Tariff Decrease Make Apparent Increase of Imported Wine in Fuzhou Wine Market, China

It has come into another wine consumption peak by the end of 2006. In recent two months, we noticed that various kinds of wine festivals and wine exhibitions in large supermarkets to introduce imported wines to consumers, in Fuzhou, China.

Introduced by supermarkets' staff, we know a fact that wine consumers in Fuzhou are familiar to Chinese wines, while know few about imported wines. At present, imported wines from ten foreign countries have entered into Fuzhou wine market, including ones from France, America, Chile, Argentina, New Zealand etc.

Comparing with about 200 varieties of imported wine in Jialefu supermarket of Fujin road, Fuzhou, China, wine varieties have increased to about 500 in the exhibition of 2006 Wine Festival. In other supermarkets, many famous French wines have also entered into Fuzhou wine market.

With the decline of the tariff, which has declined from original 43% to present 14% of imported bottle wines since January 1st ,2005, that of imported bulk wines declined from 43% to present 20%, retail prices of imported wine in Chinese wine market decreased sharply correspondingly.

As an important wine market in China, Fuzhou wine market has been a main goal market to compete for many foreign wineries.

According to customs' statistics, imported total value has increased about 50% than that of last year in the first nine months this year. In this period, we have imported bulk wines as much as 87,580,000 liter, increasing 91.1% than that of last year. While average price of imported wines has decreased from last year's $3.45 to $2.72, decreasing about 21%. Many imported wines' retail prices have decreased correspondingly. For example, a bottle of imported wine whose original price is over RMB 100 is sold at the price of RMB 90 in present wine market.