chinese spirits answer Flashcards
market…
bigger market then UK and USA (not by value), rollercoaster shape to value, increasing value and volume
rollercoaster shape to value…
government encouraging people to drink beer rather than spirits, and clamping down on gov officials spending public money on drinking spirits at parties
ANTI-EXTRAVEGANCE
competition
tough: existing western company
whisky
single malt scotch whisky growing (small market), blended scotch whisky sharp decline
types of spirits
The vast majority of Chinese spirits is Baijiu
majority of spirits in China are not what we consider as spirits (B=98.5% by volume and 93.7% by value)… no so appealing!
consumption
lower than the US and UK: potential to get larger
market is…
complex and fragmented
behavioural
on trade: social consumption
demographic
favoured by young, wealthy, urban Chinese from 1st tier cities
psychographic
status, branding… western lifestyle aspirations
attractiveness of Chinese market
low
TMS
urban, young, wealthy, label-conscious, western aspiring, partying
strategies
off trade gifts market, internet non-store distribution, low volume high margin western spirits niche, cooperation with Chinese distributors
data
up-to-date is important; big growing markets look attractive but have to look at profitability, accessibility and competition; subtleties beneath average and national statistics (market could be segmented and fragmented)
