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Moutai prices cut by nearly half in foreign markets

By Cai Muyuan (China Daily)
Updated: 2011-02-17 17:11
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The domestic price of the renowned Kewichow Moutai liquor has jumped despite a retail price cap imposed by the producer. At the same time, Kewichow Moutai can be purchased in foreign markets for half the price, 21 Century Business Herald reported Thursday.

The 375-mililiter bottle of 53-degree Flying Moutai (the brand's best-selling product) sold at a Chinese supermarket in the US for $82.99 (550 yuan). In China, the price for the same amount reached 1,050 yuan, according to the newspaper.

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The price difference is caused by an imbalance in the market demand. Sales numbers of Moutai in foreign markets are not very impressive. In China, it is mostly seen as a luxury good. It is usually purchased as a present, especially during traditional holidays like the Spring Festival, the newspaper said.

For luxury brands, market demand determines the product’s price, said Zhu Mingxia, chief of hte Luxury Research Center in University of Business and Economics.

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