On May 23, the 20th Annual J.P. Morgan Global China Summit was held in Shanghai, drawing more than 2,500 participants from 1,300 enterprises across 33 countries and regions. They engaged in profound insights and dialogues on hot topics such as China’s macroeconomy, investment trends, the baijiu industry, artificial intelligence, healthcare, and new energy. Wu Xiangdong, Chairman of the Zhuzhou Enterprises Chamber of Commerce in Beijing, ZJLD Group, and VATS Liquor Store, attended at the invitation and served as the only representative of China’s baijiu industry to share his insights on the topic of “Outlook for the Baijiu Industry”.

At the summit, Wu Xiangdong shared his unique insights on value investment in Chinese baijiu. He addressed key concerns in the industry, such as overcapacity, changes in the demographic structure of consumers, and future trends. His observations and analysis not only highlight the ongoing growth potential in the industry but also boost investor confidence. Wu Xiangdong also shared practical insights using Zhenjiu Lidu as an example, covering aspects such as brand building, team development, quality control, capacity expansion, and channel distribution.

The J.P. Morgan Global China Summit is one of the largest and most influential annual conferences for business leaders in China. With twenty successful editions under its belt, it has become a vital bridge connecting the global investment community with the Chinese market. The summit brings together global investment elites and industry leaders, who are invited to attend and speak, which showcases the high recognition that top investors have for the strength of these enterprises and their industry influence.

 Among the distinguished guests attending this year’s summit are Jamie Dimon, Chairman and CEO of J.P. Morgan; Bill Gates, Co-Chair of the Bill & Melinda Gates Foundation; Patrick Paul Gelsinger, CEO of Intel Corporation; Joseph Chung-Hsin Tsai, Co-Founder and Chairman of Alibaba Group; and Robin Zeng, Founder, Chairman, and CEO of CATL.

Sjoerd Leenart, CEO of J.P. Morgan Asia Pacific, expressed that as China’s economy grows rapidly and its markets continue to open up, China’s economic activities have a profound impact on every industry worldwide. China has emerged as an essential market that international investors cannot ignore, and they “must engage in business there”.

Being regarded as a “value belief” in A-share investments, the baijiu industry is a key area of interest for investors. Wu Xiangdong remarked at the summit that following a period of ups and downs, the baijiu industry is now embracing new development opportunities with the economic rebound. The fact that the majority of listed baijiu companies achieved more than 20% growth in the first quarter is a testament to this trend, with expectations for even faster growth during the Dragon Boat Festival, Mid-Autumn Festival, and National Day. He specifically pointed out that the baijiu industry, particularly the sauce-aroma sector, is marked by substantial investments, long cycles, and slow returns. The moat effect is pronounced, and premium baijiu remains a scarce resource in the market. At the same time, there is a clear trend of industry concentration toward leading enterprises, both on the corporate side and in distribution. As the Chinese economy continues to thrive and Chinese culture spreads broadly, dining on Chinese food and drinking baijiu will become standard. Chinese baijiu is poised to become a new favorite among international consumers, highlighting a promising future for its long-term growth.

Moreover, Wu Xiangdong highlighted that beyond maintaining a strong focus on core competencies, companies must also keep pace with the trend of experience economy. They should actively adapt to market changes and prioritize enhancing the comprehensive experience for consumers.