In China, on-trade wine sales is dying out. Is getting wine listed still relevant?

Are restaurants losing its relevance for wine sales due to strong BYOB culture and regulation. Hear what Xiaopi, Vinehoo founder and Ian Ford had to say.

Globally, restaurants have long been a vital channel for wine consumption. But in China, while most wine is still consumed in dining settings, actual purchases rarely happen in restaurants. Thanks to regulations that allow diners to bring their own bottles, consumers often buy wine elsewhere and simply carry it in. This unique dynamic begs the question: Are restaurants losing relevance for wineries and importers in China?

At the recently concluded China Food & Drinks Fair, the South Australian Government hosted a seminar titled “Breaking Convention: South Australian Wine Summit,” where experts from China’s restaurant and e-commerce sectors gathered to unpack this issue—and shared some eye-opening perspectives.

From left to right: Wine influencer and e-commerce expert, Xiaopi; Alvin Huang, Founder of Vinehoo; and Ian Ford, co-founder of Nimbility Asia

Ian Ford, co-founder of Nimbility Asia, argued that restaurants remain a key scene for wine in China, as most wine is still consumed while dining out. But e-commerce-focused influencer Xiaopi offered a different view. He noted that because most restaurants allow BYOB and supermarkets like Sam’s Club, Aldi, and Pangdonglai offer competitively priced wines, consumers are happy to drink in restaurants—but not to buy their wine there.

He pointed to Chengdu, host city of the country’s biggest wine and spirits fair, China Food and Drinks Fair, as an example. Despite Chengdu’s thriving restaurant scene, there’s only a few full-time sommeliers in the entire city. “Customers now instinctively assume that anyone approaching with a wine list is there to rip them off,” he said. 

Alvin Huang, founder of Vinehoo – a platform specializing in flash sales and boutique wines – noted the prevalent BYOB is not fair for restaurants.  “I was at a dinner in Chengdu where over a dozen guests each brought a bottle of wine, with a total value over RMB 10,000. Yet the per-person bill was only RMB 142, and we sat from 7 p.m. until 1 a.m. Honestly, I felt embarrassed,” he said.

At the same time, most wine lists fail to engage diners. “Some restaurants are improving, but the majority still have weak selections. Most consumers just assume they’ll be disappointed. It shows there’s a deep lack of trust, and rebuilding that will take time,” he added.

Xiaopi suggested restaurants should embrace the reality of BYOB while still promoting their own offerings—providing discounts that match e-commerce pricing to entice purchases. “If you create a welcoming environment and offer sincere recommendations, people will start to accept the idea of buying wine from restaurants again,” he said.


E-Commerce Is the Future

Xiaopi maintains that e-commerce is not just a trend, but the cornerstone of wine sales for the foreseeable future, as more people will opt to dine at home. “I think most people will grow old alone. We don’t have that many real friends, and dining out will become a luxury,” he said.

“Chinese people are among the busiest in the world. We don’t have time to browse wine shops. That’s why we need e-commerce and on-demand retail. You can’t fight consumer behavior,” he continued. As for where people drink, he added, “It could be in a restaurant, at home, or even on a lawn.”

Despite the popularity of platforms like Douyin and Xiaohongshu, Xiaopi sees them as poor fits for wine. “Wine is complex, and Douyin just isn’t designed for deep, thoughtful purchases. Xiaohongshu isn’t ideal either. People go there to browse short videos and make impulse buys, which often leads to high return rates,” he explained. “On the other hand, people go to Taobao to shop. They compare, they consider, they commit.”


Simplify the Message, Commit to Long-Term Branding

When it comes to marketing, Ian Ford noted that wine’s diversity is both a strength and a weakness. “There’s so much information—so many regions and grape varieties. Industry people love it, but for average consumers, terms like ‘old vines,’ ‘single vineyard,’ or ‘winemaker story’ are overwhelming.” His advice: simplify the message and avoid technical jargon. Instead, focus on making wine approachable and fun.

Alvin Huang added that different wines need different marketing strategies. For niche boutique wines, traditional methods still work—but should be updated for the digital age by using influencers who can communicate succinctly and effectively. For high-volume brands, the focus should be on emotional resonance rather than terroir or winemaking heritage. “Emotional value matters most—it just needs to be rooted in traditional storytelling and presented in a distilled, relatable way.”

Ford stressed that wineries shouldn’t rely solely on importers. “Selling to an importer isn’t the endgame. Wineries need to stay involved and committed to the market,” he said. He recommends long-term planning—like a 10-year strategy—to build brand equity through consistent promotion and deep market engagement. “When we started promoting Mosel Riesling in 2004, the results weren’t immediate. But now, sales are stable, and the winery has its own team in China,” he shared.

China’s wine market is vast but distinct from traditional markets. Success here requires wineries and importers to adapt their strategies to local conditions. No matter which channel they choose to invest in, only sustained effort, flexibility, and deep market insight will lead to lasting success in China.


Discover more from Vino Joy News

Subscribe to get the latest posts sent to your email.

Leave a Reply

Discover more from Vino Joy News

Subscribe now to keep reading and get access to the full archive.

Continue reading