China’s wine market has experienced difficulties in recent years amid the anti-corruption and anti-extravagance offensives launched by the central government.
A recent report of China Alcoholic Drinks Association is suggesting the losses posed by Chinese wine makers have more than doubled since last year.
However, for some wine makers, the frugality campaign has actually provided an opportunity for them to rethink their strategy that has been over-reliant on the high-end market.
Maria Angela Brosio, the owner of Chateau AMALLA based in Italy, says they are trying to meet the rising demand of daily consumption instead of only focusing on the high-end market.
“We just entered the Chinese market. We have not felt the impact so far. We have witnessed sales actually increase though most of the increase came from middle-end products, instead of high-end products.”
Ren Xiangdong, senior manager of Chinese wine maker Dynasty, says the rising demand of average citizens is fully capable of offsetting the losses from the government-sponsored consumption.
“It’s a good thing for us, since the number of wine consumers is rising. Chinese consumers are more rational. The blind pursuit of import wines which happened around 2010 has gone. They just want to choose a wine which is healthy, with smells they like, and suitable for themselves.”
Read more at CRI.