Table of Contents
Introduction
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- Definition
- Report structure
- Methodology
- Abbreviations
Executive Summary
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- The market
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- Figure 1: China spirit market, value sales, 2008-18
- Companies and brands
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- Figure 2: Market shares of leading spirits manufacturers in China, by value, 2010-12
- Yibin Wuliangye Co., Ltd.
- Kewichow Moutai Co., Ltd.
- Hubei Daohuaxiang Group
- Diageo Plc
- Pernod Ricard S.A.
- The consumer
- Chinese baijiu dominates the spirit market
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- Figure 3: Types of spirits consumed in the past 12 months, July 2013
- Chinese consumers shows strong interest in new drinks amid health concerns
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- Figure 4: Spirits drinking habits, July 2013
- Western spirits are more likely to be purchased from on-trade channels
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- Figure 5: Purchase channels of baijiu and Western spirits in the past 12 months, July 2013
- Important features of spirits when gifting depend on recipient
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- Figure 6: The most important factors for buying spirits as gifts, July 2013
- Attitudes towards buying spirits as a gift
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- Figure 7: Attitudes towards buying spirits as a gift
- General attitudes towards spirits
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- Figure 8: General attitudes towards spirits, July 2013
- Key trends
- Targeting female drinkers becomes increasingly important for growth
- The future of the high-end market
- Gift-giving and spirit market
- Online retail channels: reaching prospective consumers more effectively
- What we think
The Market
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- Key points
- Market size and forecast
- Spirit market doubles in size from 2008-13
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- Figure 9: China value and volume retail sales of spirits, 2008-18
- Growth rates expected to slow
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- Figure 10: China spirit market, value sales, 2008-18
- Figure 11: China spirit market, volume sales, 2008-18
- Market segmentation
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- Figure 12: China spirits market value sales by segment, 2008-13
- Market drivers
- From mingjiu (famous spirits products) to minjiu (spirits products for ordinary consumers)
- The golden decade of baijiu market
- The plasticiser scandal
- Government introduces anti-extravagance campaign in 2012
- The transformation of the baijiu market
- The transformation from an investment-led economy to a consumption-driven one
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- Figure 13: The growth rate of GDP and total retail sales of consumer goods, 2008-12
- Fighting the counterfeits
- Serious concerns over counterfeits
- Fighting the counterfeits and fake spirits
- Growing demand among women
- Standardisation of aged baijiu segment
Companies and Brands
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- Key points
- Brand share
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- Figure 14: Market shares of leading spirits manufacturers in China, by value, 2010-12
- Advertising and innovation
- Johnnie Walker and its campaigns
- ‘Keep walking’ campaign embraces social media and targets young consumers
- The controversial ‘change the game’ campaign brings Johnnie Walker under the spotlight
- Bailey’s and its Guimi (sisterhood) Day campaign
- Companies
- Yibin Wuliangye Co., Ltd.
- Kewichow Moutai Co., Ltd.
- Hubei Daohuaxiang Group
- Diageo Plc
- Pernod Ricard S.A.
