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In the negative growth of Chinese wine production, the profits of the industry plummeted, and the distribution business of some large wineries also shrank. The wine market seems to usher in the first "". However, at this time, some wine merchants smiled and shook their heads.

The performance of large-scale wine merchants plummeted

In the first half of this year, China’s cumulative output was 554,300 kiloliters, a year-on-year decrease of 7.15%.

China has become the world’s fifth largest consumer of wine, with wine sales of nearly 200 million boxes. In the past decade, wine sales and per capita consumption in China have tripled. Only 2010-2011 bottled wine imports increased by 65%, imports increased by nearly 200%.

In the flood of imported red wine into the Chinese market, it also poses a threat to domestic Chinese companies. In addition, the government's strict restrictions on the “Three Publics” consumption, the reduction of government affairs and business reception, and the reduction of various meetings have also caused a certain degree of impact on the alcoholic beverage industry and reduced the consumption of alcoholic beverages. Some companies did not take reasonable measures to deal with the decline in sales, or even a loss.

Zhang Yu, the leading company in the domestic wine industry, revealed in the performance report released in the first half of this year that the company achieved operating income of 5.62 billion yuan in 2012, a year-on-year decrease of 6.77%. Zhangyu Performance Express stated that the decline in performance was mainly due to the slowdown in the growth of domestic wine consumption demand and the impact from foreign countries, resulting in increased difficulty in marketing and a decrease in sales revenue of certain products of the company. Not only Zhang Yu, but also the Hong Kong-listed Dynasty wines suffered losses for the first time in eight years.

The downturn in the wine industry has had the most significant impact on the high-end wine market. At the fall of the two red wine auctions that fell out at the end of October last year, the price of high-end red wine in the famous French Bordeaux region fell by more than 30%. At the same time, the sales data of Jiumei.com showed that in the first half of this year, sales of wines with a price of more than 300 yuan accounted for only 20% of total sales.

Wang Ke, assistant to general manager of Beijing Delong Baozhen International Wine Co., Ltd. Beijing Branch, also said that since the end of last year, sales of high-end wines of more than 400 yuan have fallen by about 25%.

"Drinking" wine still has a chance

Compared with the poor performance of traditional wine companies, the online low-end wine market is on the rise. A wine dealer told Beijing Daily that a newly launched rosé wine with a price of around 100 yuan will sell more than a dozen bottles a day in the Tmall Store.

Logon wine official website, the best selling French Bordeaux white mill 2010 dry red wine price is only 179 yuan. It is understood that in the first half of this year, the sales of mid-to-low-end wines with a price of 100-300 yuan accounted for half of the total sales. Liao Yide, CEO of Jiumei.com, expects the sales volume of Jiumei this year will increase by 60% from last year.

Shen Pintong, chairman of ASC Fine Wines, said, “The challenges we face are related to government consumption. This is true, and of course, the enthusiasm of all Chinese consumers for wine is also growing.” Wang Ke, assistant general manager of Beijing Delong Baozhen International Wine Co., Ltd. Beijing Branch, also stated that sales of mid- to low-end wines at the company's 100-250 yuan price are rising sharply. In Wang Ke’s view, “Three Publics” consumer policies affect the performance of the wine industry, while also allowing consumers to shift from high-end groups to ordinary citizens.

In recent years, there are more and more consumers who love to buy wine. However, problems such as high sales prices, counterfeit cottages, and cluttered labels that have been filled with wine also make consumers love and hate wine.

In recent years, the competition in the wine industry has intensified, and consumers’ awareness of red wine has increased the degree of industry consolidation to a certain extent, and the entire industry has become more standardized. Only buy expensive, do not buy right; only choose to import, exclusion of domestic has been a landmark slogan for many domestic consumers to buy wine. Nowadays, consumer psychology is becoming more and more rational, which will also promote the development of the wine industry.

Rebuilding a brand after reverting to rationality

As consumers become more aware of wine, more and more people are fond of such healthier wines, including some young people. They do not have a fixed purchase model. Apart from purchasing according to the grape varieties, origins and brands on the wine labels, the standard for purchasing red wine lies in their taste. This group of people does not treat wine as wine, but as a beverage.

Liu Yong, a veteran in the wine industry, said, “The taste of wine is a very personal thing. Now more attention is paid to personal tastes, which is a good choice for consumers.” The high-end red wines of some famous wineries are quite tasteful and at the same time they are quite heavy. Not everyone can accept it. In contrast, the low-priced wines are more easily recognized by consumers.

According to Lu Yide, under the current industry background, the addition of young consumer groups undoubtedly brings business opportunities to the wine market. Changes in the taste of consumers have also increased the consumption of medium and low-end wines, and many mid-to-low-end wines cater to users' needs. Compared with high-end red wine, mid-to-low-end wines are not only affordable but also more easily accepted by everyone.

Chen Bolong, deputy director of the China Council for the Promotion of Economics and Trade and deputy director of the Chinese Chamber of Agriculture and Animals Merchants Association's Wine Branch, said: "Because of the deepening research on wine-related knowledge, Chinese consumers are becoming more and more aware of wine tasting. Today's wine market Is returning to rationality."

For wine producers, if they want to seize a place in the regulated market, they must continue to expand brand influence and expand their own strength. At the same time, they must actively disseminate wine knowledge, popularize wine culture, and guide rational consumption. With the rational return of the Chinese wine market and the rapid development of the wine industry, wine companies need to expand their market share. The ultimate secret to victory is still to rely on quality, branding, and culture.