Hanhzhou, Kunming, Shenzhen and Tianjin - some key facts
Ahead of its China Roadshow 2019 which will be visiting four key cities – Tianjin, Hangzhou, Kunming and Shenzhen, Wine Australia has produced some key facts about each region:
- TIANJIN
- Total estimated population aged 15–64 years is 12.5 million, which is forecast to decrease 3% by 2030 as more people move into the 65 plus age bracket
- 86% have access to the internet and all households have a mobile phon
- The number of households earning US$25,000 or higher is forecast to double by 203
- Household expenditure on alcoholic beverages and tobacco in Tianjin is 38% more than the rest of China.
- Tourism in Tianjin has been growing in recent years with top attractions such as the city’s multicultural historical heritage area.
- HANGZHOU
- Total estimated population aged 15–64 years is 5.3 million, which is forecast to decrease 1% by 2030 as more people move into the 65 plus age bracket
- 94% have access to the internet and all households have a mobile phone
- The number of households earning US$25,000 or more is forecast to increase by 78% by 2030, almost outgrowing households with income between US$10,000 and $25,000
- 2% of consumption expenditure is on alcoholic beverages and tobacco
- Chinese wine consumption is growing but becoming less formal with more informal consumption occasions being registered
- White wines are gaining in awareness and offer an opportunity, especially with food matching in less formal restaurants
- Alibaba’s Tmall and Taobao along with US venture-capital-backed Yesmywine lead the online sector with higher awareness and conversion
- KUNMING
- The total estimated population aged 15–64 years is 2.9 million and this is forecast to remain steady to 2030
- Half of the population have access to the internet and all households have a mobile phone
- The number of households earning US$25,000 or greater is forecast to double in size by 2030
- The proportion of consumption expenditure spent on alcoholic beverages and tobacco is 2.2%
- Drinking baijiu almost daily, is part of the lifestyle
- Thriving tourism development underpins increasing demand for alcoholic drinks, catering to travellers frodm other provinces
- Local herb products such as pueraria, roses, and medlar are widely used in alcoholic drink products in Kunming
- Alcoholic drinks mainly focus on the economy price segment and smaller pack sizes of alcoholic beverages have been increasing in popularity
- SHENZEN
- Total estimated population aged 15–64 years was 9.2 million and it is forecast to increase 3% by 2030
- One in five (20%) of the population aged 15 or more have a higher education; this is the lowest among China’s six largest cities by population
- 91% have access to the internet and all households have a mobile phone
- The number of households earning US$25,000 or more is forecast to double by 2030, growing at a faster rate than households with income between US$10,000 and $25,000
- The proportion of consumption expenditure on alcoholic beverages and tobacco is 1.9%
- Half of all urban upper-middle class drinkers of imported wine from Shenzhen were aged 25–34 years. A third were aged 35–44 years
- Less than half (42%) of imported grape-based wine was consumed by respondents 1–3 times a month
- More than half (57%) are aware of Australian wines while 36% had consumed Australian wine in the last 6 months
- Urban upper-middle class drinkers of imported wine from Shenzhen were more likely to spend RMB 150 to 174 in the off-trade compared to China overall
- 59% bought wine from a wine shop and 60 per cent bought wine on the internet
- Purchasing on the internet was much higher in Shenzhen compared to other Tier 1 cities
- Shoppers were more likely to use Walmart, Vanguard and Sam’s Club compared to average
- Grape variety, words describing the flavour of the wine and the country of origin were the top most important factors influencing decisions when buying a bottle of grape-based wine.
- Source: Wine Australia/Euromonitor International