---
title: "AC Nielsen: Decoding China's Baijiu Market in 2015 under the Economic 'New Normal'"
description: "At the theme forum of the 92nd National Sugar and Wine Fair, Nielsen released a report titled 'Interpreting New Opportunities for the 2015 Baijiu Market under the Economic New Normal', pointing out that as the trend of mass consumption of baijiu becomes more evident, China's baijiu market is undergoing a shift from business demand to self-enjoyment and leisure social needs. Baijiu manufacturers need to break old thinking, adopt new channels and marketing models to stimulate new demand, and guide new consumption behaviors and patterns. The consumption structure of baijiu is evolving, and high-end baijiu returning to mass consumption has become a general trend."
author: "AC尼尔森"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-03-29"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/ac-nielsen-decoding-china-s-baijiu-market-in-2015-under-the-economic-new-c51c6b79/"
markdown: "https://xinjignxiao.com/en/articles/ac-nielsen-decoding-china-s-baijiu-market-in-2015-under-the-economic-new-c51c6b79.md"
original_source: "https://mp.weixin.qq.com/s/jHUW8YewufTLrHmcg-ytsA"
translation: "https://xinjignxiao.com/zh/articles/ac-%E5%B0%BC%E5%B0%94%E6%A3%AE-%E8%A7%A3%E7%A0%81%E7%BB%8F%E6%B5%8E-%E6%96%B0%E5%B8%B8%E6%80%81-%E4%B8%8B%E7%9A%842015%E4%B8%AD%E5%9B%BD%E7%99%BD%E9%85%92%E5%B8%82%E5%9C%BA-c51c6b79.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/ac-nielsen-decoding-china-s-baijiu-market-in-2015-under-the-economic-new-c51c6b79/"
usage_policy: "https://xinjignxiao.com/ai-policy.txt"
---

# AC Nielsen: Decoding China's Baijiu Market in 2015 under the Economic 'New Normal'

> At the theme forum of the 92nd National Sugar and Wine Fair, Nielsen released a report titled 'Interpreting New Opportunities for the 2015 Baijiu Market under the Economic New Normal', pointing out that as the trend of mass consumption of baijiu becomes more evident, China's baijiu market is undergoing a shift from business demand to self-enjoyment and leisure social needs. Baijiu manufacturers need to break old thinking, adopt new channels and marketing models to stimulate new demand, and guide new consumption behaviors and patterns. The consumption structure of baijiu is evolving, and high-end baijiu returning to mass consumption has become a general trend.

Source: Nielsen

> **Introduction: At the theme forum of the 92nd National Sugar and Wine Fair, Nielsen released the report 'Interpreting New Opportunities for the 2015 Baijiu Market under the Economic New Normal', pointing out that as the trend of mass consumption of baijiu becomes more evident, China's baijiu market is undergoing a shift from business demand to self-enjoyment and leisure social needs. Baijiu manufacturers need to break old thinking, adopt new channels and marketing models to stimulate new demand, and guide new consumption behaviors and patterns.**

The consumption structure of baijiu is evolving, and high-end baijiu returning to mass consumption has become a general trend.

Self-enjoyment products drive market growth, and e-commerce channels with precision marketing guide consumer demand.

"Baijiu, as the most distinctive Chinese liquor category, often appears in consumers' minds as the national liquor, with formal drinking culture as the main consumption pattern. As future growth increasingly relies on mass consumption, how to explore more diversified consumer demands and shift baijiu culture from business occasions to general dining tables will be the key to success in the future baijiu market," said Fan Yijin, General Manager of Nielsen China.

Decoding China's Baijiu Market: Sales Recover and Enter a New Stage of Mass and Diversified Consumption

According to Nielsen's monitoring data from over 1,100 hypermarkets in 22 major cities across China, in the non-catering industry, after experiencing irrational high-speed growth and then suppressed decline, the baijiu industry saw a clear recovery in 2014. **In 2014, baijiu sales volume increased by 5.5% compared to 2013, while in 2013, sales volume decreased by 2.7% compared to 2012. Compared to other spirits, beer, and wine categories, baijiu also led in sales volume growth.** Except for vodka, which also enjoyed growth of over 5 percentage points, all other alcohol categories saw negative sales volume growth.

