Market Growth of Imported Wine in China
Market Growth of Imported Wine in China By Yuki Mabuchi Brief Introduction With rapid growth of Chinese GDP over the past few years, China is now the world’s fastest growing wine consumption market and yet still has huge potential as a market growth.Since Wine drinking is considered a healthier alternative to spirits and somewhat trendy, red wine is particularly popular in China.However, 90% of the wine consumed in China is still produced locally, and it is marketed as low price wines.
Therefore, it is impossible for imported wines to compete with Chinese wines on the price.
Each imported wine company are challenged to find their differentiation and own marketing tools. Even though market percentage for imported wines is 10%, the prospects for continued growth are huge because of the rapid increase in wealth and increasing urbanization of the population. The main topic for my research is to analyze market growth of imported wines in China followed by Chinese WTO regulations.
The research estimates the impact of market growth according to import tariff rate which declined to 14% since China joined WTO. In addition, all imported wines are subject to a range of additional taxes, duties or fees, such as liquor tax, education tax, value-added taxes and consumption taxes. These taxes, duties and fees are taken into account in the analysis which estimates the impact of a tariff reduction on the retail price of imported wines in China.
The research will show statistic analysis of imported wine market from different countries different point of view. Furthermore, the research will concentrate to a specific country such as Australia and New Zealand. In the past five years, Australia has been gradually gaining market share of bottled wines from traditional market leaders including France, Italy and Spain. However, since a zero tariff has been applied to Australia’s neighbor country New Zealand, going forward with Australian wine industry will face challenges.
The case study will demonstrate the challenges posed by import tariffs on the Australian wines sector by comparing New Zealand wine market in China. Outline Arrangement of every section; I. Introduction * Explain why this topic is interesting which is to study market structure of imported wines from different countries and their competition and challenges for having tariffs and taxes in China. * Explain how I will distribute this research which will include statistics of imported wine products or company in China and graph of market growth.
II. Literature review * Development of imported wine market since China joined WT? ?. WTO Regulatory Overview 1. Import Tariff on wine 2. Import duty and taxes 3. Labeling Regulations 4. Intellectual Property IV. Market Overview 1. China wine market size 2. Consumer profiles 3. Distribution Channels * Economic analysis of how import duties affect price on the imported wine. * Statistic analysis by different country’s wine distribution V. Australian wine VS New Zealand wine * Introduction of Australian and New Zealand wine Statistic analysis on both market in China * The impact of trade size after zero tariff on New Zealand * Challenge of Australian wine VI. Conclusion * Prediction of market growth for imported wine in the future. * Challenge of future achievement and fight between local produced Schedule of my thesis Plan to finish in 4 months period * December/January – Find as many materials as possible and group all the materials by section and take memos * January / February – Write thesis * March / April – Finalize thesis w = 1 * ROMAN Iith supervisor