The Woolmark Company in China

The Woolmark Company educating Chinese consumers about the properties of the Australian Merino wool

The Woolmark company has invested a lot in campains aimed at making Chinese consumers become familiar with the Australian Merino wool. Media events were held : for exemple, television episodes  introduced to the Chinese public the story of the prestigious fiber. In 2011, the Woolmark company began a collaboration with the Chinese clothing company the Enphants to educate Chinese consumers and make them understand the natural health benefits of merino wool for baby and mothers. With Chinese parents careful to buy quality and safeproducts for their children, the campain insisted on the properties of the naturally-moistered fiber which regulates the body temperature, prevents the skin from becoming clammy, and provides a comfortable environment to sleep. The Woolmark Company successfully presented its Mothers and Babies program’s Merino Mini collection at the Children’s, Baby and Maternity Expo (CBME) in Shanghai : this allowed the company to catch the attention of Chinese visitors who were seduced by the features of the Australian fibers previously unknown to them.

This year, the presence of the Merino Wool at the 22nd China International Clothing and Accessories Fair (CHIC) in Beijing shows the extent to which The Woolmark Company helped the Australian fiber gain momentum on the clothing Chinese market.  The Woolmark Company's Chief Strategy and Marketing Officer Rob Langtry seems very satisfied with the effects of the compains : according to him, « Chinese consumers are now showing a real interest in ingredient branding. That means not just the garment itself and the style of it, but the story behind it - how the fabric is made, where the fibre comes from, and what makes it special. »
The Woolmark Company is very confident for its future on the Chinese market and took the opportunity of exhibiting at the CHIC to go on educating Chinese consumers about the properties of the wool and to inform them of its collaboration with Chinese fashion retailers such as Youngor.

http://www.just-style.com/news/woolmark-and-eve-group-collaborate-in-china_id123729.aspx
http://www.theland.com.au/news/agriculture/sheep/wool/woolmark-spices-up-awards/2718164.aspx
http://www.vogue.com.au/fashion/news/the+2015+international+woolmark+prize+judging+panel+is+announced,34421

The market condition for domestic wine makers

Wine culture in China

While wine consuming demand is declining in Europe, growth in the United States is dragging down, there is only 1 growth area where the market potential for wine is still up swinging: Asia. And China is the most distinctively performing wine market in Asia in terms of both volume and value growth. Now China is the fifth largest wine consumer in the world, with an emerging and growing middle class and constantly increasing demand for premium lifestyle. They are typically located in cities, holding more disposable income and are willing to spend on high quality products and have fun, and wine, especially imported wine has becomes one of pastimes that satisfy them just fine. Without a doubt, wine occupies an important place in the culture and life of Chinese people. Ordinary Chinese people have always use alcohol to celebrate the happy moments in their lives, if a baby was born for 100 days, parents would people in for a drink; when someone builds a new house, marries, starts a business, makes a fortune or lives a long life, he surely will invite people in for a drinking session. It seems also true that friendship only depends on the volume I'd drink being consumed, "if we are good friends, then bottom up; if not, then just take a "sip" "is a common phrase cited when making a toast in gatherings.
A promising domestic wine market
Even though Chinese government launched a crackdown campaign on extravagance and corruption which leads to its officials cutting back on lavish spending on premium wine either during lunch with visitors or meeting important superiors, for general public, they still enjoy the accompany of friends and wine; besides, Chinese people's drinking pattern has gone through a major change from rice or grain made wine to red or white wine due to the health benefit associated with red wine. But China's wine market seems predominated by red wine over white one. This predicts a upcoming continuous booming of wine industry. Chinese wine consumption has experienced a sharp increase in total in the past decade from 246.9 mhl to 964 mhl according to data source generated by Anderson and Nelgen In 2010. Current consumption per capital in China was 1.2 liters in 2012 and still has room for increase. The imported wine accounts for 25% of volume sales in China in 2012, with a soaring growth of wine imports from 12.5 mhl to 162mhl including bottled wine, bulk wine and sparkling wine, which confirms that China is rapidly emerging as an appealing market for foreign wine makers.

