HUWAKA BEER

HU

WAK

A

BEER

HUWAKA

EXPERIENCE THE EXPERTS

KARAN

MANISH

NIDHIPRATUSH

KINSHOO

Group - 7

BEER FLOWING THROUGH THE GREAT WALLS

Acceptance of beer in Chinese Society

• The history of the Chinese brewing industry can be traced back 4,000 years. Alcohol has high status in traditional Chinese culture and is a frequent theme in Chinese classic poetry.

• Alcohol consumption is on the rise in China, with 84.1 percent of adult Chinese men and 29.3 percent of women admitting to being regular drinkers.

OPPURTUNITIES TO GROW

Why China..?

• China has overtaken US to become the largest national beer market in the world.

• In 2006, China imported 114.6 million liters of beer with a sales value of $US920 million.

• It possesses tremendous growth potential due to the low per capita consumption.

• Great deal of room for further investment and development.

ECONOMICChina’s brewery market has grown by 33.56% in

past 4 yrs with total market volume of 30.47

billion liters.

Source: www.allbusiness.com

PEST ANALYSIS

SOCIALWomen & youth are

among heavy consumers of beer.

POLITICALAfter being a part of

WTO, international beer brands can enter China & beat local brands on

price front.

TECHNOLOGICALEfficient system linking with manufacturer with

wholesaler.

• Generally, more men are consuming beer beverage than women. In China, women population is increasingly important to the beer beverage consumer market. More women are getting better discretional income to spend at the consumer markets.

• Generally, more men are consuming beer beverage than women. In China, women population is increasingly important to the beer beverage consumer market. More women are getting better discretional income to spend at the consumer markets.

Women Consumers….

• Almost 40% of Beijing beer consumers are women, the highest among the women groups in the three selected metropolitan consumer markets.

There are large numbers of beer consumers chose to drink at dinning and banquet in the 6 selected metropolitan consumer markets; namely Beijing, Shanghai, Shenyang, Chengdu, Wuhan and Guangzhou. A comparably distinct preference for drink-places was identified as frequenting at bar counters in Guangzhou (15.7%).

Consumer LoyaltyLow High

Low

Yan Jing

Tshing Tao

HighM

arke

t Sha

re

Zhujiang

Huarun Snow Beer

Source: http://www.echinacities.com/special/Beer-Festival/Content.aspx?n=3299

Consumer Perception Mapping

Possible Strategies….

• A joint venture with an established local partner is far less risky, because the foreign brewer can benefit from its partner's established distribution network, brand loyalty and production prowess.

• Joint venture will also lead to economies of scale.

• Collaboration with retail outlets like Wal-Mart & Carrefour.

"China is a threat, China is a customer,

and China is an opportunity... You have to internalize China to succeed.

You cannot ignore it.”

THANK YOU

References

• http://www.researchandmarkets.com/reports/1057515

• http://www.nl.sg/ShowBinary/BEA%20Repository/NL/Services/ResearchServices/pdfIndustryDigests