Wine Industry Conference Examines Region's Meteoric Rise
|
Experts share their insights about the latest trends in the
wine industry at the Wine Industry Conference, on the theme:
"Driving Growth: The Flourishing Asia Wine Market" |
HONG KONG, Nov 12, 2018 - (ACN Newswire) - Leading
wine industry veterans and expert analysts shared their insights on
Asia's meteoric rise to prominence in driving global growth at the
Wine Industry Conference last Thursday (8 Nov), held as part of the
Hong Kong International Wine & Spirits Fair at the Hong Kong
Convention and Exhibition Centre (HKCEC). Organised by the Hong
Kong Trade Development Council (HKTDC), the conference examined key
trends from e-commerce and "premiumisation" to the persisting
threat of counterfeiting on the theme: "Driving Growth: The
Flourishing Asia Wine Market".
Moderated by Hong Kong-based Master of Wine Debra Meiburg, Founding
Director of MWM Wine School, the event featured presentations by
Hianyang Chan, a Consultant with Euromonitor International; Master
of Wine Sarah Heller; Cynthia Yang, Senior Manager of the Chinese
mainland's biggest B2C wine retailer, JD.COM; Marcus Ford, a
20-year veteran of the Chinese mainland's wine industry, now Asia
Market Manager for Wines of South Africa; internationally renowned
counterfeit expert David Wainwright; and David Gaudinat, CEO of
Champagne Gaudinat Bolvin.
Millennials Coming of Age
Opening the conference, Euromonitor's Mr Chan presented an overview
of key trends and consumer preferences, noting that while soaring
demand for wine in the Asia Pacific region had been led by the
Chinese mainland, along with Japan, Korea and Australia, emerging
new markets such as India, Thailand, Indonesia are also powering
growth. "A rising middle and affluent class is driving trends and
demand," Mr Chan said. In particular, in the era of the smartphone
and social media, "millennials are coming of age, overtaking baby
boomers and Generation X in purchasing power".
Now in their 30s, this generation is keen to discover new wines and
varieties beyond traditional demand dominated by red wine - with
cans, wine on tap, blends and digital marketing all key to reaching
the "craft generation". Affordability is also important in
targeting this group: "This new age of consumers is interested in
fine wine but not high prices," he said.
Entertainment Wins over New Generation
Asia's youngest Master of Wine, Ms Heller, well-known for her
educational wine videos and as a wine judge, writer and content
creator, opened a review of e-commerce trends, recounting her
in-depth study of how e-tailing and millennials are powering the
Chinese mainland's phenomenal growth. Online sales are "immense"
and growing fast, she said. While precise figures are impossible to
establish, she estimates they already account for around 10-15% of
the market. But China is somewhat unique in the online market,
given that e-retailing of alcohol is banned in markets including
Taiwan, South Korea and India, and is not nearly so prominent in
Hong Kong and elsewhere in Asia.
However, as a millennial herself at just 30 years old, Ms Heller
said social media is playing a major role in influencing the
emerging generation of wine enthusiasts. In response, leading
brands are producing their own online platforms, and "great
storytelling is the next stage" in reaching this younger audience -
"bringing the tasting room onto the Internet". Key influencers such
as the mainland's "Lady Penguin" are driving the trend, making wine
more entertaining than academic. "Young consumers don't want to
need a Master's degree to enjoy a product," she added.
At the Forefront of E-tailing
Continuing the e-commerce theme, Ms Yang outlined JD.COM's ambition
to the "biggest global wine retailer". The leading online
marketplace in the Chinese mainland for higher-end goods has built
its reputation on "quality, reputation and elegance" - including
delivery by smart white-gloved "butlers".
This same quality-conscious concept is now being applied to its
wine business, representing around 8,000 brands and 2,000 suppliers
and merchants, and directly importing from 18 countries worldwide.
Helped by its "zero counterfeit" guarantee, the formula has proved
a roaring success. JD has soared to prominence as the mainland's
biggest alcohol products retailer - and third-biggest globally -
with sales of 50 million bottles.
JD is also at the forefront of social media "storytelling"; on some
brands, customers can simply scan an app on a wine label and view a
video explaining the wine. JD's "smart market place" extends to
intelligent shopping carts and payment - with its peerless
logistics network even extending to drone delivery in permitted
areas.
