New Zealand wine exports to China: Barriers and potential mitigation strategies : A thesis submitted in partial fulfilment of the requirements of the Degree of Master of Commerce and Management at Lincoln University

Abstract

With the gradual expansion of Asian wine consumption in the past decade, China has become Asia’s largest and most significant wine consumption market. As a result, China has become one of the most significant target markets for New Zealand wine exports to Asia. In terms of purchasing power, China is a large potential market. However, Chinese wine consumption has declined recently, and New Zealand's wine market share in China has stagnated. Because of a different drinking culture, government policies, and COVID-19, exports of New Zealand wine to China have encountered various barriers, especially during the pandemic, that eventually prevented New Zealand wine exporters from exploring the Chinese market. This study reviews the global wine industry, the New Zealand wine industry, and the Chinese wine market recently. The literature review focuses on Chinese wine consumers’ preferences, export strategies, and a framework for export barriers. The study uses in-depth interviews with New Zealand wine exporters and Chinese wine importers to investigate New Zealand wine exporters’ backgrounds, export processes, entering the Chinese market mode, export strategies, and various barriers encountered in exporting to China. According to the findings, potential strategies are proposed to mitigate the barriers encountered by New Zealand wine exporters. The primary data were obtained from semi-structured interviews of 12 wine exporters in New Zealand between June and August 2023. These exporters are also local wine producers and export their products. The interviewees are leaders directly engaged in wine exporting or understand the relevant export business currently working as New Zealand wine exporters. Secondary data come from literature studies and published reports by research institutions. Three Chinese wine importers in Shanghai were also interviewed to understand the barriers to New Zealand exporters from a different perspective. The results show that indirect exports are more suitable for entering the Chinese market. Successful exporting is related to rich exporting experience and adequate financial and human resources. The recent barriers New Zealand wine exporters face include exogenous, procedural, resource, and knowledge and experience barriers. Exporters can actively enhance export knowledge and accumulate experience to mitigate the impact of export barriers on enterprises. The results provide new evidence of the success of New Zealand wine exporters in exploring the Chinese market. The results also give policymakers insights on exporting to China, increasing their export experience, and mitigating and eliminating the main export barriers to speed up internationalisation.