An Analysis of the Development of China's Wine Industry in 2013

An Analysis of the Development of China's Wine Industry in 2013 The macro-economic crisis hit the industry, and 2013 cautious optimism was affected by factors such as the slowdown in macro-economic growth and the impact of imported wine in 2012. The domestic wine industry suffered a heavy blow. Frequent food safety problems further aggravated the industry. In the background of weak demand, despite the negative growth of the industry's output, the output of the industry rebounded to the conventional level of 15%. However, the growth of industry revenue and profit still showed a significant decline. As of October 2012, the industry realized an operating income of 31.812 billion yuan. Only 9.31% year-on-year increase, which was the lowest growth rate in the past 10 years; profitability is not optimistic, the year-on-year growth rate has dropped below 5%, setting the industry's lowest point since 1999, and the overall profitability of the industry dropped significantly. Revenue and profit decreased by 8.1% and 13.69% respectively over the same period of last year.

In 2013, it is expected to be gradually digested with the negative impact of industry events. On the basis of the previous low base factor, the industry growth rate should recover, but as the domestic macro economy will still maintain a slow growth of less than 8%, the pressure on industry growth will remain. In particular, high-end wines will still face difficulties due to the influence of macro economy and imported wine.

Short-term fluctuations in wine imports, the long-term impact is still in 2012, domestic wine consumption has weakened significantly, imported wines have not been spared, as of October, the country imported a total of 49.06 million liters of various types of wine, an increase of 19.1%, including wine 35.68 Millions of liters, a year-on-year growth rate of only 14.7%, 16.7 percentage points lower than the same period of last year, the proportion of wine in the import of wine products continued to fall, fell to 72.73%, approaching the lowest point in recent years. From the point of view of the import amount, from January to October, China's total imported wine was 2.057 billion U.S. dollars, a year-on-year increase of 23.6%, and the increase rate was 44.6% lower than the same period of last year. However, due to the lack of growth in domestic wines, it failed to take the opportunity to seize more markets, and the proportion of imported wines to total wine consumption in China still remained at about one-fourth.

In the future, the rapid inflow of imported wine is expected to continue. Domestic companies will face the pressure of imported wine for a long period of time. First, China's per capita wine consumption is far lower than that of countries such as Japan and South Korea, which has great room for promotion. With great potential, international wine merchants have taken China as an important growth point and vigorously expanded the domestic market. Secondly, under the circumstances that first-tier cities in China have firmly grasped the dominant consumption of imported wine, the consumption of imported liquor in the second-tier inland cities has gradually increased. Major foreign wine regions have successively launched series of promotion activities in second-tier cities such as Chengdu and Wuhan. In the past two years, wine imports such as Zhengzhou, Wuhan, Chengdu, and Chongqing have all increased sharply. The central and western regions will become the newest imported wines. Growth point; Finally, with the rapid development of imported wine, the industry is maturing, importers will invest more efforts to strengthen the promotion of wine consumption culture, which is expected to promote the development of healthy competition in the industry. Recently, the price of imported wine has picked up again and demand has begun to pick up.

The level of industry standardization is expected to increase, which will benefit the long-term healthy development of the industry. At present, the development period of China's wine industry is still short. From the point of view of local companies or importers, the level of industry standardization needs to be improved. From July 1st, 2012, the "Entry of Wine Industry" issued by the Ministry of Industry and Information Technology of the People's Republic of China was implemented. The company's layout and scale of wine production, raw material protection, technology and equipment, quality and safety, energy saving and environmental protection, etc. A detailed description will help regulate the management of domestic wine enterprises and promote sound development of the industry. As for imported wines, due to the lack of relevant laws and regulations, there are many problems such as shoddy, OEM, and so on. Recently, CASTEL represented ten weight companies from France, Germany, Spain and other major wine producing countries in the world. Co-publishing a "Brand Statement" can be seen as a clear sign of self-discipline in the imported wine industry. The increase in the degree of industry standardization is expected to accelerate the industry reshuffle, enhance the promotion of wine culture, promote the expansion of the wine consumer market, and facilitate the long-term healthy development of the industry.

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