Insights from Vinexpo Asia-Pacific 2012

The meetings and seminars continue to underscore the importance of China as an export destination for the world’s wines as well as provide some insight into the evolution of the Chinese wine market. Below are some insights that I have garnered over the last couple of days as well as confirmation of what we have been experiencing through our sales and marketing efforts in China. Many were summed up in a fantastic presentation by Wine Intelligence.

-- French wine brands remain dominant, but Chinese wine consumers are starting to explore new brands. A maturing market presents consumers with more opportunities to try alternative styles and develop their own preferences

-- Nearly all wine producing countries are experiencing some level of growth in China. Wine is moving beyond simply being a tool for showing status, and is gradually finding a place as part of the regular alcohol repertoire, together with beer and traditional liquor

-- The younger wine drinker are starting to prefer an elegant and contemporary label, and not the prestigious or classic label. Young people distinguish themselves from the older generations by drinking “new wines”. Young people are more likely to choose better-known and trendy grape varietals such as Cabernet Sauvignon or Merlot

-- New World wine offers a better fit for personal consumption, especially when sold in hypermarkets and supermarkets. Typical sub-USD 15 price points for mainstream New World wines represent the “ideal” (in the trade view) price bracket in the supermarket.

-- Drink-by-glass was not traditionally an option in Chinese on-trade but has become popular recently, due to the more affordable price and the fact that consumers can try various styles at one time.

-- Drink-by-glass was not traditionally an option in Chinese on-trade but has become popular recently, due to the more affordable price and the fact that consumers can try various styles at one time.

-- The link between grape varietals and taste of the wine is still a relatively new concept for most Chinese consumers. Knowledge and understanding of the difference between various grape varieties is currently very low. Among the red varietals, Cabernet Sauvignon enjoys the highest awareness.