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How did Australian wine beat French wine?

 酌蒲萄公社 2020-10-17

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The previous October, Australia's monthly wine imports ($69.66 million) surpassed those of France ($63.76 million) for the first time. Although France is still China's “older brother” in terms of imported wine, its position is increasingly under attack from Australia, a rising star.

In recent years, both the import volume and import volume of Australian wine have been rising rapidly. Although the import volume of Australian wine has not surpassed that of French wine, the penetration of Australian wine into the Chinese market is unstoppable.

 

A comparison of several major wine importers

We reflect on China’s top wine importers: France, Australia, Chile and Spain, each of them has their own strengths.

French wine, with its long-accumulated reputation and influence has occupied the leading position in the imported wine industry. When people talking wine, we have to mention France, which is like German cars and American NBA. 

Secondly, French wine entered the Chinese market at the earliest time, and Chinese consumers have a higher awareness of the brand and image recognition of French wine.

Onthe other hand, Chilean and Spanish wines continue to penetrate the Chinese market depend on lower price and good taste. Those two countries have lower labor costs, so the export price of wine has a price advantage. Spain and Chile account for a large proportion of imported wines with entry-level bulk wine, which is also the reason that two countries import a large amount of wine, but the import volume is several times lower than Australia.

 

For 2017, China imported 1.43 million liters of bottled wine, 1.31 million liters of bulk wine and 130 million liters of bottled wine from Australia, Spain and Chile. But these three countries’ imports of bottled and bulk wine varied widely, with Australia at $724 million, Chile at $327 million and Spain at $187 million.

*data from China customs

The advantage of Australian Wine

Although Australian wine is not as famous as French wine, the taste of Australian wine is very popular among Chinese consumers. Australian wines are fruity and sweet. Whenever Chinese consumers open a bottle of Australian wine, the rich and fresh aroma of berries comes out, bringing great enjoyment to their sense of smell and taste.

Secondly, Australian wines are not sharp in acidity and high in alcohol, which are quite in line with Chinese tastes. With the advantage of taste, Australian wine is naturally easy to grab the taste buds of Chinese consumers.

American wines are supposed to sell well in China market, their wine also sweet and highly alcoholic. But the total tariff on U.S. wine imports is as high as 79 percent,and tariff barriers have prevented U.S. wines from penetrating the Chinese wine market.

 

The brand positioning of Australian wines is higher than that of entry-level wine regions such as Chile and Spain, and on a par with the United States. The price advantage of Australian wine in the Chinese market let its penetration higher than U.S.

In addition, there has a most important reason for Australian wine has high penetration in Chinese market——“people”.

Chinese and Australian have maintained frequent exchange

There have been frequent exchanges between Australia and China. There are a lot of Chinese immigrants in Australia. In recent years, with the tide of “study abroad”, “immigration” and “tourism”, more and more Chinese people come to Australia. At the same time, more and more Australian also come to China to travel, study and work.

In 2017, the total number of students studying in Australia was about 232,000, and the total number of tourists visiting Australia was about 1.33 million. As more and more Chinese people come to Australia for tourism, family visit, friends visit, overseas study. 

More and more Chinese people come into contact with Australian wines, experience the wonderful feeling of Australian wine, and bring it back to China to share with their friends.

 

“I didn’t drink munch wine before, but since I came to Australia, I’ve tried different wines,” A tourist from Guizhou province said, “Australian wines give me a fresh feeling. I think Australian wines are very delicious and it is interesting to taste different kinds of wines. If I go back to China, I will miss the wine.”

Secondly, with the increase of the number of students studying in Australia in recent years, many Chinese students gradually adapt to and love the habit of drinking wine in Australia. Although many of them have went back to China after graduation, they still have a taste for wine and introduce Australian wine to people around them.

Professionals help Australian wine sale

Inrecent years, many Chinese students have come to Australia to study wine (winemaking, wine business), and a large number of them are engaged in the international trade of wine between China and Australia after graduation. Not only graduates of wine major, but also graduates of accounting, law and other majors are engaged in Australian wine import work after graduation.

At the same time, in recent years, a lot of businessmen have seen the business opportunity of Australia imported wine and have also poured investment into this industry. Some of these people are former wine entrepreneurs, but a significant number of them have from other industries into wine.

Business immigration makes a huge contribution

 

Immigrants also contribute a significant part of Australian wine production. With the recent immigration craze in Australia, many people choose of export wine immigration business immigration shortcut. In 2017, for example, the requirement was to export goods worth at least 600 thousand Australian dollars within two years.

More than 500 people were applying, and almost 80% of these applicants were exporting wine. Although the new policy raises the export requirement to $1 million last year, it won’t have much impact.

It’s a mix of immigration and business. People with the strength to go into business immigration, the economic situation is generally relatively rich, wine as a product with profound cultural background will also bring them spiritual enjoyment and sublimation.

Omnidirectional penetration

Nowadays, the Chinese who come to Australia for tourism, family visit, friends visit, study abroad, study visit, immigration and business are not limited to the first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen. Many people from the second-tier, third-tier, fourth-tier and even fifth-tier cities often travel between China and Australia.

This multi-level personnel exchange has also promoted the all-round penetration of Australian wine in the Chinese market.

 

By contrast, personnel exchanges between France, Chile, Spain and China are farless frequent and profound than those between China and Australia.

In addition, Australian wine enterprises and merchants also attach great importance to the Chinese market and Chinese customers. They take an active part in various wine exhibitions in China, and quite a few powerful wineries also carry out promotional activities in China.

conclusion

Why is Australian wine so dominant in the Chinese market with its "people" advantage?

On the one hand, Australian wine caters to the taste of Chinese consumers. The advantage of Australian wine in taste is the root of its strong penetration.

On the other hand, with the exchanges of economy, trade, culture and personnel between China and Australia, more and more people are actively promoting Australian wines and introducing Australian wines to the Chinese market.

With so many people actively promoting Australian wine in the Chinese market, many other factors can be overcome.

 

Although we can't say for sure whether Australian wine will replace France as the "older brother" in China's imported wine market in the future.

But what we do know is that Australian wine is rapidly rising in the Chinese market, forming a situation to keep pace with French imported wine.

- The End - 

我们不搞教育,也不去卖酒,这些我们不够格。我们只想拥有自己的态度,去说别人不敢说的话,去试多数人不敢试的事。分析行业性和市场性的事件及趋势,解答核心从业者的疑虑。在市场语境下,我们认为酒不重要,而总有一天,你会明白这不是痴人说梦。

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