Table of Contents
Introduction
-
- Methodology
- Limitation
- Definition
Executive Summary
-
- The market is still undergoing a restructuring process
-
- Figure 1: Best and worst-case forecast of China retail value sales of wine, by value, 2009-19
- High penetration means increasing drinking frequency has become key
-
- Figure 2: Wine drinking habits, August 2014
- Culture and knowledge barriers deter consumers from drinking wine
-
- Figure 3: Reasons for not drinking wine, August 2014
- There is a lack of regular drinkers in the market
-
- Figure 4: Penetration of different types of wines, August 2014
- Figure 5: Drinking frequency of different types of wines, August 2014
- Word of mouth is the main information channel
-
- Figure 6: Attitudes towards advertising channels, August 2014
- Small pack wine shows potential
-
- Figure 7: General attitudes towards wine, August 2014
- What we think
Issues and Insights
-
- How to revitalise the premium segment in the wine market
- The facts
- The implications
- How can wine brands expand into lower tier city market?
- The facts
- The implications
- Lack of drinking occasions becomes the most pronounced barrier
- The facts
- The implications
Trend Application
-
- Collective Intelligence
- Minimize Me
- Return to the Experts
Market Drivers
-
- Key points
- The growing number of millionaires brings hope to the premium segment
- Shanghai Free Trade Zone and its impact on wine category
- The deal between China and EU ends disputes
- New government scheme attracting investment on vineyards and wineries in the Western China
- Growing number of consumers going online
Market Size and Forecast
-
- Key points
- The market is still undergoing a restructuring process
-
- Figure 8: Value and volume retail sales for wine in China, 2009-19
- The performance of imported wine from different regions varies
- Wine from France
- Wine from Italy
- Wine from South Africa
- Wine from Chile
-
- Figure 9: Best and worst-case forecast of China retail value sales of wine, by value, 2009-19
- Figure 10: Best- and worst-case forecast of China retail sales of wine, by volume, 2009-19
- Forecast methodology
Market Share
-
- Key points
- The share of domestic wine is decreasing
-
- Figure 11: Market share of leading brands in the wine retail market, by value and volume, 2012-13
- The market is shifting towards entry level wine with accessible prices
Who’s Innovating?
-
- Key points
- The blurring product origins
- French wine, made in China
- New look of imported wine – made in France owned by Chinese
- Downscale with quality at heart – the future of domestic vineyards
- New taste of domestic wine – not too sweet anymore
- New types of endorsement: president wine and expert signature wine
- Food pairing helps wine to expand into new occasions
Companies and Brands
-
- Key points
- Changyu Pioneer Wine Company Ltd
- Great Wall (China Foods)
- Dynasty Fine Wine Group Ltd
The Consumer – Wine Drinking Habits
-
- Key points
- High penetration means increasing drinking frequency becomes the key
-
- Figure 12: Wine drinking habits, August 2014
- Older, richer consumers living in tier one cities tend to be wine drinkers
-
- Figure 13: Drinkers of wine, by demographics, August 2014
- Imported wine tends to attract more sophisticated consumers
-
- Figure 14: Imported wine drinkers, by selected demographics, August 2014
The Consumer – Reasons for not Drinking Wine
-
- Key points
- Culture and knowledge barriers deter consumers from drinking wine
-
- Figure 15: Reasons for not drinking wine, August 2014
- Peer pressure deters consumers from drinking wine
- Lack of knowledge remain as a key barrier
- Wine is considered as good value for money
- The steep learning curve stops business owners from trying wine
-
- Figure 16: Agreement with the statement “There are too many wine brands to choose from”, by profession, August 2014
The Consumer – Drinking Frequency
-
- Key points
- There is a lack of regular drinkers in the market
-
- Figure 17: Penetration of different types of wines, August 2014
-
- Figure 18: Drinking frequency of different types of wines, August 2014
- Drinkers and drinking habits of red wine
-
- Figure 19: Drinkers of red wine, by types of red wine drunk, August 2014
- Young consumers with high level of personal income tend to drink red wine on a weekly basis