Major players in domestic wine market
Despite the thriving wine imports, China's domestic wine market remains at an early stage of development both in light of domestic wine makers and consumers. The annual consumption of wine per capita is still low compared to that in other countries. Also consumers treat wine in the very beginning as a symbol of social status, a fashion. Wines are consumed one shots after another with the objective of getting drunk rather than enjoying it slowly, even it is for luxury imported wine, more often than not, imported wine is served to impress a guest or a business partner or use as a gift. In addition, Chinese consumers are prone to separate eating with drinking, which is a simplistic mentality that requires more wine information and education.

As for domestic wine makers, it is quite obvious that Chinese wine production still has a long way to go compared with the profound historical heritage in Europe and the favorable natural conditions granted in United States, Australia and New Zealand. And it is not ready to compete with famous international brands not only in high-end wine market. Yet China's highly potentially consumer wine market gives market participants an opportunity to shape it to their advantage. There are estimated 500 wine production sites nationwide, but only 10 of them has the capability to produce more than 10,000 tons of wine annually. Moreover, only an estimated 50 wineries are able to produce wine in conformity with international quality standards. The major players in domestic wine market includes Changyu, the biggest winery in China, headquartered in Yantai, Shandong Province, which according to International Journal of Wine Research 2009 is among the main grape and wine producing areas lying in the northern part together with Shanxi, Beijing, Henan, Hebei, Tianjin, Jilin, providing around 87% of entire domestic wine supply. The company owns the oldest wine cellar in China, builds Chateau Changyu-Castel in Yantai as well as in New Zealand and operates an integrated business with their own vineyard, harvesting, crushing grapes, making it to wine and bottling it. Changyu also needs to source grapes and grape juice from independent growers for producing lower-priced products. 

Another domestic wine maker is China Great Wall, based in Hebei Province. This company not only established Vineyards in Shandong Province, but also bought vineyards in France and Chili to improve wine quality, enhance its international competitiveness, therefore to expand its business to overseas market. And its product ranges from budget-end wines to high-end ones. While Dynasty, another top brand in China's wine market, is a joint venture founded by Tianjin City Grape Garden and Remy Martin(a French winery) and presents itself as a premium wine producer. Dynasty is especially strong in coastal cities like Shanghai, Hangzhou and Suzhou. All the top local brands enjoy high brand loyalty, in the meantime, they import vine cutting technology from overseas and still focus on low-end wine market. 

By Daxue Consulting
Source:

1.       http://www.hkiwsc.com/press-news/192

2.       http://jingdaily.com/the-five-main-factors-shaping-chinas-booming-wine-industry/

3.       https://www.decanterchina.com/en/index.html?article=674

4.       http://www.voanews.com/content/chinese-working-to-improve-domestic-wine-industry/1494422.html

5.       http://www.sjgrand.cn/wfoe-set-shanghai-pilot-free-trade-zone

6.       http://researchforchina.wordpress.com/2014/12/02/china-wine-market-analysis/

Distribution of the Lobster Project in China

Desk research about the lobster advertising in China

Nowadays, more and more people like eating lobsters because of its high protein, and the distributors and other concerned people are paying more attention to the lobster advertising. Therefore, I will analyze the lobster advertising case from the following parts: television advertisements,digital marketing, billboard advertisements and theme activities.

Television Advertisements:

Ø  Actualities:

There are a lot of restaurants and hotels selling lobsters, however, I can’t find many television advertisements about lobsters. I only find that commercials about the Tenth Session of XuyiInternational Lobster Festival in China were played on CCTV1 and News Channel.

