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business of wine
WSET Dip unit 1
MW Topic of the Week: China and Paper 4
5 months ago
This week, we're diving into Paper 4: the business of wine. A reminder – I'm studying along with you (as are
), so below are my notes and analysis as a thought-starter to this conversation, not the key to the castle
Two out of the last three years' exams have included
a focused question on the Chinese market, and examiners have noted that a good understanding of that market would benefit any P4 question.
2017 focused on the potential and risks for exporting to China as an export manager:
You are Export Director of an established large wine company producing in excess of one million nine litre cases (standard case 12 bottles/750ml). How would you seek to capitalise on the potential of the growing Chinese market for imported wine? What are the risks and how can they be managed?
2019 meanwhile took more of a Chinese consumer point of view, and the impact consumer preference has on the channel:
How do wine consumers in mainland China decide what wine to buy and what are the implications of their choices for producers and distributors?
Fundamental to both is an understanding of:
Strengths of the market
How distribution works in China (national/regional)
How consumers learn about – and most importantly buy – wine (here, an understanding of direct-to-consumer/DTC and digital sales matters immensely)
The impact of taxes and trade deals on the wine market (e.g. As of Aug 2019: 93% tax on American wines imported into China re: the US trade war versus free trade agreements with Australia and Chile)
How would you tackle this question and define your scope? Do you have any statistics to share? Any specific experiences you personally have had to bring up as an examples? Hard numbers always appreciated if they can be shared in a public forum.
Here are some resources my study groups have pulled together; others always appreciated!
More Chilean wines pour into the Chinese market (2018)
China a "fundamental" partner for Chile's wine industry (2019)
China Export Report: Australian wine's largest export market (2016)
Why TWE started over in China (2019)
Half of China's middle class population drinks imported wine (2019)
The Rise of the Direct-to-Consumer (DTC) Route for Foreign Winemakers in China (2018)
China’s Wine Industry Embraces Premiumization and Goes Upscale (2019)
Wine Institute Statement: Latest China Tariff Increase on U.S. Wine (2019)
US wines latest victim of trade war with China's 93 percent tax (2019)
California wineries shut out from China amid trade war (2019)
The Most Important Websites for Wine Sales in China (2019)
WeChat, We Buy (2015)
WSET: Internet Usage in Chinese Wine Market (2017)
What do ‘luxury’, ‘premium’ and ‘fine’ wine mean in China? (2017)
How to Enter the Wine Market in China – Strategies and Recommendations (2017)
Knowing Your Competitors: Who Are Leading Wine Exports to China (2017)
China’s Top 10 Importing Countries (2018)
Sector Analysis: The Wine Market in China (Canadian report) (2016)
5 months ago
this is amazing, thank you!!!