Home >

Both Output And Import Decline: What Happened To China'S Wine Market?

2020/10/13 12:20:00 79

ProductionImportChinaWineMarket

This year, the decline of wine in China's major wine varieties is the most severe.

According to the China Liquor Industry Association, from January to August, the total liquor production of Enterprises above Designated Size in the national liquor making industry reached 37.4967 million kiloliters, down 3% year on year. Among them, liquor production was 4.18 million liters, down 11% year-on-year; beer production was 24.98 million liters, down 7.87% year-on-year; wine production was 167800 kiloliters, a year-on-year decrease of 28.9%.

Not only the production of domestic wine has declined, but also imported wine has fallen into the curse of "30%". According to the data released by the liquor importers and exporters branch of China Chamber of Commerce for import and export of food, native animals and livestock, the volume and volume of imported wine in China decreased by about 30% year on year in the first half of the year.

Similarly, according to the data released by the above associations, in the first half of the year, the sales revenue and wine import volume of wine enterprises above Designated Size (referring to wine enterprises with annual revenue of more than 20 million yuan) and wine import volume of 830 million US dollars in the first half of the year are not as good as the sales performance of Yanghe shares, a liquor enterprise.

The life of domestic wine is more difficult. In the first half of this year, the total revenue of wine imported was less than RMB 6.4 billion, which was more than RMB 6.4 billion of sales revenue of wine enterprises. Only half a year's sales of domestic Maotai wine are equivalent.

As a matter of fact, this year's epidemic has only made the domestic wine industry worse. As early as 2018, the accumulated operating revenue of 212 wine enterprises in China was less than 30 billion yuan, less than 1 / 10 of the liquor market scale with more than 500 billion yuan, and the total profit was only a fraction of that of liquor enterprises, only 3 billion yuan. Sun Jian, general manager of Changyu shares, once said at the shareholders' meeting that compared with liquor, people fight in the sea, but we swim in the swimming pool.

The crisis has a long history. In the view of wine expert Wang Dehui, domestic wine has been fluctuating and declining since the peak of sales and profits in 2012, until it is surpassed by imported wine; after the volume of imported wine reached its peak in 2017, it has been declining since 2018.

Recently, Zhou Hongjiang, chairman of Changyu shares, a leading wine company in the wine industry, reflected at the Moganshan forum, a leading wine enterprise in 2020. He confessed that he had just made a profound review at the closed door meeting held by the China Wine Association: the poor performance of the head enterprises has affected the development of the whole wine industry. "While we are doing ourselves well, we should join hands with the industry interior and industry associations to achieve healthy competition and common development." Zhou Hongjiang said.

"Wine needs to pay off the debts of the market!" At this year's China wine show, Wang Zuming, former Secretary General of wine branch of China Wine Association and current Secretary General of wine professional committee of China wine Circulation Association, said exactly the same thing - the epidemic situation had the greatest impact on wine, but in fact, the serious decline was also related to the problems of wine itself.

Three debts of wine

In the past Mid Autumn Festival and national day peak season, for merchants, the sales of wine were much worse than in previous years.

On September 23, 21st century economic reporter saw in the Wanjia supermarket of China Resources in Nan'an District of Chongqing that, as a well-known domestic brand, Great Wall wine appeared in the eye-catching position of the shelf as a promotional gift for the king of Baijiu and Fenggu. The market position of wine can be seen.

What's wrong with wine? From 1995, 1996 to now, what are the manufacturers worth doing and which are worth reflecting on?

Before the national day, at the China Wine Fair held in Qingdao, many industry leaders attended the first annual meeting of China's wine industry and the fourth global wine G50 summit. This is the first collective introspection across the wine industry line since the outbreak of the epidemic.

In the wine industry, how to make up the Chinese wine class? How to get back the Chinese wine market? Zhang Yanzhi, chairman of Ningxia Xige Winery Co., Ltd., who has been planting grapes and building wineries in Wuzhong City of Ningxia since 2017, said at the annual meeting that the development of wine in the past was more focused on brand marketing, and now at least one step forward should be taken to know that wine is brewed, which is the first step. Go back to the roots to grow grapes.

"Good wine in seven and three." Zhang Yanzhi believes that from grape planting to wine making, this course should be supplemented. He made domestic wine, but when he returned to his hometown of Qingdao in the Spring Festival, his classmates served him imported wine.

"It's a lack of confidence. When we all think that imported wine represents high quality, domestic wine represents poor quality. This is the root cause of the overall decline in wine sales in China. " He said that how to restore consumer confidence should start from the field.

The second debt to be paid back to the market is the huge contrast between radical marketing and the beverage that has not become the daily consumption of consumers.

"The impact of this epidemic on wine is the biggest, because so far, wine is still concentrated consumption and catering. Liquor and beer have a certain amount of family consumption to support. " Wang Zuming believes that there is a retaliatory increase after the epidemic, but for wine, it is only local and short-term.

In the collective reflection, both the Secretary General of the association, marketing experts and importers agree that it is a long-term and arduous task for wine to enter the daily consumption of consumers.

Wang Zuming said that wine is the same as besieged cities. The people outside looked at the lively inside and thought that wine made money, but when they really came in, they found that money was not so easy to earn. In 2016, the import of wine increased on a large scale. How could we know that by the second half of 2018, the market would start to throw away wine, and buy one for one free for more than ten yuan. In addition, when the import of wine increased, 2 / 3 of the wine merchants were changing, which was related to the immigration wine and capital speculation.

