Trend and guide to wine market in China

1. As estimated, the consuming volume of wines in China will reach 450,000 tons in 2005, and 800,000-900,000 tons in 2008, among which the high-grade and middle-grade wines (retail price over USD10) take 50%, and middle-grade and low-grade (retail price less than USD10) 50%.

2. The consumption proportion of white wine will rise through proper guidance to consumers and popularization of wine culture.

3. The consumption of wines has not yet become the main stream in China, but the fact is that it has become a vogue to drink wine among the young generation, and the wealthy or the better off. Because of frequent publicizing by media, the concept that wine is beneficial to health is popularized day by day, which accelerates more and more the consumption of wines by the masses.

4. The distilled spirits consumption is restricted by the Chinese government due to the waste of provision, and the beneficial wines have been supported advantageously in terms of policies. Besides, the wines with 50% grape juice have dropped out of the market, which took over 50% of the market proportion of wines in China. And the production increase of wine enterprises in China cannot fill up the proportion, which will create huge room of market competition for the imported wine manufacturers.

5. With the cost reduce of imported wines and rapid improvement of living standard of Chinese people, Chinese consumers will pay more and more attention to life quality and self health, they will vie to purchase more imported wines as they do now for other healthy foods.

6. The competition between domestic wines and imported wines will be fierce in the coming future since the import duty of wines has been fallen to great extent, and the overseas manufacturers have given more and more recognition to the wine market of China. And with expedient distribution net and flexible promotions, the domestic brands of China will make preparations for the coming competition by upgrading wine quality and strengthening brand building.

7. As for most of the imported wines manufacturers, they are facing the great challenge and opportunity as well. They have to compete simultaneously with manufacturers from China and overseas. Now, some foreign manufacturers have taken all sorts of marketing strategy to enter the market of China, who are working actively and closely together with Chinese import agent wholesalers to solidify the present market and meet the challenge.

8. The sale volume of the imported wines will be good as long as the quality is good, prices and tastes are proper, and the channels of importation and sales are well aiming and correct, and a good Chinese partner of import sale and certain market promotion are available. Although the wine appreciation levels of most Chinese consumers are not high enough to tell the differences of all kinds of imported wines, it is the disadvantage of the well-known foreign brands, but advantage of mass medium and small manufacturers, especially of those brands that have never entered the market of China. With the growing popularization of wine in the future like the rapid development and popularization of beer in China, Chinese consumers, paying attention to prices and increasingly to the quality, will give large profit repayment to those manufacturers of imported wine who have exploited markets for a long time in China. 

9. The market promotion shall be the forerunner of the sale of wines, and prices shall be acceptable for most consumers. Exorbitant price is the main reason why it is difficult for many brands of imported wines to be widespread at present.

10. Before entering the market of China, foreign wine manufacturers must comprehend the market of wines in China, and listen to Chinese import dealers for their opinions and suggestions, and frame proper strategy and lay importance to support Chinese import agent wholesalers and foster consumers in order to obtain expedite channel and stable consumers for the products. 

11. Foreign wine manufacturers shall choose an excellent partner of professional import wine sale in China instead of the bureaucratic governmental import-export companies, most of which only take care of importation with neither consideration of sale nor systematic sale net. It is supposed to support in full sail the professional import wine wholesalers of China with strength of both importation and sales.

12. As time goes by, the wine consumption will get more and more popular in mainland, China as in other Asian regions such as Japan, Korea, and China Hong Kong, China Taiwan, etc. What the foreign wine manufacturers need further are long-range vision, committed spirit and patience for the project.