...Market Growth of Imported Wine in China By Yuki Mabuchi Brief Introduction With rapid growth of Chinese GDP over the past few years, China is now the world's fastest growing wine consumption market and yet still has huge potential as a market growth. Since Wine drinking is considered a healthier alternative to spirits and somewhat trendy, red wine is particularly popular in China. However, 90% of the wine consumed in China is still produced locally, and it is marketed as low price wines. Therefore, it is impossible for imported wines to compete with Chinese wines on the price. Each imported wine company are challenged to find their differentiation and own marketing tools. Even though market percentage for imported wines is 10%, the prospects for continued growth are huge because of the rapid increase in wealth and increasing urbanization of the population. The main topic for my research is to analyze market growth of imported wines in China followed by Chinese WTO regulations. The research estimates the impact of market growth according to import tariff rate which declined to 14% since China joined WTO. In addition, all imported wines are subject to a range of additional taxes, duties or fees, such as liquor tax, education tax, value-added taxes and consumption taxes. These taxes, duties and fees are taken into account in the analysis which estimates the impact of a tariff reduction on the retail price of imported wines in...
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...International Marketing Marketing Wine in the Chinese Market Executive Summary China’s demand for Western wine has rapidly increased. This has created a market opportunity for high end, quality wine companies from Australia to export their products to China. The product that will be focused on is Glandore Wine from the Hunter Valley. The report will focus on exporting this product into the Chinese market. There should be a strong focus on building brand reputation and maintaining long-term business relationships. There are multiple entry types into foreign markets yet Chinese regulations limit the mode of entry. The recommended mode of entry for Glandore wines is a Joint Venture. The decision between product standardisation and customisation is an important aspect of strategic decision-making. It is recommended that Glandore does not customise their core product of wine, however it is recommended that other product attributes are customised to appeal to the Chinese market. When promoting Glandore wine in the Chinese market there should be use of advertising, public relations, sales promotion and personal selling. Table of Contents Executive Summary ……………………………..…. 2 1. Introduction ………………………………………………... 4 2. 2.1 Market Entry………………………………………………4 2.2 Recommendations ………………………………………5 3. 3.1 Product Standardisation and Customisation ……..…..7 3.2 Recommendations…………………………………….….7 4. Promotion in China 4.1 Push Strategies………………………………………...
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...of international market. The justification should employ specific data from research conducted. Justification of Wine in China The wine market in China is growing at an expediential rate. According to Wine into China wine market report for 2011-2012 (2012), the annual growth for the wine industry in China exceeds 10%, while the global wine industry is around 1%. Large amounts of increase in the conception of wine in China have lead to the government establishing the country’s first wine exchange. The Chinese are drinking wine with meals on a daily basis, which is a recent trend in the market place. With the high increase in demand would lead to the belief that marketing in this segment will help in the growth of Kudler Fine Foods. The market place is becoming increasingly sophisticated in their desire for finer wines (Chinese wine investment market proving 'increasingly sophisticated, 2012). Having an increased demand and growing trend in the marketplace for the product means there is a large opportunity for growth and higher revenues. If Kudler Fine Foods markets effectively the ability to enter the current marketplace will help with the revenue goals and objective of the company. Marketing the Kudler Fine Food’s wine in Supermarkets and restaurant should be the initial focus to entering the market. According to Supermarket becomes a mainstream of wine selling (2012), “It is said wine sales of supermarket shares 30% of the total sales in China. Comparing to the...
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...MarketLine Industry Profile Wine in China August 2013 Reference Code: 0099-0800 Publication Date: August 2013 WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED China - Wine © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0099 - 0800 - 2012 Page | 1 EXECUTIVE SUMMARY Market value The Chinese wine market grew by 20.7% in 2012 to reach a value of $22.7 billion. Market value forecast In 2017, the Chinese wine market is forecast to have a value of $44.9 billion, an increase of 97.8% since 2012. Market volume The Chinese wine market grew by 18.6% in 2012 to reach a volume of 1,564.1 million liters. Market volume forecast In 2017, the Chinese wine market is forecast to have a volume of 2,909 million liters, an increase of 86% since 2012. Category segmentation Still wine is the largest segment of the wine market in China, accounting for 96% of the market's total value. Geography segmentation China accounts for 54.2% of the Asia-Pacific wine market value. Market share Yantai Changyu Group Company Limited is the leading player in the Chinese wine market, generating a 21.9% share of the market's volume. Market rivalry The Chinese market for wine is fairly fragmented with numerous players present. China - Wine © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0099 - 0800 - 2012 Page | 2 TABLE OF CONTENTS Executive Summary .......
