...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...
Words: 1668 - Pages: 7
...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………………………………………...
Words: 3549 - Pages: 15
...KWV WINES SHAREHOLDER’S REPORT BY: MARINA YUROVA ULKAR NAJAFOVA JIMMY HUMANIA COMPANY’S DESCRIPTION KWV is one of the most famous and leading “wine and spirits” producing company in South Africa. Founded in 1918 as a winemaking co-operative, by wine makers from the Western Cape in South Africa. Today it is well-known global brand producing wine and spirits with a rich historical background and large variety of high quality wine. COMPETITORS The main competitors of KWV are: ● Distell ● Klein ● Simonsig All of them are situated in South Africa but they distribute globally. However, there are a lot of differences in price, quality and beverage range. In positioning maps below we show differences between these rivals. The price of wine selections starts from €8-€140 euro for 750ml of wine bottle. COMPETITIVE ADVANTAGE The competitive advantage of KWV that it operates on is Uniqueness and Marketing & Sales is the main priority followed by Research and Development. Joint venture agreements and wholly owned subsidiaries in the United Kingdom, Western and Central Europe, USA, Canada and the Middle and Far East, have secured a major share of South Africa's wine exports for KWV International. High quality natural and fortified wines and grape juice concentrate are available on international markets through major importers, wholesalers and distributors. GENERIC STRATEGY KWV USES The strategy KWV operates on is Focused Differentiation because they...
Words: 950 - Pages: 4
...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 ...
Words: 374 - Pages: 2
...1. Introduction The purpose of this report is to evaluate the attractiveness of Peruvian wine industry. In this report, we will discover the overall competitiveness and investment attractiveness of Peruvian wine industry. Porter’s National Diamond Analysis will be used as a tool to identify the opportunities and threats of Peruvian wine industry. Two-market entry strategy will be identified and recommended. The advantages and limitations of both strategies will also be discussed in this report. Peru is located in the west of South America, and has borders with Ecuador, Colombia, Brazil, Bolivia and Chile (peru.travel) Wine industry from Peru was brought from Spain after its conquest. (Ayala) 1. 2. Factor conditions 1. 2.1. Physical resources Peru soils are nearly level to steep. They are on drumlins and sloping to steep areas of glaciated uplands. Slope ranges from 0 to 35 percent. The soils formed in dense, loamy glacial till of Wisconsin age that is derived mainly from mica schist, granite, and phyllite. Peru soils are moderately well drained. Permeability is moderate in the solum and moderately slow or slow in the substratum. The climate is humid and cool temperate. Mean annual rainfall ranges from 30 to 50 inches and mean annual air temperature ranges from 40 to 47 degrees Fahrenheit. The frost-free season ranges from 90 to 160 days.(National Cooperative Soil Survey , 2013) The high relief and steep slopes of the streams emerging from the mountains to the east meant...
Words: 3878 - Pages: 16
...1. Conduct a PESTEL analysis of China 1.1 Political Analysis China is well-known as one of only five communist nations left in the world, which determined its socialistic ideology and government are different from most countries all over the world. As claimed, china is an investment-welcomed nation since joined WTO in 2001. Leaders of China are also trying to build an open and comfortable environment to foreign investment. The influx of Foreign Direct Investment in China is increasing steady from 2007 and China has been the second largest nation of accepting FDI. (see Exhibit below) Wine has always been seen as a luxurious good in domestic market, so wine importation got a strict duty policy as duty of 14%, add-value tax of 17% and consumption tax of 10%. However, as more and more competition in international trade market, New Zealand has got zero-duty privilege in wine importation industry from China government, followed by Chile and Australia, who will get zero-duty privilege in 2015 and 2019 respectively. Although Chinese politics is stable relatively, there still are some issues like crime and corruption. In 2013, Xi Jinping took power from Hu Jingtao as present president of China and paid more attention to those issues in period of social transition. 1.2 Economic Analysis China’s economy had seen a rapid growth in these years, which was benefit from decreasing intervention and increasing market oriented. The first 20 years in 21 century are very important...
Words: 530 - Pages: 3
...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...
