Showing posts with label china wine market. Show all posts
Showing posts with label china wine market. Show all posts

Tuesday, September 15, 2009

South African Wine in China; what to learn from the experience of others?

Stumbled upon a great article this afternoon, "Promoting South African Wine in China." Originally sourced from allafrica.com, you can access the article via this link directly.

The article discusses the failure of official promotional strategies of Brand South Africa wines.

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No matter from which angle you look at it, however, SA wines are promoted too irregularly in China, if at all, and for the most part China's burgeoning middle class has little inkling that our country produces any wine, never mind being a source of excellent wines.

French wines sell themselves with little effort due to an enviable country brand positioning they hold in China. Australian wines, especially the Jacob's Creek brand, is advertised so extensively that its posters could rival Coca-Cola billboards in Africa. All this while this year we celebrate 350 years of SA producing wine, yet nothing is being done to generate awareness of this in China.

[South Africa Vineyard ~ http://www.ultimatehideaways.co.uk/]

Yet while this logic is apparent to most, SA wine exporters seem either completely ignorant of China's growing consumption market - or are so utterly scared of the foreign of foreign markets - that it is not even considered. Of equal concern are the companies already exporting to China that do little to promote their brands in the local market; for them I have included some takeaway points.

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Much like Mir Global's own efforts in promoting Argentinean wines, a major challenge has been to educate the Chinese consumer on the mere fact South Africa even produces wine.

The author describes one particular situation where Cloof Wines of South Africa combined cultural and historical education with a marketing event they hosted at a South African restaurant in Beijing. Upon learning about South Africa in such a situation, the culturally curious Chinese became eager to sample a "exotic" bottle from a place like South Africa.

Cloof Wines is a South African company which has signed up with a large Chinese distributor but is also seeking further opportunities in other market segments within China that the distributor does not target.

From our experience we feel this is the ideal way to approach entering the Chinese market with a novel and niche product like South African wine. The distributor instantly enables a particular wine to begin branding itself with the Chinese consumer. If your wine has found success, or a potential client sees that you are already operating and have a presence in the market, he/she will be far more willing to do business with a entity it already perceives as legitimate and having experience in the China market.

I definitely suggest reading this article, which inspired this small analysis at Globowines. It presents two clear wine marketing strategies for the China market--one which the author of the article feels to have succeeded, and the other which he feels has failed.

~ Bennett Reiss - International Trade Consultant at Mir Global Marketing LLC

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Friday, September 11, 2009

HK Supermarket Golden Dragon Holdings Registers Private Wine Label in China

Golden Dragon Holdings, Inc. is a Chinese company which conducts the majority of its food and beverage business in the Asia-Pacific Rim economies. The company's functions as a importer, exporter and distributor of staple, organic, specialty, gourmet and foreign foods and beverages.

This week, Gold Dragon Holdings announced that it had registered its new trademark for its private label wine, "Endless Wines." Both the red and white wines are made from a blend of exclusive grapes from Spain's Rioja region.

The company mission statement is simple. "Good food, high-quality food, wholesome, healthy, and delicious food". Gold Dragon Holdings strives to help independent producers and growers worldwide of fine quality foods, introduce their products to China and other areas in the Asia region.

Chief Operating Offiicer, Mr. Cesar Cuenca explained in this article "We have identified a unique niche in the wine market in China, we call this niche the 100RMB retail wine market. Typically imported wine in China sells at a higher end of the wine market, we have selected exceptional grapes to start producing high quality red and white wines at reasonable cost to consumers. Good wine does not mean expensive wine."

I highly recommend checking out the full article linked here and in the above paragraph because it is full of the company's assessment of various elements of the China wine market.

Current State:

China is a large emerging country with an amazing potential of wine consumption. The influence of western eating, drinking habits and rising average incomes have been key factors in the fast development of wine market in China. China has stepped into one of the ten largest wine consumption markets in the world. The value of the market has more than doubled over the last five years and a lot of signs are showing a bright future of China wine market.

Growth Rate:

What greatly spurs the speedy growth of imported wines from wine producers around the world, such as France, Italy, Spain, Australia, New Zealand, Chile, Argentina, South Africa, Austria, US and some other European traditional wine-producing countries. The annual growth rate of imported wines is up to 13-15%.

Targeted customers:

Wine is now becoming the fashionable drink for the wealthy younger generations in China's cities, and the "badge" drink for China's wealthiest elite. With about 600 million young Chinese exploring new types of alcoholic drinks, the potential market for sales of wine in the future is so great without any doubt.

SOURCE Golden Dragon Holdings, Inc.

http://www.gdfbhk.com

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