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The development of the Chinese wine industry and trade

The development of the Chinese wine industry and trade The study aims to give an overview of the development of the Chinese wine industry and trade between 1992 and 2019. Its importance is highlighted by the fact that China has become one of the world’s largest wine-consuming markets with great growth potential and is now ranked among the top 10 largest global markets for wine.Design/methodology/approachTo address Chinese wine industry competitiveness, revealed comparative advantage (RCA), relative trade advantage (RTA) and revealed competitiveness (RC) were calculated, based on the World Bank World Integrated Trade Solution database. Chinese wine market-related issues are analyzed by Porter’s Five Forces in help of Market Line industry profile reports.FindingsResults suggest that the Chinese wine market is relatively fragmented, with a concentrated food and beverages retail industry, strong buyer power and a moderate supplier power. The RCA calculated for the Chinese wine trade indicates that the share of exported bottled wine has become significant in the analyzed period. However, the RCA was perceivable just for bottled wines and only in the last analyzed period (2013–2019), whereas RTA and RC were negative for all periods revealing a comparative disadvantage. However, current market trends suggest that they will increase in the future.Research limitations/implicationsData accuracy may affect these results because wine statistics may contain mislabeling. Moreover, China expanded its investments in many well-known wine regions all over the world, especially in Bordeaux, France. These, along with the significant re-export, could make it harder to interpret wine trade data because some part of the export is related to Chinese wineries outside of China.Practical implicationsKnowing the above-mentioned limitations, results should be interpreted with caution. However, high-quality wines can be identified as a niche market in China.Originality/valueThe study provided a detailed analysis of the Chinese wine industry and its competitiveness. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Wine Business Research Emerald Publishing

The development of the Chinese wine industry and trade

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1751-1062
eISSN
1751-1062
DOI
10.1108/ijwbr-09-2021-0045
Publisher site
See Article on Publisher Site

Abstract

The study aims to give an overview of the development of the Chinese wine industry and trade between 1992 and 2019. Its importance is highlighted by the fact that China has become one of the world’s largest wine-consuming markets with great growth potential and is now ranked among the top 10 largest global markets for wine.Design/methodology/approachTo address Chinese wine industry competitiveness, revealed comparative advantage (RCA), relative trade advantage (RTA) and revealed competitiveness (RC) were calculated, based on the World Bank World Integrated Trade Solution database. Chinese wine market-related issues are analyzed by Porter’s Five Forces in help of Market Line industry profile reports.FindingsResults suggest that the Chinese wine market is relatively fragmented, with a concentrated food and beverages retail industry, strong buyer power and a moderate supplier power. The RCA calculated for the Chinese wine trade indicates that the share of exported bottled wine has become significant in the analyzed period. However, the RCA was perceivable just for bottled wines and only in the last analyzed period (2013–2019), whereas RTA and RC were negative for all periods revealing a comparative disadvantage. However, current market trends suggest that they will increase in the future.Research limitations/implicationsData accuracy may affect these results because wine statistics may contain mislabeling. Moreover, China expanded its investments in many well-known wine regions all over the world, especially in Bordeaux, France. These, along with the significant re-export, could make it harder to interpret wine trade data because some part of the export is related to Chinese wineries outside of China.Practical implicationsKnowing the above-mentioned limitations, results should be interpreted with caution. However, high-quality wines can be identified as a niche market in China.Originality/valueThe study provided a detailed analysis of the Chinese wine industry and its competitiveness.

Journal

International Journal of Wine Business ResearchEmerald Publishing

Published: Oct 18, 2022

Keywords: Wine industry; International wine trade; Porter’s five forces; Revealed comparative advantage; Relative trade advantage; Revealed competitiveness

References