Spring Festive purchasing surge

With Chinese New Year just around the corner high end market liquor producers are experiencing rocketing sales.

The Chinese Spring Festival (also known as the Chinese New Year) begins on February 14th, with most people in mainland China enjoying seven days off work from February 13th until February 19th for the New Year celebrations. The exchange of gifts upon such a cultural significant day is commonplace. Gifts range from money to gifting tea, and cakes. 2009 has experienced a surge in the purchasing of expensive branded liquor. Moutai 53, retailing at 735 RMB per a bottle, is one such example of good quality liquor in high demand. Sales of Moutai store in Mudanyuan expects sale of 4 million RMB during 2009 festive season.

2009 marks a diverse change from the Spring Festival of 2008 where the industry experienced suffered a slump in sales, which may have been attributed to the effects of the global downturn. This year however, there appears to be direct correlation between China¡¯s growing GDP with the amount of money being spent on liquor. Some believe that this trend, in high demand for such liquors, is likely to increase throughout the year as China¡¯s economy continues to pick up steam and momentum.

With the Chinese economy predicted to grow by 10% + this year, additional foreign companies will be looking towards establishing a foothold in China. For numerous years, Lehman, Lee & Xu have lead the way in the successfully establishment and provision of legal aid to foreign corporations investing in China via corporate vehicles such as JVs, or WFOEs. In addition to establishment, we are able deal with the necessary registration of the business¡¯s IPR, and also any labour and employment issues corporations working in China are likely to come up against. Our IP, and labour and employment departments are wholly dedicated in keeping our clients are interested parties up to date with important legal issues via our China IP and China Labour Insight Newsletters. Should you wish to subscribe to these newsletters, or if you have any questions or queries relating to the scope of our legal services please email mail@lehmanlaw.com.



Submit Comment

Required

Resident Blawgers