China. Elephas Investment Management about consumption, competition, and tendencies on the beer market

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An authorized agent of Yanjing Beer at company Elephas Investment Management (EIM), an Asia based alternative investment management firm, represented results of a research concerning the Chinese beer market situation on 20 May, 2016.

According to the rough estimation this year the beer consumption is still at the low level. The situation is aggravated by the rainy season on the East of the country having started earlier than normally.

The competition in the industry is growing fiercer as its character is changing. While previously companies were winning customers with their prices, currently the emphasis is on the quality. The modern consumer has become much less sensitive to the price than 10 years ago.

Yanjing Beer, in tune with the market trends is expanding output volumes of beer in cans. Compared to the last-year dwindling of sales in the industry, the sales of canned beer are increasing. This year, the company will extend the can production capacity in several regions of Guangxi, Hebei, Henan.

Brewery’s labor expenses have climbed this year, though the number of workers remained the same. On the one hand the company strives to improve the working conditions and the wages level. On the other hand they also focus on technical innovations and robotizing work processes.