-
- Figure 20: Drinkers of red wine, by age and personal income, August 2014
- Non-drinkers of red wine are likely to be women and high earners
-
- Figure 21: Non-drinkers of red wine, by household income and gender, August 2014
- White wine drinkers and their drinking habits
-
- Figure 22: Drinkers of white wine, by selected demographics, August 2014
- Female wine drinkers with high income are more likely to drink white wine every month
-
- Figure 23: Wine drinkers who have drunk white wine several times a week, by gender and income, August 2014
- Drinkers of sparkling wine
-
- Figure 24: Sparkling wine drinkers, by city tier and personal income, August 2014
The Consumer – Attitudes towards Advertising Channels
-
- Key points
- Word of mouth is the main information channel
-
- Figure 25: Attitudes towards advertising channels, August 2014
- Online becomes a key channel to obtain relevant information…
- …but physical stores still play a vital role
- Lower tier city consumers are more likely to be exposed under wine adverts
-
- Figure 26: Agreement with the statement ‘I have seen wine advertisements in the past six months’, by city tiers, August 2014
- High earners pay more attention to researching before making a decision
-
- Figure 27: Online information searching behaviour, by income, August 2014
- Brand ambassadors work better to attract the young consumers with higher income
-
- Figure 28: Agreement with the statement ‘a brand spokesperson is important to me when deciding which wine over the other ’, by income, August 2014
- Female drinkers in their twenties frustrated by lack of wine-related information
-
- Figure 29: Agreement with the statement ‘There is a lack of information about wine in the media ’, by income, August 2014
The Consumer – Typical Spend on Wine
-
- Key points
- RMB100-299 is the pricing spot for drinking at home
-
- Figure 30: typical spending on wine, August 2014
- The gifting market has seen the biggest spending decline
- Wine drinkers from lower tier cities are more likely to drink cheap wines
-
- Figure 31: Consumers who drank wine costing less than RMB50 per bottle at home, by city tier August 2014
- Premium products are more likely to be embraced by female wine drinkers with high income
-
- Figure 32: Selected consumer spending patterns on wine, by gender and income, August 2014
- Shanghainese are less likely to drink ultra-expensive wines
-
- Figure 33: Selected consumer spending patterns on wine, by regions, August 2014
- Young elites show potential in the high-end segment
-
- Figure 34: Selected consumer spending patterns on wine, by age and personal income, August 2014
- Experience with imported wine encourages consumers to trade up
-
- Figure 35: Price of wine consumed, by type of wine drunk in the last six months, August 2014
The Consumer – Purchase Decision Making Process
-
- Key points
- Penetration of online shopping in wine category is still relatively low
-
- Figure 36: Purchase decision making when buying wine online, August 2014
- The lack of trust hampers the online retail channel for wine
- Lack of detailed information makes online channels less appealing
- The quality of service determines consumers’ willingness to buy
-
- Figure 37: Purchase decision making process when buying wine from offline channels, August 2014
- Buying from overseas: a challenge to the domestic market
-
- Figure 38: Purchase decision making process when buying wine from overseas channels, August 2014
- Offline channels play a vital role in the premium wine segment
-
- Figure 39: Selected attitudes towards offline channels, by monthly personal income, August 2014
The Consumer – General Attitudes towards Wine
-
- Key points
- Small pack wine shows potential
-
- Figure 40: General attitudes towards wine, August 2014
- Highlighting suitable drinking occasions could help brands to stand out
- Imported wines and trusted channels enjoy price premium
- Young women are more interested in small packs
-
- Figure 41: Agreement with the statement ’I would be interested in wine products in small packs’, by gender and age, August 2014
- Highlighting suitable occasions provides another way to appeal affluent female consumers…
-
- Figure 42: Agreement with the statement ‘there is a lack of wine products designed for specific occasions’, by gender and income, August 2014
