Chilean media recently reported that in the first quarter of 2024, Chile's bottled wine exports were 10.1 million cases (1X12 bottles), a year-on-year increase of 6.1%, and the export value was US$281.7 million, a year-on-year increase of 3.5%.
According to data from the General Administration of Customs of the mainland, Chilean wine imports increased by 23% year-on-year in the first quarter of this year, and the import value increased by 0.5% year-on-year. Among them, the import volume of bottled wine increased by 22% year-on-year, and the import value increased by 4% year-on-year, but the average price of bottled wine decreased by 13.8% year-on-year.
Why have Chilean wines been able to stabilize in the Chinese market? What changes have taken place in its product structure? Why? The WBO conducted an investigation.
01
Chile's wine imports increased by 23% year-on-year in the first quarter, and the import value increased by 0.5% year-on-year
Judging from the total export volume and value of bottled wine in the first quarter of this year, the market has improved, with a year-on-year increase of 6.1% and 3.5% respectively.
Some Chilean importers said that the stabilization of Chilean wine in the Chinese market is an important reason for the growth of Chile's bottled wine exports.
According to data from the General Administration of Customs of the mainland, the total import volume of Chilean wine in the first quarter of this year rose 33171960, a year-on-year increase of 23%, and the import value was US$54162197 (about 391,305,624 yuan), a year-on-year increase of 0.5%.
Among them, the import volume of bottled wine in Chile increased by 22.13% year-on-year, and the import value increased by 4.95% year-on-year; Chile's bulk wine imports increased by 24% year-on-year, while imports decreased by 7% year-on-year.
Compared with 2022, in the first quarter of 2023, the import volume of bottled wine in Chile decreased by 52.6% year-on-year, and the import value decreased by 45.4% year-on-year; Chile's bulk wine imports increased by 6% year-on-year, while imports decreased by 2% year-on-year.
From the above data, it can be seen that the import volume of Chilean wine in the Chinese market in the first quarter of 2024 is positive.
However, in terms of average price, in the Chinese market, the average price of bottled wine per liter was US$4.39, down 13.8% year-on-year. In the first quarter of 2023, the average price per liter of bottled wine was US$5.1, an increase of 15.9% compared to the first quarter of 2022. The average price of Chilean bulk wine also fell by 26% year-on-year in the first quarter of this year.
It can be seen that the export volume of Chilean wine in the Chinese market is increasing, but its average price is falling.
02
Why did Chilean wine stop falling and stabilize?
"One of the main reasons may be that domestic inventories are almost depleted." Wang Song (pseudonym), a Chilean wine importer from Fujian, said: "We actually had quite a lot of inventory in the first two years, and since last year, we have been clearing our inventory except for the normal stocking of some single products. At the end of last year, it was almost in a normal state of inventory. ”
Tung Chee-hwa, head of brand at InVina Winery in China, said: "As we all know, in recent years, wine merchants have large inventories, and changes in the consumption environment and structure have led to a longer sales cycle, and Chile's export data will inevitably decline. Over the past year, wine merchants' inventories have also been depleted. He said frankly: "For example, most importers will stock up reasonably in the first quarter, and the data in the first quarter will increase naturally." ”
In addition, Zhang Jie (pseudonym), a Chilean wine importer, said: "The Spring Festival was just opened last year, so both the market demand side and the supply side of importers are relatively sluggish, and it is normal for import data to be poor." The Spring Festival in 2024 has basically returned to normal, and it is also the normal stocking behavior of the Spring Festival. The data reflected in the first quarter is to stabilize. ”
According to customs data, China's wine imports to Chile in 2021 increased by 45.3% year-on-year, and the import value increased by 50.7% year-on-year. In 2022, Chile's wine imports increased by 5.8% year-on-year, while the import value decreased by 1.5% year-on-year, which can be seen in the slowdown of its imports. Looking at the data on Chilean wine imports for the whole year of 2023, the import volume decreased by 17.7% year-on-year, and the import value decreased by 31.4% year-on-year. It reflects that Chilean wines in China have experienced the process of large inventory to consumption inventory, and the data in the first quarter of this year has stabilized, which also indicates that the inventory of Chilean wines in the Chinese market may be normal.
In addition to the return to normal inventory, a Chilean wine merchant Gerry believes that the destocking and price reduction of Chilean wineries is also one of the reasons for the stabilization of the Chinese market, he said: "As far as I know, most of the wineries in Chile still have a large inventory of wine, so many wineries have started to do activities, such as giving some price concessions. ”
03
The average price of bottles and bulk has fallen, and wine merchants: the structure of Chilean wine products has changed
Previously, a representative of a Chilean winery told WBO: "In 2023, the overall sales performance of Chilean high-end wines is not optimistic, and some brands are declining. ”
The average import price of Chilean bottled wine in the first quarter of this year fell by 13.8% year-on-year, perhaps due to the poor performance of high-end Chilean wines in the Chinese market as a whole, and importers adjusted the structure of Chilean wine products. Some industry insiders also pointed out that the import of high-end Chilean wine has decreased, and the import of lower-priced Chilean bottled wine is increasing.
Zhang Jie said: "It is mainly related to the consumer market. The current consumer trend is that the fine wine market in the mid-price segment is more challenging. On the contrary, some cost-effective, affordable liquor sells well. ”
Wu Yonglei, general manager of Xiamen Fengde Import and Export Trade Co., Ltd., also said: "The current 100 yuan price range of Chilean wines is relatively popular. ”
In fact, according to WBO's market research during the Spring Festival and the first quarter, it is indeed within 100 yuan that entry-level wine sales are better. Some wine experts said that not only wine, but also the entire wine environment is showing such a trend, and it is indeed difficult to sell high-end wine.
In addition, Tung Chee-hwa believes that the return of Australian wine to the Chinese market is also one of the reasons for the decline in the average price of Chilean bottled wine, he said: "I personally think that the decline in the average price may be affected by the liberalization of Australian wine. Some wine merchants began to shift to Australian fine wines and make category layouts. This is a normal reflux phenomenon, after all, Australian fine wine still has a good market consumption base. ”
Regarding the 26% year-on-year decline in the average import price of Chilean bulk wine in the first quarter of this year, Gao Jian (pseudonym), an importer of Chilean bulk wine in Shandong, said: "Now the market demand is low-end wine, and loose wine is also shifting to lower-priced products. "At present, the e-commerce price war on online platforms is also very fierce, and they are all pursuing lower prices, so they will also control the cost of stock solution.