Words: 1281 - Pages: 6
...Meaning of alcohol in five different societies: Native Americans, Maori, Chinese, French and Russian This essay was conducted in order to look over whether the meaning of ‘alcohol’ differs across various cultures. The essay will compare how tribal people conceptualise the definition of this substance and how it is explained by contemporary societies in developing and developed countries, and also in the post-Soviet country. Contemporary or postmodern period is known as the latter 20th and the 21st century (Johnson, 2001). This paper will provide examples of indigenous societies from North America and New Zealand, and also societies from China, France and Russia. The essay will briefly review the way their attitude to alcohol changed since earlier times. It seems that in practice relation with alcohol is usually understood by drinking alcoholic liquids. The behavioural consequences of drinking depend as much as on a people’s idea of alcohol does to a person as on the physiological processes that can result from alcohol abuse. It would be advisable to say that alcohol as a ‘drink’ played an important role in almost all societies’ cultures since Neolithic times. Alcohol helped to drive the globalisation of trade since 17th century (Hames, 2012). The role of this substance was usually described in relation to religious experiences or by enhancing the enjoyment of life. Historically, alcoholic beverages also were widely used as sources of antiseptic nutrients in medicine. In modern...
Words: 3356 - Pages: 14
...Executive Summary Traditionally, Australia-China trade & economy was simple. Australia met the demand for raw material for China’s manufacturing & China exporting back to Australia its finished manufactured goods. Thus China-Australia became each other’s largest trading partners. Now that China’s economy is affected, less spending on infrastructure the demand has shifted from raw materials & commodities to other specialized manufactured equipment, services like health, education, financial, engineering, agriculture etc. for which Australia has to change gears to gain distinctive advantage to its other competitors. However in Chinese economy there still exists substantial market for Australian commodities, such as wool, wines, wheat, minerals & iron ore, as Australia has advantage of nearness by sea for the shipping lines. The Free Trade Agreement is a win-win situation as Australia can easily meet the changed needs of Chinese for sophisticated medical goods & services in Health, Social Security, Human Resources, Banking, Education, Legal, Agriculture, Winery & Dairy. China’s economic woes & slowdown in addition to general economic slump has impacted Australia hard, specially the mining cum trading houses at present. This impact is not limited to just Australia but whole of Asia-Pacific, lain America & Canada. Thus to conclude, there are some positives about the Australian economy as GDP growth is up from the last year & China needs Australia, as it shall always need...
Words: 3602 - Pages: 15
...Field Study – Chilean Wine Industry Chile country analysis 1. Country Profile: i. Population: 16,634,603. About 90% of them are classified as white people and mestizos. ii. Currency: Chilean Peso (CLP). Current spot rate: 0.001924 USD/CLP iii. GDP: Its estimate GDP for 2013 is $285.703 billion (38th in the world ranking). It had been growing constantly since 1997 until 2009 (global crisis). Adjusting it at PPP (reflects real purchasing power) it rises to $341.914 billion (43rd in the world ranking). iv. Income distribution: Since July 2013, Chile is considered a high-income economy. The percentage of Chileans beyond the poverty line was only 11.5% back in 2009. In addition, 64% of the population benefits from government welfare programs, which include poor people and those in risk of becoming poor. Nevertheless, the income distribution is still far from being equal, as shown by the GINI Index of 0.503 (2011). This index hasn’t varied much for the past 20 years. v. Approach to International Trade: Since early decades after independence, Chile has always had active involvement in international affairs. Consistent economic policies since the 1980’s have contributed to a steady economic growth, much of it thanks to its international trade. It currently has the highest degree of economic freedom in South America (7th in the world). In the past 15 years Chile has also signed free trade agreements with more than 10 countries (including Japan,...
Words: 1518 - Pages: 7
...6 2. Trade in Goods ................................................................................................................................... 7 2.1 Bilateral Trade between Australia and China .............................................................................. 7 2.2 South Australian Trade with China .............................................................................................. 8 2.2.1 Disaggregated Analysis of South Australian Trade with China ........................................... 8 2.2.2 South Australia’s trade and comparative advantage ........................................................... 9 2.2.2.1 South Australia’s Revealed Comparative Advantage in comparison to other States and Territories .......................................................................................................................................... 12 2.2.2.2 2.2.2.3 Disaggregated Analysis of Key Agricultural Products ....................................................... 18 2.2.2.4 Possible Impacts of ChAFTA Commitments on Agriculture for South Australia ............... 20 2.2.2.5 3 Disaggregated Analysis of Key Non-agricultural Goods ................................................... 14 Wine Sector ....................................................................................................................... 22 Trade in Services and Investment .........................................
