Chateau Lafite Rothschild (China) Essay

Situation in chinawarewareChina is one of the virtually(prenominal) important commercializes in the world, and with a fruit of the Chinese economy in the past decades it has encouraged international suppliercompaniess to destroy the Chinese market.Living standards as substantially as purchasing supply parity confuse improved since the countries nakedness to a market- orientated economy. Due to this openness opposed companies have attracted the consumption of vino from the middle-class, generating an increase in the blend in years of wine-colored sales. Wine consumption continues to grow at a rapid rate in the res publica.The Chinese wine market is a complicated overdue to its numerous wine producers (local producers) and wine companies debut china to exploit the wine market. China as the most populated country in the world is a commercial paradise for all the enterprises lacking to expand to new markets. By the gain in market contend by the introduction of new pro ducts to the Chinese market, alien companies take advantage of a growing market.In the last years the French wine companies have been exporting to china expecting to gain market share in the wine welkin taking advantage of one of the worlds fastest growing economy. For French wine export companies, it is important to extrapolate the market, due to the Chinese wine companies and local wine output signal and how they have been gaining ground in the wine market.Due to the countries emerging economy and the egress in economical aspects the population in china have been entering a new era of consumption of foreign products, and due to this reasons most foreign companies have set up subsidiaries or the most car park joint ventures with other Chinese companies to enter the countrys market and gain some ground on the major cities.One of the most important and emerging sectors in the Chinese society are the imposing products. After the purchasing power of the individuals, luxurious products have acquired more come to and represent an improvement in status of the Chinese population all local or international status. The wine sector represents an important sector for upcoming expenditures for the Chinese population, although the purchase of wine is more business oriented than for personal consumption. The preferred wines for this type of consumption are the high-end French wines (Bordeaux and Burgundy).The market situation is very open nowadays due to the facility of the Chinese consumers o access wines trade from major foreign producing countries as well as local produced wines (France, Italy, USA, Chile and Australia).To have great success in the Chinese wine market the companies have to apply a difficult marketing promotion compared to the local mass promotions by Chinese producers. The foreign brands have to apply a strong marketing promotion, but due to lack of resources the advertisements from foreign companies has a limited reach.To improve the image of foreign wine brands, foreign companies must intensify their promotions and advertisements, generate a consumer grooming by creating events, wine demonstrations and wine-food events, as well as lowering the prices to let in them to the populations purchasing power (different levels of purchasing power).STRENGHTS Luxurious and high-end wine. distinction wine company over the world. French presence and popularity in the wine market. Bordeaux and Burgundy wines considered one of the best wines in the world.WEAKNESES Weak marketing. High product prices.OPORTUNITIES swift growing market in the world. 20% process from 2006-2011 and with a forecasted growth of 54% for 2015. Most populated country in the world. Economy has been growing at over twice the worlds average, generating future markets for imported products. Wine market in china is expected to continue its growth, placing itself in 4th place in the worlds markets. Elevated purchasing power from the Chinese consumers. Acceler ated increase in consumption.THREATS Corruption and smuggle from the neighboring countries. Chinese wine producers awakening. Chinese wine companies have gained the majority of market share in the country. Growth of chinas vineyards has surpassed the production from three countries combined (Australia, Chile and South Africa).