We outline 10 trends we believe will shape the Chinese wine industry over the next 12 months.

1. 10
Trends
for
the
Chinese
Wine
Industry
in
2013
10 Trends in the Chinese Wine Market for 2013 www.chinawinesolutions.com

2. China
Wine Introduction
Solutions
Now
officially
in
the
Chinese
New
Year,
we
take
5me
to
recap
our
predic5ons
for
the
Chinese
Wine
Industry
in
2013.
In
the
following
presenta;on
we
briefly
outline
10
trends
we
believe
will
shape
the
Chinese
wine
industry
over
the
next
12
months.
To
con;nue
the
discussion
join
us
on
TwiDer
(ChinaWineViews)
and
LinkedIn
(China
Wine
Insight).
10 Trends in the Chinese Wine Market for 2013
www.chinawinesolutions.com

3. China
Wine
Solutions
1. Market Consolidation
The
current
number
of
wine
sellers
in
the
Chinese
market
is
unsustainable.
2013
will
see
see
hard
trading
5mes
for
most
and
many
will
exit
the
industry
en5rely.
According
to
Radobank,
there
were
3,863
wine
importers
in
2011
(and
that
doesn’t
account
for
the
100’s
of
unofficial
ones),
up
73%
from
2010
and
up
200%
in
5
years.
Even
in
a
market
the
size
of
China,
this
number
is
unsustainable.
Just
in
the
last
few
weeks,
Dynasty,
one
of
China’s
largest
domes;c
wine
companies,
posted
a
profit
warning
amongst
difficult
trading
condi;ons.
The
take
away
from
writer
Doug
Young
of
the
South
China
Morning
Post
was
‘A
new
profit
warning
from
Dynasty
reflects
a
burs;ng
bubble
in
China’s
overheated
wine
industry,
with
a
major
consolida;on
likely
to
start
in
the
second
half
of
this
year’.
10 Trends in the Chinese Wine Market for 2013 www.chinawinesolutions.com

4. China
Wine
Solutions
2. Changing Expectations
China
will
no
longer
be
seen
as
a
quick
win
market.
As
compe;;on
becomes
increasingly
fierce,
the
;me
for
easy
sales
and
high
margins
is
rapidly
becoming
a
thing
of
the
past.
In
recent
years,
China
has
been
seen
by
many
as
the
answer
to
falling
margins
in
more
mature
markets.
However,
biDer
experience
is
teaching
many
wineries
that
doing
business
here
involves
a
significant
learning
curve,
high
costs
and
o_en
lower
than
expected
volumes.
10 Trends in the Chinese Wine Market for 2013 www.chinawinesolutions.com

5. China
Wine 3. Increased Commitments
Solutions
As
expecta5ons
change
and
compe55on
increases,
wineries
will
move
to
take
a
more
ac5ve
approach
in
the
market.
ADemp;ng
to
beDer
understand
market
trends,
establishing
a
local
presence
and
increasing
ways
in
which
they
can
engage
and
influence
key
stakeholders
are
already
becoming
increasingly
common.
As
part
of
this,
2013
will
see
more
foreign
wineries
move
to
create
a
presence
on
Chinese
social
media.
Companies
across
various
industries
are
finding
social
media
to
be
an
effec;ve
channel
to
find
and
engage
their
target
audience;
the
wine
industry
is
no
excep;on.
10 Trends in the Chinese Wine Market for 2013 www.chinawinesolutions.com

6. China
Wine
Solutions
4. Online Coming of Age
Online
wine
retailors
will
con5nue
to
increase
their
influence
as
a
major
sales
channel.
According
to
Wine
Intelligence,
the
two
major
online
wine
retailors
are
currently
Yesmywine.com
and
Tmall.
They
point
to
two
reasons
behind
the
growth
of
online
sales;
improving
technology
and
the
ability
for
trusted
online
retailors
to
reduce
concerns
about
fake
wines.
We’d
add
a
third;
the
closeness
of
the
online
world
to
consumers.
The
future
wine
market
in
China
rests
with
the
younger
popula;on,
a
popula;on
whose
day-­‐to-­‐day
life
is
seamlessly
integrated
into
the
online
world.
For
these
consumers,
buying
online
not
only
allows
for
quick
price
comparison,
access
to
informa;on
and
user
generated
reviews
but
represents
a
natural
and
convenient
solu;on
that
fits
with
their
busy
lifestyles.
10 Trends in the Chinese Wine Market for 2013 www.chinawinesolutions.com

