Fuzhou Wine Trade

The city of Fuzhou, which is located in the Fujian Province hosted an event called the Wine & Spirits Fair (which is usually in Chengdu, while nearby Xiamen and Guangzhou have similar events), and it was a huge success – the wine market in this Province is growing fast. Wine Promotions are held every day of the week all over the city in many 5 star hotels. Mr Gary Dawes presented at 4 such events as a TradeStart Advisor with the NSW Business Chamber to encourage Australian Wine Trade.

The quality of the wine consumed in China is improving and a bottle can be purchased at an affordable price (like in Australia). The Stats show more than 70 million dollars’ worth of wine was exported to Fujian and Australia was number 2 exporter for the Provence. There is a positive growth in the wine industry in Fujian. The growth is better in this Provence than it is in the first tier cities. The Fujian region is growing at 12% GDP per annum and as a relatively unknown Provence to the western market, its booming!

This Classy Wine Bar used to be an Underground Army Bunker. Through the back corridor, they have 6 levels below ground. This area has been converted to 30,000 square meters of wine storage with stable/cool temperature areas for storage.  It has only just started filling up with a few container loads of wine so far.  Above the wine bar is a nightclub, restaurant and hotel which is under construction, this establishment will have a large Australian Wine section on display and included in storage.

China is now the world's fastest growing wine consumption market.  Australia is China's second largest supplier of bottled wine next to France, supplying 21% of China's imported bottled wine and is worth about US $117 million in 2010 and has around 20% market share.
 
The sharp increase in wine imports can be attributed to Consumption tax on White Spirit (rice wine) has risen causing a price increase on spirits. Import duties (bottled wine) dropping from 65% to14% following China's accession to the WTO. Overall wine demand has increased and this has pulled in more imported wine, especially from Australia.

If you want to do a very quick and general calculation of the mark up of your Bottle Wine for export to China the method is as follows:-

Calculation = FOB Price and add 50% [50% includes 14% import Duty, 17% VAT, 10% Consumption Tariff].  Convert it to the Chinese Yuan.


To find out more about the TradeStart program, call 1800 505 529 or download pdf brochure.


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