Penetrate the great wall - Chinese wine consumption and opportunities for Italian wine in China

Abstract

Chinese tradition makes use of the word “酒, jiǔ” to indicate alcoholic beverages, which were traditionally made from cereals. The practice of using grapes dates back to the Han Dynasty, and above all the Tang dynasty, which saw an increased interaction between Chinese and foreign cultures. However, the production of wine in China started in 1892, when a Chinese tycoon Zhang Bishi founded the Changyu Wine production company in Yantai, Shandong. At present in China operate about 500 small and big wineries, the most famous of them are known as the “Big Three of Chinese Wine”: Dynasty Winery Corporation, Changyu Pioneer Wine Co. and China Great Wall Wine Co., while the provinces of greater production are Xinjiang, Liaoning, Jilin, Shanxi, Hebei, Shandong and Yunnan. Moreover, Chinese government encourages wine consumption as a healthier alternative to high-alcohol beverages, increasing domestic grape wine production and import from different countries. Wine is perceived in Chinese mind as a symbol of status and prestige, and brands play a crucial role in the purchase decision of many consumers, who prefer expensive wines. By now, wine import in China is dominated by France, Australia, Chile and Spain, leaving to Italy a small part of the total wine trade. It is therefore important for Italian companies to develop some key strategies to better penetrate the Great Wall, for example make investments in promotion, marketing and advertising, create a common culture and coordinated actions of promotion, build a successful brand and sell wine in small cities too. E-commerce represents nowadays a huge opportunity for Italian companies who want to penetrate Chinese market and it should not be underestimated. Exhibitions and fairs are also crucial, because during the trade show the company can meet its sellers, its customers and journalists; moreover, it can also test and exhibit products, organize meetings with the media, hold seminars, which are organized face to face with a large amount of contacts. It is fundamental for Italian companies to present themselves under a shared umbrella, because for Chinese it is too difficult to distinguish Italian wine regions, and Italian firms should take into consideration this limitation. If Italian firms were able to joint forces and position Italian wine in Chinese minds as a single and unique country, they will take a huge advantage of that. This way it will be easier for Chinese to identify Italian products and consequently purchase them.