Within the Chinese wine market, there has always been significant changes in the past few years, whether it is due to change in major consumer group or revolutionary changes in the wine sales system.
Between 2006 and 2007, a trend to consume wine started gradually in China, by 2011 it has reached its peak and has been slowing down, when China has released policy to regulate government workers spending, it directly helped the market to step into an adjustment period. Chinese wine market has quickly shifted from corporate consumers and government consumers, to a more general public oriented individualist consumers market. After the market failing drastically between 2012-14, the Chinese wine consumer is seeing twilight in 2015.
Based on wine import ratio, 2015's imports are 555 million litre, the amount has grew by 44.58%; import amount worth around 2 billion USD, it has grew by 34.30%. However, by this growth ratio, overly optimistic should be avoided, because considering the market recession in past 2 years, after clearing inventory and restocking, and new goods from new capital, including the part of market growth.
Among whole bottle imported wine of 2015's origin countries, French wine is ranked first, its imported amount was 167 million litre, grew by 33.66%; imported amount worth 867 million USD, grew by 41.25%; average price is 5.19USD/L, grew by 5.68%; French wine has 46.2% of imported wine's market share. Australia is ranked second, it is growing quickly, imported amount grew by 56.54%, dollar amount grew up to 77.80%, it has about 23.4% of the market share. Chile which is ranked third has a market share of 9.1%, fourth to tenth place are Spain, Italy, USA, South Africa, Argentina, New Zealand and Germany.
Local red wine in 2015 is still a leading force within the Chinese wine market, it has close to 70% of market share (by quantity), local wine camp is lead by Zhang Yu and Great Wall wine. Under competition from imported wine, and the consumers' gradual maturity of understanding wine market , local wine producers start to vigorously make changes to the pricing system, and increase lower price range products in main market sales. They also purchase foreign wine brands or establish partnership with well known international brands, in order to intervene the imported wine industry, they are not afraid to spend, and are very ambitious towards the future market, there should be more moves expected from them in 2016. Local wine has been hit pretty hard in the markets such as Beijing, Shanghai and Guangzhou, however, they have done well in third and fourth tier cities' wine market, with their market operation skill and strong brand recognition, local wine will still be the leading force in the market, despite the increase of challenges.
In recent years, there are excellent wineries from Ningxia, Xingjiang, Shanxi and Huailai, these wineries help Chinese wine earn many positive recognition within local and international wine market. These wineries have also boosted Chinese consumers ' confidence in Chinese wine, and become more knowledgeable of Chinese wineries. Many importers have started to import Chinese wine. From a market survey, there will be more industry resource being put into promoting Chinese local wine.
B to C platforms such as JD.com and Amazon has benefited from the individualist consumer market's growth. According to JD.com, income from their wine category in 2015 is triple of 2014's, and January 2016 has quadruple the income than the same time from last year. In 2016, these platforms plan to enter deeper into second, third and fourth tier cities and towns' markets, and they will slowly become the main platform for the wine market.
Right nnow, O to O model in the wine industry is main focus for the capital market. Platforms such as jiuxian.com has started to push for O to O through capital, its size is expanding rapidly. However O to O has a lot of controversy within the expanding industry, but to the few leading O to O platforms, 2016 will still be a year for rapid expansion.
There is also B to B model for Chinese wine industry, and many more electronic wine platforms have enter into this area.
Older wine platforms have kept exploring and changing selling their products through the food and service industry, there is Australia's Woolworths has a wine boutique in China, to provide wine selection and professional service for each client, and there is also ASC which shifted its focus on individual client to e-commerce, it has even lower rate of profit and product price, and then there is Fu Long where they reach out to clients through promoting wine culture. 2016 wil be a year where traditional platform shift to new business mode.
For the general wine market development in 2016, through some wine producers' responses, it is generally optimistic, the predicted growth would be between 15% to 30%. Let's hope for a great year.