The central government in China has already entered the second year of its five-year economic plan, which aims to rebalance the country’s economy so that there is more sustainable growth.
This has resulted in the focus on domestic consumption fueled by the growth of the middle class and depending less on investments and exports. This reform seeks to ensure economic stability; however, it has had one major consequence – slow growth. The GDP growth target for China in 2015 is 7.0 per cent, which has dropped from 7.4 per cent last year.
The consumption boom in the country is likely to benefit producers of beverages and food, market analysts believe. An estimated 25 per cent of the Chinese consumers’ spending is devoted to food. However, the country has very little faith in the integrity of local producers. This can be blamed on the years of scandals involving marred products such as powdered milk and pork. As a result, organic food has gained much interest over the past five years. This has created a major opportunity in Thailand.
The Chinese population, particularly in larger cities, is showing increasing interest in imported spirits and wines, mainly owing to the aura of wealth, good taste, and social status associated with this beverages. Even though the main target of the beverages market is middle aged successful businessmen, thanks to growing awareness about the health benefits of wine, senior consumers and health conscious citizens have also joined the bandwagon.
Thai makers of spirits and wines can introduce their products in China by promoting them as sophisticated and novel. Thai vineyards can make the most of the global interest in the new latitude wines. These include grapes grown in places such as Japan and India, which were never associated with fine vintages in the past.