(Source: https://pltfrm.com.cn)
The liquor industry in China, especially for traditional spirits like Baijiu, is dominated by local giants, but it also features international brands competing in various segments. As of my last update in April 2023, here are some of the main competitors and their market strategies:
1. Domestic Baijiu Brands
Kweichow Moutai: The most prestigious and expensive Baijiu brand, Moutai employs a strategy of premium positioning. It capitalizes on its historical significance, cultural ties, and perceived exclusivity. Moutai is often associated with official functions and high-end consumption.
Wuliangye: Another leading Baijiu brand, Wuliangye’s strategy focuses on its unique brewing technique and diverse product range. It targets both traditional consumers and younger demographics with varying price points.
Luzhou Laojiao and Yanghe: These brands also hold significant market shares. Their strategies often involve a blend of traditional marketing, highlighting heritage and quality, alongside modern marketing tactics to appeal to younger consumers.
2. International Spirits Brands
Diageo: The British multinational has a strong presence in China with brands like Johnnie Walker and Baileys. Its strategy involves localizing flavors, premium positioning, and tapping into the gift-giving culture.
Pernod Ricard: With brands like Chivas Regal, Absolut, and Martell, Pernod Ricard targets the growing middle-class and affluent consumers through lifestyle marketing, brand ambassadors, and limited-edition releases.
Hennessy (LVMH): A leading cognac brand in China, Hennessy’s strategy revolves around premium positioning, targeting the upscale market, and leveraging cultural occasions like Chinese New Year for special editions.
Market Strategies in the Chinese Liquor Industry
Premiumization: Many brands focus on a premiumization strategy, emphasizing quality, heritage, and exclusivity, especially in the Baijiu and cognac segments.
Cultural and Historical Significance: Domestic brands often leverage their deep cultural roots and historical significance in their marketing.
Targeting Younger Audiences: Both domestic and international brands are increasingly targeting younger demographics with innovative products, flavors, and marketing campaigns that resonate with modern lifestyles.
Digital Marketing: Leveraging digital platforms and social media for branding and direct consumer engagement, crucial for reaching younger, tech-savvy consumers.
Global and Local Blending: International brands often try to blend global prestige with localized marketing strategies to appeal to Chinese tastes and cultural nuances.
Diversification: Expanding product lines to cater to various preferences and price points, aiming to capture wider market segments.
Conclusion
The liquor market in China is characterized by a strong preference for traditional Baijiu among older demographics, while younger consumers are more open to a variety of international spirits. The leading brands in the market employ a mix of heritage-focused marketing, premiumization, digital engagement, and diversification strategies to capture and retain their market share.
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