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Wine - China - November 2016

OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
The market
Figure 1: Retail sales of wine in China, by value, 2011-21
Figure 2: Retail sales of wine in China, by volume, 2011-21
Key players
Figure 3: Market share in the wine market in China, by value, 2015
Figure 4: Market share in the wine market in China, by volume, 2015
The consumer
Majority enjoy both domestic and imported wine
Figure 5: Penetration of domestic and imported wine, August 2016
Income is an indicator for wine origin choices
Figure 6: Drinking barriers for imported wine, by monthly household income, August 2016
Red wine is dominant while rosé increased the most
Figure 7: Preference on different types of wine, August 2016 vs October 2015
High earners used at least five channels to buy wine
Figure 8: Purchase channels, repertoire groups, by monthly household incomes, August 2016
What we think
ISSUES AND INSIGHTS
What should international wine and domestic wine do competitively?
The facts
The implications
How should premium wine brands position themselves?
The facts
The implications
How should wine brands use the online platform effectively?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
A gradually recovering current market and a growing future market
Wine sales and marketing have gone digital
Red wine is slightly down while rosé and white wine are going up
MARKET SIZE AND FORECAST
Moderate market recovery shows up in value terms
Figure 9: Wine retail market in China, by value and volume, 2011-16
Figure 10: Retail sales of wine in China, by value, 2011-21
Falling wine production delays volume growth
Figure 11: Retail sales of wine in China, by volume, 2011-21
MARKET DRIVERS
China’s wine consumption is becoming more diversified through various occasions
Rising personal gifting occasions drive premium wine sales
Imported wine from international brands is booming
Figure 12: Top 10 original bottled wine import countries to China, 2015
Online expansion of wine sales and distribution
MARKET SEGMENTATION 
Red wine’s share falls but it still dominates
Rosé gains slight share
White wine has rising share
Figure 13: Market share of different types of still wine, by volume, 2011-16
Sparkling wine faces growth challenge
Figure 14: Market share of different types of wine, 2011-16
KEY PLAYERS – WHAT YOU NEED TO KNOW
Domestic players top a largely fragmented market
Complete with branding – boutique wine outlet
The top global trend claims and China’s trend claims
MARKET SHARE
A fragmented wine market
Domestic players are the leaders
Figure 15: Market share in the wine market in China, by value, 2013-15
Figure 16: Market share in the wine market in China, by volume, 2013-15
COMPETITIVE STRATEGIES
Competing on price
Promotions – online shopping events
Branding – boutique wine outlet
WHO’S INNOVATING?
Global trends: ethical claims, additional flavours, and food pairing
Figure 17: Trends of claims made in newly launched wine products globally, 2011-16
Figure 18: International wine with environmentally friendly product or package claims, 2016
Figure 19: Malina Hua Zhi Lian Gui Hua Chen Pu Tao Jiu (Osmanthus and Aged Grape Wine), June 2014
Wine with social media claims
Figure 20: International wine with social media and/or other claims, 2016
Wine with premium positioning
Figure 21: International wine with premium positioning and other claims, 2016
THE CONSUMER – WHAT YOU NEED TO KNOW
High city tier residents prefer both domestic and imported wine
Fake products pose a threat to imported wine
Red wine has the most associations, white wine the least
Most consumers buy wine from multiple channels
Reviews and wine knowledge encourage online purchases
PENETRATION OF DOMESTIC AND IMPORTED WINE 
Significant majority enjoy both domestic and imported wine
Figure 22: Penetration of domestic and imported wine, August 2016
Tier one city residents favour both domestic and imported wine
Figure 23: Penetration of domestic and imported wine, by city tier, August 2016
Gender is a differentiator for domestic and imported wine consumption
Figure 24: Penetration of domestic and imported wine, by gender, August 2016
DRINKING BARRIERS FOR IMPORTED WINE
Authenticity is the top concern
Figure 25: Drinking barriers for imported wine, August 2016
Figure 26: Drinking barriers for imported wine, by monthly household income, August 2016
PREFERENCE FOR DIFFERENT TYPES OF WINE 
Red wine is the preferred category while rosé increased the most
Figure 27: Preference for different types of wine, August 2016 vs October 2015
Figure 28: Preference for different types of wine, by marital status, August 2016
PERCEPTIONS OF DIFFERENT TYPES OF WINE
Red wine has most associations, white wine least
Figure 29: Correspondence Analysis – Perceptions on types of wine, August 2016
Figure 30: Wine with food pairing suggestions and health claims, 2014-16
Champagne/sparkling wine is perceived as most fashionable with flavour variety
PURCHASE CHANNELS
Consumers buy wine both offline and online
Figure 31: Purchase channels, August 2016
Majority used at least three channels to buy wine
Figure 32: Purchase channels, by repertoire groups, August 2016
High earners used more than five channels to buy wine
Figure 33: Purchase channels, repertoire groups, by monthly household income, August 2016
PURCHASE TRIGGERS
Special events top the purchase occasion triggers
Figure 34: Purchase triggers, August 2016
Taste and flavour varieties are the key product triggers …
Figure 35: Purchase triggers, August 2016
… with clear income differences
Figure 36: Purchase triggers, by monthly household incomes, August 2016
Women favour unique packaging
Figure 37: Purchase triggers, by gender, August 2016
Figure 38: Wine products with unique packaging, 2015-16
Peer reviews and wine knowledge encourage online purchases
Figure 39: Purchase triggers, August 2016
MEET THE MINTROPOLITANS
Mintropolitans embrace both domestic and imported wine
Figure 40: Penetration of domestic and imported wine, Mintropolitans versus Non-Mintropolitans, August 2016
Mintropolitans shop for wine from multiple channels
Figure 41: Purchase channels, Mintropolitans versus non-Mintropolitans, August 2016
Mintropolitans associate wine with more consumption occasions
Figure 42: Purchase triggers, Mintropolitans versus non-Mintropolitans, August 2016
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Fan chart forecast
Abbreviations

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