Food for Thought - Exporting to China

Dan Traucki’s words on exporting to China.

Now that the Australian dollar has dropped significantly, it is a good time to consider exporting wine to China and indeed the rest of Asia, as the potential over time is enormous.

For those who are new to exporting, the first step is to get an export licence from AGWA (Australian Grape & Wine Authority).

The next step is to find a potential customer/importer in China. This can be done directly or through Austrade’s New Exporter Development Program.

There are a number of simple rules that can help to ensure the right importer is selected. Firstly, stay away from tier-1 cities, such as Beijing and Shanghai, as they are swamped with Aussie winemakers making it hard to get a foot in the door, let alone decent representation in their portfolio. Remember, that even third-tier cities have massive populations with great potential as the standard of living rises in China. Thus one can start off in a small way and grow significantly over time.

Secondly, make sure that the potential client has some liquor industry experience, or at least the right sort of contacts – everything in China revolves around contacts. This includes making sure that they have an import licence.

There are some pitfalls in the exporting process, which can be easily avoided if you have somebody who can guide you through the regulations so as to ensure a smooth passage for your wine. China Customs is one of the most exacting and pedantic in the world; therefore it is imperative that you do all the i’s and cross all the t’s as any errors will cause you grief. Whilst this sounds ominous, once you have the proper systems in place it is a fairly straight forward process.

As the Chinese market is so young it is very different from traditional export markets - in China online sales and karaoke bars sell significant volumes of wine. So approach the market with an open and cautious mind. If you get the right distributor, you will prosper in this amazing and growing market. Good luck.

Dan Traucki is the wine industry consultant at Wine Assist. For more information, email Dan at [email protected].

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