Jean-Marie Fabre, president of the Confdration des vignerons indpendants, is delighted with the strong recovery of the Chinese market, which is, after all, an important destination for French wine exports.
Image from: European Times
The French newspaper Le Parisien reports that Europe is now entering the winter season, and the dawn of the European economy is hard to see due to the second wave of the new epidemic. However, the Chinese economy has successfully emerged from the crisis and entered a strong recovery phase. Fabre said in an interview that he was very happy about the recovery of French wine exports to China.
Fabre said that China"s economic recovery is very good news and French wine producers will also benefit from it. Given the current tough economic situation, China's economic recovery could help alleviate the plight of French wine producers. In January, the market was completely paralyzed by a massive ban in China in response to the New Crown epidemic, and wine consumption came to a near standstill until June. It was not until early June that restaurants began to reopen and social life gradually got back on track. During the same period, the ports resumed their operations and trade between France and China resumed, with a gradual increase in trade between June and August, and by September it had returned to normal levels.
French wine sales in the Chinese market have been on par with the same period last year, Faber noted. Even compared to September and October 2019, French wine exports to China are no less impressive. This is crucial for independent wine producers, as China is the third largest wine export destination, with a 35% market share. When we talk to our Chinese customers, they often tell us that the recovery has started and that the signs of recovery can be felt in the consumption of the population. Of course, we still have to remain cautious.
As for the reasons for remaining cautious, he explained: Although China's recovery is now gaining momentum and consumption has picked up sharply, the country is not yet completely free from possible volatility. And look at Europe this summer: consumption has started to restart after the epidemic improved in many countries. (However, there was a recurrence of the epidemic.) In China, too, everyone is constantly on alert for the epidemic.
Faber's view can be fully reflected in in terms of orders. Before the epidemic crisis, Chinese importers had been buying in advance to maintain stock levels in order to avoid stock-outs. But the current situation is quite different, as they prefer to buy according to sales, and are clearly still skeptical about using large amounts of money to buy goods after a difficult period. After all, if the embargo had to be imposed again tomorrow in several Chinese provinces, everything would come to a standstill again.