At a banquet in China, having a glass of Penfolds wine is a must.
A year after China canceled the additional tariffs on Australian wine imports, this brand has once again become a standard feature on the tables at business dinners and other occasions in mainland China.
According to data from the Australian Wine Industry Authority, in the past year, as large wineries including the owner of Penfolds, Treasury Wine Estates, resumed exports to China, Australia's wine exports to China surged by more than 1 billion Australian dollars (1 Australian dollar is approximately 4.62 Chinese yuan - our note).
In the past year, Australia's wine exports increased by 41%, reaching 2.64 billion Australian dollars.
However, China's wine market is quietly undergoing changes, prompting industry giants like Treasury Wine Estates to rethink their strategies.
The main change is the increasing popularity of domestically produced Chinese wines.
China may not immediately be associated with top-tier wine-producing countries, but innovative winemakers centered around Ningxia in the northwest and Yunnan in the southwest are helping China make its mark in the wine world.
Treasury Wine Estates realized the growing popularity of domestic Chinese wines and acquired 75% of the shares of Wangyueshi Winery in Ningxia this year.
Tom King, global managing director of the Penfolds brand, said: "China's wine regions are gaining global recognition for their unique terroir, and we see tremendous potential in producing wine locally."
The current economic situation in China gives local wine producers an advantage, as reduced operating costs help them compete fiercely in price with more established international wine merchants.
Jim Boyce, founder of the wine website "Grape Fortress," who is based in Beijing, said: "Everything is cheap in China now."
He said: "Rental equipment is cheap, purchasing grapes is cheap, designing labels is cheap, and accumulating followers on WeChat is not difficult. A batch of innovative local winemakers in China are now operating at low cost. And being inexpensive is an advantage in China."
Boyce said: "Australia's export figures may look good, but whether these figures translate into actual sales performance is another matter."
The Chinese government keenly realized the need to boost domestic demand to revive the economy and is striving to stimulate national pride in domestic products.
The Chinese government launched the "Buy in China" campaign, and discussions are ongoing on social media platforms about which Chinese products can replace high-tariff American goods.
Boyce said: "Chinese people's pride in domestic products and achievements is growing day by day."
He said: "Whether it's high-speed rail, high-tech, moon landing, or sports achievements, it's all the same. This also applies to the food and beverage sector. And the quality of Chinese wines is very good. The key lies in whether consumers have enough awareness of them to generate purchase intentions." (Translated by Liu Yunyun)
Original article: https://www.toutiao.com/article/7501157091730522636/
Disclaimer: The article represents the author's personal views. Please express your attitude by clicking the "Like/Dislike" buttons below.