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Article
Publication date: 10 May 2022

Tamás Mizik and Jeremiás Máté Balogh

The study aims to give an overview of the development of the Chinese wine industry and trade between 1992 and 2019. Its importance is highlighted by the fact that China has become…

1058

Abstract

Purpose

The study aims to give an overview of the development of the Chinese wine industry and trade between 1992 and 2019. Its importance is highlighted by the fact that China has become one of the world’s largest wine-consuming markets with great growth potential and is now ranked among the top 10 largest global markets for wine.

Design/methodology/approach

To address Chinese wine industry competitiveness, revealed comparative advantage (RCA), relative trade advantage (RTA) and revealed competitiveness (RC) were calculated, based on the World Bank World Integrated Trade Solution database. Chinese wine market-related issues are analyzed by Porter’s Five Forces in help of Market Line industry profile reports.

Findings

Results suggest that the Chinese wine market is relatively fragmented, with a concentrated food and beverages retail industry, strong buyer power and a moderate supplier power. The RCA calculated for the Chinese wine trade indicates that the share of exported bottled wine has become significant in the analyzed period. However, the RCA was perceivable just for bottled wines and only in the last analyzed period (2013–2019), whereas RTA and RC were negative for all periods revealing a comparative disadvantage. However, current market trends suggest that they will increase in the future.

Research limitations/implications

Data accuracy may affect these results because wine statistics may contain mislabeling. Moreover, China expanded its investments in many well-known wine regions all over the world, especially in Bordeaux, France. These, along with the significant re-export, could make it harder to interpret wine trade data because some part of the export is related to Chinese wineries outside of China.

Practical implications

Knowing the above-mentioned limitations, results should be interpreted with caution. However, high-quality wines can be identified as a niche market in China.

Originality/value

The study provided a detailed analysis of the Chinese wine industry and its competitiveness.

Details

International Journal of Wine Business Research, vol. 34 no. 4
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 22 August 2008

Per Jenster and Yiting Cheng

The purpose of this paper is to provide an evolutionary view of the emerging wine industry in China.

7512

Abstract

Purpose

The purpose of this paper is to provide an evolutionary view of the emerging wine industry in China.

Design/methodology/approach

Research on industry evolution provides a background for the historical evolution of the Chinese wine industry. Case studies are used to illustrate the different strategies of the leading wine producers in China, and to identify the major concerns and challenges in the Chinese wine industry. Growth potentials and ongoing trends are supported with statistics from authoritative databases and Chinese wine industry associations.

Findings

The Chinese wine market is characterized by an increasing concentration where the top four domestic producers dominate with 50 per cent market share. The lack of a wine culture makes brand marketing crucial to business success. Limited international efforts have been made by Chinese wine producers, although one winery has embarked on capturing 50 per cent of the global ice‐wine industry.

Research limitations/implications

The paper provides a historical overview of the Chinese wine industry and its current situation, which could not elude generalization and simplification. Enormous regional diversity in China compels differentiated regional studies in terms of production, consumer behaviors and marketing strategies.

Practical implications

The historical evolution of the Chinese wine industry reveals different settings for wine business in China. The dominance of domestic wine companies and ignorance of foreign wine brands among the general public imply a tough setting for foreign wine makers and distributors to enter the market.

Originality/value

The paper provides some insight into the historical and ongoing development of the Chinese wine market.

Details

International Journal of Wine Business Research, vol. 20 no. 3
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 16 March 2012

Angelo A. Camillo

The purpose of this paper is to determine consumer characteristics, buying behaviour, and the factors that influence the Chinese wine consumer.

5585

Abstract

Purpose

The purpose of this paper is to determine consumer characteristics, buying behaviour, and the factors that influence the Chinese wine consumer.

Design/methodology/approach

The study applies qualitative and quantitative methodology, together with a literature review and a strategic environmental scan of the Chinese wine market and consumer behavior.

Findings

Consumer education, wine‐related activities, channels of communication, taste, country of origin, quality, and price rank are found to be important factors influencing the buying and consumption behavior of Chinese consumers.

Research limitations/implications

Results suggest that there is a need for stakeholders to develop and implement informational and educational marketing strategies to educate and inform consumers in ways that reflect their needs and expectations according to demographic characteristics.

