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China Wine Industry Is Boldly Emerging

China wine industry is now partaking in bold moves to rise into new heights. For the past few years, they have been importing an impressive amount of wine and have invested in wineries all over the country.

China’s market for Italian and other import wines is surprisingly high. Since 2013, they have become the main consumer of wine in the entire world, surpassing even France and Italy in worldwide rankings. As early as 2014, their red wine consumption rose to 1.85 billion, a stark difference from France’s 150 million and Italy’s 141 million.

Just past the first half of 2017 alone, their total wine imports amounted to $1.475 billion – about 407.37 million liters. That is a 15.49% increase by volume, and a 7.65% increase by value, based on information from China Association of Imports and Export of Wine & Spirits.

While Italy still remains the highest producer of wine in the world, they are struggling to penetrate China’s market. France currently leads China’s wine market, occupying about 45% of their imported wines, while Australia comes at a far second at 14%. Close behind are Chile, Italy, and Spain, at 9%, 9%, and 8% respectively.

Wine-Consuming Tiers in China

China is one of the largest countries in the world, both in size and in population. With an area of 9.597 square kilometers (3.7 million square miles) and a population of 1.379 billion as of 2016, it’s easier to understand their economy by dividing cities into three tiers. a twig of grapes, Wine-Consuming Tiers in China

Tier 1 includes the economically advanced cities such as Beijing, Guangzhou, Shanghai, and Shenzhen. The wine market here are well-developed, albeit saturated. People who reside in these areas are well educated, aware of wine brands and characteristics, and are on the lookout for new flavors to try.

Tier 2 includes what are essentially satellite cities of those that belong to the first tier. Cities like Dalian, Dongguang, Nanjing, Suzhou, Tianjin, and Yantai are less known and often less populous, but have growing economies as years pass. People who live here typically know mostly Italian and French wines, but still need awareness of these products and brands, and the wine market in general.

Tier 3 includes cities and areas that have people who have little to zero brand awareness, as they are in a vastly different economic situation. Often, their residents cannot even afford the cost of wines imported from all over the world.

A Rising Wine Economy

Experts project China to become the world’s second most valuable wine market within the next few years. By 2020, they are estimated to consume 94 million cases of wine – that’s 72% of worldwide wine growth based on a report by IWSR and Vinexpo. In addition to this influx of imported wines, local wines in mainland China have fallen to about 30% due to an increasing interest in wines coming in from various parts of the globe.

China’s top 10 wine sources and prices as of July 2017 are the following:

  1. France – 98.237 million liters, averaging $4.97 per liter
  2. Australia – 46.095 million liters, averaging $6.14 per liter
  3. Chile – 28.593 million liters, averaging $3.34 per liter
  4. Spain – 33.24 million liters, averaging $2.15 per liter
  5. Italy – 14.962 million liters, averaging $4.5 per liter
  6. United States of America – 4.866 million liters, averaging $6.42 per liter
  7. New Zealand – 1.261 million liters, averaging $9.83 per liter
  8. South Africa – 4.072 million liters, averaging $2.91 per liter
  9. Argentina – 2.547 million liters, averaging $4.1 per liter
  10. Portugal – 3.652 million liters, averaging $2.68 per liter

Overall, China experienced a 25% bulk wine increase in 2017 compared to the previous year. However, there was also a 12.2% increase in the average price, mainly due to the demand for quality. Sparkling wine also increased 27.2% in average price, amounting to $5.74 per liter (about $4.3 a bottle).

It’s not just imported wines disrupting the industry either. This growing demand for quality wine also prompted an increase in domestic production, turning China into the seventh-largest wine producer in the world, and coming only second to Spain in the amount of space devoted to vineyards.

The most significant area for Chinese wine is Ningxia, with about a hundred wineries spread across approximately 100 miles, and producing 120 million bottles of wine in 2016. Their brands of Cabernet blends, Cabernet Sauvignons, and Chardonnays are close to French wines, and experts saying the Chinese wines have good potential to age, allowing China’s bold wine market to be one of the most disruptive and influential today.

Looking for more information on wines of the world or Chinese Wines? Check out these books on Amazon:

The World Atlas Of Wine Chinese Wine

The State Of Wine Import Affects Its Drinkers Globally Cartoon

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Players of the China wine industry have been importing wine in bulk and have invested in several wineries—thus, boldly impacting wine drinkers globally.

AC Motor VS. DC Motor: Which One Is Better For EVs?

The year 2017 has seen a great deal of success for the market sales of electric vehicles (EV) in the United States. According to a well-known online community platform, InsideEVs, Americans purchased nearly 200,000 EV units. The demand is expected to continue to rise in the coming years.

Tesla’s Model S, Chevrolet’s Bolt EV, and Toyota’s Prius Prime were all at the top of the leaderboard, thanks to their stylish designs and remarkable running conditions. The success though should rightfully be credited to the motors of the EV.

Behind the massive demand and great success of electric vehicles, future car owners are also looking into the performance of the motors. Two of the most innovative and best-performing motors to choose from are AC induction motor and DC brushless motor (permanent magnet AC synchronous).

Both motors share the same purpose of elevating EVs and creating a healthier planet. Due to the exceptional wide speed range of the motors, EVs have acquired an impressive capability of running with just a single-speed gearbox. The only thing that separates the motors from each other is the voltage usage.

All About the AC Induction Motor

An AC motor is actually a three-phase motor that has a speed feature of running at 240 volts. Car enthusiasts and experts deem this type of motor is adaptable. Its regenerative feature can also work as a generator that brings back power to the battery of an EV.

When it comes to road performance, electric vehicles with AC motors can get a better grip at rougher terrains and run more smoothly. It also has more acceleration.

Even though AC induction motors are more expensive than DC motors, they are still popular to a wider market and automobile manufacturers because it is ideal for high-performance cars. EVs with adaptable motors also last longer.

What To Know About the DC Brushless Motor

In most cases, a DC motor will run between 96 to 192 volts. The permanent magnet motor utilizes rare-earth elements into its magnets, which makes it unique.

More car companies are also beginning to switch from induction motors to permanent magnet motors because it has a size and weight advantage that is more significant as automobiles are becoming relatively smaller. They are also being used in almost all electric vehicles around the globe.

One company that made a big jump in its motor usage is Tesla. A lot of people know that the famous California-based corporation applies an AC induction motor to all its model cars, but when Model 3 EV was showcased, it was discovered that they altered its motor.

According to officials, the reason the reason for the change is that it does not need an additional electricity, unlike the AC motor. They also mentioned that using the permanent magnet motor has solved their cost-minimization function.

Carmakers And Their Models Using AC & DC Motors

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Chevrolet –The corporation was founded in 1911 and is a division of the General Motors Company. It has an estimated revenue of $50 billion. The company uses DC brushless motors in its car models like the Bolt EV.

Nissan – The company headed by Hiroto Saikawa manufactures and sells electric and commercial vehicles. Nissan has a projected revenue of $73.6 billion. Its EV model, Nissan Leaf is currently using a DC motor.

Tesla – Tesla was established in 2003 and since then, it has become popular because of the works of Elon Musk. The startup company designs, manufactures, and sells electric cars. It is estimated that Tesla has an estimated revenue of $11.8 billion. The Model S EV of the company uses an AC induction motor.

Many car owners sometimes overlook the importance of induction motors and permanent magnet motors. The bold thing about these types of electric motors is that they could predict not just the possible car sales, but also the performance of EVs as a whole in the future.

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The U.K. government is allocating a big fund for research related to self-driving vehicle technology! What are the worldwide implications of such a case?