China Flashcards
China Outlook
China is the fifth largest producer and consumer-2022.
Imports = 60%.
Production was noted at 11 million cases by major companies like Changyu Pioneer Wine Company and GreatWall Wine.
2020 The wine consumption dropped by 17.4% for COVID.
2022 showing a reduction in imported wine volume by 21.1%, attributed to the pandemic, economic slowdown, US trade war, and Australian tariffs.
Jim Boyce - publisher of Grape Wall of China China is consuming around a third in volume and value vs 2018
China Packaging
Premium and exclusive packaging styles are preferred, with a focus on heavy bottles and unique labels. Clear and easily pronounced labels, such as Penfolds’ bin numbers, are successful, while vibrant colors and unconventional designs are less attractive. China’s Grace Vineyard, Judy Cha- Laura Odoriz.
China People
There is an increasing level of awareness and education about wine, particularly among Gen Z and millennials.
Fongyee Walker MW from Dragon Phoenix Wine Consulting in Beijing are crucial for market engagement.
China Place
Online sales represent 30% of the wine market in China, popular among tech-savvy millennials through platforms like Tmall, JD.com, Pinduoduo, and Taobao.
Supermarkets and hypermarkets play a crucial role, with major players like Yonghui Superstores and Walmart.
Retail wine shops are transforming into experience centers or wine bars, with live-streaming sales growing in popularity. Wine tourism, like at Pernod Ricard’s Helan Mountain Winery in Ningxia, is gaining traction.
Hong Kong: Mature wine market with no wine taxes.The fine wine 60% of global wine and spirits sold at auctions through Sotheby’s, a larger share than London and New York. Consume x 9 china
Macau: Portuguese wines are popular.
Taiwan: French wines lead, followed by US and Chilean wines.
One-third of China’s wine consumers live in Guangdong (Drinkers aged between 20 and 34 are the main drivers for drinks consumption, high income)
China Price
The Chinese market is sensitive to pricing, with wines priced between RMB 100 to 500 ($15 to $75) being most popular among the middle class.
Tariffs vary, with Australia facing a significant 218% inc.. - lift
Cristián López from Concha y Toro aims to make it the largest brand and importer in China.
European wines face high import tariffs promoting heavy investments from companies like LVHM and Domaines Barons Rothschild Lafite.
China Product Champagne
Demand Increase: Champagne shipments to Hong Kong rose by almost 8% in 2023, reaching over 2 M bottles. Simpson notes a positive market rebound, indicating growth potential due to regulatory changes and inc.d demand.
China Product China Product
There is a strong gifting culture with premium imported wines serving as prestigious gifts. Red wine is the most popular, followed by sparkling wines. The market for rosé and white wines is smaller but expected to grow. Imported wines are mainly from France, Chile, Spain, Italy, and South Africa. Counterfeit products are a concern, leading to trust issues and avoidance of local liquor shops.
China Product Hong Kong Champagne Market
Demand for Champagne in Hong Kong is on the rise, with Pol Roger Portfolio MD James Simpson MW noting that the city is “back up and running.” Champagne shipments to Hong Kong inc.d by almost 8% in 2023, totaling a little more than 2 M bottles.
Global Trends Sustainable
Natural, organic and sustainable produced wines lead the opportunity index.
China offers the most opportunities across the sola, followed by Sweeden andGE (organic)
Brazil and Singapore in Natural and sustainable wines. WI2023 SOLA report