Practical implications

The challenge for the stakeholders will be to: penetrate this emerging market to establish presence and capture market share; strive for long‐term growth and profit sustainability; create competitive advantage through core competencies; promote and sell quality products applying the principles of yield management “to charge the right price, to the ideal consumer, at the right time, in the right place”; and build brand loyalty.

Social implications

The paper offers useful findings for stakeholders in the wine supply chain. Special attention should be given to the alcoholic beverage retailer and hospitality operators for whom wine revenue is the core of aggregate beverage revenue.

Originality/value

The paper contributes to the body of knowledge of consumer behavior in relation to wine consumption in an emerging market. The results benefit players in the wine supply chain; especially retail and hospitality operations.

Details

International Journal of Wine Business Research, vol. 24 no. 1
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 3 June 2014

Hong Bo Liu, Breda McCarthy, Tingzhen Chen, Shu Guo and Xuguang Song

– The purpose of this paper is to examine how the Chinese wine market can be meaningfully segmented and to explore marketing implications for the Australian wine sector.

6825

Abstract

Purpose

The purpose of this paper is to examine how the Chinese wine market can be meaningfully segmented and to explore marketing implications for the Australian wine sector.

Design/methodology/approach

The research is descriptive in nature, using an online survey to collect quantitative data on wine consumer behaviour. A total of 407 responses were obtained. Data analysis included descriptive analysis (frequency distributions) and cluster analysis.

Findings

The research identifies three clusters of wine consumers: “the extrinsic attribute-seeking customers”, “the intrinsic attribute-seeking customers” and “the alcohol level attribute-seeking customers”. These groups of consumers were categorised using a behavioural (benefit) segmentation base.

Research limitations/implications

The use of an internet survey and convenience sample limits generalisation of the findings. The adoption of a behavioural basis in conducting the segmentation is a limitation. The use of more complex segmentation bases, such as psychographics, may yield a richer understanding of the Chinese wine consumer in future studies.

Practical implications

The customer profiles provide Australian wine marketers with an insight into Chinese wine consumer behaviour. Brand positioning can be improved by ensuring that the brand emphasises certain product attributes which the segments value when choosing wine.

Originality/value

Little previous research on market segmentation has been conducted in mainland China. For Australian wine marketers, this study provides a baseline study into market segmentation and may assist with targeting and brand positioning decisions.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 26 no. 3
Type: Research Article
ISSN: 1355-5855

Keywords

Book part
Publication date: 28 November 2016

Jennifer Smith Maguire and Dunfu Zhang

Previous research suggests that constructions of legitimacy play a central role in the development of markets, yet little attention has been given to how that legitimacy is…

Abstract

Purpose

Previous research suggests that constructions of legitimacy play a central role in the development of markets, yet little attention has been given to how that legitimacy is constructed through the material practices of market actors. This paper aims to address this gap via an examination of cultural intermediaries in the fine wine market of Shanghai.

Methodology/approach

An interpretive thematic analysis was carried out on data from 13 semi-structured interviews with fine wine intermediaries based primarily in Shanghai (5 wine writers/educators; 5 sommeliers/retailers; 3 brand representatives).

Findings

The dimensions of the legitimation of wine were examined, identifying three key themes: the legitimacy of intermediaries as experts; the legitimacy of a particular mode of wine consumption; the legitimacy of the intermediaries as exemplars for not-yet-legitimate consumers. These findings suggest that cultural intermediaries’ personal, consuming preferences and practices are significant to the formation of a new market, and that they must negotiate potential tensions between interactions with legitimate, not-yet-legitimate and illegitimate consumers.

Research limitations/implications

Limitations with regard to generalizability are discussed with regard to potential future research.

Social implications

The focus on cultural intermediaries and dimensions of legitimation can be used to examine the case of other emerging markets to anticipate the pathways to institutionalizing new forms of taste and consumption practices.

Originality/value

The paper offers an empirical insight into the market dynamics of distinction in the Shanghai wine market and conceptual insight into the importance of cultural intermediaries as exemplar consumers.

