How can Jingxuan, Guarding Jiangsu's Foundational Market, Bite Off Hard Bones Outside the Province?

Listing | Zhongfang Network

Review | Li Xiaoyan

As a rising core member of the billion-yuan club in the Baijiu industry, the growth story of Nowhere (603369.SH) always carries a distinct regional imprint. In 2023, its revenue first surpassed 10 billion yuan, reaching 10.098 billion yuan; in 2024, riding the momentum, total revenue climbed to 11.546 billion yuan, surpassing Xifeng Liquor to remain in the top ten of the industry and firmly establish itself as a leading Baijiu brand in Jiangsu. Behind this impressive achievement, it not only demonstrates the deep regional expertise of local brands but also hides a common industry development challenge—how to shift from “regional strong enterprise” to “national famous liquor,” break the natural balance of revenue structures inside and outside the province, and achieve high-quality nationwide expansion.

Nowhere’s billion-yuan achievement is rooted in its extreme focus on the Jiangsu market. This solid regional foundation is the core confidence for resisting industry cycles and steady progress. As a major Baijiu consumer province, Jiangsu’s market capacity is about 60 billion yuan, providing fertile ground for brand growth. Relying on deep local accumulation, Nowhere has made the Jiangsu market its unshakable base. In 2024, domestic revenue reached 10.553 billion yuan, more than doubling from 4.767 billion yuan in 2020, with an average annual growth rate of 18.65%, becoming the main engine driving overall performance.

Channel deep cultivation is key to its success. The company has achieved over 95% coverage of county-level markets, deepening channel penetration through the “township refinement” strategy, and building a solid consumer barrier in core regions such as Huai’an, Nanjing, and Central Jiangsu. By the end of Q3 2025, there were 617 distributors within the province, forming a comprehensive, interconnected channel network covering urban and rural areas, supporting sustained efforts in the local market. In terms of product matrix, Nowhere precisely positions itself in the mid-to-high-end mainstream price range, aligning with Jiangsu consumers’ quality demands and consumption preferences, further consolidating market share—according to the investor communication in January 2026, products priced above 600 yuan in southern Jiangsu account for over 60%, and Nanjing has led local brands for three consecutive years, demonstrating the dual advantages of product strength and regional consumer recognition.

This “home advantage” is not only about numbers but also a combination of brand reputation, channel stickiness, and cultural identity. As a well-known local liquor, its predecessor Gaogou Liquor carries Jiangsu’s regional cultural memory, naturally resonating emotionally. Precise product layout and refined operations have enabled Nowhere to achieve volume and price increases within the province, accumulating sufficient funds, channels, and brand momentum for its nationalization strategy.

Although the domestic base remains solid, Nowhere has never stopped positioning itself as a “regional famous liquor,” fully aware that nationwide expansion is an inevitable choice after surpassing 10 billion yuan. Since proposing the “refine within the province, break outside the province” strategy at its listing in 2014, the company has steadily advanced its outside-province layout. Despite facing challenges, it has continuously explored breakthroughs, demonstrating clear strategic determination and resilient execution.

Nowhere’s expansion outside Jiangsu abandons the crude mode of blind point expansion, establishing the core strategy of “regionalization and segmentation,” focusing on key areas around Jiangsu. Centered on major consumption provinces such as Anhui, Shandong, and Zhejiang, as well as potential markets like Henan, Shanghai, and Jiangxi, the company implements the “1+2+4” strategic layout—taking Shandong as a key breakthrough market, using Beijing and Shanghai as testing grounds for high-end products, and focusing on Henan, Anhui, Jiangxi, and Zhejiang to gradually build a nationwide market network.

In 2024, the company further refines market classification, targeting 10 model markets including Jiaxing, Hangzhou, and Hefei; 8 segmented markets; 21 potential markets; and 20 opportunity markets, implementing “one policy per location” for precise operations and resource concentration on core breakthroughs. This “focus on key points, using dots to drive the surface” strategy aligns with the objective laws of regional liquor companies’ nationalization and effectively reduces market expansion risks, ensuring resource input is precise and efficient.

After years of deep cultivation, Nowhere’s outside-market has achieved from nothing to something, from weak to strong, with key indicators continuously improving. From 2020 to 2024, outside revenue grew from 3.29 billion yuan to 9.26 billion yuan. Although there is still room for growth in its proportion of total revenue, the growth rate significantly exceeds the industry average. In 2024, outside revenue increased by 27.37% year-over-year; in the first three quarters of 2025, despite industry environment impacts, it only increased slightly by 0.06% to 8.04 billion yuan, but against the overall industry decline, market share increased against the trend, demonstrating strong risk resistance.

