Analysis on China's beer market

1. FINDING NEW
WINE-LOVERS
Daniel Evans
Chief Executive Officer
daniel.evans@ormita.com
www.ormita.com
August 2011
© Copyright 2011 – Ormita Commerce Network Limited. All Rights Reserved
MARKETING FOR FUTURE BUSINESS GROWTH

2. THE BIG DEAL
ABOUT CHINA
MARKETING FOR FUTURE BUSINESS GROWTH

3. The Plain Facts
China:
• Is the world’s fastest growing economy
• Doubles in size approximately every seven years
• Will be the largest economy by 2020
• Is the largest country by population
• Is the worlds largest lender
MARKETING FOR FUTURE BUSINESS GROWTH Source: World Bank

4. The Future : The World’s Largest Economies
2010
GDP PPP-adjusted
Values in Trillions of USD
European U.S.A Russia
Union China
Japan India
14.9 tr 14.7 tr 9.9 tr 4.3 tr 4.0 tr 2.2 tr
2020
GDP PPP-adjusted
Values in Trillions of USD
China Japan
European U.S.A Russia
Union
India
30 tr 29.6 tr 28.1 tr 13.4 tr 6.8 tr 4.3 tr
MARKETING FOR FUTURE BUSINESS GROWTH Source: World Bank

5. Biggest Economies in 2020
MARKETING FOR FUTURE BUSINESS GROWTH Source: World Bank

6. China
World’s Fastest Growing Economies
GDP GROWTH
20
15
PER YEAR
Real growth rate
Values expressed as a percentage
10
Australia
Canada
China
India
5
Russian Federation
United Kingdom
United States
European Union
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
-5
-10
MARKETING FOR FUTURE BUSINESS GROWTH Source: World Bank

7. The Largest Populations in the World
1600
1400 2010
1200 POPULATION
1000
IN MILLIONS
800
600
400
200
0
ia
l
ia
na
a
an
sh
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zi
si
re
te
er
d
ra
es
hi
de
st
us
In
A
ta
ig
B
C
ki
on
la
S
N
R
ro
Pa
g
d
d
Eu
an
In
te
ni
B
U
MARKETING FOR FUTURE BUSINESS GROWTH Source: CIA World Fact Book

8. THE CHINA
ALCOHOLIC
DRINKS MARKET
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9. China as a Growing Market
• 1480.6 million litres: market volume for table wine in 2010,
growing at over 20% per annum
• 60%: the annual growth rate of imported table wine in the
past five years, totalling 146.3 million litres
• 48%: market share of bottle wine imports from France,
while US-imported wine accounts for less than 10%
• USD655.7 million: estimated market value for imported
bottled wine in China, the bulk from red wine
MARKETING FOR FUTURE BUSINESS GROWTH Source:
China Customs, 2011
Rabobank Wine Quarterly

10. Chinese bottled wine imports by
country
Source: Rabobank Wine Quarterly
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11. Most consumed brands of beer
Source: Credit Suisse China Consumer Survey
MARKETING FOR FUTURE BUSINESS GROWTH

12. It seems that…
• Though China is a large market, the recognition of foreign
brands is low, notwithstanding the dominance from local
brewers
• Competitors like Dynasty, Chang Yu, GreatWall, Yanjing
Beer, Zhu Jiang Beer, or even counterparts like Budweiser,
Heineken, Calsberg are still promoting heavily in China
• But, we will help you break through
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13. LURING THE
CHINESE
DRINKERS
MARKETING FOR FUTURE BUSINESS GROWTH

14. Chinese Consumer Behaviors
Capture the new generation:
• Post-80s’ willingness to try
• Rising brand awareness
• Influenced heavily by ads (bandwagon)
Solution:
• Media campaigns without using cash
Source: McKinsey
MARKETING FOR FUTURE BUSINESS GROWTH

15. Media resources in China
Beijing, Tianjin, Dalian, etc.
Shanghai, Hangzhou, Nanjing, etc.
Chengdu, Chongqing, Xi’an, etc.
Hong Kong, Guangzhou, Shenzhen, etc.
MARKETING FOR FUTURE BUSINESS GROWTH

16. Types of media available to barter
Restaurant:
• Printed paper napkin
Billboard:
• Commercial building
• Bus stop and roadside board
Public transportation:
• Metro, bus, taxi, train, plane and airport
Media:
• Magazines, TV/radio, online commercials and exhibition
MARKETING FOR FUTURE BUSINESS GROWTH

17. Example: Restaurant
• Printed paper napkin
MARKETING FOR FUTURE BUSINESS GROWTH

18. Example: Commercial building
• Body/LED
• Indoor ads board
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19. Example: Roadside billboard
• Bus stop • Board
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20. Example: Bus
• Interior
• Body
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21. How it works?
= USD100,000
USD100,000 =
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22. Contact Us
Media Services Department
Ormita Barter Limited
Email: byron.fan@ormita.hk
Telephone: +852 3741 0702
Facsimile: +852 3743 4409
Headquarter
Email: media@ormitachina.com
Telephone: +86 755 3301 1789
Facsimile: +86 755 3301 1790
MARKETING FOR FUTURE BUSINESS GROWTH