Australian Wine Export to China Essay Example

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3Australian Wine Export to China

Australian Wine Export to China

Australian Wine Export to China

China is currently the fastest growing economy in terms of the expansion in its export market. This is despite a drop in its exports in the year 2012 (Hall & Mitchell, 2008, p. 46). This drop can be directed towards the austerity measures that the government of China introduced in 2012 (Bobik, 2012, p. 122). These measures were meant to ensure that the government could introduce techniques of curbing expenditure on luxurious products such as premium imported wine. Despite these laws, Australia is still well positioned in China to achieve the highest average value among 10 of the most important exporters to China (Hall & Mitchell, 2008, p. 46). China is the biggest destination for premium Australian wine since there are opportunities for those whose main focus is long term brand building (Fernandez & Underwood, 2012, p. 23).

According to an analysis conducted by Australian Bureau of Agriculture and Resources Economics and Sciences (ABARES) concerning import tariffs in wine market, the removal of import tariffs in Australian wine can be said to be a leading cause of an increase in exports (Zhu, 2010, p. 56). In addition, these tariffs would lower retail prices of wine in Chinese market which would in turn make Australian wine more competitive. Improving brand image is an objective of Australian wine manufacturers as their wine brands are introduced into the international market. This brings with it production in large volumes which in turn lowers the unit cost in terms of overall production cost (Wanna et al, 2012, p. 24).


Bobik, M. 2012. Entering the wine industry in china: possible marketing strategies. [S.l.],

Grin Verlag.

Zhu, Zhiqun. 2010. China’s new diplomacy rationale, strategies and significance. Farnham,

England: Ashgate.

Fernandez, J. A., & Underwood, L. 2012. China Entrepreneur Voices of Experience from 40

Business Pioneers. Chichester, Wiley.

Hall, C, M & Mitchell, R.. 2008. Wine Marketting: A Practical Guide. Routledge

Wanna, J., Vincent, S., & Podger, A. S. 2012. With the benefit of hindsight valedictory

reflections from departmental secretaries, 2004-11. Canberra, ANU E Press.