News Special Coverage Industry Overview Supply & Demand Price Reference Forum

The competitor summary and promoting sell in chinese wine market by Johnson Qu23/05/2005  

1. There are two kinds of competitors in Chinese wine market: Chinese brands there are Zhangyu, Great wall and Dynasty and so on. Foreign brands there are France, Spanish, Italy, Germany, USA, Chile, Argentina, UK, Australia, New Zealand, South Africa and Hungry. At present, there are about 250300 wineries who export a certain quantity to China, but no one of the import brand can account for considerable market.

2. Zhangyu, Great wall and Dynasty, the said three Chinese wineries have became the leadership in domestic market. And Weilong, Tonghua, North China, Sun time, Harvest and Yunnan Red rank group two. The rest wineries rank three or four and more lower. All of them formed into a great wine corps to compete with foreign brands for carving up the whole Chinese wine market.

3. Relying on their full understanding of Chinese culture and consumers' habit, as well as the high profit of wine vacation in Chinese market, domestic wineries and their wholesalers, brokers had made great success through various agile promote selling artifices. 

4. In public advertising bidding of CCTV in 2002, ZHANGYU Winery, the leading enterprises of wine vacation bid the sum RMB28.9 million, Sun Time Group bid the sum RMB42.9 million, finally Impression Wine Enterprises won the bid by RMB82.5 million. It shows that what a drastic competition between Chinese wineries is. Domestic wineries had the dominance of low price under the protection of high custom tax two years ago. But custom tax rate of wine and aquavit had reduced to 44.6% and 46.7% in January the first 2002. The said tax custom rate had reduced to 34.4% and 37.5% in 2003 after joined WTO. And they will be reduced to 14% (wine) and 14% (aquavit) in the coming 2004. So the unit price of importing wine will be dropped relevant consumedly. The direct sequel is that domestic wineries will be serious impact by importing wine brands especial their competitive dominance in high quality.

5. Since anaphase of 90's of 20th century, more than one hundred importing brands of wine from France, Italy and Spanish entered into Chinese market and shared this big cake of wine market. On once occasion they occupied quite a quotient of it. Therefore, the Chinese wineries shaped their course of countermeasure and finery got back most quotient of wine market after just two-three years. And their occupying dominance in wine market was keep until today. Some latest domestic statistical files shown that ten of Chinese leading wineries still control more than 80% of wine market. The foreign wine firms keep their used marketing administration model which was good to their own countries and could not find out a marketing tactics which wassuitable to Chinese market and situations. It is the reason why they lost most quotients of Chinese wine market. A lot of foreign wine firms and Chinese wine importers (most of them are export and import co. by state-owned) only consider the short profit but not the long-term one for occupying the market and spreading their international brands forever. The direct result is that much foreign brands just sold for a while in Chinese market.

6. At present, foreign wineries are permeating their products into Chinese market through following actions:

a. Foreign wineries lay themselves out to support the Chinese franchisers in unit price, promoting sale sum and term of payment at the beginning of entering into Chinese market. 

b. Foreign wineries often breed their own general franchiser and agency and/or co-operate with the greatest importer for enlarging their selling quotients.

c. Foreign wineries Establish joint-venture enterprises with domestic one, some of powerful foreign groups even build up their own selling net in China.

d. Investing a great number of finance to spread wine culture 
and cultivate consumptive colony.

7. Some of foreign governments pay more attention to Chinese wine market and support their firms to enlarge their Chinese market in many fields:

a. Founding representative office in China to push their wine products;

b. Arranging their wine firms to take part in Chinese wine exhibition;

c. Foreign government look for suitable import franchisers from Chinese agencies for their middle and small enterprises.

8. Foreign governmental organs held series activities in China for enlarging their wine sale. Such as French foods association, it promotes selling wine in local hotel, holds food festive and cocktail lounge for wine tasted, holds wine professional meeting, runs wine consumptive training class, holds wineexhibition, cooperates with Chinese government departments in technology and interrelated law, publishes advertisement in medium and sponsors the interrelated activities and so on.