Table of Contents
Overview
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- What you need to know
- Covered in this report
- Definitions
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- Figure 1: Definition of low/mid/high MHI groups, by city tier
Executive Summary
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- The market
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- Figure 2: Best- and worst-case forecast for sales volume of on-trade alcoholic drinks, China, 2012-22
- Figure 3: Volume shares of on-trade alcoholic drinks, by market segment, China, 2017
- Key players
- The consumer
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- Figure 4: Purchasing frequency, April 2017 and March 2016
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- Figure 5: Purchasing channel, repertoire analysis, April 2017
- Figure 6: Purchasing channel, April 2017
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- Figure 7: Penetration of different types of alcoholic drinks, April 2017
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- Figure 8: Purchasing drivers, April 2017
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- Figure 9: Correspondence analysis – Perception of different drinks, April 2017
- What we think
Issues and Insights
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- Adding alcohol into the healthy lifestyle of modern people
- The facts
- The implications
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- Figure 10: Tuborg at Strawberry music festival, Shanghai, 2017
- Opportunity for special home-made alcoholic drinks
- The facts
- The implications
- Strengthening sensorial appeals to encourage orders
- The facts
- The implications
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- Figure 11: Glow in the dark drink
The Market – What You Need to Know
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- A declining market
- Shift to soft drinks and a wider choice at retail channel
- Beer and Chinese Baijiu dominate the market
Market Size and Forecast
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- A declining market
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- Figure 12: Sales volume of on-trade alcoholic drinks, China, 2012-17
- Slide expected to continue
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- Figure 13: Best- and worst-case forecast for sales volume of on-trade alcoholic drinks, China, 2012-22
Market Drivers and Challenges
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- Increasing spending on eating out
- Shift to soft drinks at on-trade channels
- A wider choice at retail channels
Market Segmentation
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- Beer and Chinese Baijiu dominate…
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- Figure 14: Volume shares of on-trade alcoholic drinks, by market segment, China, 2017
- …however both face a decline
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- Figure 15: Volume sales of on-trade alcoholic drinks, beer, China, 2012-17
- Figure 16: Volume sales of on-trade alcoholic drinks, Chinese Baijiu, China, 2012-17
- Cocktail is a rising star
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- Figure 17: Volume sales of on-trade alcoholic drinks, others, China, 2012-17
Key Players – What You Need to Know
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- Beer brands promoting craft beer through pubs and bars
- Fast food and coffee house brands tapping into the market
- Innovation through special ingredients/flavours and creative ways of engaging consumers
Competitive Strategies
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- Harbin cooperates with Elema to push beer consumption with convenient delivery
- Beer brands promoting craft beer through bars and pubs
- Casual dining restaurants offering authentic regional drinks
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- Figure 18: Grapefruit Soju, Bei Le restaurant, Shanghai, 2017
- Fast food restaurants and coffee houses tapping into the market
- KFC and Taco Bell
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- Figure 19: Tsingtao Beer in KFC, 2017
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- Figure 20: Selected drink menu, Taco Bell, Shanghai, March 2017
- Figure 21: KFC with a bar service, Tokyo, Japan, 2016
- Starbucks Taiwan
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- Figure 22: Starbucks Evenings, Taipei, 2017
Who’s Innovating?
