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

Threats:
New and stronger competitors: If DFJ Vinhos had chosen the lower segment as the best one to
bet on, it has to deal with the fact that Chinese wine producers are willing to improve their
wine quality, maintaining their competitive prices.
Government policies: There is no stability for wine producers who intend to export their wines
to China. For instance, recently China has increased its taxes to control the European dumping
activities.
SWOT Analysis:
Strengths
- Adaptability – Wine tailors;
Weaknesses
- “Brand Portugal” is still small;
- International experience: wide
network;
- Recognized wine maker;
- More than 180 awards in 2012.
Opportunities
SWOT
Considering the Chinese Market:
- No network built;
- Medium-end segment,
generically their stronger
one, is extremely
competitive in China.
Threats
- Emergent markets like China;
- Find a place in the Chinese
Market – Creative Wines;
- Start producing abroad, being
more productive and competitive
on prices.
- International tax policies that
can jeopardize their exports;
- Growing competitiveness of
“New World Wines”;
- Growing quality of Chinese
wines in the future, having
extremely low prices.
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