In terms of brand breakthroughs, the Guoyuan series, as the pioneer of outside expansion, showed strong growth. In 2024, Guoyuan’s outside revenue grew by 36.5%, achieving double-digit growth in core markets like Anhui and Shandong, with breakthroughs in these markets in 2025, becoming key growth poles outside Jiangsu. By the end of 2025, there were 40 prefecture-level markets with Guoyuan outside revenue exceeding 10 million yuan, initially establishing brand influence outside Jiangsu and laying a foundation for deeper expansion.

The channel network continues to expand. By the end of Q3 2025, outside distributors reached 695, 78 more than inside Jiangsu, achieving initial coverage and providing channel support for market penetration. Although revenue per distributor outside Jiangsu still has room for improvement, the growth in channel quantity and structure optimization indicate that the potential for outside-market growth is gradually releasing.

Facing the stage challenges of outside-market expansion, Nowhere actively adjusts with an open attitude, demonstrating pragmatic development wisdom. To address issues like low brand awareness and consumer habit differences outside Jiangsu, the company emphasizes “quality + culture,” deeply exploring the “Yuan Culture” core, and using circle marketing and banquet promotion to precisely reach target consumers and enhance brand recognition.

In resource investment, the company shows a long-term strategic vision, clearly stating “prepared to continue investing in outside markets for 3-5 years without profit,” focusing resources on key outside markets, supporting model and potential markets. By 2025, the company further optimizes its sales organization, increases outside manpower, and promotes mechanisms like “nurturing, supporting, enriching, and strengthening” merchants, building a long-term cooperative ecosystem. Meanwhile, focusing on the mid-to-high-end segment, with core products like Guoyuan Si Kai occupying mainstream price bands, and using differentiated competition to break regional consumption barriers, achieving precise product-market fit.

While recognizing achievements, it is also necessary to objectively view the challenges in Nowhere’s nationwide process. These are industry-wide issues and necessary steps for regional liquor brands to go national. Compared with top industry brands, Nowhere’s outside revenue share still has a significant gap. In 2024, outside revenue accounted for only 8.01%, rising to 9.18% in the first three quarters of 2025, still far from the 20% target for 2025. Compared to brands like Yanghe and Shanxi Fenjiu, which reached 36.0% and 50.75% outside revenue share at their billion-yuan milestones in 2011 and 2019 respectively, Nowhere’s outside expansion is still in early stages, with a small base and large growth potential, requiring longer-term accumulation and investment.

The brand concentration in the Baijiu industry continues to increase, with Moutai, Wuliangye, and other national brands dominating the high-end market. Regional markets also face competition from strong local brands like Yanghe and Gujinggong. In outside markets, Nowhere must overcome channel and consumer recognition barriers posed by local brands, especially in high-end segments where Moutai dominates the thousand-yuan price range, Wuliangye and Guojiao 1573 lead the 800-yuan range, and Guoyuan’s high-end series faces fierce competition, making market breakthroughs challenging.

To promote breakthroughs outside Jiangsu, Nowhere continues to increase investment. In 2024, outside operating costs grew by 51%, far exceeding internal costs, putting short-term profit under pressure. However, from a long-term perspective, this investment is necessary to build nationwide channels, brands, and consumer bases. As management states, “The overall outside revenue share is still very low, and we will further increase investment to gain market share.” Balancing short-term costs and long-term growth is an inevitable choice for the company’s development.

At the start of the “14th Five-Year Plan,” Nowhere’s nationalization journey is full of opportunities and carries industry expectations. The company clearly sets the “two above” goals—higher than industry average for key economic indicators and leading the province in outside market growth—viewing nationwide expansion as the core growth engine after surpassing 10 billion yuan, with a clear strategic positioning and execution path.

From market potential, the Jiangsu region and the Yangtze River Delta integration provide natural advantages for Nowhere’s expansion. Anhui, Shandong, Zhejiang, and other markets share similar consumption habits and cultural ties with Jiangsu, providing a solid foundation for rapid penetration. With ongoing consumption upgrades, the mid-to-high-end Baijiu market space continues to expand, and Nowhere’s mid-to-high-end product positioning aligns with market trends, offering strong competitiveness.

From the development confidence, Nowhere has high-quality base liquor reserves with a capacity of 200,000 tons in ceramic vats, an annual designed production capacity of 10,000 tons, and outstanding quality assurance capabilities. Its channel network covers the entire country, and its experience in refining within Jiangsu can be replicated outside. The “Yuan Culture” brand core has a unique identity, making it easy to build emotional resonance. Meanwhile, the company continues to optimize organizational mechanisms, increase talent and resource investment, providing comprehensive support for nationwide expansion.

A billion yuan is just the starting point; nationwide expansion is the journey. Nowhere is advancing steadily with pragmatic strategies and firm determination, gradually breaking regional boundaries from “Jiangsu famous liquor” to “national famous liquor.” Despite challenges ahead, its rooted regional strength, courageous breakthroughs, and long-term perseverance will support its continuous progress on the national path.