Or something else?
So why the tremendous baijiu price spikes then? One final explanation remains. It seems China's baijiu manufacturers really do have ambitions of turning their products into luxury goods. Although they aren't talking themselves (of course), several pieces of evidence (aside from the tremendous price spikes) suggest that several of China's leading baijiu manufacturers are attempting to make the move into the luxury industry. First, according to a report by the Beijing Times, Wang Qizeng, head of the China Brewing Industry Association, has issued a proposal to major manufacturers asking them to keep their annual production increases to less than 10% a year. While this in and of itself does not prove a move to a luxury branding scheme, if true is suggests that baijiu manufacturers are attempting to move to a high profit, low volume price scheme consistent with the luxury industry.
Second, Wang has also been quoted complaining about the uproar over increases in Baijiu prices despite the disparity between the price of Chinese baijiu and more expensive, imported wines. This seems to be indicative not only of the attitude held by the industry and the direction China's baijiu manufacturers see themselves moving in over the next decade.
And, although these two pieces of evidence are by themselves a bit slim, reports by other industry insiders suggesting that China's baijiu companies are taking advantage of recent cost increases to move into the luxury industry, as well as a paucity of other explanations for the rising price of baijiu, suggests that this just may be the explanation angry baijiu consumers have been looking for. However, regardless of the cause of China's recent price spikes, one thing seems clear – if price increases like this continue, many Chinese may find themselves looking for something else to send their friends and family during the holidays.