The Consumer – Spirit Usage
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- Key points
- Drinking occasions
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- Figure 15: Different types of spirits consumed in the past 12 months, July 2013
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- Figure 16: Repertoire of spirits consumed in different occasions in the past 12 months, July 2013
- baijiu
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- Figure 17: Occasions when drinking Chinese spirits in the past 12 months, July 2013
- Women are more likely to drink Western spirits than baijiu
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- Figure 18: Types of spirits drunk in the past 12 months, by gender, July 2013
- Baijiu is more appealing to consumers in their forties
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- Figure 19: Types of spirits drunk in the past 12 months, by age, July 2013
- Income level has little impact on the penetration of baijiu
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- Figure 20: Types of spirits drunk in the past 12 months, by personal income, July 2013
- Higher educational background leads to a higher penetration of Western spirits
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- Figure 21: Types of spirits drunk in the past 12 months, by education background, July 2013
- Western spirits
- Affordability is a key barrier to usage across different types of Western spirits
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- Figure 22: The correlation between Western spirit usage and demographic factors, July 2013
- Whiskies and gin are losing in the young consumer segment
- Brandies are more popular as drinks for business purposes
- Older consumers are more willing to try different types of Western spirits
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- Figure 23: Repertoire of types of Western spirits drunk in the past 12 months, by age, July 2013
The Consumer – Purchase Channels of Spirits
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- Key points
- Purchase channels of baijiu and Western spirits
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- Figure 24: Purchase channels of baijiu and Western spirits in the past 12 months, July 2013
- Drinking habits
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- Figure 25: Spirits drinking habits, July 2013
- Health concerns curb spirits usage…
- …especially among low earners
- Strong interest in new drinks…
- …peaks among top income consumers
The Consumer – Important Factors for, and Consumers’ Attitudes towards Buying Spirits Gifts
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- Key points
- Important features of spirits when gifting depend on recipient
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- Figure 26: The most important factors for buying spirits as gifts, July 2013
- Flavours take the lead when buying spirits as a gift for family members or close friends
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- Figure 27: The most important factors for buying spirits as a gift for family members or close friends, July 2013
- Premium packaging is the most important factor for buying spirits as a gift for business purpose
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- Figure 28: The most important factors for buying spirits as a gift for business purpose, July 2013
- Attitudes towards buying spirits as a gift
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- Figure 29: Attitudes towards buying spirits as a gift, July 2013
- Stereotypical image limits the appeal of baijiu
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- Figure 30: Selected attitudes towards buying spirits as a gift, by age, July 2013
- …but greater awareness of the traditional drink works in its favour
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- Figure 31: Selected attitudes towards buying spirits as a gift, by city tier, July 2013
- Consumers expect local tailoring from Western brands
The Consumer – General Attitudes towards Spirits
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- Key points
- Widespread concerns linger about counterfeit spirits
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- Figure 32: General attitudes towards spirits, July 2013
- Lack of trust continues to hamper baijiu
- Knowledge of spirits remains limited
- Spirits retain a strong role as status symbols
- Older consumers see Western spirits in a positive light when it comes to health
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- Figure 33: Agreement with the statement ‘Western spirits do less harm to my health than Chinese baijiu’, by age, July 2013
- Women show positive attitudes towards Western spirits
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- Figure 34: Agreement with the statement ‘It is worth paying more for Western spirits because they offer better quality’, by age and gender, July 2013
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- Figure 35: Agreement on selected statements regarding baijiu and Western spirits, by gender, July 2013
- High earners hold the most positive views of Western spirits
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- Figure 36: Selected attitudes towards spirits, by monthly household income, July 2013
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- Figure 37: Selected attitudes towards spirits, by monthly household income, July 2013
Key Issue – Targeting Female Drinkers Becomes Increasingly Important for Growth
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- Key points
- Background
- Significantly more women drink Western spirits than baijiu
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- Figure 38: Types of spirits drunk in the past 12 months, by gender, July 2013
- Western spirits can draw on their fashionable and exotic image to appeal to women…
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- Figure 39: Agreement on selected attitudinal statements regarding spirits, by gender, July 2013
- Figure 40: The consumer segment of ‘‘uncritical admirers of Western spirits’’, by gender, July 2013
- … bottles and packaging tailored to the Chinese market are also important
- Mixability plays a key role for Western spirits when targeting women
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- Figure 41: Different types of spirits consumed in the past 12 months, by gender, July 2013
