The wine market is a fast paced market. As every market in China, it attracts investors from all over the world. Here is the basic organization of wine trading in China.
90% of the wine consumed in China is produced locally. But Chinese wines have still a long way to go to catch up with French, Australian, American, Italian or Chilean wines in terms of quality. Chinese wine is marketed as a few added value product. Therefore, it is impossible for imported wines to compete with Chinese wines on the price. And importers actually do not want to enter in a fight over price. They have to find their differentiation. Among main producers of Chinese wines, you find these 3 brands that trust most of the market: Dynasty, Great Wall and Changyu.
10% of the market is reserved for imported wines. And we know what 10% of the market in China represents. This is huge. And actually, this part is due to grow, Chinese producers leaving more place to imported wines because of the evolution of the market.
To represent the Chinese wine market, we often speak about an “egg timer” market. In French, we say “marché en sablier”. This means that you have 2 distincts markets for wine trading in China: a low bracket one, on which Chinese producers are unbeatable. Maybe they do not do the best qualitative wine in the world. But you cannot beat them on the price. The second market is a very high bracket led by French Bordeaux and expensive wines sold out before production.
Between these two markets, medium priced wines are to find their place. And in this market, imported wine has a very good card to play. This is the challenge of the coming years.
To import these wines, more and more trade companies are created or add the wine business import to their portfolio. They then sell wines to wholesalers, wine bars, hotels, restaurants, wine stores, supermarkets.
Even if the market is still very spotted, major actors make the market. Among them ASC Fine Wines, Summergate, French Wine Paradox, Torres, Mercuris, Aussino, H&L Fine Wines.
Our mission is to analyze this market. I hope you will find useful information on this website whether you are a wine professional, a wine lover, a blogger or just an internet user willing to know more.
Ari for Zhongguo Wine