How can Jinshiyuan, which safeguards Jiangsu's core market, tackle the tough challenges outside the province?

How to Transition from a Regional Strong Enterprise to a National Famous Liquor Brand?

Produced by | Zhongfang Network

Reviewed by | Li Xiaoyan

As a new backbone of the hundred billion club in the liquor industry, Jinshiyuan (603369.SH) has always carried a distinctive regional imprint in its growth story. In 2023, its revenue first broke the hundred billion mark, reaching 10.098 billion yuan; riding the momentum, its total revenue surged to 11.546 billion yuan in 2024, surpassing Xifeng Liquor to firmly secure a spot in the top ten of the industry and maintain its position as the leader of Jiangsu liquor. Behind this impressive report card lies the profound strength of a local brand deeply rooted in the region, as well as a common development proposition of the industry—how to transition from a “regional strong enterprise” to a “national famous liquor” brand, breaking the natural balance of revenue structure between provinces, and achieving high-quality national expansion.

Jinshiyuan’s hundred billion achievement is rooted in its meticulous cultivation of the Jiangsu market. This solid regional foundation has become its core strength to withstand industry cycles and move forward steadily. As a major province for liquor consumption in China, Jiangsu has a market capacity of about 60 billion yuan, providing fertile ground for brand growth. Relying on its deep local accumulation, Jinshiyuan has built an unshakeable base in the Jiangsu market, with provincial revenue reaching 10.553 billion yuan in 2024, a 2.21-fold increase from 4.767 billion yuan in 2020, with an average annual growth rate of 18.65%, becoming the core engine driving overall performance.

Channel cultivation is the key to its success, with the company achieving a coverage rate of over 95% in county-level markets, deepening channel penetration through a “township-focused” strategy, and establishing solid consumer barriers in key regions such as Huai’an, Nanjing, and Suzhong. By the third quarter of 2025, the number of provincial distributors reached 617, forming a channel network that covers both urban and rural areas and is closely linked, supporting the sustained efforts in the local market. In terms of product matrix, Jinshiyuan has precisely positioned itself in the mainstream price range of mid-range and sub-high-end products, aligning with the quality demands and consumption preferences of Jiangsu consumers, further consolidating market share—data from the January 2026 investor communication indicates that products priced above 600 yuan account for over 60% in the southern Jiangsu market, with the Nanjing market leading local brands for three consecutive years, demonstrating the dual advantages of product strength and regional consumer recognition.

This “home court advantage” is not just an accumulation of numbers, but a triple overlap of brand reputation, channel stickiness, and cultural identity. As a local famous liquor, its predecessor, Gaogou Liquor, carries the cultural memory of Jiangsu, naturally possessing emotional resonance; the precise product layout and refined operations have allowed Jinshiyuan to achieve a rise in both volume and price in the provincial market, accumulating sufficient funds, channels, and brand momentum for its national strategy.

Although the provincial foundation is solid, Jinshiyuan has never settled for the positioning of a “regional famous liquor,” clearly recognizing that nationalization is an inevitable choice in the post-hundred billion era. Since proposing the “cultivate province, break through outside the province” strategy at the beginning of its listing in 2014, the company has consistently advanced its layout outside the province with firm steps. Despite facing challenges during this process, it has accumulated breakthroughs through continuous exploration, showcasing a distinct strategic determination and execution resilience.

Jinshiyuan’s expansion outside the province has abandoned the blind and extensive model of point distribution, establishing a core strategy of “proximity and sectorization,” focusing on targeted efforts in key areas surrounding Jiangsu. Focusing on major consumption provinces such as Anhui, Shandong, and Zhejiang, as well as potential markets like Henan, Shanghai, and Jiangxi, the company implements a “1+2+4” strategic layout—using Shandong as a key breakthrough model market, Beijing and Shanghai as the testing ground for high-end products, and focusing on the four major markets around Jiangsu: Henan, Anhui, Jiangxi, and Zhejiang, gradually building a nationwide market network.

In 2024, the company further refines market classification, targeting ten model markets, eight sector markets, 21 potential markets, and 20 opportunity markets in Jiaxing, Hangzhou, and Hefei, implementing “one place, one policy” precision operations, concentrating resources to create core breakthrough points. This strategy of “focusing on key points and spreading from them” not only aligns with the objective laws of regional liquor enterprises’ nationalization but also effectively reduces market expansion risks, ensuring precise and efficient resource investment.

After years of meticulous cultivation, Jinshiyuan’s external market has achieved a leap from non-existence to strength, with key indicators continuously improving. From the perspective of revenue growth, between 2020 and 2024, revenue outside the province increased from 329 million yuan to 926 million yuan. Although there is still room for improvement in its share of total revenue, the growth rate significantly exceeds the industry average. In 2024, revenue outside the province grew by 27.37% year-on-year. By the third quarter of 2025, although it was impacted by the industry environment, it slightly increased by 0.06% to 804 million yuan. However, against the backdrop of an overall industry decline, market share has risen against the trend, demonstrating strong anti-risk capabilities.

