Kweichow Moutai’s Revenue Buzzkill

The video discusses the challenges faced by a company due to changes in its distribution model, impacting revenue growth. It highlights the baijiu market's demand and supply dynamics. The video also examines consumer sentiment in China, particularly in the luxury goods sector, and the impact of Hong Kong protests on retail sales. Additionally, it touches on trade tensions affecting companies like Li and Fung.

What strategic change did the company make that affected its revenue growth?

• They increased their advertising budget.

• They switched from distributors to direct sales.

• They launched a new product line.

• They expanded into new international markets.

Why is the demand for baijiu expected to remain constant?

• It is a popular ingredient in Chinese cuisine.

• It is used in traditional Chinese medicine.

• It is in limited supply and takes years to produce.

• It is a new trend among young consumers.

What was a significant driver of the strong retail sales numbers in China?

• Higher auto sales

• Increased tourism

• Government subsidies

• New shopping malls

How have the Hong Kong protests affected luxury watch sales?

• Sales in Hong Kong increased by 10%.

• Sales in Hong Kong remained stable.

• Sales in Hong Kong dropped by 10%.

• Sales in Hong Kong increased by 20%.

What impact are trade tensions expected to have on Li & Fung's financial targets?

• They will slightly exceed their targets.

• They will miss their targets by more than 25%.

• They will meet their targets exactly.

• They will exceed their targets by 25%.