chinese beer answer Flashcards
market size
about 47 billion litres of beer
comparing market size
nearly twice the size of USA and much bigger than UK (sales volume)… should be thinking which part to target!
market growth volume
declining: predicted to continue (due to political and macro environment)
market growth value
increasingly rapid: possibly due to inflation
per capita data
relatively small compared to UK/USA, but the market isn’t saturated, so long term per capita consumption may be bigger
On and off trade explanation
drinking beer where you buy it vs. drinking elsewhere… creates 2 market segments with 2 different types fo customers and 2 different customer behaviours… and 2 different lines of distribution (implementation of strategy)
on and off trade value
China= 66:33 UK= 66:33 USA= 50:50
on and off trade volumeChina=
50:50
UK= 50:50
USA= 25:75
on and off trade conclusion
2 potentially serviceable markets, but one is not considerably bigger than the other!
china beer report
- Low average price; sales might be good, but average margins are thin
- Segmented market. Economy beer dominates (75% vol), but mid-priced and premium more profitable. Inked to geographic, demographic, psychographic and behaviourial variables. Eg geographically premium drinkers found in geographic segments eg Tier 1 cities (Beijing, Shanghai).
- Mid-price and premium beers growing (by value and volume), especially on-trade. Including imported beers.
- Interested in ‘exotic beer’, flavoured beers, craft beers.
- Trend towards can and PET rather than glass bottles
- Alliances between western and Chinese brew (JV)
psychographic
Chinese aspiring to westerners, so prefer western brands
interest in ‘exotic beers’
flavoured and craft beers
trends towards can and PET
rather than glass bottles… Chinese don’t necessarily see glass as premium
alliances…
between Western and Chinese brewers: many companies are joint ventures
short term downturn in market volume
suggested by passport: but NEXIS data seems to contradict
