I. Introduction p1
II. Literature review p2
III. Methodology p3
A) Market description p4
B) Competitive environment p5
C) Distrbution p7
D) Regulatory overviews p8
I chose this subject because wine industry is dramatically increasing in China. Infact, China appears as an actor to consider in the years to come. With a growth of the consumption of about 40 % between 2005 and 2010 (against less than 20 % between 2001 and 2005), the request should explode and to place China in the most consumer 10 countries.
I have not especially for ambition to work in the industry of wine or spirits, however, this is a sector which interest me a lot. I'm apassionate of wine. And I consider that this Chinese craze concerning these kind of products is very interesting to study. Several aspects will be observed: sociological and economical evolution, market opportunities, ...
It is a market which attracts lot of attention. So, I think I can access to some information about this subject. Articles, official report or the other information oninternet can help me to formulate a relevant description of the market.
This report will be the opportunity for me to quench my curiosity on the sector. I can make some searches on a subject which interests me.
After China’s entrance in the WTO, the import tariff was reduced gradually. and it is thought that import wine would flood in China's market. Most people believe that domestic wine companywould face high pressure by the import wine with lower price. However, it was not true, only the variety of import wine was increased in the China’s wine market.
This dynamic environment coupled with the increase in the population’s wealth and education
should benefit the wine sector.
Moreover the recession had a bad effect on the wine industry in the old world. A lot o consumers have tospend less money in leisure, and so in wine. However, this situation didn't affect really China. In fact, figures showed that China's wine production increased by 40.8% to 418 thousand tons from January to July in 2009. According to specialist of the sector, wine consumption in China is expected to boom in 2010 with the expansion of wine consumers.
In order to be complete, I chose to handle thisreport presenting the structure of the current Chinese wine market. After that, I will talk about the competitive environment, the regulatory overview. And I will conclude on some perspectives.
II) LECTURE REVIEW
This report didn't rely on theories. It's an analyze of a market. However, if go further I could apply the business approach for SME. In fact, this course is based on “how doingbusiness in China”. And actually a lot of french companies want to penetrate the Chinese market. One of this companies succeed. And its for that, I will support my theory on this case.
DCT Wines is a French importer and distributor in China specialized exclusively in French quality wines.
The company sell at the same time to the professionals of the sector (hotels, restaurants,...), to themass-market retailing like Carrefour, but also to the private individuals and to the companies which can appeal to them for their business presents.
All the imports are made directly from France; there is no agent or commissionaire between the winemakers and the client.
But how they have succeeded there where a lot of companies failed?
Probably because they chose an alternative strategy.While many choose to become established in Shanghai, Peking or Canton to attack then more modest cities, them made exactly the opposite. They launched their project to Dalian. " A secondary city, a little more difficult to live maybe, but a protected market " explain the director of the companies. " It is simple, in Shanghai there is an enormous demand and an enormous offer. To Dalian (where, they...