Archive for August, 2010
True or False statements about Chinese wine drinkers and the Chinese wine market
1. Only cheap wine is marketable in China – False
Notes: Wine Intelligence has estimated there are 34 million “upper-middle class consumers” in China, which should rise to 82 million by 2025.
2. It is a good idea to work with one distributor in China – False
Notes: Most wine distributors in China are regional. If your distributor is based in Guangzhou, their distribution channels are probably located in the Pearl River delta. You may wish to investigate the distributor with whom you are working. It is wise not to have an exclusivity relationship until the distributor is able to have a nationwide distribution network.
3. Wine bottled in small bottles (not more than 2 liters) is becoming popular in China – True
Notes: The number of small bottled wine imports has been increasing since 2007, reaching 910 thousand hector liters in 2009, exceeding the number of large bottled wine imports for the first time.
4. Chinese drinkers mix wine with soda – True
Notes: Drinking wine this way may not be appropriate, but Chinese drinkers enjoy it. Most of them like a sweet wine that has a low alcoholic content or no alcohol at all.
5. Producers can do nothing to promote ...
Who has driven the spending power in China?
Who has driven the spending power in China?
It is known that China is a major supplier to the world. However it is unknown that China is a major consumer of world’s luxury goods. In fact, China is the third largest luxury goods market in the world, accounting for 12 percent of sales worldwide in 2006 and it will become the world's second-largest purchaser of luxury goods by 2015, accounting for the sale of 29 percent of all luxury good sales worldwide.
Who has driven the spending for the luxury goods in China? The answer is the expanding middle and upper middle class. Let us take a look at the definition of middle class and size of this growing population inside China
Definition of “Middle class
In February 2009, the Economist magazine announced that over half the world's population now belongs to the middle class, as a result of rapid growth in emerging countries. It characterized the middle class as having a reasonable amount of discretionary income, so that they do not live from hand to mouth as the poor do, and defined it as beginning at the point where people have roughly a third of their income left for discretionary ...
Crossing Zhujiang River by ferry
During my recent visit in Guangzhou, China, I stayed at White Swan Hotel situated on the bank of the most famous ZhuJiang River. The river looks exceptionally beautiful in the evening. I felt spontaneous and courageous after the dinner cross the river from the hotel and decided to get back by ferry in stead of by taxi. The ferry cost me RMB 50 cents and granted me a priceless experience.
Crossing Zhujiang River by ferry
Selling to the world’s second largest economy…China
China has become the world’s second-largest economy. It is encouraging for companies that are looking for ways to sell to China. There is a large consumer market and fast growing up-middle class who can afford luxury goods. Many industries in addition have presented opportunities as well.
So what are the starting points for you? Our first piece of advice is that do not rush into doing things in a foreign market that you won’t do in the domestic market. China’s strong economy is going to be there for a long period time. The right things to do for someone who is new to China are as follow:
• Understand the local consumer culture in the context of your products and service
• Learning about your competitions, local companies and foreign companies
• Understand the import and industry regulations prior to shipping the goods
• Identify a niche market where your products demonstrate strengths
• Do a thorough market research including a number of cities throughout the country.
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