Trents and prosects of alcoholic drinks markets in East China

The consumption of alcohol drinks in mid China grew steadily and rapidly during the year 2011. Due to China’s new drink-

driving regulations, adjustments in local alcohol market happened. People’s concern for healthy life makes them choose

the drinks with low content of alcohol. Generally speaking, the local market in mid China behaves in accordance with the

national situations, particularly in the fall in drink driving. However, although the sales quantity of alcoholic drinks

were lower, with the rising price of drinks, the total sales value of alcoholic drinks in mid China was still increasing.

In mid China, the drinking habits of the new generation young people took the lead. They were seeking fashion and

personality in drinking. This gives the impetus for bar culture to develop in big cities like Wuhan (武汉 ) and Changsha (

长沙). Since the young people prefer imported beer and spirits compared with their fathers, the total consumption of

imported wines and spirits increased in 2011. Another reason for imported drinks’ increased popularity is the

advertisements that claim their health effects.

Grape wine, such as that from France, Australia, or California of America, is welcomed, and saw the biggest growth. The

reasons for this growth are as follows. First of all, the economy of China is developing, and people have more disposable

income. Then they may increase their consumption in many aspects of life. Also, people are now concerning more physical

health, and grape wines long have the reputation for being beneficial for health. Moreover, grape wine producers also

noticed the market potential in mid China, and they put efforts in product developing and marketing.

Prospects
With the influx of foreign investment, China’s alcohol industry entered a period of relatively fierce competition. Also,

foreign wine brand culture is penetrating the domestic market of China. Since China’s big beer brands all have their

solid foundation and it is relatively hard to buy them with a single attempt as whole, foreign capitals are turning their

eyes to second tier brands. With the economy continuing to develop, people will focus more on the quality of the wine they

buy, so it is predicted that foreign wines will have larger market share in the near future.

As people raise their drinking standards, the wine market will be more and more subdivided. Since consumers in mid China

prefer light spirits, Fenjiu(汾酒), with its light flavor and special fragrance, will have a larger market share in mid

China. Also, second tier brands like Langjiu(郎酒) and Fenjiu(汾酒) all have great chance because of their relatively low

price and high quality.