Dragon wine: developments in the Chinese wine industry

Abstract

Purpose The purpose of this paper is to provide an evolutionary view of the emerging wine industry in China. Design/methodology/approach Research on industry evolution provides a background for the historical evolution of the Chinese wine industry. Case studies are used to illustrate the different strategies of the leading wine producers in China, and to identify the major concerns and challenges in the Chinese wine industry. Growth potentials and ongoing trends are supported with statistics from authoritative databases and Chinese wine industry associations. Findings The Chinese wine market is characterized by an increasing concentration where the top four domestic producers dominate with 50 per cent market share. The lack of a wine culture makes brand marketing crucial to business success. Limited international efforts have been made by Chinese wine producers, although one winery has embarked on capturing 50 per cent of the global ice‐wine industry. Research limitations/implications The paper provides a historical overview of the Chinese wine industry and its current situation, which could not elude generalization and simplification. Enormous regional diversity in China compels differentiated regional studies in terms of production, consumer behaviors and marketing strategies. Practical implications The historical evolution of the Chinese wine industry reveals different settings for wine business in China. The dominance of domestic wine companies and ignorance of foreign wine brands among the general public imply a tough setting for foreign wine makers and distributors to enter the market. Originality/value The paper provides some insight into the historical and ongoing development of the Chinese wine market.