Eileen Gu's  Instablog

In recent years, Chinese grape wine industry in the fast growth period. But the international financial crisis has affected the development of Chinese grape wine industry. In 2008, the growth speed of Chinese grape wine industry was slowed down compared with the previous years. In 2008, the yields of the grape wines in China were 698.3 thousand kiloliters, up by 5% over the previous year. The sales revenues were about 2.8 billion USD, up by 20% over the previous year.

In 2008, the imported grape wines accounted for 15% market shares of the grape wine sale revenues in Chinese market. Because of the advantages of the imported grape wines in the raw material quality and cultural contents, the high quality market was occupied by the imported products, the major imported grape wine brands circulated in Chinese market from the famous wine producing countries, including France, Italy, Spain, Portage, Germany, America, Canada, Chile, Argentina and Australia etc, in which the bulk imported volumes from Chile, Argentina, Spain, France, Italy and America stood the front places. In 2008, the total import amounts of the bottle grape wines in China reached to 264 million USD, increased by 43.48% compared with 184 million USD in 2007. Also, the import volumes of the bulk grape wines were grown in 2008 compared with 2007.

The major market share, however, was still occupied by the medium and low quality domestic grape wines in Chinese grape wine market.

For the product structures, the whole juice grape wines accounted for the major part. The dry and the semi-dry grape wines accounted for over 50% of the total volumes, in which the dry red grape wines accounted for 80% and the dry white grape wines for 20%. The product structures of Chinese grape wines were basically reasonable.

For the brand orientation, the concept orientation of Chinese grape wine enterprises has closely followed the international mainstream, including the grape concept, year concept and producing area concept etc.

For the brand influences, Chinese local grape wine enterprises had made great accumulation in the advertisement broadcasting and public relations efforts in recent years, especially the drive forces of several large local brands, having made the product reputation of the local grape wine brands exceeding the imported ones.

The national grape wine enterprises had monopolized the regional market represented by ChangYu ChangYu Pioneer Wine Company Limited, Sino-French Joint-Venture Dynasty Winery Ltd and China Great Wall Wine Co., Ltd. ChangYu ChangYu Pioneer Wine Company Limited stood the first place in Shandong, Fujian and Guangdong etc. The comprehensive occupation rate of China Great Wall Wine Co., Ltd placed the first in South China, Southwest China, North China and Northwest China and the market share of Sino-French Joint-Venture Dynasty Winery Ltd in Shanghai exceeded 40%.

Many Chinese regional grape wine brands also developed fast: such as the Weilong and Fengshou etc in Central and South China; Suntime, Yunnan Red Wine, Shangri-La and Mogao in West China; dry red grape wines in Tonghua of Northeast China.

The sales channels of Chinese domestic grape wines can be divided into two parts: one is for the hotels and restaurants. The other is for the retail sales in the supermarkets. According to the industrial average statistics, the hotel and restaurant consumption accounts for 50% and the left volumes are in the convenience stores, specialty stores and the food stores. Because of the high expenses for entry supermarkets and the channel maintenance and individual consumption characteristics of the grape wines, some grape wine enterprises have started the electronic commercial transaction platform construction. The self-built chain terminals receive more and more popular. The market promotion of the imported grape wines adapts the high consumption group orientation.

For the price systems, the general price of Chinese grape wine market is rising. With the popularity of the grape wine cultures and the enhancement of the consumption awareness and capacity, the prices of the mainstream products in Chinese grape wine market have improved from 2 to 5 USD per bottle in the previous years to 3 to 7 USD per bottle at present.

As for the quality level standards, the year wines had been restrained by the new international standard since the implementation of Chinese standards on the new grape wines in the beginning of 2008. In order to cast to the market demands, the enterprises put new product quality level standards; as a result, the first domestic comprehensive quality level systems were born represented by ChangYu, including six crucial influence links on the grape wines, such as the grape gardens, the raw materials, the brewing technologies, aging in oak barrels, mixing and bottle storage. ChangYu divided the grape wines into four levels according to the quality like the master level, reserve level, special level and preferred level. Another domestic grape wine giant, China Great Wall Wine Co., Ltd, put the level standards according to the producing areas.

