Photo: Adobe Stock

China Roadshow: Fast facts on Shenyang, Jinan, Wuhan and Shanghai

Market Bulletin | Issue 110
Photo: Adobe Stock
05 Jun 2018
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The China Roadshow has been an annual activity hosted by Wine Australia since 2012. The tour visits one tier one city and three from lower tier cities (how tiers are distinguished).

Travelling to the four cities over eight days, Australian wine exhibitors will have the opportunity to connect with more than 3000 importers, distributors, wholesalers, influencers, buyers, VIPs, sommeliers and media to drive awareness and increase export sales of Australian wine.

To get into the spirit of the Roadshow, with its action-packed program, below are some fast facts about each of these cities.

Monday 4 June – Shenyang

Shenyang is the capital of China’s northeast Liaoning Province. Formerly known as Manchu, Shenyang is now an important industrial centre and home to the Imperial Palace of the Qing dynasty.

  • General facts – Source: Euromonitor International
    • Total population estimated in 2018 aged 15–64 years was 5.2 million, this number is forecast to decrease 4 per cent by 2030 as more people move into the 65 plus age bracket.
    • 69.7 per cent have access to the internet and all households have a mobile phone.
    • The number of households earning US$25,000 or higher is forecast to increase by over 200 per cent by 2030, although households with income between US$10,000 and $25,000 represent the largest bracket.
    • Less than 2 per cent of consumption expenditure is on alcoholic beverages and tobacco.
  • Wine consumption facts – Source: Wine Intelligence
    • Less than a third (29 per cent) of all urban upper-middle class drinkers of imported wine from Shenyang were aged 18–29 years. Some 43 per cent were aged 40–54 years. The proportion of male drinkers is higher than females at 63 per cent.
    • Fewer were aware of Australian wines (41 per cent) compared to people in Tier 1 cities such as Shanghai.
    • A quarter of Shenyang upper middle-class drinkers of imported wine typically spend RMB 125–149 off-trade.
    • 56 per cent bought wine on the internet and 54 per cent bought from a wine shop. Department stores are also popular.
    • Tmall.com and JD.com are more commonly used compared to other online stores (32 per cent and 31 per cent respectively). Although 35 per cent purchase wine at Walmart.
  • Other facts
    • In a blog posted on Shenyang Lost and Found, Shenyang was voted the top Chinese city in alcohol consumption.
    • Famous local Shenyang foods are Laoshan Ji Haicheng Pie, West Tower cold noodle and little potato pickles. 

Photo: Ian Routledge / Wine Australia

Wednesday 6 June – Jinan

Jinan has played an important role in the history of the Shandong region and is now a major administrative, economic and transport hub. Shandong, is home to a number of prominent wine producers growing the Chinese variety Cabernet Gernischt as well as Riesling and Chardonnay.

  • General facts – Source: Euromonitor International
    • Total population estimated in 2018 aged 15–64 years was 3.7 million, and predicted to drop by more than half a percent out to 2030.
    • 77.7 per cent have access to the internet and all households have a mobile phone.
    • The number of households earning US$25,000 or more is forecast to increase by 150 per cent 2030, outgrowing households with income between US$10,000 and $25,000.
    • 1.8 per cent of consumption expenditure is on alcoholic beverages and tobacco.
  • Other facts
    • Jinan is often called ‘Spring City’ for its 72 artesian springs situated in the city centre and surrounding areas.

Photo: Wine Australia

Friday 8 June – Wuhan

Wuhan is the capital of Central China’s Hubei province situated on the fertile plains of Hanjiang and Yangtze Rivers. Wuhan is an important transport and manufacturing hub, but despite its location and easy access for imports, Euromonitor International notes that the wine market in Wuhan is in its infancy with limited wine knowledge.

