Approved by:

Ministry of Commerce P.R. China

Supporters:

China Tourist Hotels Association

China World trade Center Co., Ltd.

China Travel Service Group

China National Tourism Trading & Service Corp.

Organizers:

Beijing Regalland Convention Exhibition Co., Ltd.

Exhibition Division of China World trade Center Co., Ltd.
China National Tourism trading & Service Corp. Exhibition Division

Website: www.wineculturechina.com 

In conjunction with: HOTEL CHINA 2008
14th China Int'l Exhibition for Hotel & Restaurant Facilities, Equipment & Services, Food & Beverages

Exhibition Information 

+ Exhibition Organizer
+ Opportunity & Challenge
+ Wine in China
+ Enter China wine market
+ Why in Beijing
+ Aim of Wine Culture China

+ Wine Culture China 2007
+ Scope of Exhibit 

+ Space Rental
+ Advertisement Opportunity
+ Wine Tasting Meeting

News about Wine Industry

• The situation about Chinese wine industry

•  International wine brands in China

• Culture creates wine market 

Traditionally, Chinese consumers prefer white spirit and beer on the table. But nowadays, people concern more about health. Comparing with white spirit, customers consider wine is a healthier drink. At same time, Chinese consumers are influenced by the globalization. Wine is regarded as a symbol of western country and is more and more popular among the young people in China. As the economic continuous growth, a sizeable middle class is emerged. They are the potential customers for this market.  Because producing the white spirit will cost large amount of grain, China government encourages the fruit wine produce recently. The market of white spirit is shrinking; the wine could replace this market. At present, the consumption of wine only accounted for 1% of overall drink market. The Chinese per capita consumption accounted for 6% of world average per capita consumption. But the average growth rate of this market is over 15% annually. Therefore there is huge growth potential for this market.

According to the figures from China alcoholic drinks industry association, from 1999 to 2004, the sale volume of wine was increased 79%. The average sale revenue reached 2.2 billion $, and the average growth rate is 15%.  An import wine company exposed, recently, the sale volume of import wine increased over 30% annually in Beijing. Those figures show the increasing trend of Chinese wine market. National Bureau of Statistics of China indicates that sale volume of wine increased 43%, and sale revenue increased 26% in 2005. The profit of high-end wine is from 30% to 50% and it is 11% for the low-end product. Foreign companies have strong competitiveness in the high-end market compare with domestic companies.

However Chinese consumers are not familiar with wine, most of them don’t know how to distinguish good wine, how to match food and wine, how to storage wine… those issues cause the popularization rate of wine is very low in China. Only when Chinese customers understand the culture issue about wine, and then the wine could be spread in China market broadly.

To understand this issue, first it needs to understand the China dietetic culture. The Chinese dietetic procedure is simple, optionally and changefully, which is different with western lordly dietetic culture. At present wine is mainly used in family or private occasions and secondly in business occasions. From the survey and research about Chinese and western dietetic culture, we found that a favorable and suitable environment and occasions of wine’s consumption and tasting will well expand the market of wine consumption in China. For high quality wine, it needs to spend more time and space on tasting and touching them. High quality wine includes abundant culture, i.e. the history of family, region culture, different climate and soil and so on. You will love some sort of wine, enjoy them and collect them before you have understood some related culture of some wine. There are too much varieties of wine, so some special and different culture will be to distinguish different wine. You should infuse Chinese people with wine culture and then Chinese people will quickly remember and understand your wine, which is the key of your entering into China’s wine market and expanding your business in China. In a word, to sell wine is like selling culture, and culture creates wine market.

Opportunity & Challenge

China’s wine market as well as the current world market is free and changing, and there are full of great opportunities and challenges for wine producers and exporters.

Opportunities

China’s having successfully joined in WTO, which is having provided more favorable business environment and is greatly depressed the qualification of the entry to China’s wine market. The following will help to develop the large and potential wine market in China:

• The speedy development of China’s economy is continuing to keep 7%-10% of GDP;

• The improvement of 1.3 billion people’ living level and Chinese people are becoming more and more conscious about the quality of living and the health of bodies.

• To hold International or regional meetings, activities and games and etc, like 2008 Beijing Olympic Games.

• Sino-oversea cultural communication and business activities;

• More and more foreign people living in China;

• Thousands of foreign tourists visit China that has a lot of tour and travel sources.

• China’s import tariff on wine was lowered from 65 % to 14 % in 2004, which provided a golden

• Opportunities for all foreign wine producers.

• Wine market keep fast growing trend with a growth rate of over 15% annually.

• ………

Opportunities like air cover the whole China, but more challenges also there.

Challenges

Although Chinese wine industry has developed in recent years, through the investigation and research we found that the numbers of the wine consumers increase slowly. The main reasons as follow:

• The traditional drinking habits, i.e. mostly like to drink distilled spirit or beer, which need time to change;

• Some people misunderstand that wine like distilled spirit will hurt their bodies;

• Many Chinese people are lack of the knowledge about wine culture.

• China wine industry is in primary stage and China wine market appears immature, rough-and-tumble;

• The difference between Chinese culture and western culture are partly obstructing the spread of wine culture in China; for example, most Chinese people drink spirit for gaiety, and they usually drink large amount of spirit to express their feeling. However people drink wine usually take small amount to taste.

• Most foreign wine producers and exporters didn’t really understand the Chinese customers’ behaviors, psychology and so on. For example, most Chinese consumers could not remember the foreign wine brand and logo.