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Industry

China's baijiu industry needs to overcome obstacles to further expand overseas market

December 14, 2016


Abstract : With the implementation of the Belt and Road Initiative deepening, Chinese enterprises have quickened their pace to go global. For China's baijiu, or distilled spirit industry, however, it still needs to overcome some obstacles in the process of “going ou

FUZHOU, Dec. 14 (Xinhua) -- With the implementation of the Belt and Road Initiative deepening, Chinese enterprises have quickened their pace to go global. For China's baijiu, or distilled spirit industry, however, it still needs to overcome some obstacles in the process of “going out.”

-- New opportunities of “going out” for China's baijiu industry

In recent years, China's baijiu industry has made achievements in expanding overseas market, as evidenced by increasing export volume and value. In the first eight months of this year, the export value of baijiu products witnessed year-on-year growth of 90.2 percent, the fastest among all liquor products, according to statistics released by the General Administration of Customs (GAC).

In 2015, China's baijiu export volume and value increased by four folds and eight folds, respectively, as compared with 2009.

Huang Shenghui, an official with the GAC, said China’s Belt and Road Initiative has brought new development opportunities for the baijiu industry, as many of China’s top 10 liquor export destination countries turn out to be along the Belt and Road.   

On the other hand, the slowdown of domestic consumption growth, coupled with stricter control over banquets at government expenses by officials at all levels, are forcing baijiu enterprises to look to overseas market for growth.

-- Obstacles need to be overcome

Although Chinese enterprises have taken various measures to tap the global liquor market in recent years, including cooperating with renowned international distributors and holding tasting or auction activities, Chinese baijiu still faces obstacles in entering into the mainstream market of foreign countries.

First of all, the absence of international standards makes it hard for overseas consumers to accept Chinese baijiu, since there is a great difference between the texture of baijiu and that of main overseas liquor products due to baijiu’s unique manufacturing process, said Zhu Li, president of Beijing International Wine & Spirit Exchange.

Second, Chinese enterprises are unfamiliar with foreign countries’ policies and laws, and their efforts to promote products overseas usually are fruitless if they stick to the marketing means used at home.

Furthermore, baijiu has a long history in China and its unique culture is very different from foreign countries’ wine culture. Therefore, it is not easy for foreign consumers to understand the essence of Chinese baijiu, according to industry experts.

Chinese baijiu makers should hang together to tap overseas market instead of going alone, said Chang Jianwei, general manager of Shanxi-based Fenjiu Group.

Luo Kang with Guizhou Moutai Co., Ltd. noted that great importance should be attached to cultural marketing and user experience when taping overseas markets.

Experts also suggested Chinese liquor enterprises make greater efforts to finetune the flavor of baijiu products in line with the taste of foreigners, and in the meantime work out international standards for baijiu with the help of western expertise by taking into consideration the history and culture of baijiu.  (By Lin Kai, Mi Yingting, Edited by Ma Xin, maxin11@xinhua.org)

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Keyword: Belt-and-Road liquor

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