Who is taking the lead in the imported wine market?
Preface
With 30 years of Reform and Opening-up and fast development of economy in China, the wine market has been strategically important for international wine producers. They learn and know Chinese and Chinese culture in the hope of having a share on the land of great opportunities. The reporter from China Wine News interviews some foreign business men with different ideas and some Chinese business dealers of the international companies. They firmly believe they can make it big in China’s imported wine market.
At present, China’s wine consumption is at its initial stage. Consumers have a vague idea of what to buy and wine dealers don’t know how to sell. To find out the leading factors for the imported wine market, we’re furthering a series of reports Who is taking the lead in the Imported Wine Market?
Who is taking the lead in the imported wine market?
The wine market is generally demand-oriented, but in China’s imported wine market, most of the consumers don’t know what to buy and what they know about the imported wine brands is from advertisement. Therefore, at the initial stage of wine consumption, the consumers exercise their choice under the influence of some external factors, but who is behind the influence?
It is because of high profit that many wine dealers do business. They take China for a huge and potentially developed market. But, when our reporter interviews the wine dealers, they tell that the profit is not as high as what we have expected. They also have to face some problems, such as marketing, distribution channels, expenses and fluctuating exchange rate.
It’s no doubt that the imported wine market will keep growing, which doesn’t necessarily mean that domestic wine will have to play the second fiddle. In wine industry, the imported wine and the domestic wine are not the absolute competitors and one side’s gain doesn’t mean the other side’ loss for the differences in their consuming groups, marketing models and cultures.
Imported spirit includes Brandy, Whiskey, Gin, Vodka, Rum and so on. Among them Brandy and Whiskey are the most popular ones in China, which is attributed not to their taste for Chinese consumers but their great efforts to the cultural and brand promotion in China. World wine consuming trend is a plus so that Brandy and Whiskey are the top choice of the well-heeled consumers in China.
Pernod Ricard and Diageo have the lion’s shares in China’s imported wine market. After years of successful marketing, two companies have had the fixed consumer groups, but fake wine problems still trouble them.
“Globally speaking, China is not the biggest imported wine market with only 1% share of imported wine in the domestic wine market, but it is growing rapidly as a developing market. What we are trying to do is to provide different products for different consumers and meet their different demands for different occasions. The thing that really challenges us is to let them know our products so as to meet their certain need. As the leading company in China, we’ll develop this huge and potential market to cement our current position.” said a senior manager of Pernod Ricard to the press.
In recent years, wine, the popular choice among the consumers, is considered as the symbols of fashion and taste. In addition, the notion of being healthy makes it become the target of consumers. Compared with spirit, which is consumed in night club and at bar, wine has a broader market for its universal service on different occasions. On top of that, the types of wine are various. When wine dealers promote their products, they instill in the consumers the notion that wine is linked with a delicate and elegant lift style.
At present, the imported wine holds 8% in China’s wine market. The competition for more market shares among the imported wine dealers is stronger and stronger, but they’ll do and do it well. In the following reports, we’ll take a close look at their marketing efforts. To some extent, they are the leaders of China’s imported wine market.