As one of the biggest alcohol markets in the world, China is slowly waking up to wine. Ian Ford, Founding Partner, and Nichole Mao, Partner of Nimbility Asia, walk through how the Chinese wine market has changed, what has led to success, and the current wine trends in the country. With significant growth potential, the Chinese market is a critical global wine market to grasp and understand. Support the show on Patreon!Detailed Show Notes: Nimbility AsiaIt doesn’t transact wines; not an importerActs like an export team for producersCreates GTM strategy and aligns w/ the right partnersCreates research reports for data-driven decision makingServes China (biggest market), S Korea (#2), Indonesia, India, AustraliaJapan & China ~75% of wine shipments into AsiaChinese wine consumerStill very early stages for wine, not a daily drink for most people2019 - 1.3 L wine/capita/year vs 51.9L for Portugal, 12.2L for US~0.2L wine/capita/year 10-20 years ago - wine was for gifting, banqueting, and hosting, not home consumptionCoastal cities (including Beijing & Shanghai) have young consumers that go to wine bars, bistros, drink at homeThe growing trend of home consumption, helped by e-commerce, gifting still existsChinese alcohol marketbig, dynamic alcohol market - strong food & drink culture, no religious objections, very social cultureThe largest beer market in the world, dominated by domestic productionBeer is a daily consumption itemCraft beer is stunted by regulations requiring a large minimum volumeSome craft beers (e.g., Boxing Cat, Great Leap) started as brewpubsChina wine market50-60M 9L cases imported, expected to double in next 10-15 years~100-120M 9L cases of domestic wine, hard to measureBig domestic producers - Great Wall, Changyu, DynastyEmerging quality producers - Silver Heights, Grace VineyardSuccess in ChinaConsumer awareness creates customer pull (e.g., Casillero del Diablo, Penfolds)Cluttered marketing environmentUnique digital landscape (no Instagram, Facebook, Twitter)Penfolds Example (pre-tariffs) - Grange provides halo, central to the story (good formula for success), profit driver is 300k cases of Bin 407 & 389 at ~$400-450/9L case, also sold ~800-1,000 cases of Rawson’s Retreat entry-level wineLafite Example - Los Vascos (Chile) has higher demand due to Lafite affiliationSommeliers and lifestyle KOLs (key opinion leaders) can helpSocial media amplification is massivePopular regions / wines stylesMass market - more price and style driven, like fruity, easy drinking style around ~100 RMB/bottle (~$15); Chile doing well; Cabernet and Shiraz are recognized varietiesFine Wine - Burgundy has been the “hot bun” the last two years - pricing rising dramatically, can’t get enough; also helping NZ Pinot NoirVery diverse market (e.g., natural wine bars in Chengdu)Premium sparkling rising (e.g., Champagne, aged Cava)More adventurous wine consumers (e.g., blind tasting clubs that compete with each other)Rosé is a very small, but growing categoryFortified, sweet wines are tinySustainable/organic help and are important for the future, but not big today Get access to library episodes Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.