Marketing wine in China

The world wine industry faces several problems. A recent report on the world wine trade found that the wine industry faced the following challenges: structural overproduction, changing consumer demand, increased retail power, increased competition, and the increased impact of marketing and branding (Geene, et al., 1999). The authors called for wineries to develop strong relationships with distributors and retailers, focus on improved wine quality, and develop strong brands. However, even if wineries successfully did this, it was unlikely that the industry could continue to survive without developing new markets. Wine producers have recently begun targeting Chinese consumers in an effort to develop new markets for wine. China does not have a tradition of grape wine consumption, preferring instead rice wine and spirits. The government has also been keen to encourage consumption of fruit-based wines.