China wine market is seeing the chaotic situation in the field of imported wines in circulation, whose high price variance and wide varieties really dazzle the eye of consumers, for example, many imported wines labeled as “original bottle original installation” are priced at only narrowly more than 10 Yuan or even less than 10 Yuan.
From Haiwei Liquor Trading Market, we learn that taxes for wine include current 14% tariff,17% VAT and 10% consumption tax. Basing on the aforesaid tax structure, we can figure out the total tax for 100 Yuan worth of imported bottled wine is 48.2 Yuan, whereby we can conclude that even if the CIF price for one bottle of wine is at less than 2 Euros, its total cost will be up to at least 30 Yuan after we add up tax, customs clearance fee, incidentals at port and Chinese labels fee etc, in which case, it is impossible for the retailer to price their wines at so low a price even though they do not make any profit.
Apart from the extremely low price, we can find its polar opposite——extremely high price with low cost-efficiency, which is caused by the multi-level agency and the consequent markup.
In addition, we can easily find wines labeled from famous winery, such as “Lafite” everywhere. It is obviously illogical when we can easily find many kinds of wines from the famous winery in every KTV or retailer selling tobacco and spirits along street, as this kind of phenomenon is in absolute inconformity with the routine of circulation channel.
“Under the circumstance of chaotic wine market and consumer’s shortage of knowledge for imported wines , consumers should be educated with international wine culture and the ability to discern between true and false ,therefore Haiwei Liquor Trading Market was established with the support of ministry of commerce to help the government lead the wine market into legalization , normalization and standardization ,” said head of market in Haiwei.
It is known that Haiwei Liquor Trading Market is the only platform that has got the license for wine market operation. By adopting membership management ,the complete operation is to establish warehouse in bonded area for wineries (supplier member of Haiwei) and store wines into warehouse on arrival of the shipment, then get wines cleared by customs and distribute them to the franchised shops (outlets of Haiwei) nationwide to face customers directly, hereby eliminates the multi-level agency so as to guarantee the original quality and regress to the reasonable price, enabling consumers to buy wines with high quality at lower price.
