Metro: Supermarkets Remain the Leading Offline Channel for Wine Sales in China 

Chinese wine consumers are increasingly favoring physical off-trade channels for wine purchases despite the country’s omnipresent online sales, according to the wine buyer for Metro, a retail giant with a deep foothold in China’s wine sector. Supermarkets, according to the company, remain a crucial wine sales channel, accounting for 37% of China’s wine sales in offline retail, and 70% of Metro’s RMB 600 million annual wine sales comes from its physical stores.

Speaking at a WSET industry forum at ProWine Shanghai 2024 on November 12, Delphin Duan, Metro’s Wine Category Manager and one of China’s Top 50 Wine Importers, shared recent data underscoring the trend. Wine sales through off-premise retail channels rose from 46.8% in 2022 to 66.3% in 2023, with e-commerce now representing 23.9% of that segment, according to Duan, citing IWSR data. 

Data from Statista also backed the trend. Within offline retail, supermarkets hold the largest share of wine sales. According to Statista 2024 data shared by Duan, supermarkets, hypermarkets, big-box stores, and superstores occupy 37% of the market, followed by convenience stores (16%), specialty beverage stores (15%), duty-free shops (14%), and discount stores (8%).

Metro’s extensive wine selection, comprising over 500 wines—50-60% of which are premium options priced between RMB 200 and 300 —further emphasizes the company’s hold on the market. About 100 wines are directly imported by Metro, while the rest are sourced through partnerships with Chinese importers.

With 100 stores across 60 cities and a member base of 3 million, Metro’s wine sales predominantly occur offline (70%), according to Duan, with 10% online, and the remaining 20% through a blend of online and offline channels. Wine buyers typically purchase once or twice per month, often for gifting or group gatherings, prompting Metro to package most mid-priced wines in gift sets.

Duan noted that Metro’s FSD channel (catering to manufacturing, hospitality, education, and government sectors) and W&G channel (seasonal gift sales) together account for 50% of Metro’s total sales, while for wine, this figure would drop to around 20%. This indicates that everyday consumers are the driving force behind Metro’s wine sales. 

According to Duan, in 2022, Metro’s annual wine sales peaked at RMB 700 million, and it has since stabilized around RMB 600 million (US$83.09 million) a year.

Premium Wines Holds Strong Amid Broader Slowdown 

While overall wine sales remain subdued, the high-end segment is bucking the trend, according to Johnny Jiang, Senior Marketing Manager for Strategy & Planning at Treasury Wine Estates (TWE) China. 

Jiang pointed out that wine only represents 3% of China’s alcohol market, far below baijiu’s 72% and beer’s 20%, with imported spirits close behind at just under 3%. China’s per capita wine consumption stands at just 0.4 liters, ranking 43rd globally. This means average adult Chinese only consume about half a bottle a year, highlighting a wide gap from mature markets, where per capita consumption averages 24.6 liters.

Jiang added that wine’s market share in consumption scenarios is similarly limited: in family gatherings and business functions, wine comprises just 5% of beverages, while in mature markets, it commands 30% and 40% of these segments, respectively. Increasing wine’s presence in these contexts, Jiang noted, presents a formidable challenge.

Yet Nielsen’s data on China’s supermarket sales in the first half of 2024 shows that luxury wines priced above RMB 150 (US$20.7) now account for 25% of the market, with an 11.1% year-on-year increase, indicating a trend toward more premium purchases, shares the TWE executive. “This growth is well above that of lower-priced wines, suggesting more consumers are opting for higher-end bottles in supermarkets,” Jiang said.

He noted that the largest growth was in the mid- to high-end categories, with wines priced between RMB 500-1000 up 229% year-on-year, RMB 1000-1500 wines up 289%, and wines priced above RMB 1500 also growing over 6%.

Signs of Opportunity Amid Restructuring

In contrast to broader market challenges, leading Chinese wine influencer Xiao Pi sees positive developments in China’s wine sector. Xiao Pi, who operates stores on Tmall and Xiaohongshu, similar to Instagram, shared insights on recent consumer trends, urging industry resilience.

“Conditions may be tough in China, but they’re even tougher elsewhere,” Xiao Pi said, noting the rising trend of non- and low-alcoholic beverages in Europe and strict alcohol licensing in the U.S. China’s primary barrier, he argued, is limited disposable income. However, with fewer people spending heavily on real estate or children’s extracurricular activities, more consumers may allocate funds toward lifestyle products like wine. “Young people in Shanghai, for instance, will always enjoy a bit of wine,” he added.

Xiao Pi argues that quality products, fair pricing, and superior service are essential in this market. “We should look to Pangdonglai, a Chinese supermarket known for its exceptional service and competitive pricing, with just a 5% profit margin to maximize turnover,” he suggested. “In retail, flexibility is key; if inventory lingers for over three months, clear it out.”

With his own brand’s focus on customer service, Xiao Pi noted that handling negative feedback is critical. “Most responses to complaints are from me personally, and that transparency helps build trust,” he added.

“The wine market here isn’t soaring, but it’s far from bottoming out. Many external players have exited in recent years, reducing competition, which actually makes this an opportune time for those who remain committed,” Xiao Pi observed.