With several-year market culture, the culture of drinking health and fashion grape wines has been accepted by Chinese consumers. The demands for the grape wines are accelerated gradually in China. Although the consumption volumes of the grape wines per capita in China vary from the world’s average level, the total consumption volumes keep rising in Chinese market.

In the beginning of 2008, Hong Kong government announced to cancel the import duties of the grape wines, which attracted the manufacturers, investors and dealers to invest in Chinese superior quality grape wines. The policy also was favorable for more high quality grape wines to enter Chinese market through Hong Kong. The imported grape wines will strike the domestic grape wines in price, quality and diversity and stimulate the enhancement of the general consumption level and volumes of the grape wines in China. 

The author made a profound investigation into Chinese grape wine manufacturers, the sales channels and the consumers’ behaviors and then wrote this report citing abundant valuable second –hand information.

More following information can be obtained in this report:

- Present Situation of Chinese Grape Wine Manufacture

- Imports and Exports of Chinese Grape Wine Industry

- Consumers’ Behavior of Chinese Grape Wine

- Sales Channels of Chinese Grape Wine

- Major Enterprises and Their Operations of Chinese Grape Wine

- Development Environments of Chinese Grape Wine Industry

- Influences of International Financial Crisis on Chinese Grape Wine Industry

- Competitions of the Imported Grape Wines in Chinese Market

- Prediction on the Development of Chinese Grape Wine Industry

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The railway industry is an important part of China's economy.  The key investment point of China's railway is the railway construction. 60% of the fixed asset investments are used to the constructions of railway lines.

From 2008 to 2020, China will newly construct 40-thousand-kilometer railways with the total investments breaking through 5 trillion Yuan (730 billion USD).

According to Chinese government’s plans, the approved railway construction will be about 10 thousand kilometers with the investment scale of 1 trillion Yuan (146 billion USD) in 2009 and another 10 thousand kilometers with the investment scale of 1 trillion Yuan (146 billion USD) in 2010.

The railway projects in the plan can be divided into three big categories:

One is the Beijing-Shanghai railway express, the passenger railway lines and interurban railways from Beijing to Guangzhou, Harbin to Dalian, Tianjin to Qinghuangdao, Ningbo to Wenzhou, Wenzhou to Fuzhou, Fuzhou to Xiamen and Nanjing to Shanghai etc. By 2010, the construction scale will reach to more than 16 thousand kilometers.

The other is the coal transportation railways, including Baotou to Xi’an, Taiyuan to Zhongwei (Yinchuan) and Zhungeer to Shuozhou etc. by 2010, the construction scale will be near 10 thousand kilometers. After the completion of the coal transportation railways, Chinese coal transportation capacity will be enhanced greatly and the coal transportation tension especially the coal for electricity will be eased.

Another is the western main line railway projects for the resource exploitation, including Guizhou to Guangzhou, Nanning to Guangzhou, Lanzhou to Chongqing and Hetian to Kashi with the construction scale exceeding 15 thousand kilometers in 2010. Through these projects and the technology reforms of the present railways in the central, western and northeastern regions, the railways will be covered more Chinese lands and strengthened the transportation infrastructure in the central and western regions. The investments in Chinese railways are characterized as large investment amounts and long industry chains. In 2009, the investments in the railway infrastructure are planning to finish 600 billion Yuan (87.6 billion USD). The investments will create 20-million-ton steel product demands, 120 million tons of cements and 6 million employments. It is predicted that the investments in Chinese locomotive purchase are about 300 billion Yuan (43.8 billion USD) in 2009 and 2010.

More following information can be obtained in this report:

- Compositions of Chinese Railway Value Chains

- Investment Opportunities for each Value Chain of Chinese Railways

- Promotion Functions of International Financial Crisis on the Investments in Chinese Railways

- Analysis on the Investments Plans of Chinese Railways in Recent Years

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By the end of 2008, more than ten cities have the rail transport with the total lengths exceeding 6 hundred kilometers. Chinese government had approved the rail transport plans in 17 cities, which were planning to construct 65 rail transport lines by 2015 with the total lengths of 1,856 kilometers and the total investments exceeding 675.5 Yuan (96.5 billion USD).