- …and women in their forties think wine can reflect their social status
-
- Figure 43: Agreement with the statement ‘Drinking wine can better reflect one’s taste unlike other types of alcoholic drinks, by gender and income, August 2014
- Lower tier cities remain as price sensitive
-
- Figure 44: Agreement with the statement ‘The wine products available are mostly overpriced’, by city tier, August 2014
- Product origin is not important to young consumers in their twenties
-
- Figure 45: The disagreement with the statement ‘The origin of wine is a key factor in determining its quality’, by city tier, August 2014
Appendix – Wine Drinking Habits
-
-
- Figure 46: Wine drinking habits, August 2014
- Figure 47: Wine drinking habits, by demographics, August 2014
-
- Figure 48: Typical spending on wine, by wine drinking habits, August 2014
- Figure 49: Typical spending on wine, by wine drinking habits, August 2014
-
Appendix – Reasons for not Drinking Wine
-
-
- Figure 50: Reasons for not drinking wine, August 2014
-
- Figure 51: Most popular reasons for not drinking wine, by demographics, August 2014
- Figure 52: Next most popular reasons for not drinking wine, by demographics, August 2014
-
Appendix – Drinking Frequency
-
-
- Figure 53: Drinking frequency of different types of wines, August 2014
- Figure 54: Most popular drinking frequency of different types of wines – Red wine, by demographics, August 2014
-
- Figure 55: Next most popular drinking frequency of different types of wines – Red wine, by demographics, August 2014
- Figure 56: Most popular drinking frequency of different types of wines – White wine, by demographics, August 2014
-
- Figure 57: Next most popular drinking frequency of different types of wines – White wine, by demographics, August 2014
- Figure 58: Most popular drinking frequency of different types of wines – Champagne/sparkling wine, by demographics, August 2014
-
- Figure 59: Next most popular drinking frequency of different types of wines – Champagne/sparkling wine, by demographics, August 2014
- Figure 60: Most popular drinking frequency of different types of wines – rosé wine, by demographics, August 2014
-
- Figure 61: Next most popular drinking frequency of different types of wines – rosé wine, by demographics, August 2014
- Figure 62: Attitudes towards advertising channels, by most popular drinking frequency of different types of wines – Red wine , August 2014
-
- Figure 63: Attitudes towards advertising channels, by next most popular drinking frequency of different types of wines – Red wine , August 2014
- Figure 64: Attitudes towards advertising channels, by drinking frequency of different types of wines – White wine, August 2014
-
- Figure 65: Attitudes towards advertising channels, by drinking frequency of different types of wines – Champagne/sparkling wine, August 2014
- Figure 66: Attitudes towards advertising channels, by drinking frequency of different types of wines – rosé wine, August 2014
-
- Figure 67: Typical spending on wine, by drinking frequency of different types of wines – Red wine, August 2014
- Figure 68: Typical spending on wine, by drinking frequency of different types of wines – White wine, August 2014
-
- Figure 69: Typical spending on wine, by drinking frequency of different types of wines – Champagne/sparkling wine, August 2014
- Figure 70: Typical spending on wine, by drinking frequency of different types of wines – rosé wine, August 2014
-
- Figure 71: Typical spending on wine, by drinking frequency of different types of wines – Red wine, August 2014
- Figure 72: Typical spending on wine, by drinking frequency of different types of wines – White wine, August 2014
-
- Figure 73: Typical spending on wine, by drinking frequency of different types of wines – Champagne/sparkling wine, August 2014
- Figure 74: Typical spending on wine, by drinking frequency of different types of wines – rosé wine, August 2014
-
- Figure 75: Channels used to obtain information on wine, by most popular drinking frequency of different types of wines – Red wine, August 2014
- Figure 76: Channels used to obtain information on wine, by next most popular drinking frequency of different types of wines – Red wine, August 2014
-
- Figure 77: Channels used to obtain information on wine, by drinking frequency of different types of wines – White wine, August 2014
