Chinese Wine Market Case Study

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Figure 4 Chinese consumer trust import wine has better quality Source: The survey of characters and preference of import wine consumers Figure 5 The Country-of-origin effects in import wine market Source: The survey of characters and preference of import wine consumers 2.2 Large market potential With the development of Chinese economy, Chinese wine market grows rapidly. In the future, mix Chinese GDP growth rates and income elasticity of demand, we can predict that Chinese wine consumption growth rate will be 8.8% to 15.8%. Positive policies like industry policies, import policies and anti-corruption policies will support the development of Chinese wine market. Besides, the increase of wine consumption per capita, the trend of life-like…show more content…
The cross table is displayed below. From this table we can predict that Chinese wine consumption growth rate will be 8.8% to 15.8% in the several future years. Table 2 The forecast of Chinese wine consumption growth rate 2.2.3 Positive society change Since the Reform and Opening Up began, great changes have taken place in Chinese society. Among them, Chinese wine consumption shows a trend of life-like, especially in the past decade, which means that more and more people know wine, drink wine and consume wine as a daily lifestyle. This consumption trend is caused by the change of consumption quantity, consumption habits and wine knowledge obtain etc. As the figure indicates below, Chinese wine consumption quantity per capita goes up year by year. And in 2012 every Chinese drunk nearly 1.4 liters wine per year. Besides according to the research of “wine consumption habits survey (2013-2014)” , nearly 60% people have the habit of drinking wine every week. Figure 9 Chinese wine consumption quantity per capita from 2000 to 2012 Source: OIV, World…show more content…
As the research indicate above, wine consumption is closely related with economy development. We found from World Bank, in 2012 Japanese GDP per capita is 46,679.3 dollars while Chinese GDP per capita is 6264.6 dollars. If we assume Chinese economy grow 7% every year, after 29 year we can get 44568 dollars GDP per capita which is get close to Japanese GDP per capita in 2012. So the predict year is 2044. The third parameter is the population of China in 2044. We simply assume that there are 1.4 billion Chinese people in the year of 2044. The fourth parameter is the import wine share of the total wine market in China. In 2014, from January to September, Chinese domestic factory have produced 0.827 billion liters of wine while Chinese importers have import 0.29 billion liters wine. So import wine has share 25.96% of Chinese wine market in the first three quarters of 2014. We assume this number will not change rapidly in the
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