In terms of brand breakthroughs, the Guoyuan series serves as the pioneer for expansion outside the province, with strong growth momentum. In 2024, the revenue growth rate of Guoyuan outside the province reached 36.5%, achieving double-digit growth in key markets such as Anhui and Shandong, where Anhui and Shandong set historical breakthroughs in 2025, becoming the core growth drivers in the external market. By the end of 2025, Guoyuan had over 40 regional markets with revenues exceeding ten million, initially establishing brand influence outside the province and laying the foundation for further deep expansion.

The channel network continues to expand. By the third quarter of 2025, the number of distributors outside the province reached 695, exceeding the number in the province by 78, achieving initial coverage in quantity and providing channel support for market penetration. Although there is still room for improvement in the revenue of individual distributors outside the province, the growth in the number of channels and the optimization of their structure indicate that the growth potential in the external market is gradually being released.

In the face of the phased challenges in expanding into external markets, Jinshiyuan has proactively adjusted with an open attitude, demonstrating pragmatic development wisdom. In response to issues such as insufficient brand recognition and differences in consumer habits in external markets, the company strengthens the “quality + culture” dual drive, deeply excavating the “Yuan culture” core, and accurately reaching target consumers through community marketing and banquet promotions, enhancing brand recognition.

In terms of resource investment, the company demonstrates a long-term strategic vision, clearly stating, “We are prepared for a 3-5 year period of continued investment in external markets without profitability,” directing resources towards key external markets and focusing on supporting the construction of model and potential markets. In 2025, the company further optimizes its sales organizational structure, increases human resource investment in external markets, and promotes the implementation of mechanisms to “nurture, support, enrich, and strengthen” businesses, building a long-term cooperative ecosystem of factory and distributor collaboration. At the same time, it focuses on the sub-high-end track, positioning core products like Guoyuan Si Kai within the mainstream price range and breaking down regional consumption barriers through differentiated competition, achieving precise alignment of product strength and market demand.

While affirming achievements, it is also necessary to view the challenges Jinshiyuan faces in its nationalization process objectively. This is not only a common issue in the industry but also a necessary path for regional liquor enterprises to move toward national reach. Compared to leading famous liquors in the industry, Jinshiyuan still has a significant gap in the proportion of revenue outside the province. In 2024, the proportion of revenue outside the province was only 8.01%, increasing to 9.18% in the first three quarters of 2025, still a considerable distance from the 20% target for 2025. In comparison, Yanghe and Shanxi Fenjiu, both of which have achieved over a hundred billion in revenue, had proportions of 36.0% and 50.75% respectively when they reached such revenues in 2011 and 2019. Jinshiyuan’s expansion outside the province is still in its early stages, with a small base and significant growth potential, which also requires longer time for accumulation and investment.

The brand concentration in the liquor industry continues to rise, with national famous liquors like Moutai and Wuliangye dominating the high-end market, while the regional market also faces competition from strong local brands like Yanghe and Gujing Gongjiu. In external markets, Jinshiyuan needs to confront the channel barriers and consumer recognition barriers of local brands, especially in the high-end market, where the thousand yuan price range is occupied by Moutai, and the 800 yuan price range is dominated by Wuliangye and Guojiao 1573. The high-end series of Guoyuan faces intense competition, making market breakthroughs more challenging.

To promote breakthroughs in external markets, Jinshiyuan continues to increase investment, with external operating costs growing by 51% in 2024, far exceeding those in the province, temporarily putting some pressure on profitability. However, from a long-term development perspective, this investment is a necessary measure to build a nationwide channel, brand, and consumption foundation. As the company’s management stated, “The overall proportion of revenue outside the province is still very low; we will further increase investment to achieve market share growth.” Balancing short-term investment with long-term growth is an inevitable choice for the company’s development.

Standing at the new starting point of the “14th Five-Year Plan,” Jinshiyuan’s path to nationalization is full of opportunities and carries industry expectations. The company has clearly set the “two higher” goals—primary economic indicators higher than the industry average, and external market growth rates leading those inside the province, viewing nationalization as the core growth engine in the post-hundred billion era, with a clear strategic positioning and defined execution path.

From the perspective of market potential, the surrounding Jiangsu region and the integration process of the Yangtze River Delta provide Jinshiyuan with a natural advantage for market expansion. Markets such as Anhui, Shandong, and Zhejiang have consumption habits similar to Jiangsu and close cultural ties, providing a foundation for rapid penetration; as consumption upgrades continue, the market space for sub-high-end liquor is continuously expanding, and Jinshiyuan’s moderately high-end product positioning aligns with market trends, providing strong competitiveness.

In terms of development confidence, Jinshiyuan has a quality base liquor reserve with a capacity of 200,000 tons in ceramic jars, annual design production capacity of 10,000 tons, and outstanding quality assurance capabilities; its channel network covers the entire country, with experience in meticulous cultivation in the province that can be replicated outside; the “Yuan culture” brand core has unique recognition, making it easy to build emotional resonance. At the same time, the company continues to optimize its organizational mechanisms, increasing talent and resource investment, providing comprehensive support for nationalization.

A hundred billion is a starting point, and nationalization is a journey. Jinshiyuan is gradually breaking down regional boundaries, moving from “Jiangsu famous liquor” to “national famous liquor” with steady steps, pragmatic strategies, and resolute determination. Although challenges lie ahead, this solid regional foundation, courage to break through, and commitment to long-termism will undoubtedly support its continued progress on the path to nationalization.