- Figure 78: Channels used to obtain information on wine, by drinking frequency of different types of wines – Champagne/sparkling wine, August 2014
-
- Figure 79: Channels used to obtain information on wine, by drinking frequency of different types of wines – rosé wine, August 2014
- Figure 80: General attitudes towards wine, by most popular drinking frequency of different types of wines – Red wine, August 2014
-
- Figure 81: General attitudes towards wine, by next most popular drinking frequency of different types of wines – Red wine, August 2014
- Figure 82: General attitudes towards wine, by drinking frequency of different types of wines – White wine, August 2014
-
- Figure 83: General attitudes towards wine, by drinking frequency of different types of wines – Champagne/sparkling wine, August 2014
- Figure 84: General attitudes towards wine, by drinking frequency of different types of wines – rosé wine, August 2014
-
Appendix – Attitudes towards Advertising Channels
-
-
- Figure 85: Attitudes towards advertising channels, August 2014
- Figure 86: Most popular attitudes towards advertising channels, by demographics, August 2014
-
- Figure 87: Next most popular attitudes towards advertising channels, by demographics, August 2014
-
Appendix – Typical Spending on Wine
-
-
- Figure 88: Typical spending on wine, August 2014
- Figure 89: Most popular typical spending on wine – Drinking at home, by demographics, August 2014
-
- Figure 90: Next most popular typical spending on wine – Drinking at home, by demographics, August 2014
- Figure 91: Most popular typical spending on wine – Drinking out of home, by demographics, August 2014
-
- Figure 92: Next most popular typical spending on wine – Drinking out of home, by demographics, August 2014
- Figure 93: Most popular typical spending on wine – As a gift, by demographics, August 2014
-
- Figure 94: Next most popular typical spending on wine – As a gift, by demographics, August 2014
-
Appendix – Channels Used to Obtain Information on Wine
-
-
- Figure 95: Channels used to obtain information on wine, August 2014
- Figure 96: Channels used to obtain information on wine – Online, by demographics, August 2014
-
- Figure 97: Channels used to obtain information on wine – In-store, by demographics, August 2014
- Figure 98: Channels used to obtain information on wine – Overseas, by demographics, August 2014
-
Appendix – General Attitudes towards Wine
-
-
- Figure 99: General attitudes towards wine, August 2014
- Figure 100: Agreement with the statement ‘I would be interested in wine products in small packs (eg 100ml) for wine tasting’ by demographics, August 2014
-
- Figure 101: Agreement with the statement ‘There is a lack of wine products designed for specific drinking occasions’, by demographics, August 2014
- Figure 102: Agreement with the statement ‘The wine products available are mostly overpriced’, by demographics, August 2014
-
- Figure 103: Agreement with the statement ‘Very frequent promotions of a wine product will put me off from buying it’, by demographics, August 2014
- Figure 104: Agreement with the statement ‘Imported wine products are not as good value for money as domestic ones’, by demographics, August 2014
-
- Figure 105: Agreement with the statement ‘I am willing to stick to the reliable wine purchase channel even if it doesn’t offer the lowest price’, by demographics, August 2014
- Figure 106: Agreement with the statement ‘The origin of wine is a key factor in determining its quality’, by demographics, August 2014
-
- Figure 107: Agreement with the statement ‘The quality of imported wine products are better than domestic ones’, by demographics, August 2014
- Figure 108: Agreement with the statement ‘It is worth paying more for wine from vineyards with a long history’, by demographics, August 2014
-
- Figure 109: Agreement with the statement ‘Drinking wine can better reflect one’s taste unlike other types of alcoholic drinks’, by demographics, August 2014
- Figure 110: Agreement with the statement ‘When deciding which wine product to buy, it is better to refer to both online and offline information’, by demographics, August 2014
-
- Figure 111: Agreement with the statement ‘It is difficult to choose among so many wine brands’, by demographics, August 2014
-
Back to top