China: E-Commerce and Market Shifts in the Route to Market for Premium Wines

Challenge: In recent years, the Chinese premium wine market has experienced rapid changes, with demand significantly decreasing over the past years since its peak in 2017. The competitive landscape, dominated by French, Chilean, Italian wines and other international origins, further complicated market dynamics. The rise of e-commerce platforms, such as JD.com, became pivotal for wine brands looking to maintain visibility and market penetration.

Action: A Route to Market transformation was implemented, focusing on diversifying distribution channels through e-commerce. Strategic partnerships with local online platforms were developed, along with tailored marketing campaigns and distribution partnerships in key regions designed to adapt to evolving consumer preferences and mitigate the effects of declining market demand.

Results: This strategy led to increased online sales, strengthened relationships with key distributors, and improved market penetration. Despite the market contraction, the approach allowed the brand to regain visibility and remain competitive against strong international competitors.