Le vin en chine

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The imports of foreign wines in China and the opportunities of development:

I) The imports of foreign wines in China :

Why foreign wines are successful in China?
Chinese people prefer more red wine than white wine; the red wine represents 80% of their consumption, and the white wine only 20%. The consumption of foreign wine in Chine, increase constantly, on one part becauseof a fashion phenomenon, and secondly for the recognition of a high social status. Wines are principally chosen in function of their price, their packaging, their advertising, their origin, and the recommendation made by the close friends. The consumption is still occasional: the consumers prefer sample some wine only for special occasion rather than during a meal. The Chinese New Year, the 1erMay, the national holiday are the period during whom importing realize their essential turnover.

Recognized for their qualities, in particular in urban area, foreign wines remain nevertheless not really affordable for the middle class. The potential consumers of westerns products are concentrated on the coastal area and around the big metropolis like Beijing or Shanghai.

The importsincrease from year to year.

=> In 2007, the imports of wines were in volume of 1100 millions of hectoliter (+81% comparing to the year 2006) and in values of 188 millions of Euros (+71% comparing to the year 2006)

-The imports of wine in bottle overtake the imports of wine in loose.

The growth of wines imports is today; pull by the wine in bottle which answers to anincreasing request of Chinese consumer for some wines with good qualities.

However, the imports in loose in volume are still important, because of the absence of quality in the Chinese production which necessitate to turn to some dilute practical.

-The French position in China: France is the first foreign supplier in China.

French wine are considered as the best in the world;actually France is for the Chinese people THE wine-producing reference. However Chinese people have a little knowledge about French wine, furthermore the most majority of Chinese people are only occasional consumers.

In values: in 2007, 32 countries provided wine in China. France is at the top position with 35% of market share (so be it 63 millions of Euros), following by the Chile, theAustralia, the Italy, and the Spain. France, Chile and Australia represent 73% of the total imports of wine in values.

In volume: in 2007, the Chile is as the top position with 743 000 HL (+50% comparing to the year 2006), following by the France (210 000 HL, + 14% comparing to the year 2006), the Australia, the Spain and finally the Italy. Spain and Italy are competitor in the low rangesegment. The consumers see in this kind of wine, a good substitute to the French wine, when they are so expensive.

In 2008, the France with 45% of market share in value and 37% in volume (of the wine in bottle) is always a leader, in front of the Australia (20% of market share) and the Italy. In 2007 (comparing to 2006), the growth rate in values was +160%, and in volume 125%. Since fiveyears the rate is in constantly rise, and is at this day unequalled.

The exports of French wines in China.

In accordance with the French customs, France provided for 73,5 millions of Euros of wine in Chine in 2007. In 2007, China is the 13th customer of the France in volume and the 12th in values. The market is still moving towards the red wine, which constitute 85% of the totalof the exports of the French wine in the direction of China. However, some years (as in 2003), we can noted that the champagne has known the highest advance in terms of volume (+150%).

Nowadays, foreign wines are affected by two major obstacles: lack of legibility and high selling price. The imported wines have a dominating position in the category of wine with excellent qualities...