From the press releases:
Research: “Asia – Opportunities in China and beyond”
New ProWein Study Provides Insight to Asian Wine Markets
Younger Asian wine drinkers drive growth in five key markets and in-country representation is key to success
For the newly released survey about Asian wine markets, Messe Düsseldorf, organizer of the ProWein trade fair, enlisted the renowned British market research institute Wine Intelligence. The results are based on extensive qualitative and quantitative research with consumers, importers and distributors across Asia. The result: China will remain the most attractive Asian market for wine exporters in the next five years. But the wine industry should also take advantage of opportunities in Japan, South Korea, Singapore and even Taiwan – the other key Asian countries studied in the report.
Although all five markets differ substantially – it would be a mistake for the wine industry to consider Asia as a single cultural entity – there are some trends and characteristics that can be observed across the continent. The new ProWein study “Asia – Opportunities in China and beyond” shows that the trend towards every day, affordable imports is evident across Asia as wine gets away from its image of being purely a luxury product and becomes more attractive to younger consumers. They in particular like wine as part of their lifestyles and show a real interest in understanding it better. The on-trade is often the best way to target these consumers.
Further key finding of the survey: In-country representation is key to success. “The wine producers who will achieve the biggest success will be the ones who not only understand these trends but actually take establish a physical presence in their target markets. It’s not possible to access the markets in China, Japan, South Korea, Singapore or Taiwan from an office outside those countries,” said Richard Halstead, Chief Operating Officer at Wine Intelligence. Michael Degen, Division Director in charge of ProWein at Messe Düsseldorf, added: “This result from our ProWein survey confirms experiences we have also had in other commercial sectors as a worldwide trade fair organizer. This is why we are offering our customers from the wine sector an ideal platform to present themselves on the Chinese market at ProWine China from November 13 – 15, 2013.”
China’s spectacular growth is likely to continue due to improved ranges in supermarkets and more affordable pricing. Consumers are associating imported wine with sophistication and wellbeing and the number of imported wine drinkers is expected to increase well beyond the current 19 million.
In Japan, much of the market growth is being driven by the off-trade, as consumers turn away from the on-trade for economic reasons. Wine is increasingly part of the meal experience for Japanese families as they embrace more Western-style eating habits. With 47 million regular wine drinkers, Japan is a relatively mature market for wine, with younger consumers regarding wine as a trendy drink and more open to “experiment” than older Japanese wine drinkers.
In South Korea too, growth is coming from younger people. The market has a huge capacity for growth: wine accounts for just 20% of drinks sales and is regarded by many Koreans as a special-occasion beverage. But the market has been growing steadily since 2000, particularly when it comes to Chilean imports and sparkling wines.
Singapore is the smallest of the five markets but the wine industry here is already buoyant, with an increasingly knowledgeable population keen to learn more about wine. Strong brand identity and high volumes are often the key to success in this geographically limited market.
Taiwan is a more problematic market for wine exports than the other Asian countries. There are more barriers facing the wine industry, including a ban on internet sales, high taxes and few English language speakers. The high price of wine and lack of female drinkers are also factors that limit opportunities in Taiwan. But again, younger consumers are showing an interest in wine and helping it to not be regarded as a prestige product.
A comprehensive summary of the survey results (in English) will be available from Messe Düsseldorf in February 2013 for Euro 249 (Euro 199 for ProWein 2013 exhibitors). Orders can be placed at www.prowein.com.
BUILDING BUSINESS INTERNATIONALLY
ProWein Trade Fair is all about “the business of the business”
CHICAGO, IL (Dec. 18, 2012) – Big, business-focused, global, and efficient…those are the words that were consistently repeated by U.S. exhibitors and attendees of ProWein, International Trade Fair Wines and Spirits.
The fair has quickly become the trade show for importers, suppliers, distributors, and others in the global wine trade and rightfully so. Each segment gets something different out of the fair but all agree on its importance.
The Importer’s Perspective:
“As an American importer, I’ve gotten an enormous amount of attention at ProWein,” said Steve Kreps, President of Quintessential Wines, a specialty national importer based in California. Kreps adds that “the fair is extraordinarily well managed from big issues like traffic flow, to the simple but important function of making sure spit buckets are emptied on time and clean glasses are always available.” In terms of business deals, Kreps said he’s added a number of new brands to his portfolio as a result of attending, most recently of which is Muriel, from Spain, a brand that has grown from 0 to a projected 60,000 cases in just one year.
For Stephan Schindler, owner and James Wright, German Portfolio Manager of Winemonger Imports respectively, an importer and online retailer based in San Anselmo, CA, it’s all about the opportunities to meet the producers and taste products from the best estates around the world. “Far from being a German show, the range of countries exhibiting is extraordinary with suppliers not only from all across Europe, but equally comprehensive presence of wineries from big exporting countries such as France, Italy, Chile and Australia, as well as emerging countries such as Greece, Turkey and Croatia,” commented Wright. “And for our current portfolio, it’s an extremely efficient way to meet with all of our suppliers, taste the new wines and make decisions on what we will import.
The Exhibitor’s Perspective:
Priority number one for exhibitor Al Portney, VP International for Chateau Ste. Michelle Wine Estates, is the efficiency of being able to meet with their export customers in one central place and in an environment where everyone is there for the same reason.; In addition, Portney noted “the show gets great attendance by major HoReCA buyers, so it’s a very effective venue for international hotel and retail groups to experience their complete product line.”
The Supplier’s Perspective:
Patsy McGaughy, Marketing Director at Napa Valley Vintners echoes Portney’s comment, adding “There is no consumer component to distract you, at ProWein it’s all business all the time. The ROI is great and that makes it an extremely cost effective solution for us to promote our region. Equally significant is the setting; exhibiting at ProWein makes a statement about how important the export market is for Napa.” Indicative of results reported by many exhibitors Julia Esser, Sales Director at Napa’s Esser Vineyards notes “We’ve picked up more than 50% of our importers specifically from meeting them at ProWein.”
The Sommelier’s Perspective:
For Brandon Hicks, sommelier at Ilily in New York City, “This was my first visit and it was an important part of the process we’re going through of redoing our wine list. I originally thought ProWein was a German show, but I learned pretty quickly that was not the case. The opportunity to talk to so many and get intimate details on their vineyards and wineries was information you simply can’t get from a book.”
Düsseldorf, the home city for ProWein, rolls out the red carpet for international trade visitors providing help in booking transport and hotels and includes a free rail pass with direct service from center city to the fairgrounds. Visitors from the U.S. will also be pleased to find that English is the first language of commerce at the fair. The annual trade fair will take place March 24-26, 2013 and will have over 4,000 exhibitors from more than 50 countries and over 40,000 attendees. If you’re considering attending just one international fair in 2013, ProWein is the clear choice.