CRI听力:Chinese Wine Market Huge but Price-cautious

According to the International Wine and Spirit Research firm, the Chinese wine market is growing at around 20-percent a year.

Last year, China overtook the UK to become the world's 5th largest wine market by volume.

If the trend continues, China will become the world’s largest consumer of wine in the next 20-years.

Patrick Ilardi is the Vice President of Union Des Grands Vins.

'You are in the top 10 consumers in the world. If you drink one glass one year by person, imagine the expansion in perhaps two years. If every Chinese person drink 2 or 3 of glasses, you become the number 1."

However the swelling demand is also pushing up prices dramatically.

A bottle of Carruades de Lafite is going for as much as 5-thousand yuan in China.

Zhu Linong is the Chair of the Shangde import and export company.

'The real cost of Lafite including its bottle and grapes won't surpass 20 euro. It is the so called 'fame' accounting the line share of its inflating price. In Europe, a bottle of wine priced at 9 or 10 euros is good and refined.'

Aside from demand pushing up prices, the cost of delivery and taxes are also contributing to the price hikes.

Li Xianmin is the General Manager of Boli Trade.

'For instance, a bottle of wine sold at 100 yuan in Europe will be priced at 180 yuan here in China. Customs tariff, VAT and delivery fees pile up 51% of the costs. Add on 20-percent for our profit margins, and that's how you get 180 yuan.'

Liu Jun, CEO of YesMyWine.com says costs are also determined by who is actually buying the wines.

'The extra fees added on the price tag has to match up with where the wine flows to. If it is for distributors like a supermarket, a 1 or 2-fold of increase is reasonable. If it is for places like a 5-star hotel or night clubs, a 5-fold increase is normal.'

The internet is also playing an increasingly important role for consumers when it comes to choice options.

Data compiled by a group called Wine Intelligence suggests that around 40% of imported wine bought here in China is purchased on-line.

For CRI, i'm Liu Yan.