A strategic investigation of the determinants of wine consumption in China

The purpose of this paper is to determine consumer characteristics, buying behaviour, and the factors that influence the Chinese wine consumer.

The study applies qualitative and quantitative methodology, together with a literature review and a strategic environmental scan of the Chinese wine market and consumer behavior.

Consumer education, wine‐related activities, channels of communication, taste, country of origin, quality, and price rank are found to be important factors influencing the buying and consumption behavior of Chinese consumers.

Results suggest that there is a need for stakeholders to develop and implement informational and educational marketing strategies to educate and inform consumers in ways that reflect their needs and expectations according to demographic characteristics.

The challenge for the stakeholders will be to: penetrate this emerging market to establish presence and capture market share; strive for long‐term growth and profit sustainability; create competitive advantage through core competencies; promote and sell quality products applying the principles of yield management “to charge the right price, to the ideal consumer, at the right time, in the right place”; and build brand loyalty.

The paper offers useful findings for stakeholders in the wine supply chain. Special attention should be given to the alcoholic beverage retailer and hospitality operators for whom wine revenue is the core of aggregate beverage revenue.

The paper contributes to the body of knowledge of consumer behavior in relation to wine consumption in an emerging market. The results benefit players in the wine supply chain; especially retail and hospitality operations.