Internationalization of Italian wine in the Chinese market: the case study of San Marzano Wines

Abstract

This paper aims to analyze the current situation of the Chinese wine market and provide a case study of San Marzano Wines, a Southern Italian winery operating in Eastern markets for many years. For a better understanding of the case, this study first analyzes which are the business strategies that companies, both in the home-country market and outside their country, should undertake to put themselves in the position of achieving successful results when entering a new market, and when maintaining a strong positioning abroad. Before defining the internationalization path for the target market, companies should have a clear picture of each activity in their business model to better understand how to create innovation and offer greater value to their customers. Second, this paper examines the Chinese market, one of the most attractive markets for companies. Over the last decades, thanks to government open-door policies, China has been incredibly growing, so that many companies are looking at the Chinese market as a big and prosperous one, which allows gaining more profits for its rapid development and high spending power. The economic reforms implemented at the end of the 1970s deeply changed the country's economy and Chinese consumption patterns. Considering this flourishing context, the Chinese market became the second-largest luxury market, and it is expected to be the world’s leading luxury market by 2025. Italian products, famous around the world for their fine design and exquisite taste and elegance, have a special place in the Chinese market. Chinese consumers love Italian products because of their quality, craftsmanship, and attention to detail. Among the many categories of Italian products, wine is the most preferred one. Chinese consumers have shown a great preference towards wine because it is a symbol of wealth and social status. Moreover, red wines are preferred not only for their flavor and health benefits but also for cultural reasons, in Chinese culture red is a color associated with good fortune and prosperity. The wine market in China is characterized by the preference for red wine, the use of online platforms for purchase, and the development of wine culture as means to educate consumers about different varieties of wines.