Free Trade Agreements Signed between China and Various Countries Will Transform Liquor Business Opportunity
Free Trade Agreement between China and Australia was officially signed on 17th June. Up to now, there are 12 copies of free trade agreements signed between China and 20 countries/districts, including FTA separately signed between China and ASEAN, Singapore, Pakistan, Chile, Peru, Costa Rica, Iceland and Switzerland; PA separately signed between Mainland of China and Hongkong and Macao; ECFA signed between Mainland of China and Taiwan. With the gradual implementation of more FTAs, Chinese consumers will get more abundant options. Meanwhile, the business opportunity of domestic operators also starts changing.
The tariff of imported commodity has declined, which plays a promoting role to the reshuffle of all domestic industries. Domestic products, such as milk powder, beef & mutton, seafood, fruits and the wine etc, will meet new challenges. It is known that both Chilean and Australian wines become the best ones of the New World wines. With the import tariff free, the marketing price will surely cut down, so Chilean and Australian wines with excellent quality and high competitive price inevitably get more and more Chinese consumers’favor.
Domestic wines always depend on the low price to occupy China market. In recent years, domestic famous brands, such as Zhang Yu, Dynasty and Great Wall, are taken over, shared and merged by foreign wineries, undoubtedly confessing the quality of domestic wines are poorer than the imported wines. Some bottling, blending and OEM wines with the low price compete and pursue China market. The shortsighted business method, which insists on the marketing and ignores the quality, will surely go downhill for the dissemination and popularization of domestic wine culture.
At present, the domestic liquor market is always following the mode of low price and traditional distribution. With the information’s fast circulation, the society’s improvement , the promotion of consumer perception and the development of internet plus, there will be great changes taking place. Regarding how to choose more standard imported liquor platform with the guarantee of sustainable healthy development, domestic operators already had much clearer perception about it. With the chain operation in domestic free trade zones and bonded zones, Haiwei Liquor Trading Market had combined bonded trade, free trade with traditional trade. Haiwei has changed the transaction spot of international trade and carries out the direct-selling mode of membership system. Haiwei is the first to achieve free trade in Chinese free trade zones and bonded zones. For direct distributors nationwide, the direct cooperation between Haiwei and international wineries has established a normalized platform from which they can freely purchase series of international wines.
The wines from international liquor manufacturers to domestic direct distributors will be directly marketed to Chinese consumers. The vertical marketing system has broken the barrier of complex channels & high trading cost resulted from the traditional multi-agency trade. The transaction spot is changed into Chinese bonded zones. The wines’property right is transferred while direct distributors make purchase and the business is done. The trading mode avoids various pressures, such as operation, funds and storage. Meanwhile, both Customs and Inspection & Quarantine Bureau carry out the supervision, ensure the quality, and protect the state revenue, which is good for government, society, operators and consumers. For six years’ normal operation, Haiwei Liquor Trading Market has already won general recognition of the society and becomes the safety option for domestic liquor operators.
The signature of more free trade agreements will lead to tariff decline and cost decrease of original bottled imported wines. Meanwhile, more high-quality wines will reduce the prices. Domestic wines, bottling wines, blending wines, fake wines and OEM will gradually lost the market competitiveness. It plays a positive role in market’s reasonable return and healthy development. The operators’business opportunity is silently transferred to the original bottled imported wines.