Wine Market in China Has Open Doors for Opportunities
China has the 2nd largest market, which is why many investors cannot deny the fact that they always want to increase their customers. China has over 1 billion people, which is why it can sway move global consumer spending regardless of the industry or market, and the win industry is no different. Hence, the wine producers from different parts of the world have seen the potential of expanding to China, and that is what they do. You will know about the wine market in China, and the opportunities it can offer you.
Read more to know how to set up a business in China and enter the wine market.
Quality Over Quantity
The imported wines in China are around 40%. The growth of consumers had an increase of 7% from 2016 to 2019, but it was much higher from 2014 to 2016 at 26%. Today, consumers are more into spending for quantity versus quality based on what can be seen across the category of alcohol beverage category in a lot of Western markets.
Those who regularly drink wine in China are about 48 million, and they are from the upper-middle class. They have more disposable income in comparison to others. That is why even if imported wines from Europe are more expensive than local Chinese brands, they prefer to buy those. In addition, Chinese people generally purchase more alcohol no matter which social class they belong to than the previous generations. This makes wine a product that can now be found all over China.
They Want to Broaden Their Horizons
The diversity of the Chinese market has become more fragmented, while the leading market of imported wines is France, but its market share has been experiencing a decline. That is because a lot of consumers started to explore wines from Italy, Chile, and Australia. At the same time, wine producers have started using social media, the internet, and direct to consumer channels to market their products.
In addition, consumers began to consider all kinds of wines, and not just red wine.
How Can You Enter the China Wine Market?
Choose the Right Partners
If you want to have an advantage in the Chinese market, it is necessary to introduce yourself as an expert of wines.
An effective way of doing this is to make the key members thought leaders. It is important that your company participates in thought leadership and creating partnerships with influencers. Make sure to choose those who can boost your sales by introducing you to millions of people using their online platform.
If you cannot afford an influencer, you can use a wine expert when advertising. For instance, you can pay a wine expert to be part of your ads.
Have an eCommerce Platform for Selling Your Wine
E-commerce is helpful in spreading the wine culture and appreciation to any part of the world, including China. This way, you can easily introduce different wines to millions of consumers. The online shoppers are not so motivated by bargains and discounts compared to the choices of brands they have, and its varieties.
About 46% of consumers buy wine online, and online shopping penetration is about 40%.
Opportunities
In China, there is now a huge number of business opportunities, especially in the wine market. If you enter the Chinese market, you must have a concrete business plan before purchasing anything. The target of upper-middle class consumers in China are ages 25 to 45 years old. Here are the target market groups you must concentrate on:
- Connoisseur
- Young and affluent
- Those who are getting into drinking
- Government officials
- Business owners
When you make a business plan, you must establish the target group you want to focus on. You must also remember that another reason why people drink wine is because of its benefits to their health.
Drinking wine helps you get a good night’s sleep, gives your skin a natural glow and helps with digestion. A lot of Chinese women look for these health benefits, and that is a good thing, which is why you must always highlight the wine health benefits.
If you want to enter the wine market in China, you can talk to us and we will help you.
