AUGUSTIN MISSOFFE
@amissoffe // @GroupeSopexa
MANAGING DIRECTOR
SOPEXA AGENCY CHINA & HK
8 Years in ChinaExpert in Communication
Digital StrategyID: augustin_missoffe ID: SOPEXA Agency
Your Speaker
Chinese Wine Market
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Chinese
Market
Snapshot of the Chinese market
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8 123 USD
GDP / inhabitant 2017
6,7%
Growth of the GDP 2017
1,412 MILLIARDS
of inhabitants
Source: Business France 2018
58%
Urbanization
18%
Of the worldwide population
5 046 USD
Average income / person
in cities 2017
A market in evolution
70% of women in cities work
Rapid growth of the purchasing
power of the middle class
819 millionaires in China
against 585 in the USA
End of the only child policy
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Chinese
Wine Market
Snapshot of the Chinese wine market
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Source : Vinexpo 2017
21.7 billion USDChinese wine market value by 2020
Snapshot of the Chinese wine market
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Source : Vinexpo 2017
Wine imports :
386 M EUR
5th biggest wine market in the world
2nd biggest wine market in the world by 2021
Consumption : 1,4L / person / year in 2018
Consumption : 2.2L / person / year by 2021
The market with the strongest growth worldwide &
strongest growth potential : + 8.7% between 2016–2021
Insights on the Chinese wine market
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Source : Wine Intelligence, Global data, IWSR
The imported wine market is fragmented, with some
major groups such as DBR Lafite, Castel, Pernod Ricard,
GCF, Penfolds (Treasury Wine Estate) and Viña Concha
y Toro, well established with strong distribution networks
in the different provinces and with well-identified brand
products.
China is still an emerging wine market. The wine market
is becoming more mature in the big coastal cities such
as Shanghai, Guangzhou, and to a lesser extent Beijing.
There is a rise in the level of knowledge of
professionals and consumers. The number of amateurs is
increasing among millennials and women. At the national
level, wine consumption remains very disparate, but
growing for about 10 years.
Insights on the Chinese wine market
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Source : Wine Intelligence 2018, Business France 2018 - April 2018 rate
Importance of CHR networks (on-trade): more than 11,000
starred hotels and 50% of the distribution of wines and spirits
in China. Chinese restaurants serve mostly Chinese wines
(average price 150 - 300 RMB per bottle). Imported wines are
however appearing in traditional catering (best-selling imported
wines around 250 RMB).
Specialized wine store is the 1st retail channel for wine purchase
(for 58% of consumers), followed by e-commerce platforms as
Yesmywine, Jiuxianwang, Tmall, Yihaodian (for 48% of
consumers) and hypermarkets on the decline compared to
previous years (40% of consumers).
GMS, e-commerce & convenience store: average wine price
between 35 and 200 RMB (between 4.7 and 26 EUR).
41
27
10
6
53
France Australia Chile Spain Italy USA
Market share in value
China is still discovering
Portuguese wines
KEY FACTS #1
Sources: Wine stats
* average annual growth rate
Portugal is 9th in terms of awareness and consumption
among imported Chinese wine drinkers with only 41%
customers knowing the wine.
Wine professionals know only few regions of Portuguese
wines, which exportations are increasing:
- +23,6% for Dao/Bairrada/Douro
- +268,6% for Madeira/Setubal Moscatel
- +67,1% for Porto
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Portuguese wine have no
clear positioning on the
Chinese market yet
KEY FACTS #2
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Portuguese wines do not resonate in consumers mind, as there
is no clear positioning in terms of image and emotion. However,
country of origin is the most important factor in the buying
decision in China.
In addition, the country is suffering from an entry level
positioning that is harmful for its image because it translates in
low quality among consumers.
Portuguese wine with the lowest
price are the one that sells the most
Xiji ZHU - CEO/Owner -Koudai Celler
“”
Sources: Wine Intelligence
The awareness from consumers about the product is
low. There is no specific positioning or image for
Chinese consumers. Overall, the notoriety of
Portuguese wine is very low which blocks purchases
from wine lovers.
Linda - Brand Manager - Aussino”
“
13
Portuguese wine have no
clear positioning on the
Chinese market yet
KEY FACTS #2
of anticipated growth for
Portuguese wine by Chinese wine
professionals in 2018
rank in referencing growth by
country of origin for Portuguese
wine among Chinese wine
professionals in 2018
3%
12
Sources: Wine Intelligence, Wine Trade Monitor, SOPEXA 2018
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Despite importing Portuguese wine for more than 10
years, the volume of references is still very low.
Their knowledge on the products is also extremely low.
However, they are the key actors for the distribution of
wine in China.
A strong potential for
Portuguese wine diversity
and excellence in China
KEY FACTS #3
Portuguese wines have a big potential in China. Its rich and
full taste is well matched with China where we consume
wine generally at the dinner.