Ø  Analysis:

There are few television advertisements about lobsters. Nowadays, the number of people that are watching TV is decreasing and the aged who generally have retired are the main part. However, the main consumer group about lobsters is income generation.Also, the advertising expenses are high.I think the reason why there is low number of television advertisements about lobsters is that there aren’t many beneficiaries and the pay is not proportional to the income.

Digital Marketing:

Ø  Actualities:

F  There are a lot of electricity companies and websites advertising and selling lobsters, such as jd( www.jd.com), taobao, alibaba and yhd(yihaodian), and they also promoting lobsters to increase its sales and popularity.

F  There are many passages and blogs online telling the benefits of eating lobsters.

F  A lot of merchants advertise their lobster menus on the group buying sites such as nuomi, wechat and dazhongdianping, and use the deals to attract customers.

F  Some merchants advertise their lobsters on the TV show pages online to get more attention.

F  They advertise all kinds of lobsters especially those imported from abroad.

Analysis:

There are various digital marketing ways to advertise lobsters and a large number of merchants are willing to advertise their lobsters on the Internet. On one hand, adults and teenagers are more likely to surf the Internet, on the other hand, the advertising expense on the Internet is relatively lower. So the merchants can get more profits and cost less.

Billboard advertisements:

Ø  Actualities:

F  There are a lot of billboard advertisements about lobsters when the Lobster Festival is coming. The billboards are mainly distributed on the subway stations such as Xujiahui Station.

F  The merchants who advertise lobsters by billboards are mainly electric companies and upscale hotels. 

F  The color of billboards advertising lobsters is bright and patterns are superior in quality, which can attract busy persons’ attention and increase their appetites.

Ø  Analysis:

The billboards on the subway station can be seen by thousands of people every day, and it is the best way to advertise and popularize lobsters. Also, the merchants who advertise lobsters by billboards are often financially strong companies for the expenses are so high that small shopkeepers cannot afford it. Therefore, the merchants advertising lobsters via billboards should take the proper advertising timing into account.

Theme Activities:

Ø  Actualities:

F  Xuyi International Lobster Festival in China has been held from 2001 and it isheld every year.

F  Rocky Liang, Michael Minhong Yu, Faqiang Shang all recommend the book “How to Sell Lobsters” (It is a kind of metaphor but propagandizes lobsters in some way.)

F  4^th Hubei Qianjiang Lobster Festival in China has been held on 12^th June, 2014.

F  Hefei Lobster Festival in China has been held from 2002 and it is held every year.

F  The participators are mostly manufacturers, vendors and local residents.

Ø  Analysis:

There are some large continuous lobster celebrations in Chinabeing held every year and they have made lobsters more popularization. These celebrations are more promoting the lobster culture and offer time to people for gathering together, which can advertise lobsters and also increase the sales because people in China always have a great meal when they have festivals or parties.Therefore, we can increase the number of lobster festivals and the scale of the celebrations to enhance people’s awareness of lobsters.

Conclusions:

The number of lobster sales in China has a profound prospect and the lobster advertising in China is not saturation. Therefore, the merchants can enhance the lobster advertising in China. From the analysis above, digital marketing advertising and billboards advertisements are the better ways to advertise lobsters. Theme activities can improve the local lobsters’ reputation. Television advertisements relatively seem to be a non-ideal way for now.

China is a masculine society now and 23% people in China prefer to surfing on the Internet. Also people in China often entertain guests with lobsters and send lobsters as gifts to friends and colleagues because they believe lobsters are the proper gifts.What’s more, almost a hundred million people go out every day. Therefore, we can put more efforts on advertising lobsters via digital marketing and billboards, and create some new festivals and activities to disseminate the culture of lobsters.

By Daxue Consulting

http://www.downeastinstitute.org/the-lobster-project.htm

http://www.neaq.org/conservation_and_research/projects/fisheries_bycatch_aquaculture/aquaculture_research/american_lobster_aquaculture_research/projects/index.php

http://daxueconsulting.com/market-research-china/