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The Economics of Beer$
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Johan F.M. Swinnen

Print publication date: 2011

Print ISBN-13: 9780199693801

Published to Oxford Scholarship Online: January 2012

DOI: 10.1093/acprof:oso/9780199693801.001.0001

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

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

(p.267) 15 Beer Battles in China: The Struggle over the World's Largest Beer Market
The Economics of Beer

Junfei Bai

Jikun Huang

Scott Rozelle

Matt Boswell

Oxford University Press

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

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