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China Beer Growth

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Analysis on China's beer market
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FINDING NEW WINE-LOVERS Daniel Evans Chief Executive Officer [email protected] www.ormita.com August 2011 © Copyright 2011 – Ormita Commerce Network Limited. All Rights Reserved
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Page 1: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

FINDING NEW WINE-LOVERS

Daniel EvansChief Executive Officer

[email protected]

August 2011

© Copyright 2011 – Ormita Commerce Network Limited. All Rights Reserved

Page 2: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

THE BIG DEAL ABOUT CHINA

Page 3: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

The Plain Facts

China: • Is the world’s fastest growing economy• Doubles in size approximately every seven years• Will be the largest economy by 2020• Is the largest country by population• Is the worlds largest lender

Source: World Bank

Page 4: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

The Future : The World’s Largest Economies

14.9 tr 14.7 tr 9.9 tr 4.3 tr 4.0 tr 2.2 tr

European Union

U.S.AChina

Japan India

Russia

30 tr 29.6 tr 28.1 tr 13.4 tr 6.8 tr 4.3 tr

European Union

China U.S.A

India

Russia

2010GDP PPP-adjusted

Values in Trillions of USD

Source: World Bank

2020GDP PPP-adjusted

Values in Trillions of USD

Japan

Page 5: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

Biggest Economies in 2020

Source: World Bank

Page 6: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

ChinaWorld’s Fastest Growing Economies

-10

-5

0

5

10

15

20

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

AustraliaCanadaChinaIndiaRussian FederationUnited KingdomUnited StatesEuropean Union

GDP GROWTH PER YEAR

Real growth rateValues expressed as a percentage

Source: World Bank

Page 7: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

The Largest Populations in the World

0

200

400

600

800

1000

1200

1400

1600

China India

Euro A

rea

United S

tates

Indones

ia

Brazil

Pakist

an

Banglad

esh

Nigeria

Russia

2010 POPULATION IN MILLIONS

Source: CIA World Fact Book

Page 8: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

THE CHINA ALCOHOLIC DRINKS MARKET

Page 9: China Beer Growth

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China as a Growing Market

• 1480.6 million litres: market volume for table wine in 2010, growing at over 20% per annum

• 60%: the annual growth rate of imported table wine in the past five years, totalling 146.3 million litres

• 48%: market share of bottle wine imports from France, while US-imported wine accounts for less than 10%

• USD655.7 million: estimated market value for imported bottled wine in China, the bulk from red wine

Source:China Customs, 2011Rabobank Wine Quarterly

Page 10: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

Chinese bottled wine imports by country

Source: Rabobank Wine Quarterly

Page 11: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

Most consumed brands of beer

Source: Credit Suisse China Consumer Survey

Page 12: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

It seems that…

• Though China is a large market, the recognition of foreign brands is low, notwithstanding the dominance from local brewers

• Competitors like Dynasty, Chang Yu, GreatWall, YanjingBeer, Zhu Jiang Beer, or even counterparts like Budweiser, Heineken, Calsberg are still promoting heavily in China

• But, we will help you break through

Page 13: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

LURING THE CHINESE DRINKERS

Page 14: China Beer Growth

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Chinese Consumer Behaviors

Capture the new generation:• Post-80s’ willingness to try• Rising brand awareness• Influenced heavily by ads (bandwagon)

Solution:• Media campaigns without using cash

Source: McKinsey

Page 15: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

Media resources in China

Hong Kong, Guangzhou, Shenzhen, etc.

Shanghai, Hangzhou, Nanjing, etc.

Beijing, Tianjin, Dalian, etc.

Chengdu, Chongqing, Xi’an, etc.

Page 16: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

Types of media available to barter

Restaurant:• Printed paper napkin

Billboard:• Commercial building• Bus stop and roadside board

Public transportation:• Metro, bus, taxi, train, plane and airport

Media:• Magazines, TV/radio, online commercials and exhibition

Page 17: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

Example: Restaurant

• Printed paper napkin

Page 18: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

Example: Commercial building

• Body/LED

• Indoor ads board

Page 19: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

Example: Roadside billboard

• Bus stop • Board

Page 20: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

Example: Bus

• Interior

• Body

Page 21: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

How it works?

= USD100,000

USD100,000 =

Page 22: China Beer Growth

MARKETING FOR FUTURE BUSINESS GROWTH

Contact Us

Media Services DepartmentOrmita Barter Limited

Email: [email protected]: +852 3741 0702Facsimile: +852 3743 4409

HeadquarterEmail: [email protected]

Telephone: +86 755 3301 1789Facsimile: +86 755 3301 1790


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