Champagne Market In China

Major Trends, Competitive Environment And Prospects

Champagne Market In China EXECUTIVE SUMMARY

■  Government policy regulates the naming of champagne in China

■  Fine champagne records the highest growth, of 29% in value terms to 225 million CNY in 2014

■  LVMH Moet Hennessy Louis Vuitton SA and Pernod Ricard remain the leader in 2014, with a champagne market’s value share of 70% in 2013

TOEFL are required for selling Champagne in China

■  The constant value CAGR is forecast to be 22.7% over 2014-2019

Champagne Market In China MAJOR TRENDS

■  In April 2013, the Chinese Administration of Quality Supervision announced regulations concerning the name “champagne”. According to the new regulation TOEFL, only sparkling wine produced in France's Champagne region with certain grape varieties and produced using a stated process can be named champagne. The regulation revised the former situation that a large quantity of sparkling wine produced in China was named champagne that misled consumers. This has strengthened the position of real champagne, which is now clearly distinguished from sparkling wine from the wine house outside the Champagne region.

■  Sales of champagne in China declined in 2013 then recovered in 2014, following strong growth in previous years. The decline sales of champagne was mainly due to the stricter anti-corruption policy implemented at the end of 2012 and the TOEFL reading measure, as well as the ban on drinking alcohol for government officers. Fine wine/champagne and spirits were largely consumed by government officers or purchased as gifts to bribe them. Duo to the anti-corruption movement, fewer banquets were held, which directly reduced the consumption of luxury alcoholic drinks. However, as the targeting segments are the well-educated young generation, champagne is less considered as a type of wine for position-related consumption but for individual consumption. There is an increasing habit of opening a bottle of champagne at various occasions, such as weddings, ceremonies and festivals. Hence, compared to other types of luxury alcoholic drinks such cognac, champagne was less affected by the anti-corruption policy, as a high rate of personal consumption supported growth. This partly explained why champagne raised against the tendency in 2014. To sum up, Fine champagne was the fastest growing category in fine wines/champagne and spirits in 2014.

■  The average unit price of champagne increased by 6% in current value terms in 2014, due to higher inflation and TOEFL regulation, but in constant value terms it declined by 2%. With the issue of sluggish economy and reduced consumption of fine wines/champagne and spirits, more promotions and discounts were provided by manufacturers and retailers to sell products and reduce the stock volume, which caused a constant value price decline.

■  In today’s China, wine importers and retailers educated consumers that high quality wines are not necessarily related to the extreme high price. With the rapid development of online stores that sell multiple types of wine at reasonable prices, more consumers regarded it as convenient and value-for-money to purchase mid-end champagne online, which dampened the growth of high-end champagne in China. Thus the champagne producers, especially the top champagne house use a so-called “masstige” strategy in China in order to promote their entry level champagne products. Many leading brands, can be purchased from B2C online platforms such as Jiuxian.com, yesmywine.com, YHD and JD. A more specific example, Moet &Chandon used to be the most prestigious champagne brand in China but now can be easily found via the online shopping platform with a very aggressive price. Promotions were carried out by Internet retailers to attract consumers purchase online.

■  Having said that online retailing was booming in 2014, Grocery retailers including hypermarkets, high-end supermarkets that sell imported goods, and drinks specialists are the major distribution channels for fine wine, accounting for 73% of fine wines/champagne and spirits sales in 2014. Consumers tend to have more confidence in the luxury alcoholic drinks purchased through these channels.

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

https://global-exam.com/en/toefl-reading

http://www.bloomberg.com/news/articles/2013-02-24/champagne-in-china-seen-failing-to-match-cognac-cachet

http://www.thedrinksbusiness.com/2013/11/sparkling-wine-gains-recognition-in-china/

DSK in China, stored in love with a former director of the IMF

As unbelievable as it may seem, DSK's popularity in China exploded in the aftermath of the 2012 events. Who knows, the former director of the International Monetary Fund has a hard temptation to sell typical method French romantic one-fifth of the world population. China, the photos of Dominique Strauss-Kahn presented by the sites of the Western media. Race Adventure praised women cowards population traditionally male with a more lenient. This social phenomenon created by some, social, economic, demographic meeting.