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...1/11/2011 China as The New Geographical Market To Export Melita Wines Executive Summary In this report focus is brought forward to the Chinese wine Market. A detailed analysis is done on the market, followed by the competition faced by imported products. Key locations in China for wine importation are named and the Chinese drinking habits are analyzed. The Chinese and Maltese relations are studied. And Cisk is taken as a case study as a success story of a Maltese company that is exporting beer to China and is seeing profits. Lastly, the recommendations and way forward are said as a conclusion. Table of Contents Contents Page Title Page 1 Executive Summary 2 Table of Contents 3 Chinese wine industry 4-5 Competition and Pricing 6 Key locations 7 Drinking habits 8 China- Malta relations 9 Case study 10 Recommendations 11 Bibliography 12 * Brief History of the Chinese Wine Industry While there have been commercial wineries in China since the end of the 19th Century, production has only evolved into a serious industry in the past two decades. There are now an estimated 450 wineries, although the largest four hold around 50 % of the market share. Imported wine reached the height of its popularity in 1996 when it occupied half of the Chinese market. When China moved to restrict wine imports with quotas and high tariffs, domestically produced wine increased...
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...Quentin VATELOT April, 15 2013 Asian Economics The wine business in China. For about 20 years, China has shown a particular interest to wine. China has been making various forms of wine for some 2,000 years, although not in a style resembling western wines until the 20th century. China claims over 160,000 acres of vineyards nationwide, but many are located in remote areas, such as Xinjiang, where Silk Road traders brought seeds centuries ago. Despite this history, the wine industry in China has only recently begun to develop into a significant market. Twenty years ago Chinese consumers tended to drink beer and grain spirits, but in 1987 the Chinese Government began to focus on reducing alcohol related illnesses and encouraged consumers to drink less grain-based spirits, and more beer and grape wine. In the 1990, wines in China were really bad quality, and small quantity. For 20 years, they have imported European type of grapes and techniques that increase the production and the wine quality. This interest to wine is mainly due to the emergence of a high class in China who has been more and more interested in European luxury goods like wine and other spirits like Cognac which China is already the biggest market. Wines have gradually attained consumer acceptance, not least due to Chinese Premier Li Peng, who in 1996 decreed that state banquets should be enjoyed with wine instead of spirits. The influence of western eating and drinking habits has been key in this...
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...Introduction China as the country with largest population in the world alongside by the fact that that is also second biggest economy in the world is considered in last years as one of the most interesting market in the world to enter. Aim of this paper is describe Chinese wine market and answer the research question “Is it China still attractive from the wine market perspective and what has been changed since wine became present in Chinese supermarkets?” In 2001 China’s wine production sales revenues, profits and taxes exceed those of spirits for the 1st time. Comparing the periods 2002- 2006 with 2007-2011 wine import grew ten times in value and four times in the volume. Despite of long history of grape wine in China, this country is usually...
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...INTRODUCTION China’s emerging wine market presents an important industry segment for Australia’s wine industry to target. The growth in Chinese consumption of wine in sales volume is influenced by improved standards of living. The growth of consumption has increased the number of imported wines in the Chinese market, making China a lucrative market for Australian to enter. Both countries’ consumer behavior is important to understand as by exploring the way consumers think and the physical actions that result from these feelings, the crucial reasons behind how they spend their money can be established. This report examines the differences in consumer behavior of Chinese and Australia wine consumers. The purpose of the report is to strategically analyze the effects of consumer behavior theories, market segmenting, targeting, positioning and Maslow’s Hierarchy of Needs in order to provide recommendations for further opportunities for Australian exporters. PART 1: THEORIES 1. SEGMENTATION, TARGETING AND POSITIONING Market segmentation, targeting and positioning are part of key elements of marketing most consumer goods. Through consumer research, marketers of brands uncover specific market segments with distinct needs (Schiffman et al, 2011). Then the marketers develop products and devise strategies to price, promote and distribute them. Key issues relating to segmentation in order for a successful target. Need to be identifiable, sizeable, stable, Accessible...
