, this paper proposes strategies such as optimizing the product matrix, deepening channel reform, implementing digital price control, and brand rejuvenation. The research unveils the underlying commercial logic behind Moutai's high profitability and highlights its exploratory significance in balancing traditional value with innovative transformation.