As one of the biggest alcohol markets in the world, China is slowly waking up to wine. Ian Ford, Founding Partner, and Nichole Mao, Partner of Nimbility Asia, walk through how the Chinese wine market has changed, what has led to success, and the current wine trends in the country. With significant growth potential, the Chinese market is a critical global wine market to grasp and understand.
Creates GTM strategy and aligns w/ the right partners
Creates research reports for data-driven decision making
Serves China (biggest market), S Korea (#2), Indonesia, India, Australia
Japan & China ~75% of wine shipments into Asia
Chinese wine consumer
Still very early stages for wine, not a daily drink for most people
2019 - 1.3 L wine/capita/year vs 51.9L for Portugal, 12.2L for US
~0.2L wine/capita/year 10-20 years ago - wine was for gifting, banqueting, and hosting, not home consumption
Coastal cities (including Beijing & Shanghai) have young consumers that go to wine bars, bistros, drink at home
The growing trend of home consumption, helped by e-commerce, gifting still exists
Chinese alcohol market
big, dynamic alcohol market - strong food & drink culture, no religious objections, very social culture
The largest beer market in the world, dominated by domestic production
Beer is a daily consumption item
Craft beer is stunted by regulations requiring a large minimum volume
Some craft beers (e.g., Boxing Cat, Great Leap) started as brewpubs
China wine market
50-60M 9L cases imported, expected to double in next 10-15 years
~100-120M 9L cases of domestic wine, hard to measure
Big domestic producers - Great Wall, Changyu, Dynasty
Emerging quality producers - Silver Heights, Grace Vineyard
Success in China
Consumer awareness creates customer pull (e.g., Casillero del Diablo, Penfolds)
Cluttered marketing environment
Unique digital landscape (no Instagram, Facebook, Twitter)
Penfolds Example (pre-tariffs) - Grange provides halo, central to the story (good formula for success), profit driver is 300k cases of Bin 407 & 389 at ~$400-450/9L case, also sold ~800-1,000 cases of Rawson’s Retreat entry-level wine
Lafite Example - Los Vascos (Chile) has higher demand due to Lafite affiliation
Sommeliers and lifestyle KOLs (key opinion leaders) can help
Social media amplification is massive
Popular regions / wines styles
Mass market - more price and style driven, like fruity, easy drinking style around ~100 RMB/bottle (~$15); Chile doing well; Cabernet and Shiraz are recognized varieties
Fine Wine - Burgundy has been the “hot bun” the last two years - pricing rising dramatically, can’t get enough; also helping NZ Pinot Noir
Very diverse market (e.g., natural wine bars in Chengdu)
Podden och tillhörande omslagsbild på den här sidan tillhör Robert Vernick, Peter Yeung. Innehållet i podden är skapat av Robert Vernick, Peter Yeung och inte av, eller tillsammans med, Poddtoppen.