Evolution of the Maotai brand in modern China

Abstract

ABSTRACT The evolution of the “Maotai” liquor brand was closely related to market changes and evolving state-business networks at different junctures in modern China. In the early Republican era, Maotai liquor was especially popular within the top military and political circles of Guizhou Province and became a hallmark of Guizhou after it won a list of specialty exposition prizes. After the Sino-Japanese War, the exodus of government officials and teachers into the southwest China and the trade embargo imposed by the Japanese changed the structure of premium liquor consumption. Maotai liquor became a famous independent brand after it became widely known in the area under Wartime Guomindang (GMD) control. After 1945, a commercial network was established introducing Maotai liquor to the major Chinese cities. The market share of Maotai liquor thus grew exponentially, making it a household brand throughout China. The history of Maotai liquor sheds light on how the Wartime experience, the market and the state-business network shaped the evolution of a commercial brand. Furthermore, it helps explain the evolutionary logic of a niche commodity in China’s modern economy.