Bordeaux wine to China

1. BORDEAUX WINE:
The Chinese Opportunity

2. 
 I – Demographics & Economics
 II – Doing business in China
 III – Chinese concept of Time
 IV – Wine market analysis
 V - Our recommendations
AGENDA

3. Demographics & Economics

4. 
Social and demographic figures

5. 
Social and demographic figures
Labour Force per
sectors
Agriculture:
39.5%
industry: 27.2%
services: 33.2%
GDP -
composition by
sector:
agriculture:
10.6%
industry: 46.8%
services: 42.6%
(2009 est.)
Age repartition:
0-14 years: 19.8%
15-64 years:
72.1%
65 years and
over: 8.1%
Life expectancy:
rank 108 in the
world; Total
population:73.47
years

6. 
Economics key facts

7. 
38.924
29.879
26.178
9.546
20.231
15.546 13.968 13.376 11.677 11.392
0.54
7.03
0.28
17.20
1.64 2.00
8.90 10.20
19.00
2.80
0
5
10
15
20
25
30
35
40
45
GDP/Capita in $ US Population in Million People
GDP per Capita in Cities and
urban Areas

8. 
 1 October 1949 (People's Republic of China established)
 Chinese Communist Party or CCP [HU Jintao];
Eight registered small parties controlled by CCP
 No opposition or politic group of pressure
 President HU Jintao since 15 March 2003
Politic & Government

9. Doing Business in China

10.  Confucianism: concept of harmonious relationships
 respect and loyalty
 Face:
 Diu-mian-zi
 Gei-mian-zi
 Liu-mian-zi
 Jiang-mian-zi
 Meeting & Greeting: shaking of hands + slight nod of
the head
 No physical contact in business
 Body language
DOING BUSINESS IN CHINA

11. 
Business Cards
 Gold characters = positive color: fortune + luxury
 Hold the card in both hands when offering it, Chinese side facing the
recipient
What to Wear?
 Dark colored, conservative business suits
 Women should wear flat shoes or shoes with very
low heels
 Bright colors should be avoided
DOING BUSINESS IN CHINA

12. 
Meetings and Communication
 Intermediary
 Very formal: avoid humor & politics
 Be patient: trust + bureaucracy
 Rank is very important is business relationship
 Prefer face to face meetings
 45 % of business managers are women
DOING BUSINESS IN CHINA

13. 
Business Meeting Etiquette
 Appointment in writing (English + Chinese – no colors)
 Punctuality = respect / Arriving late = insult
 Insist on long term benefits
 Only senior members will speak
 Slow pace
 They never say no
 Tough negotiators: Their primary aim in negotiations is 'concessions‘
 Don’t use high pressure tactics
DOING BUSINESS IN CHINA

14. The Chinese concept of Time.

15. CHINESE CONCEPT
OF TIME
China = polychronic country
Cyclical concept of time
Luni-solar calendar Gregorian
calendar

16. CHINESE CONCEPT
OF TIME
Time = change and movement of the
material and natural world
Time is more elastic than in Western
countries
“Shi” = “time”
Not the exact definition.
It is the good moment to act.

17. CHINESE CONCEPT
OF TIME
China conception of time is past oriented
(values/ family)
In Chinese chronologies, time is not counted
from a single date, such as the birth of Christ.
Dedicated to long term goals

18. HOW CHINESE CONCEPTION
OF TIME WILL ESTABLISH
GOOD BUSINESS
RELATIONSHIP:
Time = High Value
« Time is not money »
Be patient
Be always ponctual
Give priority to long term relashionship

19. Wine market analysis

20. 
 Biggest productors
of wine in China :
 1 Changyu Wine Group Co Ltd
 2 Greatwall Wine Co
 3, Yantai Weilong Grape Wine
Co
 4, Dynasty
Production of wine in China
China has around 400.000 hectares of vineyards.China is 11th producer
8th vineyards in the world in terms of area

21. 
Some facts about the
consumption of wine in China
Honk Kong wants to be the center
of the wine market in Asia.
- No taxes on wine
- No taxes on added value
8th world consumer with 3,6 liter per capita and per
year
First wine
market in Asia
with 70% of
wine
consumed in
Asia.
2010 Today China represents
less than 7% of the
consumption in the world
150 millions of consumers in China
It represents a
market of 7 billion $
for a total of 153
billion $.

22. 
The consumption in the future
Total wine consumption in
China in 2013 would be 1.26
billion of bottles.
25% of growth in Asia (70% in China)
Consumption of 100 millions crates of 9 liters by year.
7th World wine market

23. 
Importations of wine in China
France represent 42% of the importations
Top 10 French red wines imported:
- Château Lascombes
- Lestrille Capmartin
- Château Haut-Brion
- Château Pétrus
- Château La Croix David
- Clos des Cortons Faiveley
- Château Ferran
- Echezeaux
2006/2009: 480% of increase
Australia is 2nd provider of China.
Today it represent 10% of the total
consumption but it will reach 16% in 2013

24. Importing Wine in China

25. 
OUR TARGET
Middle class : Superior level of education : 150 million
people
 Young women or men living in city
 Young couple
 Officials
Richest class : 22 million people
Foreigners

26. MARKETING MIX
Objectif : China

27. OUR STRATEGY
 Focus on Red Wine (67% of consumption)
 Focus on Hotel, Coffee and Restaurant (65% of sales)
 Insure a luxury image of our products (ostentatious consumption)
 Partnership with CIVB : Set up of Wine degustation in strategic places
 Partnership with Chinese government

28. Economy
/Social
•Upper Middle
class growth (21,2
% by 2015)
•GDP &
GDP/capita
Growth
•Political stability
New market : new
opportunities
•150 millions
potential
consumers
•Good perspectives
for wine
consumption (1,26
bottles consumed
in 2013)
•Luxurious and
renowned image of
french products
•Understand
business manners
Success
•Long term vision
•Relieve the lack of
informations of
consumers about
wine with
partnerships.
• Success in China =
first step to succeed
in Asia

29. Sources
www.tradingeconomics.com
www.economics.com
The World Bank
www.idealwine.net
www.ciafactbook.com
www.ca-vinexport.com