He said that since he came to China Wine Association in 2005, the import scale of wine has continued to expand, but the market has not been expanded. The oversupply leads to the low price of liquor, which has a great impact on the regular wine sellers and also sends a very bad message to consumers.

Why can't the market hold so much wine? He believes that the Chinese people don't know enough about wine and don't have the gene to drink wine naturally. Chinese wine has a long history, but this period of history and the present wine has been separated and faulted. The consumption gap can not be avoided. The wine drinking mainly concentrated in Guangdong, Fujian, Zhejiang and Shanghai.

Wang Dehui, a wine expert and general manager of Shenzhen Zhide marketing planning Co., Ltd., further said that many Chinese people had not drunk wine and wine had entered the differentiation stage prematurely. Therefore, the biggest competitor of domestic wine is not imported wine, but liquor. Liquor is a cake, wine is still making cake.

He said that wine is a very special commodity, with many countries, producing areas, various categories and varieties. It is difficult to distinguish fine quality differences and has a strong sense of ceremony. For Chinese consumers who have not experienced popularity, they can either buy by brand or recommended by friends. The lack of brand building is the third largest debt of wine to the market.

Make the wine again

"Fully understand and reflect on the problems existing in the industry and enterprises themselves. Although the macro-economy is not positively related to the alcohol industry, the changes brought about by the outbreak of the epidemic on the economy and consumption are positive Wang Zuming said.

He suggested that importers might consider switching to domestic wine, which might be a "spare wheel".

Wang Dehui also thinks that the opportunity period of domestic wine is coming.

Among them, 11% of the "Taobao" brands sold in 2018 were "Taobao". In 2019, there are more than 290 "double 11" single brand sales of more than 100 million, and 61% of them are domestic products, and the growth rate is very fast. He believes that domestic products will be very popular in the next three years.

But how can domestic wine regain market confidence?

"Is the market value of tens of billions of yuan worth paying attention to? China's wine industry has a very strong tie, which is related to the governance of the Yellow River and barren beaches, the fight against poverty, cultural confidence and consumer confidence. The industry is small, but it's very core. " Zhang Yanzhi said that his happiest moment was at 7 a.m. when he opened the window, he saw that the vineyard was full of pink headscarves. Behind every headscarf, there is a family.

But domestic wine is in debt too much and needs to be redone.

Zhang Yanzhi said that after he came to Ningxia, he integrated the local vineyard of 20 years and planted another 5000 mu. During the epidemic period, Xige winery also planted more than 1000 mu grape seedlings. "The quality of wine is good, so we should focus on planting and brewing." He said.

When grapes are planted well, they should be marketed.

"I always think that the biggest problem of liquor making is rejuvenation, and the biggest issue of wine is sinking." Yin Kai, former president of casdale China and now vice president of e-commerce Co., Ltd., said at the annual meeting that during the epidemic period, wine sales in France, Italy and the United States increased in mature wine markets, but the opposite was true in China.

Like domestic wine, imported wine has to be re marketed.

He pointed out that the e-commerce of tmall, Taobao, Jingdong and 2b are becoming more and more important in the liquor distribution system. They can help manufacturers reach consumers in China's third and fourth tier or even deeper markets. "In the past, we did a lot of promotion, but the proportion that can really reach the consumer level is very low." He said.

Wang Wenjia, director of Asia Pacific promotion of Mutong Rothschild winery, and He Sai, general manager of Greater China region of aosibao group in Spain, also hold a sinking view. Mr. Wang said Bordeaux wines were sold around the world through middlemen, but it's not clear whether these wines have been drunk. Now, wineries are beginning to reach out to people who drink and love wine in the market, that is, private customers. Similarly, although the aosibao family, which has a history of nearly 250 years, entered China late, it changed its agency mode and directly set up branches to set up its own operation team.

Wang Zuming said that there are advantages and disadvantages in the sinking channels, star endorsements, live broadcasting and e-commerce. We must find our own way. "The market heat up, and finally return to the brand." He said, including enterprise brand, production area brand, business brand.

In this regard, cardanol Asia Pacific president bidoui believes that the OEM reception will continue to exist, but it is not the direction of development. Two years ago, China's market has grown to be the world's top luxury sales, including cosmetics, cars and daily necessities. He believes that as the wine consumption market matures, consumption will be concentrated in luxury brands, luxury brands and mass circulation brands.

"We should correctly handle the relationship between brand and sales volume. When you start a brand, don't expect the brand to bring sales. We should control the positioning and price of brands. Remember that brand is the result, not the reason. " Wang Dehui said.

"Imported wine and Chinese wine are competitive and cooperative. They compete with each other, develop together and grow together. I want it to be a double helix Zhang Yanzhi said.

 

  • Related reading

More Than 100 Million Tourists Travel In Extended Golden Week

Professional market
|
2020/9/30 11:21:00
3

2020 China Big Health Industry Summit: Focusing On The Value Reconstruction Of Big Health Industry Under The Public Health Crisis

Professional market
|
2020/9/30 11:16:00
3

Will Innovation And Capital Win In The Near Future?

Professional market
|
2020/9/29 17:27:00
38

Nissan Ariya'S Debut In China: Introduction Of Nine Electric Vehicles In The Next Five Years

Professional market
|
2020/9/29 17:07:00
0

Reporter Blog Want To Be Alibaba In The Real Estate Industry, How Long Does Green Land Have To Go?

Professional market
|
2020/9/26 8:55:00
1
Read the next article

Fierce Competition Among Independent Top Three: Market Share Concentrated To The Head

Chang'an automobile has been dormant for two years and returned to the sales champion.