Table of Contents
Introduction
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- Definition
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- Figure 1: Definition of Low/Mid/High MHI groups, by city tier
- Methodology
- Abbreviations
Executive Summary
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- The market
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- Figure 2: Retail sales of Chinese spirits, by volume, China, 2010-20
- Figure 3: Retail sales of Chinese spirits, by value, China, 2010-20
- Companies and brands
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- Figure 4: Share of value in Chinese spirits retail market, by company, 2013 and 2014
- The consumer
- Usage of different types of alcoholic drinks
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- Figure 5: Usage of different types of alcoholic drinks, March 2015
- Consumer perceptions of different types of alcoholic drinks
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- Figure 6: Consumer perceptions of different types of alcoholic drinks, March 2015
- Purchase channel of Chinese spirits
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- Figure 7: Purchase channel of Chinese spirits, March 2015
- Reasons for buying Chinese spirits
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- Figure 8: Reasons for buying Chinese Spirits, March 2015
- Typical spending on Chinese spirits for different occasions
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- Figure 9: Typical spending on Chinese spirits for different occasions, March 2015
- Purchase consideration factors for business occasions and special events
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- Figure 10: Purchase consideration factors for business occasions, March 2015
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- Figure 11: Purchase consideration factors for special events, March 2015
- Consumption behaviours of and attitudes towards Chinese spirits
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- Figure 12: Consumption behaviours of and attitudes towards Chinese spirits, March 2015
- Meet the Mintropolitans
- Key issues
- Will customisability become a standard feature of baijiu in the future?
- How to market premium baijiu as a representation of good taste?
- How to commoditise baijiu beyond price incentives?
- What we think
Issues and Insights
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- Will customisability become a standard feature of baijiu in the future?
- The facts
- The implications
- How to market premium baijiu as a representation of good taste?
- The facts
- The implications
- How to commoditise baijiu beyond price incentives?
- The facts
- The implications
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- Figure 13: Baijiu advert example with a football theme, China, 2015
Trend Application
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- Mood to Order
- Experience Is All
- Click and Connect
Market Size and Forecast
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- Key points
- Market growth hits the bottom in 2014
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- Figure 14: Retail sales of Chinese spirits, by volume and value, China, 2010-15
- Signs of recovery in 2015
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- Figure 15: Usage of baijiu in the past 12 months, by in-home and out-of-home, 2014 and 2015
- Future outlook
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- Figure 16: Retail sales of Chinese spirits, by volume, China, 2010-20
- Figure 17: Retail sales of Chinese spirits, by value, China, 2010-20
- Forecast methodology
- Key Market Driver Analysis
- Retail price stabilises and the volume sales bounce back
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- Figure 18: Average retail price change of Chinese spirits, 2013-15
- Greater variety of baijiu products with youthful images to engage with young consumers
- Key Market Barrier Analysis
- The strong taste of baijiu pushes consumers away
- The perception of baijiu being harmful to health
- Strong competition from other alcoholic drinks
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- Figure 19: Usage of selected types of alcoholic drinks in the past 12 months, by in-home and out-of-home, 2014 and 2015
Market Share
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- Key points
- Wuliangye continued to lead value share but has had a big slump
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- Figure 20: Share of value and volume in Chinese spirits retail market, by company, 2013 and 2014
- Jiannanchun Group showed the biggest value share increase amid intensive competition
- Companies targeting mid-to-low end markets achieved better performance, reflecting the trend of commoditisation
Who’s Innovating?
