The imported wine market in China reaches 2 billion dollars

Jul 18, 2017 Comments Off by

The wine market in China is taking a new turn. Indeed, the emergence of the Chinese middle class and the development of internal growth have allowed individuals to claim new needs.

These social and economic changes have allowed the wine market to see its consumption on the rise. In the Middle Kingdom, it is not only the consumption of wine per person that is increasing but also a new consumption is emerging.

China is in the process of becoming the biggest importer of wine, with sales of more than $ 2 billion and a tremendous 37% growth since 2014. In a few years, China has become the fourth largest market Great in the world.

Consumption and behavior of individuals

The share of wine consumers in China is 38 million people, which represents a real opportunity for winegrowers. Consumers are also concentrated on several major cities of the country such as Beijing, Guangzhou, Shanghai and Shenzhen.

The consumer is also becoming younger. 40% of wine lovers are between 18 and 29 years of age.

Wine lover

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This rejuvenation of the target makes it possible to change the codes of consumption. Indeed, in a country considered “patriarchal”, red wine was the most consumed wine in the country. The development of the country, and in particular, the independence of women has broken the codes of the country and introduced new flavors on the market such as white wines and sparkling wines.

The most consumed imported wines are undoubtedly French, Chilean and Australian wines. However, a decline in the consumption of French wines is to be noted on the market justified by research from the consumer, a quality equivalent to a more affordable price. With this in mind, Argentinian, Spanish and Portuguese wines meet this new demand.

These new forms of consumption reveal that this new target, in its purchasing process, will pay particular attention to price, advertising and packaging.

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Development of national production

The production of wine in the country has changed considerably over the last two decades. China now possesses the potential to produce a good quality wine. However, some barriers remain to be overcome.

fieldThe main obstacle to this development is the climatic conditions. Indeed, in some regions such as Ningxia, Shanxi and Xinjiang have a summer conducive to wine production since it is hot and dry but as soon as autumn arrives the temperatures drop drastically. The vine growers must then bury the vines to keep them alive or harvest the clusters of reasons before they reach the maturity necessary to obtain a good sugar content.

The second brake is on Chinese collectivism. China has 830,000 hectares of vineyards, making it the second largest vineyard in the world. However, the land on which vines are produced is the property of the community.

They have to do business with about 100 farmers to prevent farmers from selling production to competitors and building a trusting relationship to operate efficiently. Establishing such a system therefore requires the creation of trust through incentives, ie financial assistance, bonuses and advice.

The production of Chinese wine is in marked increase. However, it is necessary for producers to focus for the moment on the domestic market since they do not, for the most part, have a sufficient quality to compete with foreign wines.

However, the country remains a buoyant market for local and foreign brands. In terms of consumers there is a target that still has to be reached and this will be the objectives of the brands over the next few years.

Chinese Wine Industry

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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