Case study beer companies investing in china

Small and medium-sized companies are now scrambling to adjust their business plans in response. At this point, the importer can collect the goods and proceed to deliver to the distributor. Therefore, joint ventures JVs and acquisitions are the best way to enter the Chinese market.

How to export beer to china

At the time, Miller was available only in cans. Both the original and translated labels in Chinese are required, and a digital version of the Chinese label registered with the China Inspection and Quarantine CIQ on the first instance of import. Although consumers could not afford to buy private cars, their demand for taxi services supported the growth of taxi companies, which did buy cars—from Volkswagen. Identify the right market The nature and make-up of regional markets varies across China. FedEx was the only company bold enough to wait, gambling that a joint venture could be a costly undertaking from which it would be difficult to extricate itself. In , Chinese consumed Even now, restaurants can be found only in airports and in some large train stations; most of them are state run and are open less than six hours a day. For its part, Kodak learned from Fuji that minilabs were an effective tool for gaining market share. Tidal Creek Brewhouse is slated as a barrel operation that will make craft beverages in house and serve the community and tourists in Myrtle Beach, South Carolina.

In order to obtain these, a proper warehouse facility with standards kept to properly store the products must be used, and will be subject to inspection. It imported its wines in larger cities such as Shanghai and Guangzhou where they are more popular, while conducting its cider production in lower tier cities.

Further growth in this emerging market is expected, thanks to continual economic development and increasing consumer wealth.

Exporting craft beer to china

For instance, first tier cities along the east coast such as Beijing, Shanghai, Guangzhou, and Shenzhen have higher incomes, population, and a more Western lifestyle than western provinces. The company was unable to secure a dominant position in its home province in China. But Peugeot entered the Chinese market at the same time as Volkswagen, and it has lost tens of millions of dollars each year since Early-mover disadvantage can be expensive. Long-term success is best achieved through measurable short-term results. Rising disposable income, increased exposure to Western lifestyles, and growing distrust of domestic liquor are among other factors that have contributed to the changing trend. Chinese companies also exhibit this herding behavior when they add capacity to take advantage of what they believe are attractive opportunities, causing likely over-capacity. It is experiencing high single-digit economic growth, the transition from central planning to a market economy, integration with the world trade systems, indigenous and imposed deregulation, the emergence of collective and private enterprises at the expense of state-owned enterprises, and so on.

Kraft entered China more than ten years ago with its product Tang. In cases similar to this, some overseas companies choose to keep the core of their key IP overseas, so that the local partner has no access to it.

chinese beer market analysis

This so-called herding phenomenon significantly accelerates product adoption and shortens the life cycle of products. Small and medium-sized businesses are scrambling to make plans — from delaying store openings, to implementing hiring freezes to even considering price increases.

Case study beer companies investing in china

However, with increasing penetration of foreign brands, first tier cities have begun to show signs of saturation and over-service, which has resulted in higher operational costs and stiff market competition amongst foreign brands. Using a flashy advertising campaign, the company turned cellular handsets into fashion accessories. But Cup Noodles was too small for famished travelers and—because it is imported from Japan—too expensive. Miller Brewing reintroduced its beer in cans and large bottles in As a result, these regions occupy the largest share of the imported alcohol market in China. Learning from its initial success with the celebrity ad, Ericsson launched an even larger advertising campaign with another actress, Maggie Cheung. Anheuser-Busch achieved this success because it made a point of knowing its market.

At the same time, it is able to leverage the political influence of its partners to get government approval for new bottling plants.

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The Beer Market in China