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DFJ Vinhos: Wines in China, A promising but difficult market

DFJ Vinhos: Wines in China, A promising but difficult market

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As regards the exist<strong>in</strong>g w<strong>in</strong>es <strong>in</strong> Ch<strong>in</strong>a, 80% are Ch<strong>in</strong>ese w<strong>in</strong>es 19 , hav<strong>in</strong>g strong promotion<br />

strategies and competitive prices, as aforementioned. However, few are able to compete with<br />

the imported w<strong>in</strong>es, as they are lack<strong>in</strong>g <strong>in</strong> quality and status. The majority of these w<strong>in</strong>es are<br />

red, and the same happens with the imported ones.<br />

Ch<strong>in</strong>ese W<strong>in</strong>e Culture<br />

Although this mass consumer society is grow<strong>in</strong>g sharply, it is still new and common for Ch<strong>in</strong>ese<br />

consumers to support their purchas<strong>in</strong>g choices with stereotypes, symbols, or representations<br />

of a certa<strong>in</strong> type of society. The French w<strong>in</strong>es are the most <strong>difficult</strong> ones to compete with, due<br />

to their recognition as the premium w<strong>in</strong>e-produc<strong>in</strong>g country, with the best traditions and<br />

conditions for the production of w<strong>in</strong>es [exhibit 6].<br />

The most important criteria <strong>in</strong> choos<strong>in</strong>g a w<strong>in</strong>e <strong>in</strong> Ch<strong>in</strong>a can range from “quality <strong>in</strong>dicators”,<br />

such as medals and awards, to “ the country of orig<strong>in</strong>”, the second be<strong>in</strong>g the most relevant<br />

[exhibit 7].<br />

In contrast with the prevail<strong>in</strong>g trend <strong>in</strong> Europe, the consumption of w<strong>in</strong>e is generally done out<br />

of home. The shelves of the best restaurants, f<strong>in</strong>e and specialized boutiques, hotels, and bars<br />

are be<strong>in</strong>g filled with good quality imported w<strong>in</strong>es, as this social w<strong>in</strong>e trend is grow<strong>in</strong>g.<br />

Moreover, the imported w<strong>in</strong>e has a large social significance, represent<strong>in</strong>g status and<br />

sophistication and it is mostly consumed at social and formal events [exhibit 8]. Also, the gift<br />

<strong>market</strong> is extremely attractive for imported w<strong>in</strong>es, s<strong>in</strong>ce “the scale of the gift <strong>market</strong> <strong>in</strong> Ch<strong>in</strong>a<br />

is estimated at 768.4 billion Yuan (US$121.90 billion),”(…)” gift-giv<strong>in</strong>g consumption accounted<br />

for over 30% of luxury-goods consumption <strong>in</strong> Ch<strong>in</strong>a” 20<br />

The vast majority of the Ch<strong>in</strong>ese w<strong>in</strong>e consumers are concentrated <strong>in</strong> 1 st tier cities, which are<br />

already developed, such as Beij<strong>in</strong>g, Shanghai and Guangzhou [exhibit 9].<br />

Another <strong>in</strong>terest<strong>in</strong>g characteristic is that the Ch<strong>in</strong>ese w<strong>in</strong>e consumer is one of the youngest <strong>in</strong><br />

the world, 60% under 34 years old, which tells a lot about their attitude towards w<strong>in</strong>e, s<strong>in</strong>ce<br />

57% is will<strong>in</strong>g to try new types and styles of w<strong>in</strong>e [exhibit 9]. In terms of gender 63% of the<br />

Ch<strong>in</strong>ese w<strong>in</strong>e consumers are male.<br />

19 Source: V<strong>in</strong>expo study, Bordeaux, (2013), “The Ch<strong>in</strong>ese w<strong>in</strong>e and spirits <strong>market</strong> with a look forward to 2016”<br />

20 Article: Staff reporter, Want Ch<strong>in</strong>a Times, 2012-02-01, “Gift <strong>market</strong> worth billions <strong>in</strong> Ch<strong>in</strong>a”<br />

14

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