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Premium Spirits Harnessing Greater Consumer Spending Power in the Chinese Market
Rising wealth among Chinese consumers has driven the market for luxury goods. While premium imported spirits have status-symbol appeal, they are also faced with strong competition from both within and outside the category. This article looks at opportunities for international spirits manufacturers in China, and the issues that need to be addressed when strategizing market entry and/or expansion.
China is a key growth market for virtually all consumer packaged goods (CPG) categories, as the sheer size and spending power of the market is difficult to ignore. For premium spirits, the opportunity is as challenging as it is lucrative. Understanding how this market has evolved requires an appreciation of the following.
China’s consumer landscape is rapidly evolving – Unprecedented economic progress has brought about noticeable optimism among consumers, and a booming population translates into a significant market opportunity.
Rising wealth in China has triggered a burgeoning luxury market – Chinese consumers place considerable importance not only on wealth, but overt displays of it. Conspicuous consumption is a key quality of the Chinese luxury market.
China’s expanding luxury market is fertile territory for international spirits manufacturers – While they currently represent a small fraction of the spirits category, premium imported brands have the tradition, prestige, and finances to thrive in the country
There are several imposing barriers faced by imported spirits in China – Rising health consciousness, government controls, and counterfeiting are all obstacles to market growth.
Find this interesting. You may also like our business case study ‘Premium Spirits in China Case Study: Harnessing Greater Consumer Spending Power in the Chinese Market’ or our ‘Spirits Industry Reports’