As Australian wine returns to China, how will industry cope when ‘good old days’ are gone and adversity remains?
- After Beijing’s recent lifting of crippling wine tariffs, Chinese customers will need to be convinced to buy new stocks of Australian wine
- But industry insiders say ‘favourable and pleasant environment’ for Australian wine in China has changed, and solid foundations must be built back
Australian wineries are bracing for a more challenging Chinese market after a more than three-year absence, even after Beijing lifted high punitive import tariffs for the product in March.
A broad slowdown in the Chinese economy and changes in the market landscape are among the factors leading wine sellers to rethink their strategies and rebuild influence in a market that has offerings from other destinations, including Chile, Italy and France.
“There’s a weak desire of consumers buying new stocks [of wine],” said Pierre Tam, president and co-founder of the Hong Kong Wine Industry Association, who got involved in shipping Australian wine via Hong Kong to mainland China before the pandemic.
“Some private collectors are even selling what they kept back to the market for cheaper prices,” he added. “People are still absorbing old products.”
A wine owner surnamed Zhang, who does not want to disclose his full name or that of his company due to the sensitive nature of the issue, also said that there is a need for Australian wine to return to China, but “the market situation now is just not good”.
