A Marketing analysis of Italian wine in the Chinese market Dissertation

A Marketing analysis of Italian wine in the Chinese market - Dissertation Example form _or_ system of government-making Political factors play an important role in the performance of businesses in the long run. In chinaware, governmental risk is relatively low compared to other emerging economies in the world. This is because China follows a one political party policy, which reduces chances of political parties among opponents. The central government of China has recently revised its taxation policy in distinguish to help it encourage wine business in the country. The government has taken the initiative to provide currency for the infrastructural projects that would help the wineries in their process of production (Daft, Kendrick and Vershinina, 2010). In case of a political framework, in which on that point is the existence of more than one party, as the ruling party changes, it leads to the change of ideologies and policies. The one party policy in China acts as a favourable factor for any business operation in the country. in that respectfore, the wine industry faces positive thrust in China. Import of bottled wine has accessiond between 2004 and 2009 as shown in the graph below. It can be seen from the figure that imports from Italy have increased considerably after 2006. realise Imports of bottled wine by China (Source DPI, 2013) However, there is little transparency in the political system of the country. There are wide assortments of different rules encompassing the businesses in all industries in the country. Such regulations increases challenges for the investors that are currently investing in the country or are willing to invest in the near next (Collins, 2013). Economic China is the largest economy in the world in terms of state and the ranks third in the world in terms of purchasing power parity (CIA, 2013). According to 2012 estimate, the real growth stray of the nation is 7.8 percent and per capita GDP is $9300 (CIA, 2013). There is a rising middle class in China that possesses high purchasing power. This middle income group in China makes very high demand for lavishness goods in the international market (Zhou, 2010). With rising income of the people belonging to the middle class in China, their movie to the international market is increasing and they are becoming more accustomed to the western culture. This develops taste among the nation for luxury products, such as high quality refined wine. This provides positive incentive for the wine manufacturers to increase their operations in China. According to comments by experts, in years to come, the Chinese middle class would ferment one of the greatest stakeholders for the wine firms. With evolution of the Chinese economy the society is also advancing. A greater proportion of the population is entering the middle class (Okonkwo, 2007). They are having high average earning and are influenced by the western culture to a greater extent. These people are becomin g loyal customers of wine. Besides, increasing set differentials in the international market is a major factor that brings about growth in the Chinese wine market. Social China has a long history of brewing wine and there is a tradition of wine consumption in the country. Research shows that the consumption of wine by the Chinese population has been increasing over the last decade. Researchers have claimed that consumption of wine in China would double by 2014 (UPENN, 2012). The reason behind this change