Chateau Lafite Rothschild (China)
Situation in China:
China is one of the most important markets in the world, and with a growth of the Chinese economy in the past decades; it has encouraged international suppliercompaniess to enter the Chinese market.
Living standards as well as purchasing power parity have improved since the countries openness to a market-oriented economy. Due to this openness foreign companies have attracted the consumption of wine from the middle-class, generating an increase in the last years of wine sales. Wine consumption continues to grow at a rapid rate in the country.
The Chinese wine market is a complicated due to its numerous wine producers (local producers) and wine companies entering china to exploit the wine market. China as the most populated country in the world is a commercial paradise for all the enterprises wanting to expand to new markets. By the gain in market share by the introduction of new products to the Chinese market, foreign companies take advantage of a growing market.
In the last years the French wine companies have been exporting to china expecting to gain market share in the wine sector taking advantage of one of the world’s fastest growing economy. For French wine export companies, it is important to understand the market, due to the Chinese wine companies and local wine production and how they have been gaining ground in the wine market.
Due to the countries emerging economy and the growth in economical aspects the population in china have been entering a new era of consumption of foreign products, and due to this reasons most foreign companies have set up subsidiaries or the most common joint ventures with other Chinese companies to enter the country’s market and gain some ground on the major cities.
One of the most important and emerging sectors in the Chinese society are the luxurious products. After the purchasing power of the...
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