It has been estimated that up to 50% of all premium wine purchases in China were purchased with government money. The ensuing austerity measures in the country cut overall wine consumption by 2.5% in 2013, the first decline in 10 years, and cut Australian wine exports by 12% to 37 million liters for the 12 months to March 2014. Wine exporters have had to shift their focus to the mid-market within the country – the urban, middle and upper-middle classes and the quickly growing e-commerce sector. China’s e-commerce sector could reach over US$180 billion in 2014 on rising internet usage, improved distribution networks, and rising incomes. ASC Fine Wines has seen 30,000 new customers in 2013 through e-commerce – most under 30 years of age and 90% of sales being below A$17. Although the new customer base is more frugal than the previous high-end buyers, the base is expected to continue to grow as China develops to a more consumer-based economy.
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