Abstract:
The world wine industry has been restructuring globally over the past three decades in terms of production, consumption and trade. As a result, wine markets are increasingly sizable. However, market competition is fierce and profitability is challenging. New Zealand has emerged as a key player in the world wine industry in terms of production of wine for export. Hawke’s Bay is a key wine region in New Zealand. China is now a wine market of significance where imported wine dominates the high-end market segment. Wine is a highly taxed product in China. The phased-out tariff granted by the New Zealand-China Free Trade Agreement (NZCFTA) is facilitating an expansion of New Zealand wine consumption by Chinese consumers. Hawke’s Bay wine is a notable part of the expansion. This thesis aims to examine strategies for Hawke’s Bay wine actors to expand into China under the framework of NZCFTA. Despite its sizable potential, the Chinese imported wine market is competitive and structured differently from other Western markets that Hawke’s Bay wine actors are unaccustomed to. Thus, understanding the Chinese wine market and Chinese culture, and utilising more differentiated marketing strategies are imperative to increase market share. Primary data was obtained from semi-structured interviews and attendances at a Hawke’s Bay Wine show and a free trade conference. Interviewees included those who are experienced in export to China, such as New Zealand wineries, wine exporters, wine and trade association. Secondary data was collected from published literature, wine reports and websites. The main findings are the insights and practices of those stakeholders who attempt to position themselves in the NZCFTA, and strategies of export wine to China identified from these insights and practices. This thesis concludes that NZCFTA is developing a new space for Hawke’s Bay wine actors to make marketing relations in the Chinese market in, but suggests the challenge ahead is to sustain the current positive effects generated by the NZCFTA.
