Sub £25 Bordeaux quintessential wine in China

A new study of Chinese consumers has shown that the most typical wine among the country’s urban middle and upper class is a Cabernet Sauvignon from Bordeaux priced below ¥250 (£25).

The finding stems from research by the Ehrenberg-Bass Institute for Marketing Science, which surveyed 913 middle- and upper-class urban Chinese aged 18 to 50, of whom 43% lived in Shanghai, 60% were men, and 45% earned more than ¥10,000 (£1,025) per month.

Presenting the results at last week’s Hong Kong International Wine & Spirits Fair, Dr Justin Cohen, research fellow at Ehrenberg-Bass, said, “The quintessential bottle of wine [in China] is a French Cabernet Sauvignon from Bordeaux priced below ¥250.”

Supporting this assertion, he showed figures to prove that 97% of Chinese citizens, when prompted, had awareness of wine from France, higher than wine from China (84%), Italy (83%) or Australia (77%). 

As for varieties, Cabernet Sauvignon had the highest level of awareness, with 83% of consumers mentioning the grape, ahead of Chardonnay (55%), Sauvignon Blanc (53%) and Riesling (52%).

Furthermore, when it came to prompted knowledge of wine regions, Bordeaux came out on top, with 87% of those surveyed saying they were aware of the appellation, followed by Provence (60%), Napa (57%) and then the Barossa (54%). 

Finally, Cohen showed results to prove that lower priced wines were preferable when it came to buying drinks in China. 

Almost half of those surveyed (49%) said they would spend less than ¥250 on a bottle in a retailer, bar or restaurant, while 37% would spend between ¥250-699, and 18% ¥700 and above. 

The 913 Chinese surveyed were also asked about for their perception about the leading wine producing countries, and once again, it was France that came out on top. 

Indeed, the country was associated with wine that “tastes good”, wine that’s “easy to drink”, “complex”, with “different styles” and a “unique taste”. 

Interestingly, Cohen recorded that when Chinese consumers were asked about which countries made wine that was “easy to drink”, France “dominated”, but China followed, coming higher than Italy, Spain or California. 

On the other hand, when they were asked about “complexity”, once again France led, but China dropped down the list of countries. 

Then, when asked which wine producers were considered most “fashionable” in China, once more France topped the list, followed by Italy, then Australia, California, New Zealand, Spain, Chile and then China.

“France dominates across most of these mental cues, but people perceive Chinese wine as ‘easy to drink’ and ‘tastes good’… Chinese wine is not seen as being fashionable,” said Cohen.

He also pointed out that the research showed that France has “a more fine wine perception” while China has a “much more commercial position”, and Australia “has no clear perception”.

Before closing the presentation, Cohen showed some findings from a further survey into consumer perceptions in the on-premise specifically. 

Like the results above, France, Bordeaux and Caberent Sauvignon were dominant among the Chinese surveyed when asked about their behaviour in the on-trade.

“Consumers recall their last bottle of wine purchased in a restaurant as French, Bordeaux and Cabernet Sauvignon,” said Cohen.

However, when just the on-trade was considered, the prices were higher, with ¥250-699 the most common price band among respondents. 

As a consequence 37% of those surveyed said they would spend ¥250-699 on wine in a restaurant, followed by 31% for ¥249 or below, and 18% for over ¥700. 

The results of the on-premise survey showed that 56% of Chinese citizens, when prompted, recalled drinking from France, compared to 23% for wine from China and 5% for Italy.

Cabernet Sauvignon was the most commonly cited grape for wines consumed in restaurants, with 83%, followed by Merlot with 6%, Chardonnay with 5% and Sauvignon Blanc with 4%.

In terms of regions, again Bordeaux led, with 41%, while Napa, the Barossa and Burgundy all had 4% recall. 

Looking more generally at Chinese consumers, Cohen remarked that most try wine for the first time at a “business dinner” or when “out partying with friends”. 

He also observed that the wine brands consumers could recall were Grape Wall, Changyu, Penfolds, Lafite and Jacob’s Creek, as well as “Bordeaux”, because, he said, “they don’t understand it is a region, it functions as a brand”.