How does imported wine penetrate chinese market?

The consumption level of wines in China keeps rising rapidly, and the consumption of wine are jumping constantly with the economy booming , incomes per capita increasing, especially the expansion of middle classes .

Chinese wine market capacity is expanding all the time with the demand increasing . There are various developing trends in Chinese wine industry currently, such as materials purchasing on the base unit , product manufacturing and marketing means diversified , and brand positioning high end market .

For the consumption of international wine markets almost saturated, foreign vinters are focusing on China market, which has huge potential .

Opportunities for imported brands

Today domestic wine industry provides a lot of developing chances to imported brands, while there still exist a lot of problems.

For example, domestic self-owned brands are lack of kernel competitive power and intellectual property rights .

The quality of wine in China is unbalanced, and there are few wine brands with high reputations , especially short of large scale enterprises with kernel competitive power .

Foreign enterprises just take advantages of the above weak points in China wine industry and establish their brands successfully in our market .

Moreover, Chinese coporations are lacked of systemetic , comprehensive and sustainable brand marketing strategy. Some domestic enterprises may have realized the importance of brand effect , However, most of them are devoid of the sustainable brand strategy. On the contrary, foreign enterprises are good at keeping the construction of their brands, which is worth learning for Chinese companies .

Domestic brands are also short of solid foundations and fail to manage effectively .

Chinese wine enterprises are inclined to pursue “brands expanding” and overlook brands maintenance, which is the lethal weak point for domestic market . For example, most China wine enterprises employ the above promotion campaign to advertise their estate wine, ice wine and aged wine in a short term, but ignore the building of brand image in long-term.

However, foreign corporations put the emphasis on the construction of consumers’ loyalty to their brands and seek the long term profit.

 
Marketing means of foregin brands

At present, imported wine occupies 10% market share in China’s wine market . Most dealers are foreign-funded distribution , joint ventured enterprises, the small domestic traders and distributors . 

The imported wine enterprises want to achieve more market shares in China by three ways , which includes the enlargement of brand effect, cultural fusion and the development of wine boutique.

Although many wine regions have good reputation, brands are different. There is no single brand that leads in domestic market.

Most imported wines dominate the high end market in China . They are grabbing market shares rapidly from the top down by retail sales of grand hotels , bars , supermarkets , boutiques , clubs , KTV  etc.

In 2001 , Castel Group (France) cooperated with Chang YuGroup to enter into China market successfully . After that , Castel established a strong alliance with Poseidon Fortune(Beijing)Trading co. LTD to construct sales channels for their bottled wines .

Foreign enterprises also think much of the concept of cultural fusion. Market promotion should respect local consuming culture and consuming habits, combine the brand culture with local market so as to cultivate brand recognition and loyalty of consumers .

Additionally, foreign wine companies should establish their own wine boutiques to promote brands .