The Spahish company enters the Chinese market with two main product lines: wines (varietal wines, cavas, sparkling and metallic) and a selection of spirits, which highlights the range of premium spirits.
TAVASA distilleries (www.tavasa.es) ) has opened an office in China, to facilitate the introduction of their products in the Asian country. From its headquarters in Shanghai is also coordinated the efforts of the firm on the other markets of the area, acting as representative office in Southeast Asia.
The establishment in China is one of the milestones in the plan of international growth that this family company from Toledo has been implementing for several years.
"China will be the cornerstone of our growth in the medium and long term, being an essential market to be developed, because its volume, as the increase in the purchasing power of its population, which has led to an exponential increase in the consumption of various goods, including alcoholic drinks," says Hugo Tarifa de Vicente, commercial director of Tavasa Distilleries.
In the Asian country, Tavasa will have to compete with local manufacturers and also with an increasing number of large international brands. "Our first efforts are focused on promoting our brands in major cities, such as Beijing Shanghai, Nanjing, Xi'an, etc., where there is a growing mass of population with a medium high purchasing power, demanding quality foreign products," explains the head of the firm in China. The first operations of the company in the Asian country are being implemented via agreements with large distributors and importers. In a second phase, the organization also aims to address the local distribution market.
The team of the new office in Shanghai is now launching an ambitious promotional plan, which covers both direct management with customers, such as assistance to various national and international fairs in the region, including: Nanjing and Suzhou Wine Meetings 2014, ProWine China 2014 o la Hong Kong International Wine&Spirits Fair. These events will take place between the months of October and November of this year and in the same Tavasa will come with a representative selection of wines and spirits.
Differentiate through innovation
"China is an extremely demanding market, for which we have raised our differentiation through the competitiveness and innovation of product," says the head of the organization in China. The company deals with the market with two main lines of drinks: wine and distillates.
With its wide range of varietal wines, cavas, sparkling wines and metallic, the manufacturer has used a mature market and the consumption of imported spirits, especially in the case of the red wines.
TAVASA also aims to boost sales of its spirits, whose consumption has been boosted recently by the development of a new culture of pubs and clubs in the country. "Our first performances in the segment of the distillates obtained a very positive reaction, especially the interest aroused our range of ready to serve cocktails and the premium spirits with silver flakes in suspension of the Platinum TV line. Products, to be commercialized in nightclubs" said the head of the firm in Shanghai.
Optimization of the shupply chain
China´s size and the obvious differences between different regions, requires a differentiated approach in the marketing of products in different areas. These and other features of the Asian market, has been a major challenge for the performance of Tavasa, having to adapt products, their manufacturing processes and logistics to a much more demanding market, with the added handicap of the distance.
"To some extent, the adaptation effort we are making has benefited us, now our supply chain is much more agile," says the commercial director of Tavasa. "We have also tightened our quality controls for all markets”.
The firm is also aware of the need to adapt the products promotion to a more collective environment, less individualistic than the European markets, in which the consumption of alcoholic beverages is primarily a social act and in Community. "This is another challenge which, properly addressed, represents a great opportunity for achieving economies of scale in the sale of our products," says the head of the office in China.