Once a prominent hub for fine wines, China’s wine market has undergone a significant transformation over the past two decades. The market, once celebrated for its luxury offerings, is now dominated by budget wines, reflecting a broader trend of consumer downgrading.
In a recent move, German supermarket giant ALDI launched an enticing wine promotion in Shanghai, offering a case of six bottles for just CNY 99 (approximately US$13.9). This follows a similar trend initiated by Saizeriya, a budget-friendly restaurant chain known for its low-priced wines, which range from RMB 30 to 50 per bottle, making it a popular destination for Chinese consumers seeking affordable drinking options.
ALDI’s promotion features the Chilean Central Valley Cabernet Sauvignon Dry Red Wine (750ml, 12.5% ABV), priced at RMB 99 per case. This launch, which took place on October 9, marks ALDI’s only operational city in China, where it has over 50 stores. With an average cost of just over US$2 per bottle, this wine is part of ALDI’s Super-Value Series, which aims to provide budget-friendly essentials. Earlier this year, the series introduced an affordable Baijiu priced at RMB 9.9 (US$0.14), which quickly sold out.
The so-called “996” wine, named in reference to the demanding “996” work culture, is not a new concept in China; however, it may be the first of its kind available in physical stores. Unlike some of the online offerings that misrepresent their origins, ALDI’s wine clearly indicates its production in Yantai, Shandong province, where the Chilean wine is bottled.
The wine is supplied by Shanghai Vin Maison, a subsidiary of Ninecoast Network Technology Co. Ltd., recognized as one of China’s top wine importers specializing in bulk wine. CEO Zhang Haixiao emphasized that the ALDI wine is produced locally in Yantai, adhering to strict quality standards while maintaining cost efficiency.
“Within ALDI’s budget range, they select the highest quality bulk wines. ALDI aims to create a bestselling wine product,” Zhang noted. The strategy appears effective, as ALDI reports selling hundreds of cases daily since the launch of the “996” wine.
Prior to ALDI’s entry into the ultra-low-priced wine market, Saizeriya had already established itself as a favorite for affordable wines, with prices ranging from RMB 30 to 50 (US$4.21 to US$7.02) per bottle. This approach has successfully attracted a diverse customer base, earning the restaurant chain the nickname “izakaya for the middle-aged.”
A feature from Life Lab, a WeChat account affiliated with Joint Publishing, highlighted the appeal of Saizeriya to middle-aged patrons, who enjoy the restaurant’s ambiance and reasonable prices—typically under RMB 100 (US$14.04) per visit.
Vino Joy News analyzed Saizeriya’s wine offerings and found that their prices are generally lower than those at many other restaurants. For instance, their Blue Nun sparkling wine is available for RMB 36 (US$5.05) per bottle, while both dry red and white wines are priced at RMB 58 (US$8.14) per bottle.
Founded in Japan in 1967 and entering the Chinese market in 2003, Saizeriya primarily concentrates its locations in the Yangtze River Delta around Shanghai. Known for its affordable Italian cuisine, the chain is often dubbed the “poor man’s restaurant,” a title that also fits ALDI, frequently referred to as the “poor man’s supermarket.”
Regarding the rising popularity of budget wines like ALDI’s “996” offering and Saizeriya’s RMB 36 wines, Zhang believes that the trend toward consumer downgrading, while reflective of economic challenges, ultimately serves to democratize wine consumption in China as more people seek affordable options.
“About 90% of ALDI’s products are self-operated, and their robust supply chain instills consumer confidence. Therefore, ALDI’s CNY 99 wine promotion undoubtedly builds more trust than online purchases,” Zhang stated.
However, Feng Lihua, a veteran in the alcoholic beverage retail sector, argues that the prevalence of low-priced wines is not solely due to consumer downgrading. “The trend in the wine industry isn’t about transitioning from CNY 100 wines to CNY 50 wines; it reflects a reduction in purchase frequency,” Feng explained. He pointed out that even high-end Baijiu has seen price reductions without a significant increase in sales, as consumers anticipate further price drops.
Zhang acknowledges that while the trend may not cater to wine connoisseurs, it is designed to attract a broader audience. He remarked that serious wine enthusiasts are unlikely to purchase from ALDI, as the supermarket and Saizeriya primarily target mass consumers, representing the future of wine consumption in China.
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