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...Golan Heights. Golan Wines held 18 percent of the domestic market and 38 percent Israeli exported wines. Exported 20 percent of production to 25 different countries! In 2012, Golan Wines was a company owned by four kibbutzes and four mochas who managed the vineyards. As consumers were moving into the middle and upper classes, consumer consumption increased exponentially. Consumers directed towards international brands and demanded the world’s best products; including wine. New distribution outlets and exposure of China’s affluent middle classes to overseas travel has created a market for good wines. Product(s) Three distinct labels: • Yardmen • Gala • Golan Marketed Wines: • Yarden Cabernet Sauvignon • Yarden Pinot Noir • Yarden Syrah • Yarden Mount Hermon Red • Yarden Katzrin Chardonnay • Yarden Sauvignon Blanc • Yarden Viognier • Yarden Geweurztraminer • Yarden Mount Hermon White • Yarden Heights Wine • Yarden Rom • Yarden C.S. El Rom • Yarden C.S. Yonatan • Yarden Syrah Tel Phares Current international activities, if applicable: China and Israel now promote cross cultural learning and effort. • In 2009, an “Experience China in Israel” festival was held to celebrate the bond between the two countries. In 2010, China has become the world’s largest exporter; second largest economy in the world. • China’s beverage industry was among the country’s fastest growing sectors. Accession to the WTO gradually removed market barriers and...
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... Issues in internationalization management 15 WINE MARKET 17 Profiles of Country Producers 17 CHINESE WINE MARKET 25 Overview 25 Wine market overview 28 Imported wine 32 Italian case 36 Future prospective 45 REFERENCES 48 Bibliography 48 Consulted website 52 INTRODUCTION The purpose of this work is to analyze the growth and evolution of the wine market in China. In particular we will focus on the internationalization of the global wine producer countries in this new emerging market and which are the futures prospective and possibilities of this young market. This paper is composed by four main sections: 1. Theoretical framework; 2. Wine market; 3. Chinese wine market; 4. Italian case. First of all we need to understand what we mean when we speak about internationalization. Through a theoretical chapter, using the existing literature about internationalization, we will explore its theories, evolution and which benefits it may bring to the firm that implement it, showing how important it became in the globalized world in which companies work nowadays. Afterward we are going to analyze, thanks to the data taken by reliable sources, the global market of wine, showing its fragmentation, which are the main player and their characteristics. Now that we have a general panorama, we can concentrate on the Chinese market, its cultural and economic features, and the evolution of its wine market. Finally we will focus on the Italian case THEORETICAL...
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...SIGN « NICOLAS » IS EXPORTED IN CHINA !!! ANNEE 2012-2013 ATTESTATION DE NON PLAGIAT Je, soussigné(e), ……………………………………………………………………. Etudiant (e) dans le programme ……………………………………….de l’IDRAC atteste sur l’honneur que le présent dossier a été écrit de ma main, que ce travail est personnel et que toutes les sources d’informations externes et les citations d’auteurs ont été mentionnées conformément aux usages en vigueur (Nom de l’auteur, nom de l’article, éditeur, lieu d’édition, année, page). Je certifie par ailleurs que je n’ai ni contrefait, ni falsifié, ni copié l’œuvre d’autrui afin de la faire passer pour mienne. J’ai été informé des sanctions prévues au Guide de l’Etudiant de l’Idrac en cas de plagiat. Fait à ……………………….., le ………………………. Signature de l’étudiant (e). I) Introduction As part of our international marketing project, we were asked to choose a company in order to implement it in a country where it was not present so that we can carry out the various studies that should realize that his ambition was to develop a commercial activity and thus expand its network. This is why I decided to choose the brand of French wine "NICOLAS" I choose to locate in a country where French wine is appreciated but not yet traded. Nicolas (Nicolas wines) is the largest chain of wine shops wine specialist. At the time...
