They should know: Pernod Ricard sales increased 27 times over the decade through 2012. Despite the slowdown, the company remains steadfast in its idea that China is the new “land of opportunity.”
Horace Ngai, the company’s deputy managing director for China, said that growth there is bringing more Chinese into cities, which should add about 10 million newly affluent customers each year for the decade 2010-2020. “We will have a lot more opportunities in more places,” he said. Last year, Pernod Ricard could claim 35 percent of China’s premium spirits market; the company wants to have 40 percent of the market by 2015.
To this end, it has launched more initiatives to attract the affluent, hosting wine appreciation classes and offering lifestyle guidance, according to Ngai. Pernod Ricard even maintains a private club in Beijing. The growth of China’s economy is expected to be 8 percent this year. Con Costandi, Pernod Ricard’s managing director for China, called 2013 a year of “converging challenges.”
photo credit: martell