Market research China: decrease on Wine market in Beijing and Shanghai

In 2013, the export of wines and French spirit in China knew a period of light congestion, even decline, compared in the year 2012 when it reached record sales. Indeed, in 2013 market research was notably marked by a decline of the consumption of cognac and French spirit and the exports suffer from it.

While wine consumption increase, market research shows decline of Wine sales

Wine importation in China

This decline particularly surprised the market research China experts, notably towards the continuous growth of the consumption of wine in China for several years. We observe for example an increase of about 200 % of the consumption of red wine enter the environment of the 2000s and today. While the annual consumption of wine exceeded the billion liters from the beginning 2010s, the forecasts tightened towards a pursuit of an annual increase 25 % still during some years. This optimism notably explains by the margin of progress of this market, on which the consumption per capita exceeds only with difficulty the liter a year, against more than 50 liters in France.

Now this figure is already more than tripled in Hong-Kong, which represents generally a good indicator of what it happens in Chinese big cities as Shanghai and Beijing as well as on the tendencies to come in the cities of the second or third categories in China (can be completed by market research in Beijing or Shanghai). So, the consumption of wine becomes more and more popular among the most urbanized population, what explains the growth of the total consumption in China. The symbol of this popularization is the city of Shanghai, on which the events and the shows multiply and where especially the consumption of wine completely became more democratic.

France are the biggest exporter of Wine in China

To return on the Chinese national market, France managed to get more than 50 % of the market of the imports of wine over the last years, when Australia, Chile, Spain, Italy, the United States, South Africa and New Zealand were divided about 45 % of the market, showed market research in China. France sells 1,4 billion euro of French wines in China. This figure is mainly realized in big cities, as Hong-Kong and Shanghai.

Production of wine is poor said market research in China

market research CHina

Indeed the production of wines in the country the most populated with the world stops progressing. We recorded an increase of 173,3 % during the interval from 2000 till 2010. Since, Beijing had respite to favor this national production and to favor its growth. Indeed, if since a quarter of century, the government of Beijing was in favour of the production of wine and the growth of vineyard in the territory, it was coupled with a severe protectionism for some years. We shall quote for example the recent tensions between the EC and Beijing about an inquiry of the Chinese authorities on the exports of European wines. Beijing indeed suspected the European Union of supporting these exports, provoking a competitive imbalance with Chinese wines.

To conclude, the market of the wine seems to represent perfectly the antagonism between Shanghai (and its galloping westernization) and Beijing (the city, more traditional, but especially the government, protectionist).

http://daxueconsulting.com/market-research-china/

http://online.wsj.com/articles/chinas-wine-market-shifts-toward-entry-level-1405305923

http://www.theguardian.com/world/2014/jan/29/china-appetite-red-wine-market-boom

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