Wine Exportation to China – Why and How?

Australian Wine Export Market in China
Australian wine, especially the red varieties, are already well established products in China, being the world’s second largest imported wine into China behind France (reaching record numbers of $2.56 billion). This impressive number can be mainly attributed to Chinese GDP in general sustaining constant growth over the last couple of decades. Unlike other exports in the commodity market, the value of a case of wine can rise much higher meaning huge profit potential. For instance, the fastest-growing segment of the export market was wine valued at over $200 per bottle. This is good news for wine exporters who can sell their products at a premium.

Where and Why?
In China, the volume of import is highest in Shanghai, yet even in other places such as Guangdong imports are more profitable, despite a lower import volume, at $910 million compared with Shanghai’s $736. This growing market is primarily due to China’s expanding middle class who possess strong purchasing power. Traditionally wine culture was centred around gifting and special occasions, however wine has now gone mainstream. While restaurants remain the most popular place for wine consumption the market for home drinking is growing. As a result, a new generation of everyday people have become avid wine consumers, enjoying more wine in greater frequencies.
“Some young people say they have so much money to spend that every day feels like Lunar New Year” Aaron Lau, CEO of Cheil Greater China.

The Importance of Branding
Chinese drinkers will ordinarily rely on trusted wine brands. Yet the digital space is having an immense influence on the consumer base. The use of WeChat, with a user base of nearly 500 million, means that Chinese consumers will usually find out about a brand through their online social network. The good news for Australian wine exporters is that Chinese consumers trust high end foreign brands over their domestic alternatives. This appreciation for foreign prestige products is what sets Australian wine apart in the competitive marketplace.

How Ausmate Assists in Entering the Chinese Market
China has a reputation of being a tough market to break into, especially without the proper industry connections and understanding of the particular manner in which business is conducted in China. Some of this is due to the different language and cultural barriers that exist between Australia and China, whilst there are also scams and excessive red tape to be aware of as well.
Ausmate helps alleviate these problems by guiding and consulting with businesses to explore export options to break into the China marketplace. Ausmate has several packages which will help connect Australian businesses with a vast and reliable purchasing network across China.
How Exactly?
One of Ausmates most popular packages is the ‘Alibaba Trustpass’. This will connect potential sellers with the largest B2B platform currently operating in China today. Alibaba owns most of the online wine market with two of the three suppliers (Taobao and Tianmao) owned by them.

So if your businesses is looking to expand and grow in one of the most exciting markets in the world today, contact Ausmate now to see how we can make this opportunity possible .