However, in terms of sales value growth rate, mass-consumption-oriented alcohol categories such as vodka (3.1%) and beer (2.7%) grew faster than baijiu (-1.2%), while whiskey (-9.1%) and brandy (-23.2%) continued to decline significantly.

"Among the many factors driving the recovery of China's baijiu market, besides the still very optimistic Chinese consumer confidence index and the rising purchase intention of Chinese consumers, especially from central and western regions and second- and third-tier cities, the most important reasons are the increased promotional efforts by liquor merchants and the pull from non-peak season sales," Fan Yijin pointed out.

"High-end baijiu returning to mass consumption has become an inevitable trend for the future of the baijiu industry. For brands that have long relied on mid-to-high-end baijiu sales, lowering their profile and moving down to mass markets will also become an inevitable direction for transformation," Fan Yijin added.

Nielsen's research shows that **in 2014, sales driven by promotions accounted for 31.2% of total baijiu sales, an increase of 2.3 percentage points compared to 2013. For the top ten best-selling items, the average price dropped by 6%, while the sales value growth rate reached 18%.**

Although Nielsen's monitoring of over 1,100 stores in 22 major cities shows that the Spring Festival and Mid-Autumn Festival remain the two most important festivals for baijiu, their importance has significantly diminished compared to previous years. **This year, sales during the Spring Festival and Mid-Autumn Festival declined by 9% and 1%, respectively.**

On the contrary, **in 2014, non-peak season sales increased by 6%, surpassing holiday sales.** In non-peak season sales, self-enjoyment packaging sales (growth of 7%) had a greater growth advantage compared to gift box packaging (4%).

From a price perspective, **the sales value share of sub-high-end baijiu priced between 300-700 yuan increased by 8.6 percentage points compared to last year, reaching 21.9%; the sales value share of economical self-drinking baijiu priced below 100 yuan increased by 2.3 percentage points, reaching 30.4%; conversely, high-priced baijiu above 700 yuan experienced a Waterloo, with its sales value share declining by 9.1 percentage points.** It is evident that **mid-to-low-end mass self-drinking baijiu is gradually becoming an important engine driving industry consumption.**

"As baijiu moves toward mass consumption, the development of retail channels undoubtedly provides strong support for the 'new normal' of the baijiu market," Fan Yijin said.

Winning in the Baijiu Market under the New Normal: Breakthrough in Consumption Structure, Demand Guidance, and Bullish E-commerce

For manufacturers and retailers, the new normal of the baijiu market presents both opportunities and challenges; they need to adjust strategies comprehensively, re-segment consumers, pay attention to future growth groups, guide diversified demands, and reshape channels with emphasis on e-commerce.

**1. Break the age bottleneck and reshape baijiu culture among the younger generation**

Nielsen's research shows that **the 35-45 age group remains the largest consumer group for baijiu,** especially middle-class consumers with purchasing power.

However, with diversified demand, young consumers born in the 1980s and 1990s, who also have purchasing power, need to be valued. They are still in the stage of brand experience and preference formation, making brand loyalty cultivation particularly crucial. Nielsen's qualitative research on baijiu consumers shows that **between the ages of 25-35, consumers often begin to come into contact with high-end baijiu and experience it widely; between 35-45, they gradually form brand loyalty.**

"Our research shows that most young people start coming into contact with alcohol in their 20s, often starting with beer. How to make these young people understand baijiu culture better and give baijiu more connotation and consumption experience will be key to maintaining future growth," Fan Yijin pointed out.

According to Nielsen's previously released 'Post-90s Consumer Report', **young consumers not only have purchasing power but also consume more 'smartly'**; they check reviews before shopping, do not blindly follow the West, and pay more attention to relevance. "As baijiu manufacturers, they not only need to use novel methods and innovative channels to connect more effectively with these young consumers for brand experience and interaction, but also need to use brand-specific 'stories' to win their recognition, thereby re-understanding the baijiu category," Fan Yijin said.

According to Nielsen's report, **the online advertising media reach rate for alcohol consumers has gradually surpassed traditional offline media, with search engines (62%), portal sites (60%), shopping sites (59%), and video sites (55%) becoming the most effective media platforms after TV advertising (69%).** How to use online platforms for more effective interaction and communication with consumers is a topic that baijiu manufacturers must consider in product promotion.