  • General facts – Source: Euromonitor International
    • Total population estimated in 2018 aged 15–64 years was 8.7 million, and this is forecast to remain relatively steady out to 2030.
    • 72.7 per cent have access to the internet and almost all households have a mobile phone.
    • The number of households earning US$25,000 or greater is forecast to increase by almost 200 per cent by 2030, outgrowing households with income between US$10,000 and $25,000.
    • 2.1 per cent of consumption expenditure is on alcoholic beverages and tobacco.
  • Wine consumption facts – Source: Wine Intelligence
    • Wuhan’s urban upper-middle class drinkers of imported wine fall within the younger age brackets with 46 per cent aged 18–29 years. Thirty-two per cent were aged 40–54 years.
    • Around half (49 per cent) are aware of Australian wines.
    • A quarter of Wuhan’s upper middle-class drinkers of imported wine typically spend RMB 125–149 off-trade.
    • Wine purchases on the internet were significantly higher in Wuhan at 62 per cent compared to the overall result for China at 48 per cent. Wine shops were the second most used. Department stores are also popular.
    • Tmall.com and Jiuxian.com are more commonly used compared to other online stores (37 per cent and 31 per cent respectively), although 44 per cent purchased wine at Walmart.
  • Alcohol trends – Source: Euromonitor International
    • Chinese herb spirits are preferred for localised flavour and health benefits.
    • Drinking consumption is concentrated in off-trade channels due to price sensitivity and convenience.
    • Consumers prefer to go to drink specialists where they can get some professional advice.
    • A typical occasion where wine, in particular red wine, is consumed is at weddings due to the romantic atmosphere it creates.
  • Other facts – Source: Vinoffer MiBD wine analytics
    • More than a quarter (28 per cent) of Australian wines available in on-trade channels were at international restaurants. The most common variety offered to customers was Shiraz, followed by Chardonnay. While Australian wines were available at all price points, most were priced on the menu between RMB 100–249.99 and RMB 250–499.99.

Photo: Adobe Stock

Monday 11 June – Shanghai

Situated on China’s central coast, Shanghai is an international metropolitan city with a diversified culture. It is China’s economic and financial centre, which has led to increased migration and improved access to and interest in Western culture and lifestyles.

  • General facts – Source: Euromonitor International
    • Total population estimated in 2018 aged 15–64 years was 20 million, and forecast to decline 1.7 per cent by 2030.
    • 86.7 per cent have access to the internet and all households have a mobile phone.
    • The number of households earning US$25,000 or more is forecast to almost triple by 2030, outgrowing households with income between US$10,000 and $25,000.
    • 1.9 per cent of consumption expenditure is on alcoholic beverages and tobacco.
  • Wine consumption facts – Source: Wine Intelligence
    • A third (33 per cent) of all urban upper-middle class drinkers of imported wine from Shanghai were aged 18–29 years. 45 per cent were aged 30–39 years.
    • More than half (54 per cent) are aware of Australian wines.
    • Urban upper-middle class drinkers of imported wine from Shanghai were more likely to spend RMB 250–499 compared to other cities.
    • 58 per cent bought wine from a wine shop and 50 per cent bought wine on the internet. Imported food and drink stores are also popular.
    • Tmall.com and JD.com are more commonly used compared to other physical or online stores (38 per cent and 30 per cent respectively). Purchase made on the online store, Sam’s Club (18 per cent), were also significantly higher than the average (13 per cent).
  • Alcohol trends – Source: Euromonitor International
    • ‘Happy Friday’ is a popular initiative for a number of companies to lighten up their corporate culture, offering various wines and spirits after work.
    • Consumers in Shanghai are taking online courses to gain knowledge about wine tasting.
  • Other facts
    • The tradition of bike riding is making a comeback after a wave of intensive urbanisation drove them out. Over 19 000 bicycles can be hired through modern internet-based, bicycle-sharing technologies. (Source: Euromonitor International)
    • Australian wines available in the on-trade ranked third in market share behind France and Italy. (Source: Vinoffer MiBD wine analytics)

 


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