Before entering China’s liquor market, foreign companies must determine whether their products will suit the tastes of their target consumers. This is where careful analysis of the market segmentation comes in. In this way, companies can identify distinct groups of drinkers, define their needs and preferences, evaluate their purchasing potential, and begin considering how to appeal to them.
Liquor Consumer Groups in China
The Infrequent Sippers
This group only consumes liquors during special occasions and friendly get-togethers. Infrequent Sippers do not spend much on buying their preferred alcohols, usually limiting their purchase on entry-level to mid-tier spirits. They typically prefer to buy at supermarkets and hypermarkets where there is a wide selection of booze available.
The Spirits Lovers
This cluster has a high level of appreciation for spirits. The Spirits Lovers do not mind shelling out money to buy premium and expensive alcohols. Whether during informal or formal occasions, at home or outside, they are the most content while sipping good-quality drinks and relaxing. They are also always eager to try new flavors, even new or unheard-of brands. As consumers of spirits, they are enthusiastic risk-takers open to new experiences.
The Laid-Back Amateurs
Experimental and open-minded, these drinkers exhibit a moderate interest in spirits. Although not quite well versed in the different kinds of alcoholic beverages available in the market, they put in the effort to buy what they like. They enjoy drinking at home or during informal affairs. They do not usually splurge on spirits that cost an arm and a leg, preferring those of quality but reasonably priced.
The Conventional Aficionados
Typically made up of high-income consumers, this group has the money to spend on a bottle of Rémy Martin cognac or a rare 60-year-old Macallan whisky. They are conservative, rarely venturing beyond tried and tested classics. They enjoy the prestige associated with sipping premium alcohol in the comfort of their homes or during important business meetings.
The Casual Value-Buyers
These are the infrequent consumers of liquors. Casual Value-Buyers are less engaged with spirits-drinking culture and have limited knowledge of spirits in the market. When they do make purchases, they prefer low-priced spirits—often to mixed–and are highly receptive to promotional offers.
Closing Thoughts Types of Consumers of Spirits in China
The preferences and mindset of potential consumers matter for foreign companies that want to succeed in China’s highly competitive spirits market. To construct a strong marketing strategy that can increase a company’s chances of success in the market, knowledge of the different groups of consumers is necessary. In future articles, we will discuss how to appeal to each group effectively.