The idea of choosing this particular market for our study is of course mainly due to the long history and passion for Wine in France. As a matter of fact, we wanted to have a better understanding of the Wine Market in China so as to study the opportunity of creating a Business there. Through this essay, we are going to present a quick but comprehensive overview of the Wine Market in China. That means we will not only focus on the Wine produced in China, but also on the foreign competitors. The structure of this essay is quite simple. In the first part we will analyze the market, for example in terms of size using relevant figures in order to have a better understanding of the market, and see what trends come out of it. In a second part, we will look at the question "Who are the key actors and distributors?" Vs. the Rest of the World: In the Third part we will focus on the question "How to market and distribute wine? And fourth and last part we are going to do a SWOT analysis since it is a very useful marketing tool when it comes to summarizing a complex situation such as the Wine Industry in China. This market is facing numerous issues it also presents a lot of opportunities and should rise sharply in the next few years.
[...] Rosé wines are much less important but doubled over those 5 years, reaching RMB A market which has huge opportunities of development Because wine still only represents of the total consumption of alcohol, there is a huge potential of this market's development in China. The total market wine is expected to reach RMB 109.85 bn, growing by 77% on the expected value 2010. The competition will continue to increase and the wine will be more affordable. The penetration, especially in rural areas and small cities is to be improved. [...]
[...] But if foreign brands are successful, Chinese ones show a relatively important growth of their brand value, according to the table below: Part 4 SWOT analysis of market wine in China 2009 Strengths Weaknesses Small current market enduring a There is a huge competition with rapid growth; wine is now accepted soft drinks and spirits markets as a regular beverage which are mature markets. Though the crisis, consumption in The wine market has to face a China still remain strong fierce competition with traditional More and more Chinese people are alcoholic spirits who tends to gaining interest in wine: among reinforce their strategies through them yuppies and women better packaging or advertising Old people tend to be more policy. [...]
[...] A possible slow-down in economy Market wine is expanding very fast. could affect the wine market. Sophisticated consumers are Many fake wines are still emerging in urban markets with an threatening the market. Chinese expanding demand for new products. authorities are considering this This is quite good for companies issue and had already implemented willing to export. some measures. Modern retail chains are developing Illegal importations of wine is significantly throughout China. It very difficult to tackle and can be could help retail companies to a direct threat for companies. [...]
[...] In 2005, wine industry net profit increased by almost 60 percent (twice as much as the increase of spirituous market and beer market). Since 2005, Wine industry is growing steadily with good profitability despite the stronger competition. The major winery tends to develop to a national scale as they improve their distribution method. The profitability of major winery group is increasing thanks to bigger economies of scale and a larger and more efficient distribution. This phenomenon is changing the power balance between the leading provinces. [...]
[...] A market which illustrates new trends of consumption in China This extraordinary raise is mainly due to the increasing purchasing power. The part of the salary dedicated to food decreased a lot which enables Chinese people to afford wider range of products. Chinese people also celebrate more: they have longer holidays and they drink wine more often. Few decades ago, they only had wine for elegant diner outside but now they also use it for gifts or even to drink at home. [...]
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