A view of the Fenjiu brand zone in the Haikou International Duty-Free City Photo: Courtesy of Fenjiu Group

In October 2022, the China Duty Free Group's newest commercial plaza, the Haikou International Duty-Free City, opened its doors with a grand ceremony. At the same time, the Fenjiu brand zone established by Shanxi Xinghuacun Fenjiu International Trade Co., Ltd. was launched in the fourth-floor liquor zone of the duty-free mall. This is the latest step Fenjiu has taken on the road toward "internationalization."

In October 2018, Fenwine ­European distributor Shang Cheng ­International Trading Co., Ltd. joined hands with ­Harrods, Bulgari and London ­Philharmonic Orchestra to hold the ­Fenwine Blue and White 30 tasting event. At the same time, Green and White Fenjiu officially entered Harrods department store, Galeries Lafayette ­department store and Renaissance department store in Italy. On June 18, 2021, Fenjiu's first overseas experience store opened next to the ­Cologne ­Cathedral, an iconic building in ­Germany. 

These moves kicked off a brand-new future for Fenjiu in the European and American markets.

While these efforts have been relatively recent, Fenjiu actually struck out on the road of "internationalization" back in the 1930s. Taking Xinghuacun as the starting point, sales of Fenjiu products spread throughout China at that time, and then as far as Russia, Japan, South Asia, West Asia and other neighboring countries and regions. Today, the overseas market of Fenjiu covers more than 60 countries and regions in Asia, Europe, America, Oceania and Africa. It works with more than 50 overseas dealers, more than 9,000 terminal stores, and more than 180 foreign duty-free shops and Chinese departure duty-free shops. Its sales network covers five continents and important duty-free ports in the world.

Big year for expansion

The year 2023 is a crucial year for Fenjiu to implement its "123" revitalization strategy and integration layout, and also a crucial year for Fenjiu International Trade Co., Ltd. to put into practice the general program of "revitalization," promote the high-quality development of the international market, and continue to deeply develop international terminals. Especially with the optimization of China's COVID-19 prevention and control policy, international communication has become more convenient, so it is particularly important for Fenjiu International Trade to seize this opportunity by "heading out" and actively promoting the internationalization of Fenjiu brand and culture.

According to Zhang Weidong, general manager of Shanxi Xinghuacun Fenjiu International Trade Co., Ltd., Fenjiu will implement a "differentiation, scene, pilot" international marketing route in 2023, and optimize and upgrade its internal and external circulation systems, namely the company's internal marketing management system and the company's external sales network system. Internally, efforts will be made to strengthen the company's internal marketing management level and digital construction to establish a more professional, orderly, efficient international marketing management system. Externally, the company will promote international terminal construction and the brand promotion of Fenjiu through a "pilot first, point with surface" plan in order to improve the international market sales of Fenjiu and expand the consumption and influence of Fenjiu.

Fenjiu wine has a 6,000-year history of brewing, 1,500 years of fame, 800 years of distillation, 300 years of history as a brand and more than 100 years of international history. As a time-honored Chinese brand with a long history and culture, Fenjiu should not only fulfill the responsibility of reviving traditional culture, but also carry forward the precious poetry wine culture. Under the guidance of "the pioneer of Chinese culture going global," Fenjiu will explore new ways of launching Fenjiu through theme activities such as Fenjiu cultural courses, Fenjiu tasting sessions, immersive experiences at the Fenjiu Experience Center and cross-brand cooperation to present the international concepts of "fragrance, green and healthy" to global consumers, as well as pass on the beauty of Fenjiu culture.

Visitors try Fenjiu during a tasting session in the Netherlands. Photo: Courtesy of Fenjiu Group

Overcoming challenges

Of course, the road ahead for the internationalization of Fenjiu will inevitably experience challenges in various international markets, from differences in drinking habits and drinking venues to international standards and tariff barriers. Zhang said that in order to better cope with diverse and changing overseas markets, Fenjiu will conduct detailed research before entering each overseas market. For instance, the Eastern European region is dominated by low-strength vodka, the Western European market prefers red wine, Japanese sake is more popular in its home country, and South Korea's cheap low-strength wine is popular among young people. All this information comes from the experience accumulated from the continuous exploration and innovation of the Fenjiu international team. Their meticulous work in the early stage provided scientific and reliable theory and data support for the internationalization of Fenjiu and is an indispensable part of the successful landing of Fenjiu overseas.

Obviously, through its own internationalization practice and thinking, Fenjiu will bring more wisdom to the topic of "going global" for Chinese liquor. Yuan Qingmao, Party secretary and chairman of the board of directors of Fenjiu Group, stressed that Fenjiu should continue to explore overseas markets, keep up with the national "Belt and Road Initiative" and Shanxi Province's "new heights of inland opening to the outside world" pace, focus on the Asia-Pacific market, seize the broad market opportunities brought by the construction of the Guangdong-Hong Kong-Macao Greater Bay Area and the Regional Comprehensive Economic Partnership, look for new development opportunities in ASEAN members, and continue to enhance the international brand image of Fenjiu.