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Promoting South African wine in China

28 Jul 2009 11:555 commentsBizLike
BEIJING, CHINA: Considering the depth of South Africa's winemaking abilities, I am utterly disappointed most of the times I dine out in Beijing when I discover that the establishment's wine list either includes no South African wines or only contains extremely low cost brands at ridiculous prices of R300. I always wonder what people not familiar with our country or our wine industry must think when drinking the worst our country has to offer.
Chinese and other non-South African owned wine distribution companies are responsible for the majority of our sales in China, yet none of them ever lift a finger to promote Brand South Africa as a source of leading wines, and for the most part try to make the most money off the cheapest wines - not exactly a sustainable approach for our country's industry.

Very low-key

Official promotions of Brand South Africa wines are very low-key. While the Department of Trade and Industry (dti) and Wines of South Africa (WOSA) have limited themselves to exhibition participation, the South African Embassy for its part ensured that numerous wine tasting events were included in last year's South Africa promotional campaign, which included media engagement activities resulting in media coverage of our wines in local publications.

South Africa Tourism has also included the wine route in the itinerary of visiting Chinese journalists to SA that has resulted in some local media coverage of our wines.

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.

Most puzzling

What I find most puzzling is SA wine producers' complacency in promoting their own wines in China. It is always easy to point fingers at government efforts but, to date, I have personally observed no consortiums or companies proactively targeting the Chinese market.

This is why it was so inspiring to meet Oscar Foulkes of Cloof Wines.

Cloof Wines had signed up with a large Chinese distribution company but was determined to promote its products above and beyond the local partner's efforts. Being virgin territory, it agreed to roll out a Cloof promotional event on a shoestring budget to serve as pilot study. A SA restaurant, fittingly called Pinotage, was selected as the venue and seven Beijing food and beverage bloggers were invited to the event. On the night itself, the restaurant served traditional SA food and Oscar Foulkes kicked-off the event with the Cloof wine tasting session.

Being from such an ‘exotic' country, the culturally curious Chinese media could barely contain their excitement and ask numerous questions. The most impressive aspect of the event was how the bloggers genuinely enjoyed themselves, as opposed to the usual run-of-the-mill media events, where journalists usually arrive late, grab a media kit and leave as soon as humanly possible (but understandably so, considering the numerous drab events their editors send them to). The Cloof event resulted in over 10 blog posts achieving an impressive 30 000 hits, an excellent return on investment.

Just as investment advisors will advise against placing all your investment eggs in one basket, it is equally necessary for SA wine companies to develop multiple export markets to spread potential risk.

Ignorant or scared

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.
  • Impactful promotional events CAN be executed on a shoestring budget if conducted in a creative manner
  • While the traditional print media will always be important, industry specific bloggers are passionate about their beat and easier to interact with
  • Chinese media and consumers are genuinely interested in SA products; they are both surprised about and enticed by our products when educated about them.
Successful event checklist:
  • Local PR partner with appropriate media contacts and event management skills
  • Appropriately translated product names
  • Supporting background materials in Mandarin (Chinese media copy and paste, rarely writing their own content)
  • Creative key messages that generates debate
  • Translator versed on SA wine industry terms (very rare, so provide ample time to prepare)
  • Appropriately selected venue with suitable F&B (the Chinese are food-obsessed)
  • Guest gifts (either the product itself or something unique)
  • Post-event media follow-up
I look forward to the day that I will be able to choose from a range of good SA wines in a Chinese shop, restaurant or hotel, but that day will only come when the SA wine industry starts to take the Chinese market seriously, as its competitors already have.
 
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About the author

Michael Jones, an account manager with Weber Shandwick in Beijing, has been living and working in China for seven years. He served as project manager of the Department of Foreign Affairs initiative ‘10 Year Anniversary of South Africa - China Diplomatic Relations' one year campaign and furthermore serves in the volunteer position of MD of the South Africa China Business Association (SACBA). He can be reached at .
Mike St. Petersburg Russia
China and Russia - the same problem!-
This article could easily have been written about South African wines in Russia, which is equally sad - since moved here six years ago, I've experienced the very same problems. Low quality unknown or unheard of 'South African' wines at very high prices - and none of the better-known brands which would really promote the better side of South African wines. I did manage to find an excellent sweeter white from Robertson recently in one of our supermarkets, at a reasonable price - but this is an unusual exception. Here's hoping for better things to come in the future, since the shelves here are filled with masses of wine from everywhere else - and little if any from one of the greatest wine making countries in the world today. Posted on 28 Jul 2009 13:54
Cindy
wine industry-
I am in the Wine Exports business, and yes I do agree with you, but unfortunately the are so many issues regarding the business of exporting to china, first and for most the buyers are PARTICULARLY price conscience, and the buyers pallets are so different to ours, making the sale of our South African wines into China extremely difficult.
I personally think that the most "untrained pallet" in South Africa has a better understanding of Wine and what it stands for than the most trained pallet in China! Posted on 28 Jul 2009 19:06
Michael Jones
Proactive promotion-
I think everyone appreciates the fact that doing any kind of business in China is extremely challenging but that should not be a deterent, it does not deter our competitors who are doing great sales here in China. The only difference is that the South African wine industry seems to be very laid back and expects business to come knocking on its door. Unfortunately it doesn't work like that, market share won't come on a silver platter nor will it come for free. Posted on 29 Jul 2009 06:10
Sean Danker
Too much of it in Malaysia-
Funny this – last night I popped round Cold Storage supermarket in Kuala Lumpur with my Kiwi friend and there we were, opting not to have either South African or New Zealand wine because there’s too much of it! And this being a Muslim country!! Not that we don’t appreciate our own wine but we’d appreciate some variety. Sad to note China hasn’t really been considered a proper market – its where, as they say, the money is. Posted on 30 Jul 2009 03:59
Laid back, indeed yes our winemakers-
I personally approached a few SA Winemakers for export opportunities to China. l even introduced them to my Chinese partner in Beijing with service offering to translate their marketing material and brochures into Mandrin. We even have a confirmed list of interested major distributors including those distributing to exclusive clubs. Some responses I received ranged from: "Well the last time I sent samples and nothing came of it" to "I at least want to have a few bottles on a supermarket chain's shelves before I go there" Unbelieveable response to a market with the fastest growing wine consumption in the world! That's why I'l keep on banging on their doors.
Whidney Prins, New Season Bus Consultants
wbprins@telkomsa.net Posted on 7 Aug 2009 00:48
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