HUWAKA PERTS Group - 7

E EX
H
N CE T
PERIE
EX

BEER

HUWAKA
BEER FLOWING THROUGH THE GREAT WALLS

KA
R AN KINSHOO

HUWAKA BEER
MANISH
PRATUSH
NIDHI
 Acceptance of beer in Chinese
Society
• The history of the Chinese
brewing industry can be traced
back 4 , 000 years . Alcohol has
high status in traditional
Chinese culture and is a
frequent theme in Chinese
classic poetry .
• Alcohol consumption is on the
rise in China , with 84 . 1
percent of adult Chinese men
and 29 . 3 percent of women
admitting to being regular
drinkers .
OPPURTUNITIES TO GROW
 Why China..?
• China has overtaken US to become the
largest national beer market in the
world.
•  In 2006, China imported 114.6 million
liters of beer with a sales value of
$US920 million.
• It possesses tremendous growth
potential due to the low per capita
consumption.
• Great deal of room for further
investment and development.
 PEST ANALYSIS

POLITICAL ECONOMIC
y almarket
beer brands can by
has grown enter
33 . 56China
% in & beat
past local
4 yrs brands
with tota

SOCIAL TECHNOLOGICAL
outh are Efficient system
among heavy linking
consumers of with
beer . manufacturer

Source: www.allbusiness.com
Generally, more men are consuming beer beverage


than women. In China, women population is

increasingly important to the beer beverage
consumer market. More women are getting better
discretional income to spend at the consumer
markets.
Generally, more men are consuming beer beverage


than women. In China, women population is

increasingly important to the beer beverage
consumer market. More women are getting better
discretional income to spend at the consumer
markets.
 Women Consumers….
• Almost 40% of Beijing beer
consumers are women, the highest
among the women groups in the
three selected metropolitan
consumer markets.
There are large numbers of beer consumers chose to drink at dinning and
banquet in the 6 selected metropolitan consumer markets; namely Beijing,
Shanghai, Shenyang, Chengdu, Wuhan and Guangzhou. A comparably distinct
preference for drink-places was identified as frequenting at bar
counters in Guangzhou (15.7%).
 Consumer Perception Mapping
High
Huarun Snow Beer
Market Share

Tshing Tao

Yan Jing

Zhujiang
Low

Low High
Consumer Loyalty

Source: http :// www . echinacities . com / special / Beer - Festival / Content . aspx?n =
 Possible Strategies ….

• A joint venture with an established

local partner is far less risky,
because the foreign brewer can
benefit from its partner's
established distribution network,
brand loyalty and production
prowess.
• Joint venture will also lead to
economies of scale.
• Collaboration with retail outlets like
  "China is a threat,
 China is a customer,
 and China is an opportunity...
 You have to internalize China to succeed.
 You cannot ignore it.”

TH A N K
YO U 
 References
• http://www.researchandmarkets.com/rep
• http://www.nl.sg/ShowBinary/BEA%20Rep
