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    Asian opportunities for wine sales

    US-born wine specialist, Debra Meiburg, a Master of Wine, international wine judge and consultant to producers trading in Asian markets, addressed a group of local wine producers at a WOSA-hosted seminar in Stellenbosch late last week about how to approach markets across the pan-Asian region.
    Debra Meiburg
    Debra Meiburg

    She urged producers to research their individual potential markets in the region very thoroughly and cautioned them to avoid thinking of Asia, which is home to 57 countries, as a homogenous entity.

    Having been living in Hong Kong for the past 23 years, she described the city as the Wall Street of Asia and the home of fine wine, deep pockets and big cellars. "Hong Kong is a bipolar market where people either routinely drink Bordeaux first growths and other fine wines at outrageous prices or buy low-end products. Now is the time for South African producers to enter the market as there is enormous growth potential for mid-priced wines."

    She stressed, however, that given the low barriers to entry, the Hong Kong market was very fragmented and populated by high numbers of agents and distributors. It was important to work with importers who were more than mere traders and had the ability to build brands. Hong Kong was also an important springboard to Mainland China.

    China offers growing wine market

    In China alone, where the population was fast approaching 1,4 billion people, there were 34 provinces, each with its own diverse demographics. "Throughout the country, over 100 dialects are spoken. There is no national cuisine, as is sometimes perceived by Westerners and wine producers need to consider localised palate preferences in what they bring to market."

    She said 10% of China's middle class drank wine but that the wine market was growing at a compound annual growth rate of 15%. "They may be very prestige-conscious but they are also price-conscious. They are immensely brand-loyal and although French wines enjoy the strongest support, there is a rising curiosity about other wine-producing countries on which South Africa can capitalise.

    "Don't let low-end wines drive South Africa's entry into China. Bring your high-profile, 'rock star' cult winemakers to the country and let them seed a reputation of excellence," she said.

    She added that education in China was greatly valued and that the people were highly receptive to learning about wine and the many fascinating narratives associated with individual producers. They were intrigued by Western lifestyle and luxury, and they also understood the typicity of origin, giving winemakers ample scope for communication.

    While virtually all wine consumed in China was red, she said there was a growing interest in sparkling wines and that there should be an opportunity to find ways of encouraging consumers to extend their repertoires by drinking white wines. "Currently whites are perceived as insipid but there could well be a way to change that and perhaps the conduit could be seafood."

    There were very few national Chinese distributors and producers should target specific markets within the country and find appropriate distributors. Second-tier cities where populations were frequently significantly larger than in many mainstream Western cities offered good potential.

    Producers could carve a niche for themselves by running cuisine-specific promotions. "Pick a dish and promote an appropriate wine as a way of engaging new consumers."

    She highlighted gift-giving, festivals such as the lunar New Year, mid-autumn and other national celebrations, as well as large-scale receptions for weddings and corporate events as providing marketing opportunities.

    She did, however, suggest that local winemakers look at developing brand names that were easier to pronounce than many of those currently on international markets.

    It was critical to develop long-term relationships with business partners. "Many of the top-end French wine houses are sending their sons and daughters to court Chinese markets on their behalf because they recognise the importance of building personal ties to sustain their brands."

    According to WOSA, China, including Hong Kong, accounted for just over 35% of the Asia-Pacific wine market value, while Japan accounted for 22.5%.

    Mature market in Japan, Korea developing

    Meiburg said Japan was close to a mature market and one of the few in Asia where more women than men bought wine. With the Japanese tradition of celebrating events, South African producers could look at the idea of using a national South African holiday as the platform for promotional activity.

    She also identified South Korea as a wealthy, sophisticated, well-educated and fast-growing market. "Koreans are fond of German wines and Chilean winemakers are building a strong support base, thanks to a favourable bilateral trade agreement with the country."

    South Korea represented 3.6% of the value of wine trade in Asia Pacific and India, 1.4% with the latter projected to grow by close on 150% within the next five years, according to WOSA's figures.

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