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Journal cover: International Journal of Wine Business Research

International Journal of Wine Business Research

ISSN: 1751-1062
Previously published as: International Journal of Wine Marketing

Online from: 2007

Subject Area: Marketing

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A strategic investigation of the determinants of wine consumption in China


Document Information:
Title:A strategic investigation of the determinants of wine consumption in China
Author(s):Angelo A. Camillo, (Department of Management, Woodbury University, Burbank, California, USA)
Citation:Angelo A. Camillo, (2012) "A strategic investigation of the determinants of wine consumption in China", International Journal of Wine Business Research, Vol. 24 Iss: 1, pp.68 - 92
Keywords:Beverage management, China, China wine consumption, Competitive strategy, Consumer behaviour, Consumption determinants, Emerging markets, Wine marketing strategy, Wines
Article type:Research paper
DOI:10.1108/17511061211213792 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Acknowledgements:The author wishes to thank the China Food Association and Yantai Best Cellar Consulting Co. Ltd for displaying a link to the survey on their web sites. Special thanks go to Lu Jiang of the School of Hotel Administration at Cornell University for assisting with the Chinese translations of the survey and other components in the study. Particular thanks go to various sources in mainland China for providing important wine-related information. Statistical data quoted in the literature review were obtained from Chinese wine businesses resources and other non-governmental resources.
Abstract:

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

Design/methodology/approach – 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.

Findings – 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.

Research limitations/implications – 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.

Practical implications – 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.

Social implications – 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.

Originality/value – 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.



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