Premium Spirits in China Case Study: Harnessing greater consumer spending power in the Chinese market
China is a key growth market for virtually all consumer packaged goods categories; indeed, the sheer size and spending power of the market is difficult to ignore. The situation in the spirits category is no different; the biggest players in the world are looking to China to drive growth. However, the opportunity is as challenging as it is lucrative.
Features and benefits
- Understand the appeal of premium spirits in the Chinese market, and how these qualities are expected to manifest over time
- Identify the obstacles faced by premium spirits players in China, and how to effectively counteract them without excess additional investment
Over half (51%) of Chinese consumers are highly influenced by brand name when purchasing alcoholic beverages. Evidently, alcoholic beverages are a category in which a desirable brand name is a sign of affluence, success and status - qualities that foreign brands effectively exude
Your key questions answered
- How will Chinese consumers' alcoholic beverage preferences evolve over time, and what can spirits players do to stay relevant?
- How can imported spirits compete with the dominance of the local spirit baijiu? Should brown and white spirits adopt different approaches?
Table of contentsOVERVIEW
China's consumer landscape is rapidly evolving
China's rapid economic progress has brought about noticeable optimism among consumers
Rising wealth in China has triggered a burgeoning luxury market
Chinese consumers exhibit distinct attitudes towards wealth
Conspicuous consumption is a key quality of the Chinese luxury market
China's expanding luxury market is fertile territory for international spirits manufacturers
Imported spirits presently comprise only a small fraction of China's overall spirits category
Chinese drinkers place considerable importance on brand names
On-trade establishments are a key battleground for imported spirits
There are several imposing barriers faced by imported spirits in China
Rising health consciousness is influencing consumers' alcoholic beverage choices
The Chinese government has undertaken efforts to restrict luxury marketing
Counterfeit spirits are a serious problem in China
Conclusions and implications:
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