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- Figure 42: Consumers’ preferences over mixed beverages, by gender, July 2013
- Women show greater interest in the flavours when buying Western spirits as gifts
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- Figure 43: ‘‘Flavour the recipient likes’’ as an important factor when buying Western spirits as gifts for special occasions, by gender, July 2013
- Premium products are more attractive to women in their forties
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- Figure 44: Agreement of the statement ‘It is worth paying more for Western spirits because they offer better quality’, by age and gender, July 2013
- Women tend to drink Western spirits on a wider range of occasions than baijiu
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- Figure 45: Repertoire of occasions on which spirits are consumed, by type, by gender, July 2013
- What it means
Key Issue – The Future of the High-End Market
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- Key points
- Background
- Spirits tend to be seen as reflecting social status
- High earners tend to drink on a wider range of occasions…
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- Figure 46: agreement with the statement ‘I only drink on certain occasions’, by monthly personal income, July 2013
- … and they are more willing to try different brands of spirits
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- Figure 47: agreement with the statement ‘I am interested in trying new spirit types or brands I have not drunk before’, by monthly personal income, July 2013
- Western high-end spirits tend to appeal more to the high-earning consumers in China
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- Figure 48: Spirits consumed in the past 12 months, by types of spirits and personal monthly income, July 2013
- Western spirit brands could benefit from targeting the expert consumer segment with their high-end offerings
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- Figure 49: agreement with the statement ‘It is worth paying more for Western spirits because they offer better quality’, by consumer segment, July 2013
- Figure 50: Selected attitudes to spirits, by consumer segments, July 2013
- What it means
Key Issue – Gift-Giving and the Spirit Market
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- Key points
- Background
- Spirits remain popular gifts
- baijiu is widely seen as more suitable as a gift…
- Buying baijiu as a gift is more popular among men
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- Figure 51: Selected attitudes towards buying spirits as gifts, by gender, July 2013
- Consumers from smaller cities are more willing to buy baijiu as a gift
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- Figure 52: Selected attitudes towards buying spirits as gifts, by city tier, July 2013
- …but Western spirits are gaining momentum
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- Figure 53: Agreement with the statement ‘It shows that I have good taste if I buy Western spirits as gifts rather than Chinese baijiu’, by city tier, July 2013
- Price is more important when buying spirits as a gift for family members and close friends than for business
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- Figure 54: importance of price when buying spirits as a gift, by types of gift recipients, July 2013
- Baijiu
- Western spirits
- Premium packaging tends to be more important when it comes to gift buying for business purposes
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- Figure 55: The most important factors for buying festive food as a gift for special occasions, July 2013
- Baijiu
- Western spirits
- What it means
Key Issue – Online Retail Can Help Brands Reach Customers Directly
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- Key points
- Counterfeit products remain an issue in the spirits market
- Background
- Consumer confidence in spirits has been widely affected
- Existing distribution platform hampers online growth of large baijiu brands
- Smaller brands are free to expand online
- Western spirits
- Women are more likely to buy spirits online
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- Figure 56: Purchase of spirits from online retail channels in the past 12 months, by gender, July 2013
- High earners are more likely to buy spirits online
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- Figure 57: purchase of spirits from online retail channels in the past 12 months, by monthly personal income, July 2013
- What it means
Appendix – Spirits Consumed in Past 12 Months
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- Figure 58: Spirits consumed in past 12 months, July 2013
- Figure 59: Spirits consumed in past 12 months, July 2013
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- Figure 60: Most popular spirits consumed in past 12 months, by demographics, July 2013
- Figure 61: Next most popular spirits consumed in past 12 months, by demographics, July 2013
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- Figure 62: Most popular Western spirits consumed in past 12 months, by demographics, July 2013
- Figure 63: Next most popular Western spirits consumed in past 12 months, by demographics, July 2013
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- Figure 64: Most popular Chinese baijiu consumed in past 12 months, by demographics, July 2013
- Figure 65: Next most popular Chinese baijiu consumed in past 12 months, by demographics, July 2013
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- Figure 66: Most popular whisky consumed in past 12 months, by demographics, July 2013
- Figure 67: Next most popular whisky consumed in past 12 months, by demographics, July 2013
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- Figure 68: Most popular brandy/cognac consumed in past 12 months, by demographics, July 2013
- Figure 69: Next most popular brandy/cognac consumed in past 12 months, by demographics, July 2013
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- Figure 70: Most popular gin consumed in past 12 months, by demographics, July 2013
- Figure 71: Next most popular gin consumed in past 12 months, by demographics, July 2013
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- Figure 72: Most popular vodka consumed in past 12 months, by demographics, July 2013
