Chapter

Beer Battles in China: The Struggle over the World's Largest Beer Market

Junfei Bai, Jikun Huang, Scott Rozelle and Matt Boswell

in The Economics of Beer

Published in print October 2011 | ISBN: 9780199693801
Published online January 2012 | e-ISBN: 9780191731884 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199693801.003.0015
Beer Battles in China: The Struggle over the World's Largest Beer Market

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This chapter examines how China rose so fast in the world beer market and describes the war for the nation's beer market and who (at least so far) appears to be winning. To meet this set of objectives, it traces the evolution of China's beer production and marketing over the past several decades to describe the fast growth of the Chinese beer industry and its fundamental transformation from state-owned and backward to a sophisticated set of brewery conglomerates. It discusses the strategies which allow domestic brewing firms to compete with the largest foreign breweries in the world. These business strategies based on branding, advertising strategies, and acquisitions have been the driving forces behind the success of domestic firms in establishing and maintaining their lead in the beer market. Of course, the war is not over — there will be more battles in the future.

Keywords: beer market; China; industrial structure; evolution; driving force

Chapter.  6263 words.  Illustrated.

Subjects: Economic Systems

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