Table of Contents
Introduction
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- Definition
- Methodology
Executive Summary
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- The market
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- Figure 1: Fan chart of Western spirits market in value terms in China, 2010-20
- Figure 2: Fan chart of Western spirits market in volume terms in China, 2010-20
- New era of O2O could give Western spirits market a boost
- The new normality stabilises the market
- Depreciation of Renminbi offsets the repositioning efforts
- Companies and brands
- The market is becoming increasingly fragmented
- Diageo gains market share from Pernod Ricard
- Decline in marketing investment poses challenges to refocus on consumer-driven demand
- Who’s innovating?
- Flavoured alcoholic drinks on the rise
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- Figure 3: New launches in East Asia market of flavoured alcoholic drinks, 2010-14
- Ethical claims show potential
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- Figure 4: Claims of newly launched flavoured alcoholic drinks in East Asia, 2010-14
- Glass bottles become increasingly popular
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- Figure 5: Packaging materials used by newly launched RTD in East Asia market, 2010-14
- The consumer
- The penetration of Western spirits is still trailing behind
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- Figure 6: Penetration of different types of alcoholic drinks, June 2015
- Casual social occasions stand out
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- Figure 7: Drinking occasions for alcoholic drinks, June 2015
- Figure 8: Penetration of different occasions among Western spirits drinkers, June 2015
- Chinese full-service restaurants posing as the key drinking location
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- Figure 9: Drinking location of alcoholic drinks, June 2015
- Overseas stands out as the top purchase channel
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- Figure 10: Retail purchase channels of Western spirits drinks, June 2015
- Challenge remains for brands to retain their consumers
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- Figure 11: Change in drinking behaviour, by types of Western spirits, June 2015
- Strong association with business occasions hampers the restructuring efforts of brandy brands
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- Figure 12: Reasons for not drinking brandies, June 2015
- Western spirits are shaking the premium image off
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- Figure 13: Correspondence analysis, June 2015
- Brand extension from leading Western spirits operators shows potential
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- Figure 14: Attitudes towards RTD alcoholic drinks, June 2015
- What we think
Issues and Insights
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- How to utilise the evolving regional differences
- Issues
- Implications
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- Figure 15: Penetration of drinking alcoholic drinks when socialising with families, by city, June 2015
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- Figure 16: Penetration of drinking alcoholic drinks at selected locations, by city, June 2015
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- Figure 17: Association with the attribute ‘can reflect my good taste’ when drinking whisky and brandy, by city, June 2015
- How to target the fast-changing female segment
- Issues
- Implications
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- Figure 18: Penetration of drinking alcoholic beverages at full-service Chinese restaurants, by gender and age, June 2015
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- Figure 19: Dadong’s winter special food pairing event partnered with Martell, Q4 2013
- Figure 20: Penetration of drinking alcoholic beverages at Western full-service restaurants, by gender and age, June 2015
Market Drivers and Barriers
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- Key points
- Market drivers
- New era of O2O could give Western spirits market a boost
- The new normality stabilises the market
- Market barriers
- Depreciation of Renminbi offsets the repositioning efforts
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- Figure 21: The daily average exchange rate (US Dollar to RMB), August 2013-August 2015
Market Size and Forecast
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- Key points
- The market is calming down
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- Figure 22: The Western spirits retail market in China, 2010-20
- The recovery will be slow but steady
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- Figure 23: Fan chart of Western spirits market in value terms in China, 2010-20
- Figure 24: Fan chart of Western spirits market in volume terms in China, 2010-20
- Forecast methodology
Market Share
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- Key points
- Market is becoming increasingly fragmented
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- Figure 25: Value and volume share of China’s Western spirits retail market, 2013 and 2014
- Diageo gains market share from Pernod Ricard
Key Players – What You Need To Know
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- Decline in marketing investment poses challenges to refocus on consumer-driven demand
- Food pairing gains momentum
- E-commerce plays a crucial role in helping Western spirits brands to reach more people
- Competition in the RTD segment is intensifying
Who’s Innovating?
