How to enter the Chinese wine market: step 1

Wine is the sunrise industry in China. The annual increase rate of Chinese wine market is more than 20%, while the world's increase rate is less than 1%. Although the Chinese domestic wine brands take up more than 65% of Chinese wine market, the foreign wines are superior in the brewing technology, quality and even the cost performance. But, we often hear the foreign vintners complained that the Chinese wine market is so complicated that they can't deal with it. That is the common situation for the foreign vintners who are used to the occident's wine market. Many foreign vintners thought that good wine and low price would means good market. So, they come to China just seek for the imported wine agents who appreciate their wine. Unfortunately, it is difficult for them to find the suitable cooperation partners. Why?

There are several reasons as follows:

1. Due to the wine consumers who enjoy the imported wine is few and they distribute in the China, the imported wine are in buyer's market. Besides, there are few imported wine agents in China. Because the promotion cost is high in the prophase, it is risk for them to act as a new imported wine's agent. They will choose the foreign wineries with lots of consideration. So, it is not easy for the foreign vintners to find a suitable wine agent.

2. There are no the professional wine wholesalers in China. All the general agents should establish the distribution channel by themselves. Due to the low density imported wine customers, they should establish the cooperation relations with the domestic region and the other regions if they want to earn money. That is a hard work for them. Most of the imported wine agents in the market exploiting phase are cautious to import the new foreign wines. The mature imported wine agents have established a good distribution relations with the regional agents will be stricter in new wine choosing.

3. With the traditional consumption habit, most of the Chinese customers are low at wine appreciation, which cause only the wine of high recognition and promotion can sell well. Most of the imported wine agents, especially the new one, want to get the funds from the foreign wineries to do the wine promotion in the prophase in order to reduce the market risk. But, most of the foreign wineries are small with a low production. It is not actually for them to put a lot of money into the large Chinese wine market in brand publicizing and advertisement. That is the important obstacle for the foreign vintners to seek for the new cooperation partners.