Since 2013 ProWein itself has also become an “export hit”. ProWine China is held once a year in Shanghai and focuses on the booming Chinese market. Also joining the portfolio is ProWine Asia held alternately in Hong Kong and Singapore.
ProWine China creates a platform both for international dealers and producers and for local suppliers to present themselves, establish contacts and get to know the Chinese market. ProWine China adds new highlights, develops trends and assumes a key role in the wine trade – optimum conditions to serve as a gateway to China, the world’s number one growth market. The focus at ProWine China is on quantity, quality and variety. 700 exhibitors from 39 countries, 14,219 trade visitors – importers, distributors, retailers and F&B managers participated in ProWine China 2017. Its variety makes it a unique show in Mainland China.
Interview with Marius Berlemann, Global Head Wine & Spirits, Director ProWein and Josh Gu, Deputy Project Director, Messe Düsseldorf Shanghai
First, how did ProWein 2018 go?
Marius Berlemann: Once again, we were very satisfied with the 2018 vintage of ProWein. All relevant wine-growing regions were represented – we registered a total of more than 6,800 exhibitors from 64 countries. The over 60,000 trade visitors hailed from all parts of the world – one in two visitors came from abroad. In excess of 70 percent of visitors were top or middle management. For New Zealand, this was a special “vintage” fair because it celebrated its biggest participation at ProWein so far with a total of 47 producers. Additionally, there was a comprehensive supporting programme with numerous seminars and masterclasses.
ProWein is the most important trade fair for wines and spirits worldwide. What about ProWine China?
Marius Berlemann: With ProWine China, we brought our expertise and our high quality services from Düsseldorf to Shanghai. After five years, ProWine China is the most important trade fair for wines and spirits in Mainland China. In particular, trade visitors appreciate the internationality on the exhibitor’s side: 2017 we had 39 countries represented with 16 national pavilions and four regional pavilions. ProWine China is also the most professional show as we are strictly open only to trade visitors - mainly retail/ supermarket, importer, distributor and wholesaler. Three quarters of our trade visitors have a decisive or crucial role in purchasing.
In 2014 NZ Winegrowers already had a pavilion at ProWine China, which was not very successful. How has ProWine China developed since then?
Marius Berlemann: Since then the situation has changed a lot. In the meantime, ProWine China has received a significant boost and we had the chance to adapt some services to the Chinese market. In addition, ProWine China’s continuous outreach and promotional campaigns across major cities have resulted in a growing presence for the increasingly accomplished ProWine China platform. Moreover, the Chinese wine market is evolving further.
How do developments in China impact the international wine business?
Josh Gu: China is becoming an ever more important export market. Alongside the USA and Australia, New Zealand also clearly benefits from this development. According to China’s latest import figures for 2017 released by Chinese customs in February, in terms of value New Zealand bottled wine rose from 9th to 7th place in China’s imported wine rankings. The latest figures published by New Zealand Winegrowers revealed a 42 percent rise in shipments worth $38.6 million in the past year. The average price also rose to $14.74 per litre, which is the highest litre price for wine in China. Commenting on this Philip Gregan said: “If the current rate of growth continues in the year ahead exports to China will exceed $50 million, making it our fifth largest export market”. Therefore, developments in exports to China are definitely worth keeping an eye on for producers from New Zealand.
How do you currently assess the wine market in China?
Josh Gu: The Chinese wine market is currently undergoing a major change. Such criteria as country of origin and region, varieties or elaboration methods play an increasingly important role. In general, Chinese consumers prefer red wine to white. There is a trend towards fruity, light red wines with low tannins. White wines like Sauvignon Blanc, Riesling or Chardonnay, in particular, are becoming more and more popular, especially among younger consumers. Also because of consumers’ growing wine knowledge, more and more of them are looking for wines with unusual personality. So, beyond Sauvignon Blanc exports – there are also opportunities to present sparkling wines, rose, red wines and even fortified wines.
Why is Shanghai the best location for ProWine China?
Josh Gu: Shanghai is the epicentre of the Chinese economy and culture and wine education in China. People here tend to have higher incomes, consume more conspicuously and have a penchant for luxury brands and gifting. In terms of volume, Shanghai is the No.1 region for trading imported wine, together with Guangdong province. According to the study “China customer”, Shanghai and Guangdong province make up 64.41 percent of the total trading value of wine and 52.86 percent of the total volume. Many of China’s top wine importers started their businesses in Shanghai or based their headquarters here – like ASC, Summergate, Torres China, EMW, Ruby Red and Sarment etc. And last but not least: Shanghai has the best and largest number of restaurants and bars in China, which means it boasts the largest out-of-home consumption of wine.
Can you give any advice to wineries wishing to enter the Chinese market?
Marius Berlemann: Despite the positive basic prerequisites you have to think twice before entering the Chinese market as a wine vendor and you need to exercise patience. Things can also develop very quickly. We have talked to exhibitors who have sealed deals for immense quantities during the trade fair. As a rule, however, it takes a number of meetings to establish good business relations. Furthermore, personal relations are indispensable in China and the export business will not be successful without a local presence. This is also precisely where the “Pure Discovery China” of the NZ Winegrowers comes in. With ProWine China in Shanghai we follow on from such events and offer the market an additional business platform.
Josh Gu: Generally, in China there is a particular mega-trend for premium brands and gifting – so there’s an opportunity for wineries to create premium brands through marketing and advertising. Boutique wineries with higher-priced products have great scope in fine dining restaurants or wine bars. There are increasing numbers of wine merchants focusing on this sort of boutique winery. Thus, finding the right importer/partner is key. One more piece of advice: Chinese consumers pay particularly attention to the label and the branding – so special packaging might help!