Words: 65041 - Pages: 261
...spirit industry within China. Based its general conditions, this paper mainly focus on its capital structure with very leverage ratio and very high liquidity ratio of debt and asset, as well as its payout policy which returns relatively small amount of cash back to the investors. Simultaneously we also take the interest conflicts and the competitive scenario with other rivals into consideration. It can be concluded that the financial response of its leverage level and dividend policy is not significant. While the major suggestions given from this paper contend that it should raise more debt when faced with worthwhile investing projects and should increase the dividend ratio for the feedback of its investors, which can also reduce its excess cash at hand. Key words: Kweichow Moutai Co., Ltd, Capital Structure, Payout Policy 1. Introduction 1.1 Company introduction Kweichow Moutai Co., Ltd. is mainly engaged in the manufacture and distribution of Maotai liquor series products. The Company’s main products portfolio consists of Maotai liquors and other liquor series. It distributes its products in domestic and overseas markets. The Company is also involved in the manufacture and distribution of drinks and food packaging materials, the development of anti-counterfeit technology, as well as the research and development of information technology related products. 1.2 Industry introduction Chinese white spirit is the unique liquor originated from China. As a special and important...
Words: 5056 - Pages: 21
... Page 23 i. PRODUCT j. PRICE k. PLACE l. PROMOTION H. IMPLEMENTATION & CONTROL m. RECOMMENDATIONS & CONCLUSION Page 27 References & Appendix Page 28 A. EXECUTIVE SUMMARY Any business which sets its eye on the Indian market understood the fact that selling its product in such a big country is not easy. China, India, Brazil, these emerging marketing are constantly being target as business people alike know that these market are extremely attractive. The fact that wine growth rate was at 20% annually, India in its own way became an attractive market for Wine producers and exporters. Opportunity thrives throughout urban cities of India, Mumbai, New Delhi and Banglore. However, risk such as government protectionism regime of alcohol control and complex layer of taxation policies with an underdeveloped distribution chain that threatens the wine market. Most importantly the Indian population is largely unfamiliar with Wine and where it stands among the Indian culture. B. INTRODUCTION Country Overview Second to China, India stands on the planet the second most populated country; its population and consumer based is...
Words: 4461 - Pages: 18
...Name Professor Course Date History of wine Introduction The earliest evidence of production of wine was found in Georgia and Iran. The altered conscious that is produced by wine is considered to be religious. The Greeks worshiped Bacchus and Dionysus, and the people of Rome carried on the cult. However, the consumption of wine was one part of practices of Jewish people even during the biblical times. In the last supper, the wine was used in commemorating Eucharist thus becoming a Christian church essential. Muslims forbade consumption as well as the production of wine. However, during the golden age, the Muslims were using wine for industrial purpose, for example in perfume production. Further, the distilled wine was used for the medicinal purpose (Shapin, 12). The information regarding the first wild grapevine cultivation is still uncertain (Brown, 145). Grapes grow in Azerbaijan, Armenia, Georgia, southeastern and coastal Turkey, the northern Levant and northern Iran. The fermenting of wild grape was easier due to the development of pottery in the Neolithic period. One of the oldest wineries discovered was in vayot dzor, in the Arena- 1 cave. In the site, there were fermentation vats, cups, jars and a wine press (Brown, 145). Wild grapes vines and seed were also found. In early Bronze Age, there were plenty of domesticated grapes in the near east. Further, there is an evidence of wine production in Egypt and Sumer (Shapin, 12). According to McGovern...
Words: 1267 - Pages: 6
...with. The statement “in China today, the general public have no political influence” is complicated by a focus on everyday politics. Chinese citizens do participate in everyday politics, although not in the direct way found in democratic nations. The power of social media in China is allowing internet users to express dissatisfaction with the government, even in the face of censorship. The power of social media and its political influence is illustrated through the 2011 Wenzhou train collision case, which ignited outrage from online communities and led to the exposure of corruption amongst government officials. Typically, when a person thinks about the western concept of political influence, voting in a democratic election comes to mind. For the average citizen, their vote represents their voice in politics. If a person is not satisfied with the government or want to voice their concerns, they are able to freely criticize the state or engage in peaceful protests. They may also participate in politics by joining a political party or even forming a new party. The western concept of political influence centers on free speech and acting directly to affect politics. The concept of political influence by the general public in China is vastly different from western norms. The political system in China is not a liberal democracy, thus many foreigners believe that regular citizens have no influence in politics. Although the expression of political dissent in China is not a right of freedom...
Words: 1688 - Pages: 7
