Chile Wine Market in China

Jan 21, 2015 1 Comment by

Nowadays, China is the seventh largest export market of wine and is expected to reach 4,000,000kl in 2017. Moreover, the wine consumption in China expected to triple from 0.3 gallons per capita to 0.8 gallons per capita in 2017.

In China there are around 4.6 million consumers of Chilean wine.

The great potential of the Chinese market has helped Chile to become one of the biggest wine importer countries for china. As we see, Chile is well positioned in the wine market in China.

Due to the economic slowdown in China, the growth of the wine market has stagnated, has been reduced even. The amount of imported bottled wine is down 18.4% from 2013, and the values are down around 19.8%.

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However, Chile is one of the few exceptions and its exports have had a 20.5% growth year on year and in the first six months of 2014 the exports of Chile’s wine to china have increased by 22%.

China is a huge untapped market for wine made in Chile because the wine consumption in the Asian giant is emerging.

In 2013 the exports volume of Chilean wine to China accounted 1.38 million nine-liter cases which means an increase of 19.6% while the value of exports grew 26.62% which represents 48.79 million US dollars

Chile Cork

Chilean wines are interested to attract Chinese consumers between 25 and 35 because they are more open to consume wine and try new varieties.

Chile has focused its efforts on middle-grade wines because Chinese wine consumers tend to relate high-grade products to Europe. For them, the wines with the best quality are from France and Italy.

Chilean winemakers are trying to set foot in the Chinese market and therefore they have started to open regional offices and build sales networks. At the moment, Concha y Toro is one of the most successful Chilean wines in China. The exports of this company account around 33% of the total export amount in Chile and over the last years the export volume of Concha y Toro to China has rapidly increased.

concha y tor

The main Chilean grape varieties are Cabernet Sauvignon, Merlot and Carmenère. However, Cabernet Sauvignon is the most demanded grape variety among Chinese consumer.

How can digital strategies help to the expansion of wine market in China?

Around 75% of Chinese wine consumers use internet to seek information about wine and 62% of them use social media as an information source.

The reality is that wine consumers are increasingly reliant on internet to learn about wine; therefore winemakers that are looking to increase their presence in China must develop a strong digital strategy.

With the purpose to penetrate the Chinese market it is mandatory to have a good digital strategy. Currently, many wineries are using social media platforms such as WeChat and Weibo to interact and engage with consumers.

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The brand Wines of Chile has launched an account on SinaWeibo to inform consumers about wine and wine culture. Its account is very successful and has attracted more than 970 000 followers.

Wines of Chile launched its largest online marketing campaign in China called “EEE” in order to promote Chilean wineries in China. The three “E” mean Excitement, Education, and Engagement, which are the three stage of this advertising campaign.

The campaign included activities such as wine and food tastings, videos, media promotions and online competitions, blog interactions, website development and Chilean cultural events. The marketing strategy integrated Chinese social media platforms to reach the target audiences.

E-commerce is playing an important role in the wine market; Chinese consumers are increasingly willing to purchase products online. Through e-commerce platforms such as Taobao, wine marketers have the chance to reach a larger audience and expand their business.

chile taobao

Brands such as Suran, Estrella Latina, El Sotillo, Andeanwinery, Casa Andes, Los Vascos and Casillerodel Diablo are the most popular Chilean wines in Taobao and all of them are made with Cabernet Sauvignon.

Baidu is essential for companies which want to have online presence in China. Baidu is the most popular search engine among Chinese users and they use it in order to looking for information about products and brands to make their purchases decision.

That is the reason why e-reputation is so important in China, if the brand is not known  online and consumers are not able to find information on search engines about the company and products,  the brand have much less chances to be selected by consumers during their purchasing.

Sources:

Chinese Wine Industry, Wine Distribution in China, Wine Marketing in China

About the author

Olivier VEROT, is a Marketing expert for the Chinese Market. He will speak about the Internet trends about wine and about the Marketing best practices.

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