7. China
Wine 5. A More Sophisticated Consumer
Solutions
2013
will
see
con5nued
diversifica5on
in
the
tastes
of
consumers
in
core
markets
such
as
Beijing,
Shanghai
and
Guangzhou.
Last
summer
saw
a
surge
in
sales
of
white
and
sparkling
wines
fueled
mainly
by
the
increasingly
important
female
segment.
2013
will
see
this
trend
con;nue
as
well
as
increasing
aDen;on
paid
to
bou;que
wines
from
non-­‐mainstream
regions.
The
Chinese
wine
lover,
especially
those
aged
under
35,
love
to
experiment
with
wines
and
are
increasingly
looking
to
less
mainstream
op;ons.
10 Trends in the Chinese Wine Market for 2013 www.chinawinesolutions.com

8. China
Wine 6. Tier 2 & 3 Cities
Solutions
Following
the
trend
in
Tier
1
ci5es,
the
wine
market
in
China’s
5er
2
ci5es
will
begin
to
evolve.
Whilst
the
situa;on
in
regional
ci;es
is
currently
in
a
chao;c
state,
2013
will
see
the
first
signs
of
an
increasingly
professional
industry
emerge.
Before
that
happens
however,
many
sellers
in
these
ci;es
will
go
bust
before
a
more
professional
trade
appears.
On
the
consumer
front,
more
inhabitants
in
Tier
2
ci;es
will
start
to
move
towards
consuming
wine
opposed
to
just
gi_ing
it.
Wine
Intelligence
says
there
are
currently
around
20
million
consumers
of
imported
wine
in
China
–
just
1.5%
of
the
popula;on.
They
believe
this
will
increase
to
around
80
million
by
2020,
with
consumers
from
Tier
2
ci;es
making
up
the
bulk.
10 Trends in the Chinese Wine Market for 2013 www.chinawinesolutions.com

9. China
Wine Trends Continued
Solutions
7.
Trading
Down
8.
Miniaturiza5on
Streamlining
of
distribu;on
models,
increasing
As
wine
moves
to
become
enjoyed
on
a
more
wine
knowledge,
a
changing
demographic
and
regular
basis,
single
serving
boDles
will
a
more
transparent
pricing
environment
will
become
increasingly
popular.
This
will
be
lead
to
an
increasing
willingness
for
especially
true
in
the
city-­‐based
convenience
consumers
to
trade
down.
store
format.
10 Trends in the Chinese Wine Market for 2013 www.chinawinesolutions.com

10. China
Wine Trends Continued
Solutions
9.
A
Focus
on
Fake
10.
Chinese
Wine
to
Go
Global
The
Chinese
government
has
iden;fied
solving
the
issue
of
fake
wine
as
a
priority
for
the
While
the
focus
of
the
Chinese
wine
industry
industry.
2013
will
see
increased
pressure
is
firmly
on
imported
wines
into
China,
2013
from
government,
industry
and
consumers
to
will
see
more
Chinese
wineries
seek
lis;ngs
in
work
together
to
improve
this
problem.
overseas
markets,
form
strategic
joint
Furthermore,
wineries
that
make
an
ac;ve
ventures
and
purchase
foreign
wineries..
effort
to
employ
ac;ve
an;-­‐counterfeit
measures
will
benefit
from
posi;ve
consumer
sen;ment.
10 Trends in the Chinese Wine Market for 2013 www.chinawinesolutions.com

11. Contact
Us
Contact
us
to
discuss
more
about
any
of
the
points
raised
in
this
presenta;on
or
to
inquire
about
how
our
flexible
and
cost
effec;ve
solu;ons
to
help
wine
business
succeed
in
the
Chinese
market.
Contact
Details
Winterless
Center
B-­‐1201,
1
West
Dawang
Rd,
Chaoyang
District,
Beijing,
China,
100026.
E:
nick@chinawinesolu;ons.com
M:
+86
18210211487
W:
www.chinawinesolu;ons.com
gli
10 Trends in the Chinese Wine Market for 2013 www.chinawinesolutions.com