Three trends of China wine Market in 2013

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Having experienced the dramatic expanding period, what will happen in wine industry in China this year? Here are the three main trends needs noticing.

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Wine becomes Consumer Packaged Good (CPG)

 

 TO GO WITH FEATURE FOOD-CHINA-WINE - CHINESE SHOPPERS LOOK AT WINES AT A SHANGHAI SUPERMARKET.

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Chinese consumers drink wine on quite many occasions, thus most brands of wine have lost its halo a luxury item. In other words, the wine has lost its prestige and is just another alcoholic beverage like beer or “Baijiu”.

Distributors make profit between purchasing price and sales price of their wine. This way of business is now facing the problem of shrinking margin. However, there have already been some brands who have solved the problem excellently. The solution sounds simply, Branding. In fact, the problem is not the lack of branding solutions, but the lack of awareness to do branding.

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Wine market subdivision

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le-marché-du-vin-pour-connaisseurs-en-Chine

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In this scenario a large part of the Chinese middle class consume wine both in daily life and on special occasions. The wine will be available in many on-trade and off-trade channels.  Many specialist retailers will emerge and they will focus on different niche markets.

At the same time, there are a number of wine lovers in every city across China, and for them the country of origin remains an important differentiation factor. French wines will continue to enjoy a great reputation, but will no longer be “worshiped” by Chinese consumers. Wine lovers will learn about wines from other countries and many enology clubs will emerge for consumers excited to buy their wine in specialist retailers whose advice seem reliable. Some fans will engage in collection of fine wines they will look as a serious investment.

In this scenario, the key success factor for wine companies will be the ability to serve the mass market more slowly with a range of attractive brand (interesting from the point of view of the consumer and in term of profitability).

Pricing Strategy

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#(4)CHINA-VALENTINE'S DAY-BUSINESS (CN)

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This scenario differs from the first two in that the focus is not only on the domestic market, but will consider China as an emerging key player in the wine market partly because traditional wine regions as France and Italy can no longer produce sufficient quantities of quality wine, forcing growers to produce vines in new regions such as China.

The demand for wine will be driven by function of wine in people’s health. As soon as Chinese consumers understand the wine. In this transparent wine market, Chinese wines will become more popular with its low price and relatively good quality.

A key success factor here will be the ability to create a portfolio of relevant wine brands able to fit different kinds of consumers ‘ tastes around the world and to understand the specificities of the distribution’s system of each market.

Marketing to China