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- Key points
- Flavoured alcoholic drinks on the rise
-
- Figure 26: New launches in East Asia market of flavoured alcoholic drinks, 2010-14
- Ethical claims show potential
-
- Figure 27: Claims of newly launched flavoured alcoholic drinks in East Asia, 2010-14
- Glass bottles become increasingly popular
-
- Figure 28: Packaging materials used by newly launched RTD drinks in East Asia market, 2010-14
The Consumer – Penetration of Different Types of Alcoholic Drinks
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- Key points
- The penetration of Western spirits is still trailing behind
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- Figure 29: Penetration of different types of alcoholic drinks, June 2015
- The mass market has not been fully exploited
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- Figure 30: Usage of Western spirits, by household monthly income, June 2015
- RTD and cocktails are gaining popularity among female consumers
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- Figure 31: Penetration of selected types of alcoholic drinks, by gender, June 2015
The Consumer – Drinking Occasions
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- Key points
- Casual social occasions stand out
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- Figure 32: Drinking occasions for alcoholic drinks, June 2015
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- Figure 33: Penetration of different occasions among Western spirits drinkers, June 2015
- Income barrier does not exist on casual social occasions
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- Figure 34: Selected drinking occasions, by monthly household income, June 2015
- Consumers from the North are more likely to drink alcoholic drinks when socialising with their families
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- Figure 35: Penetration of drinking alcoholic drinks when socialising with families, by city, June 2015
The Consumer – Drinking Locations
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- Key points
- Chinese full-service restaurants posing as the key drinking location
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- Figure 36: Drinking location of alcoholic drinks, June 2015
- The complexity of regional difference poses a challenges for Western spirits brands
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- Figure 37: Penetration of drinking alcoholic drinks at selected locations, by city, June 2015
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- Figure 38: Absolut Vodka, limited Chicago edition, Q2 2013
- Chinese full-service restaurants are less appealing to young female drinkers
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- Figure 39: Penetration of drinking alcoholic beverages at full-service Chinese restaurants, by gender and age, June 2015
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- Figure 40: Dadong’s winter special food pairing event partnered with Martell, Q4 2013
- The mid-range alcoholic drink is missing in KTV venues
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- Figure 41: Penetration of drinking alcoholic beverages at KTVs, by monthly household income, June 2015
- Western full-service restaurants are more likely to attract female consumers in their thirties
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- Figure 42: Penetration of drinking alcoholic beverages at Western full-service restaurants, by gender and age, June 2015
- Foshan consumers stand out as more sophisticated than average
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- Figure 43: Penetration of drinking alcoholic beverages at selected locations, by city, June 2015
The Consumer – Purchase Channels
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- Key points
- Online channels are crucial to Western spirits
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- Figure 44: Percentage difference between the penetration of offline and online channels, by types of alcoholic drinks, June 2015
- Overseas purchase stands out as the top purchase channel
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- Figure 45: Retail purchase channels of Western spirits drinks, June 2015
The Consumer – Changes in Drinking Behaviour
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- Key points
- Challenge remains for brands to retain their consumers
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- Figure 46: Change of drinking behaviour, by types of Western spirits, June 2015
- Little price barrier in the vodka segment
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- Figure 47: Penetration of different types of Western spirits, by personal monthly income, June 2015
- Liqueur is missing opportunities in the middle ground
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- Figure 48: The penetration of liqueur, by monthly household income, June 2015
- Gin is female consumers’ favourite
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- Figure 49: Penetration of gin, by gender, June 2015
The Consumer – Reasons for Not Drinking Brandies
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- Key points
- Strong association with business occasions hampers the restructuring efforts of brandy brands
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- Figure 50: Reasons for not drinking brandies, June 2015
- The perception of being suitable for older consumers limits the develop of brandy market
- Affordability is no longer the key reason for not drinking
The Consumer – Attributes Associated with Different Types of Western Spirits
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- Key points
- Western spirits are shaking the premium image
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- Figure 51: Correspondence analysis, June 2015
- Liqueur is free from cannibalism from within the Western spirits category
- Food pairing remains a challenge
- Gin bears a fashionable image
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- Figure 52: Pink 47 London dry gin from Old St Andrews launched in Germany, Q3 2015
- Innovative flavours show potential as a premiumisation route
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- Figure 53: Association with the attribute ‘offering innovative flavours’ when drinking liqueur, by monthly household income, June 2015
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- Figure 54: Rum orange liqueur from Santa Teresa, launched in Canada, Q2 2015
The Consumer – Attitudes towards RTD Alcoholic Drinks
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- Key points
- Brand extension from leading Western spirits operators shows potential
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- Figure 55: Attitudes towards RTD alcoholic drinks, June 2015
- At-home occasions show potential
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- Figure 56: Agreement with the statement “RTD alcoholic beverages are not suitable for drinking at home”, by gender, June 2015
- International brands still have the chance to fight back
The Consumer – Cluster Analysis
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- Five consumer segments identified
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- Figure 57: Segmentation based on consumers’ general attitudes towards alcoholic drinks, June 2015
- Wealthy conventional
- Who are they?
- What do they think in general?
- What do they think about RTD alcoholic drinks?
- Which type of alcoholic drinks do they like?
- How to target them?
- Wealthy Liberal
- Who are they?
- What do they think in general?
- What do they think about RTD alcoholic drinks?
- Which type of alcoholic drinks do they like?
- How to target them?
- Close-minded
- Who are they?
- What do they think in general?
- What do they think about RTD alcoholic drinks?
- Which type of alcoholic drinks do they like?
- How to target them?
- Foreign worshipper
- Who are they?
- What do they think in general?
- What do they think about RTD alcoholic drinks?
- Which type of alcoholic drinks do they like?
- How to target them?
The Consumer – Meet the Mintropolitans
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- Key points
- Why Mintropolitans?
- Who are they?
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- Figure 58: Demographic profile of Mintropolitans vs. Non-Mintropolitans, by gender, age, and personal income
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- Figure 59: Demographic profile of Mintropolitans vs Non-Mintropolitans, by marital status, city tier, and education level
- Brand extension strategies are more appealing to MinT consumers
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- Figure 60: Selected statements regarding RTD alcoholic drinks, by types of consumer, June 2015
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