**2. Extend the core needs of alcohol consumers, gradually transitioning from business socializing to leisure socializing, self-enjoyment, and entertainment**

If the needs surrounding alcohol are divided into four types, namely **business needs, leisure social needs, self-enjoyment, and entertainment**, Nielsen's research shows that for baijiu, currently only its business needs are fully satisfied, while other needs have not been effectively extended.

In addition to leveraging online media and festival economies to create more consumption occasions and make baijiu consumption more popular, Fan Yijin pointed out that baijiu manufacturers should also open their minds and innovate in product packaging and positioning to better cultivate the baijiu consumption market.

"For example, in terms of product strength, launch customized baijiu and innovative packaging to attract consumers with a more casual and youthful brand and product image; at the same time, fully utilize the traditional cultural characteristics of baijiu to give products a unique cultural experience, and integrate traditional consumption methods with modern lifestyles of 'fashion, speed, sensibility, and light luxury', innovate consumption culture, and guide baijiu consumption trends with new consumption methods while maintaining characteristics," Fan Yijin pointed out.

**3. Online efforts: liquor companies going online has become a trend**

Another Nielsen research report shows that **more than three-quarters (77%) of alcohol consumers said they would purchase alcohol products online in the next 2-3 years, with their online purchase intention significantly higher than purchasing baijiu through traditional offline channels (53%).**

In addition, Nielsen's e-commerce data shows that **in 2014, the online sales scale of baijiu had reached one-third of that of hypermarkets, and the online sales growth rate of baijiu reached 108%.**

"In recent years, baijiu companies have also gone online one after another. Although e-commerce sales currently account for a small share of overall baijiu sales, the development space in the coming years is enormous," Fan Yijin said.

According to Nielsen's research, **'fear of buying counterfeit liquor' (64%), 'worry about damage during delivery' (57%), and 'other channels can buy quickly'** are the main concerns of consumers when purchasing baijiu online. "If baijiu companies can eliminate these concerns in e-commerce business, while fully leveraging advantages such as larger online discounts, convenient home delivery, richer online brand/product selection, and online payment, effectively combining 'online and offline', and doing well in consumer experience and interaction, then the internet platform will become a new reservoir for baijiu companies with huge future potential," Fan Yijin said.

About Nielsen

Nielsen (NYSE: NLSN) is a global performance management company that provides comprehensive insights into what consumers watch and buy. Based on what consumers watch, Nielsen provides media and advertising clients with full-media audience measurement services covering all devices on which content is consumed, including video, audio, and text. For what consumers buy, Nielsen provides the industry's only global retail measurement and research for FMCG manufacturers and retailers. By integrating information on what consumers watch and buy, along with other data sources, Nielsen provides clients with world-leading measurement and analytics services to help enhance their performance. Nielsen is a member of the S&P 500 and operates in more than 100 countries, covering 90% of the world's population.

Reply with the following keywords to categorize and read related professional articles: Sales Supervisor, Second-tier Management, Regional Manager, Distributor Management, New Channels, City Manager, Competition, 2015, Manufacturer-Dealer Game, Product Stagnation, Terminal Visit Management, Route Management, Deep Distribution, Internal Management, Sales Skills, Profit Improvement, Recruitment, Distribution, Daily Management, Team Motivation, Trade Promotion, Sales Misconceptions, New Product Launch, Township Market, New Product Pricing, Sales Target Achievement, Closing, Market Visit Inspection, Baijiu, Beer, Sales Volume Increase, Agency Products, Cross-region Sales, KA, Terminal Merchandising, New Market, Market Operation, Learning, Book Recommendations, Inventory Management, Sales Novice, Consumer Promotion, Execution, Old Products, Expired Product Handling, Model Market, Investment Promotion, New Media, Distributor Development, Performance Appraisal, Assessment, Annual Planning, Shopping Guide, Morning Meeting, Display, Transformation, Stock Pressure, Festivals, Distributor Cost Control, Channel Operation, Marketing Theory and Laws, Brand Truth, Order Meeting, Team Management, Training, Debriefing, Debriefing Report.


---

## Copyright and AI use

This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL.

Contact: zhaobo258@gmail.com · +86 158 5481 7671