icewine export to china
TRANSCRIPT
BICG9604 International Business Plan
Svetlana SidorenkoYash Shah
Mariana Gradin Jakob Montemurro
Icewine History
Company Profile
Address: G3 winery, York road, Niagara Peninsula, Niagara-on-the-lake, Ontario, Canada.
Email: [email protected] Website: www.g3winery.ca / www.g3winery.cn
Objective
Exporting
Icewine
Why China
74% of Canadian Icewine is exported to Asian markets.
China: 7th largest consumer of Icewine worldwide.
No big players in the market.
Untapped market.
Contd....
Since 2012, Canada’s exports of Icewine to China have increased by 300% (Financial Post, 2014)
PESTEL Analysis
Easy policy 7% increase in GDP sonce 2010
Purchasing power
Growing standard of living.Drinking culture is very important
part of social Chinese culture.Icewine is symbol of gifting or investment in Chinese culture. E-Commerce
High Taxes & duties
High economic growth with high population
High Tax-Tariff 14%
Consumption tax 10%
Value added tax 17%
Increasing demand for Canadian Icewine.
8.3% population drinks Icewine.
Domestic brand available with lower price
Fake brands
SWOT
Concerns/Risk Packaged wine confronts levies of around 12% to 14%, while wine in mass confronts duties of
around 20%. These taxes, joined with the 10% Consumption Tax Rate (CTR) and 17% Value Added Tax (VAT), bring about a general duty of around half of the item's quality.
Labels for Icewine mush have information in Madarin Chinese.
Fake and Counterfeit wine product across China.
There have also been case in the past few years of fake Icewine product in china bottled and packaged under the name "Canadian Icewine" or "Icewine style" and sold for lowly 20$. Icewine spelled out as one word is a registered trademark of Canada but producers have problems enforcing this law abroad.
Concerns/Risk General guidelines Before entering the market:
Guidelines for the Administration of Wholesaling of Alcoholic Products.
Guidelines for Administration of Retailing of Alcoholic Products.
Measures for the Administration of Wine Distribution.
Cleanliness Standards of Distilled and Brewed Wine
Competitors
Human ResourcesPosition Cost with Salaries
General Managers (One is also a winemaker) (2) 64.000,00$ HR Analyst (1) 24.000,00$ Sales Representative (1) 26.000,00$ Export Analysts (2) 50.000,00$ Financial Analyst (1) 24.000,00$ Operations Analyst (1) 24.000,00$ Technology Expert (1) 29.000,00$ Clerical (1) 9.360,00$ Total 250.360,00$
Labour Costs
Packaging & Labeling
包装
Operation
Supply Chain
Market Entry Strategies
Key Locations:
Beijing, Shanghai and Shenzhen
have strong purchasing power in
Icewine market & Demand
Distributor branch office:
Shenhua Business Building,Jiabin Road,Shenzhen People's Republic of ChinaZip: 518001Fax:+86 (755) 33396132Email:[email protected]
317 Xian Xia Road,Changning District,Shanghai,People's Republic of ChinaZip: 200051Fax: +86 (21) 6228 1211Email:[email protected]
Contd....
Conclusion
Thank you!