Xiji ZHU - CEO/Owner -Koudai Celler
“”
Sources: Wine Intelligence, Wine Trade Monitor, SOPEXA 2018
of Chinese consumers are curious
to experience new wines+50%
No. 1 Trend by Chine Wine
professionals is regional wines
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A strong potential for
Portuguese wine diversity
and excellence in China
KEY FACTS #3
China is the 2nd biggest market for premium wines.
The premium segment is the fastest growing (+ 16,5% between
2015-2020) with an increased interest in premium wines and a
greater demand for higher quality wines.
Younger consumers especially are looking to branch out,
experiencing new products while increasing their wages.
Thus it is essential for consumers to discover the large variety of
premium wine that Portugal has to offer.
Sources: Wine Intelligence, IWRS
of Chinese imported wine
drinkers consider that it is often
worth spending more to get a
better wine
90%
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More and more young wine consumers have a good
knowledge and are looking to discovering new quality
wines.
Felix ZHANG - Sommelier - Hakkasan Restaurant
“
”
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SWOT
- Positive image from the
Chinese market thanks to
the most popular
Portuguese wines
- The origin and know-how of
the Wines of Portugal is a
solid asset that inspire
professionals
- Lack of knowledge from the
Chinese trade professionals
and media
- The diversity of the Portuguese
wines does not resonate in
Chinese minds
- Entry level positioning that
tends to lower its reputation
- Consistent increase of
imported wines in the
Chinese market
- The diversity of the
Portuguese wines is a strong
asset that can leverage
interest towards Chinese
consumers
- Regional wines is the first
trend by Chinese wine
professionals
- Intense competition with
other countries from old
and new world that try to
conquer the fastest
growing market
- New world wines emerging
that manage to get
attention to Chinese
consumers with strong
marketing activation
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
17
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MARKET TRENDS
Consumers are influenced by the country of origin, quality indicators and wine description
The wine sector is clearly dominated by still red wine as the market is not mature yet
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The future of imported wines is bright due to increased home consumption
Consumers want to discover new wines
The premium segment is the fastest growing followed by the standard segment
Regional wines are growing the most on the Chinese wine market
Consumers
SOCIAL NEWBIES:
younger consumers who are new to the wine
category. They are just beginning to learn
about wine and see it as an interesting and
social drink.
HEALTH SIPPERS:
price-conscious wine drinkers with a
narrow repertoire. They drink wine
occasionally for its perceived health
benefits.
FRUGAL OCCASIONALS:
low-engagement, infrequent wine drinkers who drink
wine mainly to celebrate special occasions and choose
based on price.
9%
16%
22%26%
18%
9%
DEVELOPING DRINKERS:
consumers developing a habit of drinking
wine because they like the taste. They exhibit a
growing interest in wine and are beginning to
see wine as important in their life.
ADVENTUROUS CONNOISSEURS:
High spending, frequent wine drinkers who are confident
in their wine knowledge and have a broad repertoire of
origin, varietals and brands.
PRESTIGE-SEEKING TRADITIONALISTS:
conservative, high-spending consumers
who particularly favor French wine, and
who choose imported wine because of the
associated prestige and social status.
Chinese wine consumers
Source : Wine Intelligence 2018
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51,6 millionUrban upper-middle class
imported wine drinkers
47%of imported wine drinkersare women18-29 yo
34% of imported winedrinkers are Millennials
32 millionMonthly imported winedrinkers
Zoom on the new wine consumers
Source : Vinexpo/International Wine and Spirit Research/Wine Intelligence
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Chinese Consumer are Over-Connected
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751 MILLIONS
Using internet
Penetration: 53%
1,119 MILLIONS
Have a smartophone
Pénétration: 79%
911 MILLIONS
Are active on Social Networks
from they mobile phone
Penetration: 65%
1,412 Billions
unhabitants
Urbanisation: 58%
39,8 MILLIARDS
Hors spending on the Social
Networks
86%
Are using Mobile Payment
Source: Hootsuite 2018
Chinese consumers
over-connected
LOCAL ECOSYSTEME
HIGHLY ACTIVE
BIG PLAYERS IN ALL
SECTORS
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60 secinternet
in China
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24
ALIBABA
*GMV: Gross Merchandise Value
ALIBABA – SINGLES DAY – GLOBA LSHOPPING FESTIVAL 11.11.2018
Entry Barriers
Entry barriers
• Registration required with the CIQ (Chinese Quarantine Service)
• Chinese counter-label required
• High taxes : tarifs - 14% ; consomption tax - 10% ; VAT - 16%
• Distribution : Wine producers need a wide range of distribution channels to sell
products, supermarkets are buyers of strong bargaining power
• Beware of transport, logistics, as well as trademark registration !
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Key Success to increase
awareness in China
Key Success
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DIGITAL
Implement a sound digital strategy
Off-Line Trade
In-store sales activation
EDUCATION
Training of wine professionals
On-Line Trade
Online sales activation
谢谢 · THANK YOU - OBRIGADO