augustin missoffe - viniportugal · 2018-11-11 · augustin missoffe @amissoffe // @groupesopexa...

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

© The information contained in this document is the property of Sopexa

Chinese

Market

Snapshot of the Chinese market


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


Chinese

Wine Market

Snapshot of the Chinese wine market


Source : Vinexpo 2017

21.7 billion USDChinese wine market value by 2020

Snapshot of the Chinese wine market


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


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


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

12© The information contained in this document is the property of SOPEXA

Portuguese wine have no

clear positioning on the

Chinese market yet

KEY FACTS #2

© The information contained in this document is the property of SOPEXA

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


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


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%


More and more young wine consumers have a good

knowledge and are looking to discovering new quality

wines.

Felix ZHANG - Sommelier - Hakkasan Restaurant

“

”


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


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


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


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


Chinese Consumer are Over-Connected


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


60 secinternet

in China


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 !


Key Success to increase

awareness in China

Key Success


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

augustin missoffe - viniportugal · 2018-11-11 · augustin missoffe @amissoffe // @groupesopexa...

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