The Success of “Shanghai Grand Cru Wine Retail Centre”
Premium Liquid Assets celebrates its success with our venture in the world’s largest wine consumer market in mainland China. Our various wine distribution joint ventures in major cities has seen a huge surge and demand for fine wines as demonstrated in our Shanghai Grand Cru Retail Centre which we invested and jointly participated in 2008.
Market Trend in China
A new generation of consumers with growing demand for premium lifestyle products, typically located in the major cities, is emerging with more disposable income and a greater awareness and willingness to pay for high quality (often imported) products – including wine. Wine has become “fashionable” and symbolic of social status - a trend which is likely to continue. Additionally the health benefits associated with red wine in particular, have convinced some consumers to switch from traditional Chinese alcohol. Combined these factors have all contributed to a growing demand for imported wine in the China market.
Overall wine imports in China have grown by more than 300% since 2006, from 20M litres in 2006 to 57M litres in 2008 and the top 3 imported wines are from France, Australia and Italy. The popularity of red Bordeaux wine led to a near fifteen fold increase in wine imports to China from France from 2002 and 2008. China is now the 8th largest importer of Bordeaux globally. Current Chinese wine consumption is 0.38 litres a year per capita. The figure is 0.7 litres in urban areas, which is still fairly low, compared to the global wine consumption norm of 7 litres per capita. China is very attractive as the largest single wine market in the world based on its population and exponential growth of wine imports. Approximately 46% at volume and 52% at value of imported wine entered China via Shanghai in 2008 followed by Beijing and Guangzhou.
Mr. Chad Merchant, Executive Director of Premium Liquid Assets, says, “With the exciting growth prospects in this market, the company will continue our commitment to China by jointly participating in the upcoming Shanghai International Expo and further plans to establish another three Grand Cru Wine Retail outlets in China to satisfy the growing demand from China’s affluent wine collectors and consumers. These initiatives are also expected to reach out to the new generation of consumers in China which will lead to a promising secondary market base for Premium Liquid Assets to utilize in order to provide sound exit strategies for our investment stakeholders when they wish to release their wine assets.”
Our Shanghai Grand Cru Wine Retail is located at Rich Gate No 398 Zi Zhong Road, Lu Wan District. For more information on the new outlets, please visit www.premiumliquidassets.com
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