Specialist
Former Deputy General Manger at Guangzhou Shi Qi Trading Co Ltd
Agenda
- China’s 2019 imported wine market size, growth rate, competition and 2020 outlook
- Imported wines – demand dynamics, consumer preferences, and Chinese import and customs regulations
- Treasury Wine Estates’ (ASX: TWE) China business – performance, strategy, channel development, inventory management, Chinese wineries’ cooperation, distributor relationships and margin trends
Questions
1.
What’s the growth potential of China’s wine market in the future? The imported wine accounted for 80% of China’s wine products in 2017. What was the trend of the sales of imported wine in the past three years? Does China’s wine market become sluggish recently due to the influence of the domestic macro economy?
2.
Do distributors sell products at relatively low prices and even at prices that are lower than the purchasing prices?
3.
You mentioned that the distributors may not purchase low-end and mid-range products after the market reshuffle. Do you mean this will create opportunities for Treasury Wine Estates (TWE) and other well-known brands?
4.
You mentioned that the imported wine accounted for a large proportion of China’s wine products in 2017. Can you estimate the proportion of the imported wine in 2020? What’s the proportion of the wine imported from Australia?
5.
You mentioned that Australian wineries perform well in brand building and consumer development in China. Can you explain the reasons for their success or good performance? Is their success credited to the distribution channels, overall marketing or sales strategies?
6.
Which brands does TWE regard as its competitors in China?
7.
How do you comment on the performance of Lafite, Yellow Tail and Casillero del Diablo? Which brand’s performance this year or in the coming years are you optimistic about?
8.
TWE experienced a change in its senior management in September 2019. How much influence will the change wield over the entire sales in particular of the sales in China’s market? Have you seen this influence?
9.
Why doesn’t China’s wine market usher in a peak season this year? How much influence does this phenomenon have on TWE?
10.
Could you please analyse TWE’s sales revenue and volume in China’s market in 2019 plus the growth rate in the next two years?
11.
Could you analyse structure, price ranges and sales volumes of Penfolds wines?
12.
What are the cooperation models of TWE with Chinese importers or distributors? What are the differences in discounts, delivery methods and return policies among them?
13.
What are the major sales channels of TWE in China? What percentage do they account for respectively?
14.
What percentage of TWE’s products that are available to consumers is purchased through an agent, daigou or other ways of parallel importing?
15.
How many levels of distribution do TWE’s products go through before reaching the hands of consumers? What are the differences in levels of distribution of different product categories in different scenarios?
16.
As many brands have opened their own directly operated stores to eliminate intermediate links, has TWE considered changing its distribution model?
17.
What is its current strategy to develop the sales channels or expand the channels to lower-tier cities in China in the future? How do you think that it should expand the channels and increase the number of sales sites and regions covered?
18.
Anything else about TWE and China’s wine market do you want to share?