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...fullfil the high demand for quality international wines experienced in the chinese market over the past few years, in particular, first class Spanish Rioja wines. We believe that the sales of Spanish wine makes for a great economic opportunity in China, especially in the capital city of Beijing. Increasingly, the importers, distributors and, most importantly, the general public have become familiar with Spanish wine and its superior quality. Thus, China has become the third most important market for Spanish wine in the world. The sales of Spanish wine bottled to China increased 41,1 % in value during the first semester of this year, with 36.9 million euros sold between January and July, This has positioned Spain as the third world seller, with 6,9 % of the market, behind France and Australia. Statistics indicate that in a decade China will be a substantial market for Spanish partly due to the fall of tariffs since Chinas entry into the World Trade Organization , the fast growing middle and upper class and therefore, the increase of purchasing power. According to Vinexpo, the wine consumption in China boomed between 2007 and 2011 reaching a growth of 142.1 % with a total of 159.25 million boxes purchased. Although it is foreseen that the growth rate will slow down to 39.6 % between 2012 and 2016, the Chinese will drink 252 million boxes of wine in 2016. In 2010 the Chinese bought nearly 47 million liters of Spanish wine. Six times more than in 2009, therefore our sale...
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...Develop a market positioning We notice a large number of new world producers that are a threat fort Château Margaux. They come from Australia, South Africa and California. Their strengths are: better marketing, lowercosts, modern production techniques and increasingly good quality. Château Margaux has to reinforce its position if it wants to stay one of the leaders on the prestigious market of wines. China seems to be an alternative to Château Margaux. There is a keen interest in food and wine in China. The consumption of wine is massive and the development of the wine industry could be very promising. Indeed, Paul Pontallier, general manager of Château Margaux, said China is the world's fastest ever growing wine market and the company aims to position Château Margaux at the very top. What we plan is to position Château Margaux as a luxurious wine leader in China. For future, what we expect is that China represents Château Margaux’s second largest market the first next year and may become the first one from the two next years. Moreover, Gao Ming, vice president and Shanghai general manager of Ruder Finn Asia, claims that China is looking for prestige and luxury, that’s why Chinese luxury consumers would appreciate such a prestigious brand. (By: Erica Ng, China – Shanghai, Published: Aug 03, 2010) Château Margaux will keep the high quality and wine characteristics that make its famous reputation. It has to keep its French image, so like this it will be associated to French...
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...Introduction of Chinese white wine market As the improvement of people’s life quality, more and more people have the willing to enjoy life. The data from IWSR which shows that the import volume of 9 litres white wine is 10 million cases in 2010 in Chinese market while it is 8.7 million cases in 2009. Though red wine has still taken over 85% market share in China, during the first season in 2013, white wine import volume increased by 39% in Hongkong, and in most cases, Hongkong leads the luxury consumption of mainland. IWSR also predicts that white wine market has the possibility to surpass red wine's. During 2011 and 2015, the growth of white wine will be at 69% while red wine is at 53%. Therefore, there is a huge space for Hugel&Fils to expand their market. SWOT Analyze Strength: High quality products Alsace has a unique micro-climate which ensures a build-up of aromatic components. Second, Hugel&Fils is a brand over 375 years, the better equipment for pressing grapes and handpicked skills can ensure the better wines. Considerate and professional services Their factory in Colmar can provide customers with considerate services and professional explanation, so is the cellar door. The website is attractive with many languages. Overseas business and high reputation Hugel&Fils exports 80% of its wines to over 100 countries and it is one of the Primum Familiae Vini which is founded by Top 11 wine family around the world. Opportunity: Huge potential consumers ...
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...Project One Activity 1 The four countries I have selected from the given groups include China, United Kingdom, United States and Nigeria. Group 1~ China Demographics China has the largest population in the world. “One Child Policy” has been implemented in China since 1979 which have helped to prevent an extra 400 million births to the country. According to the fifth Census, China’s population was 1.3 billion. China has 1 majority which is called “Han” and 55 minorities. Economic system In the first 30 years after the founding of the PRC in 1949, China’s economic system was planned economy. In 1978, the household contract responsibility system was introduced in the rural area. In 1984, the economic restructuring shifted from the rural areas to the cities. In 1992, China established the socialist market economic system. Culture and Social Structure China’s history is more than 5000 years with diverse customs and traditions. Every ethnic group has its own culture, even some have their own languages and words. There are many dialects in China, and the main language is Mandarin. People’s tastes are varied as well. People from the South prefer sweet, people from the North prefer salty, while Eastern people like spicy and Western people like sour. Legislative System China's legislation includes the legislation of the National People's Congress and its Standing Committee, regulation making by the State Council and its relevant departments, as well as the legislation...
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