Beer in China Market
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Transcript of Beer in China Market
HUWAKA BEER
HU
WAK
A
BEER
HUWAKA
EXPERIENCE THE EXPERTS
KARAN
MANISH
NIDHIPRATUSH
KINSHOO
Group - 7
BEER FLOWING THROUGH THE GREAT WALLS
Acceptance of beer in Chinese Society
• The history of the Chinese brewing industry can be traced back 4,000 years. Alcohol has high status in traditional Chinese culture and is a frequent theme in Chinese classic poetry.
• Alcohol consumption is on the rise in China, with 84.1 percent of adult Chinese men and 29.3 percent of women admitting to being regular drinkers.
OPPURTUNITIES TO GROW
Why China..?
• China has overtaken US to become the largest national beer market in the world.
• In 2006, China imported 114.6 million liters of beer with a sales value of $US920 million.
• It possesses tremendous growth potential due to the low per capita consumption.
• Great deal of room for further investment and development.
ECONOMICChina’s brewery market has grown by 33.56% in
past 4 yrs with total market volume of 30.47
billion liters.
Source: www.allbusiness.com
PEST ANALYSIS
SOCIALWomen & youth are
among heavy consumers of beer.
POLITICALAfter being a part of
WTO, international beer brands can enter China & beat local brands on
price front.
TECHNOLOGICALEfficient system linking with manufacturer with
wholesaler.
• Generally, more men are consuming beer beverage than women. In China, women population is increasingly important to the beer beverage consumer market. More women are getting better discretional income to spend at the consumer markets.
• Generally, more men are consuming beer beverage than women. In China, women population is increasingly important to the beer beverage consumer market. More women are getting better discretional income to spend at the consumer markets.
Women Consumers….
• Almost 40% of Beijing beer consumers are women, the highest among the women groups in the three selected metropolitan consumer markets.
There are large numbers of beer consumers chose to drink at dinning and banquet in the 6 selected metropolitan consumer markets; namely Beijing, Shanghai, Shenyang, Chengdu, Wuhan and Guangzhou. A comparably distinct preference for drink-places was identified as frequenting at bar counters in Guangzhou (15.7%).
Consumer LoyaltyLow High
Low
Yan Jing
Tshing Tao
HighM
arke
t Sha
re
Zhujiang
Huarun Snow Beer
Source: http://www.echinacities.com/special/Beer-Festival/Content.aspx?n=3299
Consumer Perception Mapping
Possible Strategies….
• A joint venture with an established local partner is far less risky, because the foreign brewer can benefit from its partner's established distribution network, brand loyalty and production prowess.
• Joint venture will also lead to economies of scale.
• Collaboration with retail outlets like Wal-Mart & Carrefour.
"China is a threat, China is a customer,
and China is an opportunity... You have to internalize China to succeed.
You cannot ignore it.”
THANK YOU
References
• http://www.researchandmarkets.com/reports/1057515
• http://www.nl.sg/ShowBinary/BEA%20Repository/NL/Services/ResearchServices/pdfIndustryDigests