Chapter 7 - Wine Consumption in China: Regional Differences in Territorial Brand Perceptions

Abstract

The aim of this chapter is to elucidate and explore the perception of foreign wines in China using the notion of the territorial brand. Therefore we focus on the evolution of champagne and bordeaux wines in the Chinese market. These wines both benefit from a high reputation territorial brand and are always looking for new markets such as China. We worked on a qualitative study of 40 Chinese consumers. Interviews were carried out in Chinese and translated into English by a Chinese professor. We focus on both local and foreign wine perception and we decided to compare consumers from Shanghai with those from Beijing. Using a qualitative research process we found a paradox between the situations of the wines. Whilst Bordeaux seems to have been successful in diffusing its image by using its territorial brand, Champagne encounters difficulties due to the absence of collective actions. This finding is partly explained from regional reasons. We show that foreign wines have a substantial advantage compared with local wines both in Beijing and Shanghai. However Beijing consumers explain this more by cultural and social reasons, whilst consumers from Shanghai focus more on intrinsic quality and the promotion of brands. The results show the enigma of the Chinese wine market. Most in the wine industry will agree that China is a ripe market but which requires some level of wine acculturation to reach its full potential. Western wine producers have spent a lot of money on educating Chinese consumers about their products and will be required to do so for many years to come. To limit this costly operation, wine producers have to consider the Chinese market as several markets and target destinations very carefully.