Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
Analysis of beer market in China
China’s transition to a “new normal” reality backfired on the brewing industry unexpectedly. Stagnation and subsequent market decline resulted from dynamic social and economic changes. There has emerged a “two speed” market where the medium class significance is growing, yet the share of main beer consumers, “blue collar” is decreasing. Also the inflow of consumers is shrinking, as demographics stopped being a growth driver. Finally, beer is giving way to other alcohol drinks....
China. Investment advisor about the causes of Carlsberg’s problems
The expert believes that the first reason is the overall decline of the brewing industry, especially in the Russian market. The second reason is the low efficiency of company management and the lack of innovative products that could attract consumers.
According to Liang Ming Xuan the closure of the Carlsberg breweries and downsizing will help to reduce costs in the short term, but will not be able to solve more important problems.
Having arrived at the Chinese market, Carlsberg has developed a new product that corresponds to the tastes of the local population. Familiar to European consumers intense flavor of beer does not correspond to the preferences of the Chinese. This was a major mistake.
Furthermore, the brand positioning is a bit confusing and disconcerting. The company is presented on the market of high-quality beer and has completely denied the low-end products. A number of mergers and acquisitions (M&A) did not bring the desired result.
As a result, a lot of minor, at first sight, mistakes led to big problems for the company.
23 Feb. 2016