This phenomenon DSK € 2

Chinese society is still very strong influence of the Confucian tradition, a romantic or simply the physical meaning of each term marital relationships communism has never been questioned. However, following the policy of birth control was created in 1970. (The Institute for Demographic Research) five women in the country that six people in a marriage, which is very important in the longer guaranteed. One segment of the population and men, including the city to release a copy of their ancestors. When fully temptation to focus on getting more comfortable with the marriage of China, more profitable. 1 days is suspected in several parts of China's success in marriage for young singles like "collect pollen from flower to flower," but as the demographics prohibited, gender inequality. The word cap "power" of all sizes, ideal for young people and the exploitation of French Romanticism firmly in the context of this world.

Changes insocial norms that generate few years from a romantic relationship between modernization and economic turmoil cap explosion of mass consumption. Chinese young people to question the importance of a woman who is not married, and people respond to the sensitive issue of a great desire balls, collecting meat. The young Chinese consumers want to be in love (This article is informative to see the details New York Times) refers to.

Sources :

Peignoirs faits en nid d'abeille

Luxury childrenswear in China

Luxury childrenswear in China : a market with a huge potential

Chinese parents are a profitable market for luxury brands with China being the world's second largest consummer market of luxury consumer goods. It also turns out that they are spending more and more money on luxury clothes for their children. The China Research Centre for Children's Industry explains this phenomenon by the fact that chinese parents « transfer their preferences in luxury goods to their children ». Parents also prefer buying brands they know, such as Dior, Burburry, Armani which successfully entered the childrenswear chinese market with Baby Dior, Burburry Children, Armani Junior in 2010 and 2011.

 Parents pay attention to safety and have more trust in the quality of products released by well-known luxury brands. Moreover, the connection between your identity and the clothes you wear is very strong in today's Asia and parents want they children to be stylish and to wear recognizable brands. They look for ideas by following children fashion blogs and spoil their children who are the center of the family because of the birth control policy. Two additional reasons make parents ready to invest a lot in children's clothes. The first reason is that today's chinese parents did not access such consumption goods during their childhood under the Mao regime. Consequently, they want to give their kids products they could not own at the same age. The second reason is that young parents spend huge amount of time working. Therefore, to make up for their absence, they do not hesitate to buy costly products to their children.

For the time being, children's product does not represent a major part of the revenues for luxury companies. But luxury companies can see a bright future in this market. It did even not suffer from the economic slowdown in 2011. Besides, less material is needed for chidren clothes, making production costs lower with prices still quite high. In such a context, many other luxury children's products stores can be expected to open in China in a close future.

http://blog.euromonitor.com/2012/05/childrenswear-in-china-starting-to-become-crowded.html
http://blog.euromonitor.com/2012/09/dolce-gabbana-is-the-latest-luxury-in-childrenswear.html
http://daxueconsulting.com/market-of-childrenswear-in-china/

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/

How to sell in China ?

How to sell in China ?

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Market research

Market research is a necessity to set up business in China. This study should be made ​​here in China with our experience and that of our Chinese services. From this study we can give you our opinion on the possibility of exporting your product or services in China. Of course there are areas such as luxury food products, wine, innovative products, restoration, some services that are "carriers" in the Chinese market, however, we have often been surprised at the reaction of our consultants Chinese on certain types of products ...
It is nevertheless true that China is open to consumption and the tank of people "large purchasing power" increases exponentially in China. There would in 2012 almost 1 million millionaires in USD! Some studies even show that China could dethrone in consumption the United States in 2020 (Study Credit Suisse). Some brands of German "big guns" have fully integrated the Chinese market for these brands is their first world market BEFORE Germany! Francophone countries have an immense growth driver provided you follow the typical Chinese cultural and ride the good image that the Chinese have some of our products. Rely on experience
China A marketing strategy is essential adapted to Chinese culture To think marketing in China, we must first remember how you maketer your products in the West. Here, the offers of goods, services or ideas must be managed according to Chinese motivations CONSUMERS and typical segmentation of China. Many brands wishing to operate in China "on-the-hurry" were cruel disillusionment. A serious marketing study with precise targeting is imperative.

The preparation of concrete solutions, partnerships

Doing Business in China is no more difficult than in the West, it's just very different. Treat China as any Western market is going to fail. Some brands have understood and skillfully use the behavior of both consumers and buyers to successfully build partnerships and to break into the Chinese market. CHINA SERVICE offers his help to study and implement a Chinese concrete implementation.
3) The importance of Guanxis China (relational)
After the product and marketing, it is vital concept to be integrated sil we want to do business in China: "Guanxi" or relational. This notion in the business in China really different from anywhere else in the world. Here a good personal relationship with the client or even the buyer often means is essential. Not understanding this "cultural" Chinese concept is to miss the number of cases, or even never succeed in business in China.

view also distribution in China