Factors Implied In The Trade Feasibility Of Tequila From Mexico In China

The purpose of this thesis is to research and present the conclusive results regarding the factors implied in the trade feasibility of Tequila from Mexico to China. Mexican spirit, Tequila, is worldwide recognized as a premium drink. Inherent to a culture since the existence of Aztecs, Tequila continues to excel in the national arena as a leading choice. However, its current internationalization has allowed the expansion of Mexican culture through the exquisiteness of its colors and flavors.Upon undergoing the radical economic reform period in the late 70s and unchaining remarkable events like the accession to WTO in 2001, China has had unprecedented results that have struck the world (i.e. GDP growth 9.5% in 2011 placing it as the 2nd economy). The economic hub that is being built and developed in the country has world’s eyes set on the Middle Kingdom. The flabbergasting numbers that have been recorded across industries within the country are vivid proof of the range of business opportunities.In China, the alcoholic beverage consumption has risen at a higher rate than the country’s economic growth. Reportedly, the alcoholic beverages industry had a 25 billion USD turnover in 2010, whereas a rough 35% is accredited to spirits; being the latter, the one that gives the most value to the entire industry. Comparing to world figures, the Chinese market is now the number one consumer in volume terms,20% of the world, and the third largest consumer in value terms,8% of the world, for the spirits industry.It is within this business scope that the assumption that trade feasibility of Tequila from Mexico within China is regarded as upfront positive. Nevertheless, the Chinese market represents to the world the utmost challenge for the introduction of foreign goods. In this sense, this academic research aims to present a conspicuous analysis of the factors implied (economical, sociocultural, political) in trading the Mexican spirit, Tequila, within Chinese territory. The reader of this research will be guided from the global business scope of China itself to the concrete application of distributing Tequila in China. Information gathered to achieve this in depth research, comes from specialized publications both on line and printed, surveys and professional interviews. This allowed the establishment of a theoretical framework which was set to guide the research.So, the specialized publications were useful to set the preliminary findings of the Chinese market and of the industry scope object of this academic investigation. Furthermore, surveys gathered from a random sample set the fundamentals to understand vis-a-vis the Chinese consumer characteristics and behavior. Additionally, professional interviews were conducted in order to attain first hand view of the current situation within the alcoholic beverages industry. The results obtained have been applied to the particular case of a company desiring to enter the Chinese market.The contingent results obtained in this academic research show that a thorough immersion into cultural concepts intrinsic to Chinese, should allow a successful introduction of the foreign spirit, Tequila, in the local market. This result ought to be accompanied by an entry strategy and a concise international marketing plan.