China Wine Making Industry Market Monitoring Monthly Report

In recent years with the frequent price hikes and well development of high-end liquor market, high-end wine enterprises start to expanse their production capacity. The second and third tier liquor maintains good momentum and the price is increasing. The launch of liquor golden triangle strategy led to the development of Sichuan liquor. There is a great change for liquor distribution channels, marketing models and policy environment. Internet and TV shopping become the main method of marketing. Presently the total sales volume of China liquor industry is increasing while the overall consumption is decreasing. The main cause is that liquor unit price continuously increases and the industry is concentrated to high-end products. The upward trend of current high-end liquor industry is still on a relatively reasonable stage but it has begun to show signs of bubble burst.

View from the wine industry, propensity to consume of wine industry consumer in 2012 change a lot, that consumers are fonder of low degree wine. The fast development of domestic wine promotes the brand wine construction. Domestic well-known wine corporations like ChangYu Pioneer Wine Company Limited announce their plans to expand business in Guangdong region, select top wineries in the world and jointly develop the domestic market in 3 years. The wine corporations change the marketing strategy and think highly of young consumer group of the generations after 70s and 80s. South Africa wines are popular in China, and wine chain stores develop quickly. For residents in China, due to lacking understanding of wine most consumers pay more attention to the packing and price of wine. And packing becomes a wine sales gimmick.

With the continuous development of China liquor market especially the yellow rice wine industry which keeps a growth rate of more than 10% for 7 years. The yellow rice wine industry will enter a golden development period in 2012. Current these years yellow rice wine attracts many new consumer groups. Proportion of yellow rice wine core region to non-core region develops from 9:1 in 2003 to 6:4 in 2010. Development potential of yellow rice wine is gradually emerging. The state “twelfth five years” plan emphasizes the development of yellow rice wine industry should base on tradition preserving and strengthen innovation as well as expand variety and products. Therefore, yellow rice wine industry will have a new development with the guidance of the “twelfth five years” plan.

This report mainly analyzes the following aspects: firstly, economic environment, policy environment, technical environment and industry environment for wine making industry; secondly, monthly development trend of up-stream and down-stream industrial chain for wine making industry; thirdly, latest trend of wine making industry, imports and exports of wine product and trend of market competition; fourthly, industry marketing model and channel construction; fifthly, monthly business running condition, operation efficiency, price trend, consumer market and production and marketing condition of wine making industry segmentation; sixthly, investment and development trend of industry well-know brands; seventhly, analysis of wine making industry’s development trend.

Major characteristics of this report are timeliness and forward-looking. It aims to provide corporations with objective and continuous strategies which base on large sum of market data. In this way it helps corporations to handle the trend of wine making market, latest market news and competitive environment. Therefore the corporations can adjust management and competitive strategy in time!

Here, we’d like to express our sincere gratitude to National Bureau of Statistics of China, International Information Institute, National Institute of the Ministry of Commerce, General Administration of Customs, National Tsing Hua University Library, Institute of Market Economy of the State Council Development Research Center, and Beijing Qinghua Forward Market Research Center, etc. Thank you so much!

Qianzhan Business Information Co., Ltd. Industry Research Center
Research Team of Wine Making Industry