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- Inspirational specialty beverages
- Boozy shake
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- Figure 23: Boozy milkshake, Red Robin, United States, 2012
- Beer cocktails
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- Figure 24: Beer cocktails, Brazil, March 2017
- Oily cocktails
- Cocktail with a buzz
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- Figure 25: Cocktail with a buzz, Singapore, January 2017
- Creative ways of engaging consumers
- The world’s first AR menu
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- Figure 26: Augmented cocktails, UK, June 2017
- Experiential sampling
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- Figure 27: VR tasting, Singapore, May 2017
- Beer yoga is a thing now
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- Figure 28: Beer yoga, 2017
- Special on-trade services making alcohol ordering convenient and fun
- Pour My Beer
- A bar without a bartender
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- Figure 29: Bonechina, Frankfurt, February 2017
The Consumer – What You Need to Know
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- Less frequent out-of-home alcohol drinking
- Most people have their regular places for drinking
- Cocktails gains popularity while Chinese Baijiu faces downturn
- Improving atmosphere and relaxing are top purchasing drivers
- Signature drink and sampling are top marketing schemes
Purchasing Frequency
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- Less frequent out-of-home alcohol drinking
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- Figure 30: Purchasing frequency, April 2017 and March 2016
- Men and high earners are significantly reducing their frequency of out-of-home drinking
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- Figure 31: Increase of purchasing frequency, by gender, April 2017 against March 2016
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- Figure 32: Purchasing frequency, heavy drinkers, by gender and age, April 2017 and March 2016
- Figure 33: Purchasing frequency, by income level, April 2017
- Heavy-drinkers are more exploratory with niche locales and drink types
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- Figure 34: Purchasing channel, by purchasing frequency, April 2017
Purchasing Channel
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- Entertainment venues as influential as restaurants
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- Figure 35: Purchasing channel, April 2017
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- Figure 36: Purchasing channel, April 2017 and March 2015
- Men aged 25-39 are key consumers in entertainment venues
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- Figure 37: Selected purchasing channel against average, by gender and age, April 2017
- Casual dining is the most popular type of restaurant for drinking
- Most people have their regular places for drinking
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- Figure 38: Purchasing channel, repertoire analysis, April 2017
- Figure 39: Purchasing channel, repertoire analysis, by purchasing channel, April 2017
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- Figure 40: Purchasing channel, repertoire analysis, by gender, April 2017
Penetration
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- Cocktail gain popularity
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- Figure 41: Penetration of different types of alcoholic drinks, April 2017
- Chinese Baijiu face downturn
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- Figure 42: Penetration, Chinese Baijiu, by age and gender, April 2017
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- Figure 43: Flavoured vodka, Heimtal Spirits at SIAL China, 2017
- Craft beer more welcomed among mature male consumers
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- Figure 44: Penetration, beer, April 2017
- Figure 45: Penetration, beer, by age and household income, April 2017
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- Figure 46: Flavour indicators of craft beer, 2017
- Half of consumers drink three to five types of drinks
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- Figure 47: Penetration, repertoire analysis, April 2017
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- Figure 48: Penetration, repertoire analysis, by monthly personal income, April 2017
Purchasing Drivers
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- Improving atmosphere and relaxing are top purchasing drivers
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- Figure 49: Purchasing drivers, April 2017
- Business is a crucial purpose for drinking to men in late 20s and 30s
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- Figure 50: Selected purchasing drivers against average, by age and gender, April 2017
- Nearly 40% of consumers drink to get rid of bad emotions
Perceptions of Different Alcoholic Drinks
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- Beer has distinctive image
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- Figure 51: Correspondence analysis – Perception of different drinks, April 2017
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- Figure 52: Perception of different drinks, beer, by gender, April 2017
- Wine is most preferred for business occasions
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- Figure 53: Perception of different drinks, business occasions, April 2017
- Beer and wine are best choices for drinking alone
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- Figure 54: Perception of different drinks, drinking alone, April 2017
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- Figure 55: Librottiglia, Matteo Correggia Winery, November 2016
Marketing Schemes
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- Most people prefer what they are familiar with
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- Figure 56: Marketing schemes, April 2017
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- Figure 57: Marketing schemes, by gender and age, April 2017
- Signature drink and sampling are top marketing schemes
- Recommendations from the venue more influential than product ads
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- Figure 58: Marketing schemes, recommended on the menu to pair with the food I order, by gender, April 2017
- Figure 59: Marketing schemes, recommended by a bartender, by age, April 2017
Meet the Mintropolitans
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- More heavy-drinkers
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- Figure 60: Purchasing frequency, by consumer classification, March 2017
- More exploratory in terms of food pairing
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- Figure 61: Marketing schemes, by consumer classification, April 2017
- Craft beer beats non-craft beer
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- Figure 62: Penetration, by consumer classification, April 2017
Appendix – Market Size and Forecast
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- Figure 63: Sales volume of on-trade alcoholic drinks, China, 2012-22
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Appendix – Market Segmentation
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- Figure 64: Sales volume of on-trade alcoholic drinks, by segment, China, 2012-22
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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