Regional markets such as south-eastern coastal cities and first- and second-tier cities that are relatively mature and have competitive consumption power are often more likely to attract wine practitioners’ attention.However, Jetek China Digital found that recently counties or county-level cities which used to be non-traditional wine consumption markets, wine business is not only growing, but some dealers have already made a profit in their own way.Significant Wine Growth in Guangxi and AnhuiGuangxi Chengyao Wine Store opened stores in several county-level cities in Guangxi in the past two years and started wine sales. According to Yun Liu, the founder of the chain store: “Our franchise stores can sometimes sell 100-200 cases of wine in a single county-level city, even 300-400 cases of wine in one month in hot season.”Yun Liu pointed out that due to the development of consumer attitudes, consumers in some county-level regions and third-, fourth-tier cities in Guangxi is having the purchasing power. People start to notice the fashion and healthy attributes of wine, switching their drinking habits to drink wines. The distribution channel of our company in recent years has been concentrated in these cities.It is understood that Chengyao Wine Store has opened branches in Sanjiang, Liucheng and Yizhou in Guangxi in the past two years.Zhonghua Zhang, head operator in China of Anhui Katang Wine, also expressed similar views. He pointed out that in the past two years, some fourth-tier cities in and economically developed counties in Anhui have seen an increase in wine sales. Our company can sell 3,000 cases of wine per year in one single economically developed county. This number has doubled from two years ago.
Talking about the reasons for growth, Zhang Zhonghua pointed out that Anhui consumers are now trying to consume, especially women’s consumption growth is obvious. Many people who drink wine are comparably wealthy and are health concerned.
Cross-border integration and resource-based channels are necessary. Speaking of promotion, Liu Yun mentioned: We generally use two methods in the county-level market. First of all, we offer wine education sessions to attract fans and industry insiders. Secondly, we will cooperate with some local cafes and real estate companies to hold cocktail parties and tastings to attract mass consumers. Through the wine tastings, the image of professional fidelity of wine is established.
“Now our main consumers are between 20 and 35 years old. We have a clear goal to achieve large volume, as long as we convert 10% of the total amount of local beer and liquor to wine.” Said Yun Liu.Zhonghua Zhang sells wine mainly through distribution channels. He said: “we will find some liquor merchants from elsewhere, as well as some related people to help to sell. The major wine channels in Anhui are still group purchases. Traditional distribution is hard to sell wines.Mulinsi Wine also has operations in many fourth-tier cities in Sichuan and some counties around Chengdu. Wanbo Zeng, vice general manager of the company illustrated that selling wine in such markets mainly relies on non-trade dealers with customer resources, selling through group purchases. Better wine atmosphere in developed county-level markets However, Wanbo Zeng also pointed out that his company’s 100 yuan wholesale priced-wines can get 200,000 yuan revenue per year in similar county-level cities, increased by 10% in the past two years.Compared with the sales of Katong wine in cities in Anhui, Wanbo Zeng believes difference exists between Western and the Eastern China.Some insiders pointed out that some county-level markets in Anhui and Guangxi have experienced rapid growth in wine consumption in the past two years. One of the reasons is that many young people from those two places work in Shanghai and Guangdong, while the wine atmosphere relatively good. Thanks to the distance and communication, this wine culture is easy to bring back.However, Zhonghua Zhang pointed out that not every county-level cities in Anhui have such a good wine atmosphere. At present, Southern Anhui is better, but worse in Northern Anhui cities. Overall, the wine industry is improving, unlike people who did not drink at all in previous days.In the catering industry, a similar situation happened in Hunan Province. According to Yi Fang, general manager of Changsha Portuguese Wine, this only exists in the county-level market in Hunan, not a common phenomenon. It only appears in counties with good economics, and it also relates to local dealers.Entry-level wine still dominatesIn addition, the wines sold in the county-level markets are not expensive. Yun Liu said: “At present, we still focus on low-end wines, retail priced less than 100 yuan.”Zhonghua Zhang pointed out that the price range of wines in Anhui County is between 80-120 yuan. A small number of people with spending power will purchase 150-yuan wines. However, it is hard to sell below 80 yuan. If people see a bottle of wine is only 40-50 yuan, they will regard them as fake wine.Mr. Chen, a wine merchant familiar with the Anhui wine market, told Jetek China Digital that the Anhui wine atmosphere has warmed up since last year, which is related to the promotion from large enterprises such as COFCOW & WInternational Company and Baichuan Wines. However, the wines sold in most county-level markets is not priced high, mainly middle and low-end table wines. The average price is between 70-150 yuan. Consumers already have some brand concepts for high-end wines for gifts. The main sales channel is the smoke hotel, because the wine is not high in the consumption of wine, consumers are not sensitive to the price, the smoke hotel can still maintain a considerable profit.