BEIJING Imported wines are facing a series of problems in the China market, and are unlikely to make a major breakthrough if they fail to take a dominant position in the China market before 2012 despite fast growth in recent years, said experts.
Zhu Sixu, deputy director with Guangdong Liquor Sales Administration, noted that China's wine output has maintained 20 per cent year-on-year growth in recent years, which came to 960,000 liters in 2009, up 28 per cent on year. However, China's annual wine consumption per head is only ten per cent of the international average level.
The great consumption potential has attracted wine dealers in France, Germany, Italy, Australia and Chile to tap into China market, and China's wine imports keep 50 per cent annual growth.
Up until May of 2010, total value of imported wine from Australia to China has reached 155 million yuan, and China has become the largest wine importer of Australia in Asia, accounting for 56 per cent of Asian total.
Peng Hong, secretary general of Guangdong Provincial Alcohol Industry Association, believed that imported wine will keep the fast growing trend in the following 3-5 years in China.
Insiders predicted that China's wine output and sales will top 5 million tonnes by 2020, and China would become the wine center of Asia.
Nevertheless, despite the fast growth in imported wine, it still faces series of problems.
Firstly, imported wine lacks renowned New World Wine brands. With the exception of a few Old World Wine brands like Lafite and Chateau wine, most imported wine brands are not familiar to general Chinese consumers. Although the China market is now glutted with New World Wine, few of them are known to general consumers.
Meanwhile, there is no leading brand occupying dominant position in the imported wine market in China, noted Zhu Sixu. Since Chinese consumers lack knowledge about wine, the absence of leading brand may affect the wine market with superior wine unaccepted by consumers while inferior wine are popular among consumers.
China's imported wine market also needs stronger regulations. Some wine agents and distributors have boasted second- and third-tier wine brands to first-class wine, and raised wine prices regardless of the quality, noted Peng Hong.
Peng said that this may undermine the sound development of the imported wine market.
Experts believed that the development of China's imported wine market calls for integrated effort of Chinese government and wine industry by formulating related industrial regulations, promoting knowledge about wine to general consumers, and encouraging the brand-building of New World Wine.
(C) 2010 Asia Pulse Pte Ltd.
Zhu Sixu, deputy director with Guangdong Liquor Sales Administration, noted that China's wine output has maintained 20 per cent year-on-year growth in recent years, which came to 960,000 liters in 2009, up 28 per cent on year. However, China's annual wine consumption per head is only ten per cent of the international average level.
The great consumption potential has attracted wine dealers in France, Germany, Italy, Australia and Chile to tap into China market, and China's wine imports keep 50 per cent annual growth.
Up until May of 2010, total value of imported wine from Australia to China has reached 155 million yuan, and China has become the largest wine importer of Australia in Asia, accounting for 56 per cent of Asian total.
Peng Hong, secretary general of Guangdong Provincial Alcohol Industry Association, believed that imported wine will keep the fast growing trend in the following 3-5 years in China.
Insiders predicted that China's wine output and sales will top 5 million tonnes by 2020, and China would become the wine center of Asia.
Nevertheless, despite the fast growth in imported wine, it still faces series of problems.
Firstly, imported wine lacks renowned New World Wine brands. With the exception of a few Old World Wine brands like Lafite and Chateau wine, most imported wine brands are not familiar to general Chinese consumers. Although the China market is now glutted with New World Wine, few of them are known to general consumers.
Meanwhile, there is no leading brand occupying dominant position in the imported wine market in China, noted Zhu Sixu. Since Chinese consumers lack knowledge about wine, the absence of leading brand may affect the wine market with superior wine unaccepted by consumers while inferior wine are popular among consumers.
China's imported wine market also needs stronger regulations. Some wine agents and distributors have boasted second- and third-tier wine brands to first-class wine, and raised wine prices regardless of the quality, noted Peng Hong.
Peng said that this may undermine the sound development of the imported wine market.
Experts believed that the development of China's imported wine market calls for integrated effort of Chinese government and wine industry by formulating related industrial regulations, promoting knowledge about wine to general consumers, and encouraging the brand-building of New World Wine.
(C) 2010 Asia Pulse Pte Ltd.