- Figure 73: Next most popular vodka consumed in past 12 months, by demographics, July 2013
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- Figure 74: Most popular tequila consumed in past 12 months, by demographics, July 2013
- Figure 75: Next most popular tequila consumed in past 12 months, by demographics, July 2013
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- Figure 76: Most popular rum consumed in past 12 months, by demographics, July 2013
- Figure 77: Next most popular rum consumed in past 12 months, by demographics, July 2013
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- Figure 78: Most popular liqueur consumed in past 12 months, by demographics, July 2013
- Figure 79: Next most popular liqueur consumed in past 12 months, by demographics, July 2013
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Appendix – Repertoire Analysis
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- Figure 80: Repertoire of Western Spirits consumed in past 12 months (Western), July 2013
- Figure 81: Repertoire of Western spirits consumed in past 12 months (Western), by demographics, July 2013
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- Figure 82: General attitude towards spirits, by repertoire of Western spirits consumed in past 12 months (Western spirits), July 2013
- Figure 83: Repertoire of spirits consumed occasions in past 12 months, July 2013
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- Figure 84: Repertoire of Western spirits consumed occasions in past 12 months, by demographics, July 2013
- Figure 85: Repertoire of Chinese spirits consumed occasions in past 12 months, by demographics, July 2013
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- Figure 86: Spirits drinking habits, by repertoire of Western spirits consumed (occasions) in past 12 months, July 2013
- Figure 87: Spirits drinking habits, by repertoire of Chinese spirits consumed (occasions) in past 12 months, July 2013
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Appendix – Spirits Drinking Habits
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- Figure 88: Spirits drinking habits, July 2013
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- Figure 89: Most popular spirits drinking habits, by demographics, July 2013
- Figure 90: Next most popular spirits drinking habits, by demographics, July 2013
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- Figure 91: Spirits drinking habits, by spirits consumed in past 12 months, July 2013
- Figure 92: Spirits drinking habits, by most popular Western spirits consumed in past 12 months, July 2013
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- Figure 93: Spirits drinking habits, by next most popular Western spirits consumed in past 12 months, July 2013
- Figure 94: Spirits drinking habits, by most popular Chinese baijiu consumed in past 12 months, July 2013
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- Figure 95: Spirits drinking habits, by next most popular Chinese baijiu consumed in past 12 months, July 2013
- Figure 96: Spirits drinking habits, by most popular whisky consumed in past 12 months, July 2013
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- Figure 97: Spirits drinking habits, by next most popular whisky consumed in past 12 months, July 2013
- Figure 98: Spirits drinking habits, by brandy/cognac consumed in past 12 months, July 2013
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- Figure 99: Spirits drinking habits, by gin consumed in past 12 months, July 2013
- Figure 100: Spirits drinking habits, by vodka consumed in past 12 months, July 2013
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- Figure 101: Spirits drinking habits, by tequila consumed in past 12 months, July 2013
- Figure 102: Spirits drinking habits, by rum consumed in past 12 months, July 2013
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- Figure 103: Spirits drinking habits, by liqueur consumed in past 12 months, July 2013
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Appendix – Purchase Channel of Spirits in the Past 12 Months
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- Figure 104: Purchase channel of spirits in the past 12 months, July 2013
- Figure 105: Most popular purchase channel of Western spirits in the past 12 months, by demographics, July 2013
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- Figure 106: Next most popular purchase channel of Western spirits in the past 12 months, by demographics, July 2013
- Figure 107: Other purchase channel of Western spirits in the past 12 months, by demographics, July 2013
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- Figure 108: Most popular purchase channel of Chinese spirits in the past 12 months, by demographics, July 2013
- Figure 109: Next most popular purchase channel of Chinese spirits in the past 12 months, by demographics, July 2013
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- Figure 110: Other purchase channel of Chinese spirits in the past 12 months, by demographics, July 2013
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Appendix – The Most Important Factors for Buying Spirits as Gifts
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- Figure 111: The most important factors for buying spirits as gifts, July 2013
- Figure 112: The most important factors for buying spirits as gifts – Gifting for my family, by demographics, July 2013
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- Figure 113: The next most important factors for buying spirits as gifts – Gifting for my family, by demographics, July 2013
- Figure 114: The other important factors for buying spirits as gifts – Gifting for my family, by demographics, July 2013
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- Figure 115: The most important factors for buying spirits as gifts – Gifting for business purpose, by demographics, July 2013
- Figure 116: The next most important factors for buying spirits as gifts – Gifting for business purpose, by demographics, July 2013
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- Figure 117: The other important factors for buying spirits as gifts – Gifting for business purpose, by demographics, July 2013
- Figure 118: The most important factors for buying spirits as gifts – Gifting for special occasions, by demographics, July 2013