Details

Consumer Culture Theory
Type: Book
ISBN: 978-1-78635-495-2

Keywords

Open Access
Article
Publication date: 31 July 2023

Lala Hu, Marta Galli and Roberta Sebastiani

The Chinese market represents an increasingly popular destination for wine firms and recent opportunities derive from the growth of e-commerce. The aim of this paper is to…

1597

Abstract

Purpose

The Chinese market represents an increasingly popular destination for wine firms and recent opportunities derive from the growth of e-commerce. The aim of this paper is to understand the impact of digital platforms on wine firms' internationalisation in China by adopting the service ecosystems approach.

Design/methodology/approach

The authors carried out a case study of Italian premium wine firms from the Valpolicella area by collecting 27 semi-structured interviews with key informants that operate at the micro-, meso- and macro-levels of the internationalisation ecosystem. Italian wine firms were selected as the focus of the analysis, given the recent sales growth of their products in the Chinese market.

Findings

Results show that digital platforms hold a key role in the wine firms' internationalisation in China, intervening with resource integration mechanisms, alignment to the cultural context and mediating firms' digital presence in the market. The platformisation dynamics also reveal the existence of enablers and constraints in the firm internationalisation through digital platforms.

Research limitations/implications

The authors aim to contribute to the marketing literature by analysing how digital platforms influence the wine firms' internationalisation in China through an original perspective, i.e. the service ecosystems lens.

Originality/value

The study adopts the service ecosystems approach to understand the internationalisation of wine firms in the Chinese market through digital platforms.

Details

International Journal of Retail & Distribution Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0959-0552

Keywords

Open Access
Article
Publication date: 18 November 2019

Wang Yabin and Jiagui Li

The purpose of this paper is to explore China’s online wine market segmentation on the basis of the wine-related lifestyle (WRL). Moreover, this study can provide further…

6873

Abstract

Purpose

The purpose of this paper is to explore China’s online wine market segmentation on the basis of the wine-related lifestyle (WRL). Moreover, this study can provide further understanding and reference about China’s wine market segmentation research, which is limited at present. This work can be helpful for those who want to do further research in the Chinese wine market. It is good for wine importers wanting to import wine to China to understand the Chinese wine consumers.

Design/methodology/approach

Survey data were obtained from a sample of 3,369 participants through cooperation between the College of Enology and the Yesmywine.com website. Questionnaire items included gender, age, area distribution, unit price, bottles consumed, drinking frequency, drinking time, wine-related knowledge, etc. Combined with the influence factors of the WRL, a structural equation model was developed. The data analysis, particularly employing principal component analysis, enabled the identification of five market segments.

Findings

Five distinct segments were identified within the wine market and designated as follows: wine official consumption type enthusiastic fancier; enjoyment consumption; fashionable consumption; and new, young wine drinkers.

Research limitations/implications

The research data were derived from Yesmywine, one of the largest online wine sale platforms. However, the impact of yesmywine is much smaller compared with Tmall and Taobao and Jingdong. In this paper, we can see that WRL is increasingly becoming a part of Chinese people’s daily lives, especially for the enthusiastic and fancier wine consumers, which is the official type of wine consumer. Next, an analysis of time series under the data of the near future years should be conducted to find the online wine segmentation market variation trend. Moreover, it is important to conduct cross-culture comparison between the Chinese and Australians. Brand positioning can be improved by better understanding China’s online wine market segmentation.

Practical implications

WRL segmentation is valuable for the wine importers and producers in west France, Italian, Germany and so on, as they want to develop China’s wine market and understand the mindset of Chinese wine consumers. The wine importers in China should focus more on consumers that enjoy wine along with newer and younger wine drinkers.

Originality/value

This paper analyzes a large sample (3,369) and therefore is useful for understanding online wine market segmentation and wine consumption behavior in China owing to China’s limited wine market segmentation literature. This paper is the first to use WRL tool to segment China’s online wine market. Moreover, the research data have reference value for those who want to learn more about China’s online wine market, as yesmywine is one of the largest online wine-sale platforms. It also gives some managerial implications for wineries and wine marketers that will be helpful to wine companies in understanding the emerging Chinese wine market and in enacting wine marketing strategies more effectively.

