Inventory Clearance Over 50%, Why Does Yanghe Insist on "Waiting" for New Products? Who Can Understand This Move?

Listing | Zhongfang Network

Review | Li Xiaoyan

While the baijiu industry is still engaged in short-term scale battles, Yanghe Co., Ltd. has taken a decade of perseverance to forge a path of high-quality development characterized by “clear inventory first, then expand the market.” Recently, the seventh generation of Hai Zhi Lan launched its nationwide distribution from Henan, marking the official entry of this billion-bottle annual sales flagship into a new stage of nationwide layout. From its listing in Jiangsu in May 2025 to its recent expansion outside the province, the nearly 10-month pace may seem slow, but it is actually Yanghe’s deep calibration of channel ecology, market fundamentals, and industry cycles, demonstrating a unique “slow” logic and “solid” steps during industry deep adjustment.

Channel health is the core confidence for baijiu companies to navigate cycles. Over the past two years, the industry has faced high inventory levels and price fluctuations, and Yanghe has not been immune. However, unlike many companies rushing to boost volume and shift pressures, Yanghe launched a thorough channel reform at the beginning of 2025—controlling stock and clearing inventory to free up space for new products.

In February 2025, Yanghe took the lead in suspending sales orders for the sixth generation of Hai Zhi Lan within the province, then strictly enforced inventory control strategies in external markets, fully promoting the clearance of old stock. This “surgical” adjustment temporarily pressured revenue figures but laid the foundation for channel ecosystem recovery. To date, the core external markets have nearly completed the clearance of sixth-generation Hai Zhi Lan inventory, reducing stock levels from a high of 4-6 months to a healthy range of 2-2.5 months. Dealer inventory turnover days have dropped to 45 days, reaching industry-leading levels.

Changes in terminal feedback confirm the effectiveness of Yanghe’s strategy. A liquor merchant in Shangqiu, Henan, said, “There’s no stock of the sixth generation Hai Zhi Lan, just waiting for the seventh.” A distributor in Xiangyang, Hubei, stated, “No more old products with scan code promotions; new products are on the way.” This “waiting for delivery” state is exactly what Yanghe aims for—shifting from passive payments and stockpiling to active anticipation of new arrivals, significantly boosting channel confidence.

More importantly, channel profit and price stability are simultaneously recovering. The seventh generation of Hai Zhi Lan’s retail price has stabilized, with channel margins higher than old products. Coupled with the new channel model of “controlling volume and stabilizing prices, mutual growth between manufacturers and distributors,” relationships have shifted from confrontation to win-win cooperation. Yanghe is no longer pursuing short-term scale expansion but focusing on a healthy channel ecosystem, clearing obstacles for nationwide distribution, and laying a solid foundation for long-term development.

The nationwide shipment of the seventh generation of Hai Zhi Lan is not merely a product iteration but a key move for Yanghe to stabilize its fundamentals and expand into the national market. In the current deep industry adjustment and rational consumer return, the 100-yuan price segment shows strong resilience, becoming a “dumbbell-shaped” structure with steady growth. As Yanghe’s “ballast stone” flagship, annual sales surpass 100 million bottles, covering banquet, personal drinking, and gifting scenarios, serving as a core support against industry fluctuations.

This nationwide expansion abandons the previous extensive distribution approach, instead building a marketing system centered on consumer operations, deploying “scan code red envelopes, banquet policies, terminal cultivation” strategies. This transformation from “channel-driven” to “bottle-opening sales” aligns precisely with current consumption trends—less drinking, better quality, and high cost-performance are now mainstream, with consumers valuing quality and authentic experience more.

Market data confirms the effectiveness of this new model. Within two months of the seventh generation’s launch, the bottle-opening rate increased by nearly double digits, and terminal self-purchase rates rose significantly, with over 10% in Jiangsu and nearly 8% outside the province. Three months after launch, sales exceeded 12 million bottles. In terms of quality, the seventh generation of Hai Zhi Lan uses “3 years of main base liquor + 5 years of aged flavoring,” achieving a quality leap. On JD.com, 48-hour sales exceeded 10,000 bottles, earning consumer recognition.

From a financial perspective, the nationwide rollout of the seventh generation of Hai Zhi Lan has brought multiple improvements. Stable retail prices have boosted channel margins and increased distributor willingness to pay; the company has focused on promoting new products, reducing inefficient promotions of old products, and continuously optimizing sales expense structure, with a steady decline in sales expense ratio. As inventory turnover accelerates, operating cash flow has become more robust, supporting marginal performance improvements.

More broadly, this product’s nationwide presence will further diversify regional market risks. Previously, Yanghe’s reliance on certain regions was high, but after phased shipments to key provinces like Henan, Shandong, and Hubei, external revenue share will steadily increase, creating a balanced growth structure of “mass foundation and sub-high-end uplift.” Coupled with an increasingly refined channel ecology, Yanghe’s resilience to industry cycle fluctuations has significantly strengthened, laying the groundwork for a sales target of 20 billion yuan.

The baijiu industry is bidding farewell to the old era of scale expansion and entering a new cycle of value cultivation. With nine consecutive years of declining production, increasing industry concentration, and the irreversible Matthew effect, consumption scenes are shifting from mainly business to more public banquets and family drinking, while channel logic is moving from stock rebates to active sales. Against this backdrop, Yanghe’s “slowing down” is a respectful response to industry laws and a steadfast commitment to long-termism.

The pace of the seventh generation of Hai Zhi Lan’s nationwide expansion may seem slower than competitors, but it is precisely aligned with industry adjustment rhythms. It does not blindly pursue expansion but first resolves historical inventory issues and then steadily advances nationwide; it does not rely solely on scale growth but focuses on quality improvement, channel optimization, and consumer engagement, solidifying its foundation. This “slow” approach reflects respect for the market, commitment to quality, and dedication to sustainable development.

Yanghe’s transformation journey remains arduous. The deep industry adjustment is ongoing, consumer segmentation continues, and competition at the 100-yuan price point intensifies. The nationwide deployment of Hai Zhi Lan still requires ongoing effort. However, based on current channel feedback, market sales, and financial improvements, Yanghe is on the right track—clearing inventory first, then launching new products to ease channel pressure; stabilizing fundamentals before expanding nationwide to strengthen growth.

From Jiangsu’s initial launch to phased external distribution, from channel inventory clearance to consumer operations, the seventh generation of Hai Zhi Lan’s nationwide journey exemplifies Yanghe’s transformation. In an industry shifting from “scale competition” to “quality competition,” Yanghe’s pragmatic steps and steady rhythm demonstrate what it means to “advance steadily and far.”

Deep waters run silently; steady progress leads to long-term success. As the seventh generation of Hai Zhi Lan’s nationwide layout unfolds, Yanghe will not only see marginal performance improvements but also build a healthier channel ecosystem, a more solid market foundation, and a more sustainable growth model. Amid the wave of industry deep adjustment, this “slow and solid” path will ultimately enable Yanghe to go further and more steadily on its journey of high-quality development.