China’s Changyu bullish on e-commerce plans

10th January, 2017 by Natalie Wang

China’s oldest and largest winery, Changyu, is betting on China’s expanding e-commerce to boost its wine sales, positioning higher-priced quality wines to lead its growth online.

changyu-tmall-page

Changyu’s flagship store on Tmall.com

China is home to the world’s fastest growing online market and boasts more than 400 million consumers. But despite its size, its online marketplace has, at times, been plagued with cheap, low-quality products and counterfeits.

In the past few years, however, e-commerce in the country has been on “fast-track growth”, said Liu Shilu, who is in charge of Changyu’s e-commerce sector, speaking to dbHK, bringing about a “sales breakthrough” for lesser-known wine brands that engage in a low-price, low-quality sales strategy.

From Changyu’s perspective, wines priced around RMB100 (US $14) a bottle have proved the most popular items on its flagship store on the Alibaba retail platform, Liu confirmed. Last year Changyu was named the second most popular wine brand sold on Tmall.com in 2016. The majority of its online customers were buying its wines for family gatherings, Liu added.

Growth was remarkable, but “an unusually fierce price war ensued”, said Liu. As China’s wine market expands consumers’ knowledge of wine will also increase, believes Liu, which will make quality and brand appeal essential factors influencing buying choices going forward.

“For a leading company like Changyu, this trend will benefit us more to generate better sales,” he assured.

Rumours that Changyu is looking to purchase another two estates in Bordeaux to ramp up its wine imports have also been swirling. The company has already bought two wineries in France and one winery in Spain. When asked about the acquisition, the company declined to discuss details, but confirmed talks are ongoing.

Changyu currently accounts for 21.59% of China’s wine market, higher than any other domestic or imported wine brand. An earlier report by Financial Times said Changyu is aiming to import 20 million bottles of wines annually from its European wineries in the next three to five years, up from its current 3 million.

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Job vacancies

Sales Executive - Wine and Spirits Awards

The Drinks Business
Central London, UK

On-Trade Channel Manager

Delegat Europe Limited (UK)
London / Midlands, GB

Trade Marketing Analyst

Delegat Europe (UK)
London, GB

Key Account Executive

Delegat Europe Limited (UK)
London / Midlands, GB

Senior National Account Manager

Bibendum PLB
London, UK

ON-TRADE Sales Executive

Roberson Wine
London, UK

OFF-TRADE Sales Executive

Roberson Wine
London, UK

Judging Week Runners

Decanter World Wine Awards
ExCel Centre, London E16, UK

Sales Administrator

Les Caves de Pyrène
Guildford, UK

Retail Commercial Executive

Laithwaite's Wine
Theale, Berkshire

Wine Buyer

Conviviality Plc
Crewe, UK

Sales Account Manager - On-Trade

Berkmann Wine Cellars
Liverpool

Sales Account Manager - On-Trade

Berkmann Wine Cellars
M3/M4 corridor

Media Sales Manager - Hong Kong

The Drinks Business Hong Kong
Hong Kong

Regional Account Manager

New Generation McKinley
London, UK

The Global Merlot Masters 2017

Deadline : 31st March 2017

The Prosecco Masters 2017

Deadline : 10th March 2017

db Awards 2017

Deadline : 28th April 2017

The Global Organic Masters 2017

Deadline : 3rd March 2017

Click to view more

The Global Sparkling Masters

the drinks business is thrilled to announce the launch of The Global Sparkling Masters

The Global Rosé Masters 2016

the drinks business is proud to announce the launch of the Global Rosé Masters 2016.

The Prosecco Masters 2016

Now in its third year, the competition will reflect the growth in popularity of this fresh and exciting sparkling wine from the picturesque regions of Veneto and Friuli.

The Global Pinot Noir Masters 2016

After the success of last year’s competition that judged over 250 wines from no less than 16 countries, the drinks business is proud to announce the third year of the Global Pinot Noir Masters

Click to view more