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- Key points
- Baijiu with health positioning concept is trending
- Adding healthy ingredients to enhance the health perception
- Playing around with distillation techniques to enhance the health perception
- Mini-packed baijiu marketed with youthfulness, friendship and mood-positioning is fast emerging
- Jiannanchun has brought the “affordable luxury” concept with its new 779AD
Companies & Brands
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- Yibin Wuliangye Group
- Latest developments
- Luzhou Laojiao Company Limited
- Latest developments
- Yanghe Distillery
- Latest developments
- Sichuan Jiannanchun Group
- Latest developments
- Jiangsu King’s Luck Brewery
- Latest development
The Consumer – Usage of Different Types of Alcoholic Drinks
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- Key points
- Baijiu achieves the third highest usage rate both in and out of home, following beer and wine
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- Figure 21: Usage of different types of alcoholic drinks, March 2015
- A significant increase in out-of-home consumption
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- Figure 22: Usage of baijiu in the past 12 months, by in-home and out-of-home, 2014 and 2015
- Marketing career-life related themes to engage with 20-24-year-olds
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- Figure 23: Usage of baijiu in the past 12 months, by age, March 2015
- Stronger pressure from western spirits and RTD alcoholic drinks in the South and East
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- Figure 24: Usage of different types of alcoholic drinks in the past 12 months, by region, March 2015
The Consumer – Consumer Perceptions of Different Types of Alcoholic Drinks
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- Key points
- Methodology
- Strong flavour and limited varieties could limit baijiu consumption
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- Figure 25: Consumer perceptions of different types of alcoholic drinks, March 2015
- Baijiu is not perceived as being as suitable for gifting as wine and Western spirits
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- Figure 26: Example of spirits packed in chocolate-made bottles, Canada, 2014
- Regional Difference Analysis
- More consumers in the West and North consider baijiu “good value for money”
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- Figure 27: Consumer perceptions of Chinese spirits, by region, March 2015
- Consumers in the East and Middle are more likely to associate baijiu with “premium” and reflecting “good taste”
- Significantly fewer consumers in the South think of baijiu as premium and suitable for gifting
- Consumer perceptions of baijiu between drinkers and non-drinkers mainly diverge on image rather than product
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- Figure 28: Consumer perceptions of Chinese spirits, by baijiu drinkers and non-drinkers, March 2015
The Consumer – Purchase Channel of Chinese Spirits
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- Key points
- Offline retail channels play a dominant role
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- Figure 29: Purchase channel of Chinese spirits, March 2015
- Online channels have emerged over the last two years
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- Figure 30: Online purchase of Chinese spirits, by age, March 2015
- 20-29-year-olds are more likely to buy from convenience and grocery stores
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- Figure 31: Selected purchase channels of Chinese spirits, by age, March 2015
- Purchase channel of baijiu is comparably more convergent
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- Figure 32: Repertoire analysis of purchase channel of Chinese Spirits, March 2015
The Consumer – Reasons for Purchasing Chinese Spirits
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- Key points
- Baijiu drinking is deeply rooted in Chinese festival culture
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- Figure 33: Reasons for purchasing Chinese Spirits, March 2015
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- Figure 34: Reasons for purchasing Chinese baijiu, by age, March 2015
- Purchase purpose varies by city
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- Figure 35: Reasons for purchasing Chinese spirits, by city, March 2015
- Channels have their own advantages to meet consumer needs for different reasons for purchase
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- Figure 36: Selected reasons for purchasing Chinese spirits, by purchase purpose of Chinese spirits, March 2015
The Consumer – Typical Spending on Chinese Spirits for Different Occasions
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- Key points
- Consumers are willing to pay twice the price or more for gifting and business occasions than self/family consumption
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- Figure 37: Typical spending on Chinese spirits for different occasions, March 2015
- Income is a key driver for baijiu spending, particularly for self/family consumption and festive occasions
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- Figure 38: Average spending per person for different occasions, by monthly household income, March 2015
The Consumer – Purchase Consideration Factors for Business Occasions and Special Events
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- Key points
- Well-known brand and premium packaging are key purchase consideration factors for business occasions
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- Figure 39: Purchase consideration factors for business occasions, March 2015
- Younger consumers are more packaging-focused and older consumers over 30 are more product-focused
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- Figure 40: Selected purchase consideration factors for business occasions, by age, March 2015
- Relevance and price are key purchase consideration factors for special event occasions
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- Figure 41: Purchase consideration factors for special events, March 2015
- Providing value-added services to stand out from the competition
The Consumer – Consumption Behaviours of and Attitudes towards Chinese Spirits
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- Key points
- More than half of consumers are brand loyal
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- Figure 42: Consumption behaviours of and attitudes towards Chinese spirits, March 2015
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- Figure 43: Agreement with statement “I stick to one or a few brands that I am familiar with when buying Chinese baijiu”, by age, March 2015
- Growth potential from customised baijiu
- Connecting baijiu drinking with everyday mood to encourage usage in daily life
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- Figure 44: Consumption behaviours of and attitudes towards Chinese spirits, March 2015
- Lower alcohol content does not translate to a healthier image
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- Figure 45: Agreement with statement “Baijiu with lower alcohol content is healthier than that with higher alcohol content”, by age, March 2015
The Consumer – Meet the Mintropolitans
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- Key points
- Why Mintropolitans?
- Who are they?
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- Figure 46: Demographic profile of Mintropolitans vs Non-Mintropolitans, by gender, age and personal income
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- Figure 47: Demographic profile of Mintropolitans vs Non-Mintropolitans, by marital status, city tier and education level
- Baijiu has established a firm ground among Mintropolitans even under strong competition with Western alcoholic drinks
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- Figure 48: Consumer perceptions of Chinese spirits, by consumer classification, March 2015
- Mintropolitans care more about premium packaging and customisability when buying baijiu for business and special events
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- Figure 49: Selected purchase consideration factors for business occasions and special events, by consumer classification, March 2015
- Mintropolitans tend to enjoy baijiu as a common drink in daily life
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- Figure 50: Selected consumption behaviours of and attitudes towards Chinese spirits, by consumer classification, March 2015
Appendix – Market Size and Forecast
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- Figure 51: Retail sales of Chinese spirits, by volume, 2010-20
- Figure 52: Retail sales of Chinese spirits, by value, 2010-20
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