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- Figure 119: The next most important factors for buying spirits as gifts – Gifting for special occasions, by demographics, July 2013
- Figure 120: The other important factors for buying spirits as gifts – Gifting for special occasions, by demographics, July 2013
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Appendix – Attitudes towards Buying Spirits as Gifts
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- Figure 121: Attitudes towards buying spirits as gifts, July 2013
- Figure 122: Most popular attitudes towards buying spirits as gifts, by demographics, July 2013
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- Figure 123: Next most popular attitudes towards buying spirits as gifts, by demographics, July 2013
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Appendix – General Attitude towards Spirits
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- Figure 124: General attitude towards spirits, July 2013
- Figure 125: Agreement with the statement ‘The spirits you drink reflect your social status’, by demographics, July 2013
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- Figure 126: Agreement with the statement ‘It makes me look more fashionable to drink Western spirits than Chinese baijiu’, by demographics, July 2013
- Figure 127: Agreement with the statement ‘Drinking Western spirits is a reflection of good taste’, by demographics, July 2013
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- Figure 128: Agreement with the statement ‘Western spirits do less harm to my health than Chinese baijiu’, by demographics, July 2013
- Figure 129: Agreement with the statement ‘I would like to see more spirit products providing health benefits’, by demographics, July 2013
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- Figure 130: Agreement with the statement ‘Claims of Western spirits are more trustworthy than those of Chinese baijiu’, by demographics, July 2013
- Figure 131: Agreement with the statement ‘Recent scandals of Chinese baijiu have reduced my trust in its quality’, by demographics, July 2013
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- Figure 132: Agreement with the statement ‘I worry about counterfeit/copycat spirits when buying premium spirits’, by demographics, July 2013
- Figure 133: Agreement with the statement ‘I see no difference between various types of Western spirits’, by demographics, July 2013
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- Figure 134: Agreement with the statement ‘I don’t know much about spirits’, by demographics, July 2013
- Figure 135: Agreement with the statement ‘Western spirits are overpriced’, by demographics, July 2013
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- Figure 136: Agreement with the statement ‘It is worth paying more for Western spirits because they offer better quality’, by demographics, July 2013
- Figure 137: General attitude towards spirits, by most popular spirits consumed in past 12 months, July 2013
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- Figure 138: General attitude towards spirits, by next most popular spirits consumed in past 12 months, July 2013
- Figure 139: General attitude towards spirits, by most popular Western spirits consumed in past 12 months, July 2013
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- Figure 140: General attitude towards spirits, by next most popular Western spirits consumed in past 12 months, July 2013
- Figure 141: General attitude towards spirits, by most popular Chinese baijiu consumed in past 12 months, July 2013
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- Figure 142: General attitude towards spirits, by next most popular Chinese baijiu consumed in past 12 months, July 2013
- Figure 143: General attitude towards spirits, by most popular whisky consumed in past 12 months, July 2013
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- Figure 144: General attitude towards spirits, by next most popular whisky consumed in past 12 months, July 2013
- Figure 145: General attitude towards spirits, by most popular brandy/cognac consumed in past 12 months, July 2013
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- Figure 146: General attitude towards spirits, by next most popular brandy/cognac consumed in past 12 months, July 2013
- Figure 147: General attitude towards spirits, by most popular gin consumed in past 12 months, July 2013
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- Figure 148: General attitude towards spirits, by next most popular gin consumed in past 12 months, July 2013
- Figure 149: General attitude towards spirits, by most popular vodka consumed in past 12 months, July 2013
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- Figure 150: General attitude towards spirits, by next most popular vodka consumed in past 12 months, July 2013
- Figure 151: General attitude towards spirits, by most popular tequila consumed in past 12 months, July 2013
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- Figure 152: General attitude towards spirits, by next most popular tequila consumed in past 12 months, July 2013
- Figure 153: General attitude towards spirits, by most popular rum consumed in past 12 months, July 2013
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- Figure 154: General attitude towards spirits, by next most popular rum consumed in past 12 months, July 2013
- Figure 155: General attitude towards spirits, by most popular liqueur consumed in past 12 months, July 2013
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- Figure 156: General attitude towards spirits, by next most popular liqueur consumed in past 12 months, July 2013
- Figure 157: General attitude towards spirits, by most popular Chinese baijiu consumed in past 12 months, July 2013
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- Figure 158: General attitude towards spirits, by next most popular Chinese baijiu consumed in past 12 months, July 2013
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Appendix – Segmentation
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- Figure 159: Target groups, July 2013
- Figure 160: Target groups, by demographics, July 2013
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- Figure 161: Spirits consumed in past 12 months, by target groups, July 2013
- Figure 162: General attitude towards spirits, by target groups, July 2013
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