At present, Chinese urban rail transport is in its fast growth period. From 1995 to 2009, more than 20 rail transport lines in ten cities were in operation over ten years and the operation mileages were 790 kilometers.

Recently, with the speed-up of Chinese urbanization process, the increasing population in China and the expansion of the urban areas, the construction process of Chinese urban rail transport is also accelerated.

According to the statistics, the total lengths of the urban rail transport network plans in 15 economically developed countries, including Beijing, Shanghai, Tianjin, Guangzhou, Shenzhen, Wuhan, Nanjing, Chongqing, Changchun, Harbin, Shenyang, Hangzhou, Xi’an, Chengdu and Suzhou etc, have reached to 1,700 kilometers with the total investments exceeding 600 billion Yuan (85.7 billion USD). The urban rail transport line plans in these 15 cities had been approved during 2003 to 2006.

Apart from the above mentioned 15 cities, another more ten cities, including Ningbo, Wuxi, Changsha, Zhenzhou, Dalian, Dongguan, Guiyang, Hefei, Kunming, Nanning and Fuzhou etc, are preparing to construct the urban rail transport with the preliminarily estimated lengths of 1,000 to 1,500 kilometers.

In recent years, the construction speed of Chinese urban rail transport was very fast and many lines were started to construct. From the development situation of the urban rail transport, the cities with the urban rail transport were increased from one to ten and the operation mileages were increased from 43 kilometers to 790 kilometers from 1995 to 2009 in China. Shanghai and Beijing put forward the promises of constructing 40 to 50 kilometers rail transport annually in recent years. The three largest cities Beijing, Shanghai and Guangzhou broke with the convention to construct 4 to 6 lines at the same year with the annual investment growth speed over 10 billion Yuan.  

There were deep social and economic backgrounds for the above mentioned circumstances. With the fast economic development in China, there appeared the traffic jams in the various large cities; the traffic accidents were increased; the environments were seriously polluted; the appearance time was prolonged; the backward transportations in the cities had affected the fast development. The city transportations, especially the transportations in the megalopolises, had been the initial problems. Under such circumstances, the various cities chose to develop the urban rail transport as their solutions.

There is huge potential for Chinese urban rail transport industry, which has attracted many foreign funded enterprises’ attentions. Siemens Ltd, Bombardier Inc, ALSTOM and Alcatel, Westhomes Electric Co., Ltd and Mitsubishi Corporation have joined in Chinese urban rail transport market gradually. As far as the actual situation is concerned, Chinese urban rail transport investors prefer to cooperate with the foreign funded enterprises, especially the American and European enterprises. By contrast, the American and European technologies occupy the advantages regardless of the locomotives or the constructions. American and European enterprises usually win in the bidding process.

The urban rail transport, as the important part in modern cities, is the indispensable infrastructure of the city development, which is not only the important sign to weigh the modernization level, but also the crucial guarantee for the sustainable development. Under the circumstances of international financial crisis, many Chinese regional governments have taken the urban rail transport constructions as the major forces of expanding domestic demands and propelling the economic growth. In next 2 to 3 years, there are many investment opportunities in Chinese urban rail transport industry as well as the urban rail construction enterprises, the equipment manufacturers and the construction machinery manufacturers.

This report analyzes the construction industry, the equipment manufacture, development history and present situation of Chinese urban rail transport industry respectively and also predicts the development trends and investment opportunities of Chinese urban rail transport industry in the future.

More following information can be obtained in this report:

- Present Development Situation of Chinese Urban Rail Transport Industry

- Development Environments of Chinese Urban Rail Transport Industry

- Development Plans of Chinese Urban Rail Transport Industry

- Factors affecting the Development of Chinese Urban Rail Transport Industry

- Major Operators of Chinese Urban Rail Transport Industry

- Distributions of Multinational Urban Rail Transport Enterprises in China

- Investment Amounts and Sources of Chinese Urban Rail Transport Industry

- Analysis on Chinese Urban Rail Transport Equipment Market

- Prediction on the Investments in Chinese Urban Rail Transport Industry

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