The market for wines in China has been traditional however; the Chinese consumer groups are now becoming more acceptable towards international and premium brands that are available in the market. Although, the preference of consumption is towards red wines but other varieties like white, sparkling and rose wines are also finding space. The report begins with a snapshot about the wine market in China. The section outlines the wine consumption and per capita consumption of wine in China in terms of volume (mn litre) for a period of seven years from 2003 to 2009. It also provides the market structure of the wine industry with regard to the share of domestic and imported wine brands. The market overview section also provides information showing the growth rate of wine categories in volume and retail value terms between 2003 and 2009. The wine categories illustrated here include still red wine, sparkling wine, still white wine, still rose wine. This chapter of the report also provides an overview about the various wine categories consumed in China. An in-depth analysis of the market reveals the distribution channel for domestic and foreign wine brands. This section of the report explains the distribution structure involving sales branches, regional distributors and sub distributors for domestic wine. The imported wine is distributed to the end consumer through a comprehensive channel. This is followed by a chapter on the foreign trade of wine in China. The country imports and exports this alcoholic beverage. The report provides import and export data both in terms of value and volume. It also shows the major countries to which China exports and from where China imports. The report explains the importation procedure of wine. This section also provides a snapshot about the bottled wine exports and bulk wine exports. China is generating huge market demand for Australian wine brands. The report thus, provide a brief overview of the Australian wine market highlighting the volume and value of Australian wine exports to China, pricing of Australian wine brands in different countries with a highlight on China. An analysis of the factors driving the wine demand in China are rising income levels, strong distribution network, changing consumer lifestyles and good wines distributed as gifts. Major challenges faced by the market players are also analyzed which include high import duty, presence of fake wines, competition from other alcoholic beverages, price sensitivity. The report also delves into various government regulations and policies governing and controlling the operations of the players in the Chinese online advertisement market. The wine industry is witnessing emerging trends that are marking the market. The key trends identified are imported wines becoming popular in tier 2 cities, other industries foraying into this domain, joint ventures and collaborations. The report contains a brief analysis about the competitive landscape of the

1. Wine Market in China 2011
October 2011

2. Executive Summary
China is home to a acres of vineyards which is spread across the country
Market Consumption of wine in China is seen as fashionable, sophisticated and worldly
The market has witnessed a growth of b% in its consumption between 20-- and 20--
Drivers: Challenges:
Rising income levels High Import Duty
Drivers &
LE
Strong distribution network Presence of fake wines
Challenges Changing Consumer Lifestyles Competition from other alcoholic beverages
MP
Good wines distributed as gifts Price Sensitivity
Trends
A
Imported wines becoming popular in tier 2 cities
S
Other industries making a foray into this domain
Joint Ventures and Collaborations
Both international and domestic brands operate in the wine market in China
The domestic brands dominate the market though
Key Players
Competition Player 6
Player 1 Player 2 Player 3 Player 4 Player 5
WINE MARKET IN CHINA 2011.PPT 2

3. •Market Overview
•Distribution Channel
•Foreign Trade
•Australian Wine Imports
•Drivers & Challenges
•Trends
•Government Regulations
•Competition
WINE MARKET IN CHINA 2011.PPT 3

4. Wine consumption in China has grown at a phenomenal
rate and it is dominated by domestic wine
Market Overview Wine Consumption
• China is home to a acres of vineyards which is spread
Mn ltr
across the country
• Consumption of wine in China is seen as fashionable, 1,500
sophisticated and worldly B% k
1,000
LE
• Primarily, wine is mostly consumed by people in the i j
income group of mid to high g h
500 e f
MP
• Consumers in the age group of c-d years are wine
drinkers 0
20-- 20-- 20-- 20-- 20-- 20-- 20--
Market Structure
SA Per Capita Consumption
ltr
8% Wine 1 s
9% 0.8 L%
Wine 2
q r
Wine 3 0.6
o p
0.4 n
m
83% 0.2
0.0
20-- 20-- 20-- 20-- 20-- 20-- 20--
Source:
WINE MARKET IN CHINA 2011.PPT 4

5. Drivers & Challenges – Summary
Challenges
High Import Duty
Drivers Presence of fake wines
Rising income levels Competition from other alcoholic
beverages
Strong distribution network Price Sensitivity
Changing Consumer Lifestyles
Good wines distributed as gifts
WINE MARKET IN CHINA 2011.PPT 5

6. Trends - Summary
Imported wines becoming
popular in tier 2 cities
Key Trends
Joint Ventures and
Other industries making a
Collaborations
foray into this domain
WINE MARKET IN CHINA 2011.PPT 6

7. Multiple foreign brands are sold in China along with
domestic brands
Competition - Overview Rank of top 15 Imported Wine Brands
• Leading two domestic brands, Brand 1 and
Brand2, perform well in both the national and Brands Sales (‘000 9L Origin
regional category cases)
• Owing to a diversified product portfolio of wines Brand 1 ab Country 1
LE
at various price points and a wide supply chain, Brand 2 ac Country 2
Brand 1 is a leading a player in China's wine
P
Brand 3 ad Country 3
industry
Brand 4 ae Country 4
Key Domestic Wine Brands in China
SAM Brand 5
Brand 6
Brand 7
af
ag
ah
Country 5
Country 6
Country 7
Brand 8 ai Country 8
Brand 9 aj Country 9
Brand 1 Jilian Tonghua
21% Brand 10 ak Country 10
Brand 3 Brand 2
44% Brand 4 Brand 5 Brand 11 al Country 1
19% Brand 12 am Country 1
4% Brand 13 an Country 2
4% 8%
Brand 14 ao Country 3
Brand 15 ap Country 3
Source:
WINE MARKET IN CHINA 2011.PPT 7

8. Thank you for the attention
The Wines Market - China report is a part of Netscribes’ part of Consumer Goods Series
Industry Series.
For more detailed information or customized research requirements please contact:
Gagan Uppal Jitendra Punjabi
Phone: +91 22 4098 7530 Phone: +91 33 4064 6215
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WINE MARKET IN CHINA 2011.PPT 8