Staying Alive: New Approaches in the Chinese Wine Market
There is an old Chinese adage that states: "No winter lasts forever; no spring skips its turn.” But many Chinese wine traders have faced a long, challenging winter, and are still waiting for spring. Demand for wine was decimated in 2020, due to the lockdowns in response to the pandemic, leaving importers and wholesalers with heavy loads of excess inventories. This is forcing the industry to find new, creative ways to adjust their business model to reduce bloated inventories and find a path forward. They are diversifying their product portfolios beyond wine, tapping into community group buying trends and offering consumers ‘mystery boxes’ of mixed brands. As often happens, necessity is the mother of invention, and we believe these new strategies may help the industry to emerge stronger in the long term.