Global spirits company plans expansion in Chinese market

Upbeat about the Chinese market, Campari Group, a major player in the global spirits industry, plans to further expand its market presence in the country in the coming years, as local demand continues to grow and diversify, said a senior executive.

Many opportunities come from consumers' surging demand for unique offerings that can express themselves, not necessarily the familiar brands anymore, said Pauline D. Cha, managing director of Campari China.

"One prominent trend that has been observed globally, not just in China, is the increasing preference among younger consumers for lower-alcohol beverages. This trend towards lower alcohol by volume (ABV) beverages has given rise to the popularity of cocktails and easy mixing options, a phenomenon we commonly see in the market," said Cha.

Campari Group owns over 50 premium and super premium brands, including Campari, Aperol, SKYY Vodka, X-Rated Fusion Liqueur, The Glen Grant, Wild Turkey, and Bisquit & Dubouché.

X-Rated Fusion Liqueur, renowned for its distinctive pink hue, is experiencing rapid growth as one of the fastest-growing flavored spirits in Asia. Embraced by young, trend-seeking consumers, the brand has become synonymous with celebratory occasions and will introduce its new virtual influencer, named X, in the Chinese market this year.

As Chinese consumers have shown a strong preference for low ABV drinks and mixable spirits, coupled with their high level of digital savvy, the executive said it is essential to adopt a consumer-centric approach and embrace digital transformation to effectively capture this opportunity.

"When we developed X, we recognized a significant shift among younger consumers. Rather than becoming distinct, they are actually converging and becoming more similar," said Cha, adding that rather than being a traditional virtual icon image, Campari wants to bring this virtual influencer to life by using the latest avatar technology.

She said this transformation can be attributed to the influence of digital technology, particularly in China. The country's young consumers are the most digitally adept generation ever. They have grown up with technology and are extremely well-versed in its usage and capabilities.

"Brands need to speak to consumers in terms they can relate to, using media platforms that they grew up with," said Cha. "Given the rapid growth of artificial intelligence, virtual reality and other technologies, we believe the meta-universe concept, which is fast evolving with hyper-realistic avatar technology, will serve as the medium for new consumer activities."

Highlighting the significance of China as a key global market for the group, she said that the Italian company remains committed to delivering premium products that align with evolving consumer preferences.

According to Guo Xin, a marketing professor at Beijing Technology and Business University, the imported spirits market in China is expected to evolve to embrace new consumption scenarios and consumers, offering more diverse opportunities.

She noted that young consumers prefer fresh and diverse alcoholic drinks, which will bring about changes to the market.