Trending up: More Sophisticated Consumers on Chinese Mainland
Hong Kong-born Mr Ford, who has been involved in the mainland's
wine industry for 20 years - from working for leading Shanghai
restaurant M on the Bund to establishing one of the first premium
wine retailers, Pudao Wines - introduced his presentation on the
premiumisation of the market, reflecting on the evolution of wine's
popularity, which started by the drink being promoted as good for
health and heart. This was "critical" to China's entry to the world
wine stage and the "first spike", he said.
The mainland has since embraced wine in more ways than one, he
noted. Viticulture has simultaneously exploded, and the country has
become the world's second-largest wine producer. Not widely
appreciated is that 80% of wines consumed in the country are in
fact produced domestically. "The vast majority of wine in China is
red and produced in China," he said.
At the same time, growth in imports has also been "astonishing" -
from 200,000 cases in 2002 to 60,000 million cases this year. As
the market comes of age, Mr Ford also noted a trend towards
premiumisation, especially in the last 12 months, with "steep
growth in the average price per bottle" - as high as 45% in some
cases. China simply doesn't produce wine of sufficient quality to
meet demand from "more aspirational consumers", he said. "The
market historically started buying for health, now we are seeing
growth in demand for quality. The market is becoming more
sophisticated." He believes the industry needs to get the message
across that wine is not just healthy, but a special source of
enjoyment from a special place. "All these stories can be told
better," he said.
Too Good to Be True
Mr Wainwright, a counterfeit expert and Director of Wainwright
Advisors, cautioned that fake wine remains a threat to the Asian
market - but primarily to high-end collectors and consumers with
big budgets. While the great magnums and iconic wines of the last
century "don't exist today", he advised buyers to beware of
apparently great deals on younger classics, in particular rare
Bordeaux, Burgundy and Champagne headliners. "If it sounds too good
to be true, it usually is," he said. Quality of counterfeiting is
"so extremely high you need 50-times magnification to tell the
difference". Expert counterfeiting rings are operating especially
in northern Europe, Russia and Italy, and among the prized Grand
Crux targeted are Romanee-Conti, Jayer and Petrus.
"And it's not just old and rare wines any more, but current
releases of high value," he warned. "A lot of people simply don't
ask questions." He added that online purchasing is "asking for
trouble" and anything of high value "needs to go under the radar".
Websites with no names, addresses, phone numbers or business
registration should be red flags to consumers.
Great single malt whiskies are another "massive growth" target for
fakery, especially given the recent soaring value - and most
notably old Macallan, Bowmore, Laphroaig and Japanese classics such
as the Hanyu Card Series and Karuizawa. "Anything of high value
needs extremely careful scrutiny, verification of provenance and
preferably professional advice," he said.
The "Greening" of Champagne
Mr Gaudinat, CEO of Champagne Gaudinat Bolvin, closed the
presentations with an update on the flourishing trend for "green
wine" production, specifically in his native Champagne. Anyone who
wondered if Champagne bottles feel a little lighter is correct, he
said. Amid the bubbly region's push for sustainable viticulture,
the weight of bottles has been reduced by 7% from 900g to 835g.
Carbon dioxide (CO2) emissions are meanwhile being drastically
reduced on packaging and delivery vehicles, and Champagne is the
largest region in France pioneering insect mating disruption,
making traditional insecticide treatment redundant. Champagne has
led the trend for organic wine for more than 35 years and is
currently aiming to be "100% environmentally friendly".
Fair Website: www.hktdc.com/hkwinefair
Photo download: https://bit.ly/2PqraTm
About HKTDC
Established in 1966, the Hong Kong Trade Development Council
(HKTDC) is a statutory body dedicated to creating opportunities for
Hong Kong's businesses. With 50 offices globally, including 13 on
the Chinese mainland, the HKTDC promotes Hong Kong as a platform
for doing business with China, Asia and the world. With more than
50 years of experience, the HKTDC organises international
exhibitions, conferences and business missions to provide
companies, particularly SMEs, with business opportunities on the
mainland and in international markets, while providing business
insights and information via trade publications, research reports
and digital channels including the media room. For more
information, please visit: www.hktdc.com/aboutus. Follow us on
Google+, Twitter@hktdc, LinkedIn.
Source: HKTDC
Contact:
Katherine Chan, Tel: +852 2584 4537, Email: katherine.cm.chan@hktdc.org
Iris Chow, Tel: +852 2584 4241, Email: iris.cc.chow@hktdc.org
Copyright 2018 ACN Newswire . All rights reserved.
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