Details

British Food Journal, vol. 122 no. 8
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 1 January 2001

Phil Bretherton and Peter Carswell

The article gives an introduction to the wine market in China and outlines its development. It goes on to identify the key issues which need to be addressed in order to enter the…

2844

Abstract

The article gives an introduction to the wine market in China and outlines its development. It goes on to identify the key issues which need to be addressed in order to enter the market successfully. These revolve, tactically, around effective mangement of the 4 P's, with distribution and promotion being the most problematic. It would appear that cultural differences and both formal and informal entry barriers point towards a more strategic relational approach if successful market entry is to be achieved. The implications for would‐be market entrants are discussed, as is the need for specific further research into market structure.

Details

International Journal of Wine Marketing, vol. 13 no. 1
Type: Research Article
ISSN: 0954-7541

Keywords

Article
Publication date: 1 February 2021

Linda Bitsch, Shuo Li and Jon H. Hanf

Regarding the global development of the wine industry, China has gained a notable share in terms of wine consumption, and its domestic wine production has increased steadily since…

Abstract

Purpose

Regarding the global development of the wine industry, China has gained a notable share in terms of wine consumption, and its domestic wine production has increased steadily since 2000. The wine production process requires close coordination between growers and processors to avoid disruption and instability in the supply chain of the wine grapes. However, vertical coordination in the Chinese wine regions has received little attention. Based on the existing theoretical background on vertical coordination, this study aims to detect the evolution processes of vertical coordination in the Chinese grape market.

Design/methodology/approach

Exploratory qualitative research fits with the aim of this study. From December 2018 to January 2019, interviews with grape growers and wine processors of various Chinese wine-producing areas took place. After transcribing all recorded files into text, a qualitative data analysis following the approach of Mayring (2015) was used to analyse and interpret the data.

Findings

The models of vertical coordination in the grape supply in China vary between the producer's requirements on grape quality/quantity and the arrangements of grape supply chains, which are diverse depending on regional strategies of the local government.

Research limitations/implications

However, in this research, the authors did not get into details on the organization of the contractual coordination, and due to the limited access to grape growers, the relationship between farmers and processors cannot be analysed in detail. With a better understanding of the coordination relationship and enhanced contract enforcement, the vineyard management and grape supply chain management can be better performed, inducing a steady industrial development.

Originality/value

Regarding the global development of the wine industry, China has gained a notable share in terms of wine consumption, and its domestic wine production has increased steadily since 2000. However, vertical coordination in the Chinese wine regions has received little attention. The study provides a first insight into the grape market structures, as very little is known.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 11 no. 4
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 29 February 2024

Murray Mackenzie, Karin Weber, Joanna Fountain and Reza Abbasi

This study aims to provide insights into wine consumers in Hong Kong and Mainland China, and the diversity of their behavior, by investigating their motivations, consumption and…

Abstract

Purpose

This study aims to provide insights into wine consumers in Hong Kong and Mainland China, and the diversity of their behavior, by investigating their motivations, consumption and purchasing behavior and segmenting the sample based on wine knowledge and frequency of consumption to identify three distinct clusters that are then profiled.

Design/methodology/approach

Data was collected through an online survey of wine consumers of ethnic Chinese origin residing in Mainland China and Hong Kong, using two methods of recruitment (a convenience sample from wine-related databases, a panel survey undertaken by an international market research firm). The final sample comprised 477 respondents, about equally divided among Mainland Chinese and Hong Kong wine consumers. Analysis of the data using the Statistical Package for Social Sciences for Windows (SPSS) 29 included a series of descriptive analyses, followed by a two-step cluster analysis using an Euclidean distance method.

Findings

Wine knowledge and frequency of wine consumption were relatively higher within the sample as a whole than previous studies, but three distinct consumer segments are evident. There is evidence of a democratization of wine consumption, and a greater focus on wine consumption for enjoyment in relaxed and informal settings. rather than consumption driven by health and status, occurring primarily in commercial or business settings. The dominance of red wine in this market is also declining, and intrinsic cues – specifically, prior experience of the wine – are becoming important in wine purchase decisions.

Originality/value

This study uses a broad sample of wine consumers to identify trends in wine consumption patterns and motivations, and purchase decision-making behavior, of Mainland Chinese and Hong Kong wine consumers. The identification of three clusters of wine consumers offers both points of comparison with previous segmentation research globally and within China, whilst also identifying scope for further research.

Details

International Journal of Wine Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1751-1062

Keywords

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