Wine in China
By 2009-2-25 9:41:43
Traditionally, Chinese consumers prefer white spirit and beer on the table. But
nowadays, people concern more about health. Compare with white spirit, customers
consider wine is a healthier drink. At same time, Chinese consumers are influenced by the
globalization. Wine is regarded as a symbol of western country and is more and more
popular among the young people in China. As the economic continuous growth, a sizeable
middle class is emerged. They are the potential customers for this market. Because
producing the white spirit will cost large amount of grain, China government encourages
the fruit wine produce recently. The market of white spirit is shrinking; the wine could
replace this market. At present, the consumption of wine only accounted for 1% of overall
drink market. The Chinese per capita consumption accounted for 6% of world average per
capita consumption. But the average growth rate of this market is about 15% annually.
Therefore there is huge growth potential for this market.
According to the figures from China alcoholic drinks industry association, from 1999 to
2004, the sale volume of wine was increased 79%. The average sale revenue reached 2.2
billion $, and the average growth rate is 15%. Staff from Montrose, an import wine
company exposed, recently, the sale volume of import wine increased over 30% annually
in Beijing. Those figures show the increasing trend of Chinese wine market.
National Bureau of Statistics of China indicates that sale volume of wine increased 43%,
and sale revenue increased 26% in 2005. The profit of high-end wine is from 30% to 50%
and it is 11% for the low-end product. Foreign companies have strong competitiveness in
the high-end market compare with domestic companies.
However Chinese consumers are not familiar with wine, most of them don’t know how to
distinguish good wine, how to match food and wine, how to storage wine… those issues
cause the popularization rate of wine is very low in China. Only when Chinese customers
understand the culture issue about wine, and then the wine could be spread in China
market broadly.
To understand this issue, first it needs to understand the China dietetic culture. The
Chinese diet procedure is simple and varies, which is different with western dietetic
culture. At present wine is mainly used in family or private occasions and secondly in
business occasions, but you will get some idea from the following exhibit:
|
1) Occasion |
Private and home occasion |
Public and business occasion |
|
2) Rhythm |
Slow |
quick |
|
3)Place |
Home or private place |
Hotel or public place |
|
4) Attendee |
Family, friends |
Businessmen |
|
5) Distance |
intimate |
Far |
|
6) Purpose |
Life, gather |
Business |
|
7) Time |
Abundant |
Limited |
|
8) Remarks |
People can fully enjoy wine and talk about wine culture and enhance the. This occasion will be helpful to increase the consumption of wine |
This occasion is difficult to increase the consumption of wine, except that attendees like wine and understand some related knowledge culture of wine. |
From this above exhibit, we found that a favorable and suitable environment and
occasions of wine’s consumption and tasting will well expand the market of wine
consumption in China. For high quality wine, you should spend more time and space on
tasting and touching them. High quality wine include abundant culture, i.e. the history of
family, region culture, different climate and soil and so on. You will love some sort of
wine, enjoy them and collect them before you have understood some related culture of
some wine. There are too much varieties of wine, so some special and different culture
will be to distinguish different wine. You should infuse wine culture into Chinese people
and then Chinese people will quickly remember and understand your wine, which is the
key of your entering into China’s wine market and your expanding your business in China.
In a word, selling wine is like selling culture, and culture creates wine market.
From regalland.com