http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.76Change: 0.11
R/$ = 10.96Change: 0.10
Au 1193.42 $/ozChange: 4.09
Pt 1213.50 $/ozChange: 10.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Nov 11, 2011

SA wines have a place in Pan-Asian market

Back
Africa|Education|Africa|Asia|China|Japan|South Africa|South Korea|Building|Low-end Products|Products|Western Cape|Debra Meiburg
Africa|Education|Africa|||Building|Products||
africa-company|education-company|africa|asia|china|japan|south-africa|south-korea|building|lowend-products|products|western-cape|debra-meiburg
© Reuse this

South African wine producers should thoroughly research their individual potential markets in Asia and should avoid thinking of the region, which is home to 57 countries, as a homogenous entity, Master of Wine and inter- national wine judge and consultant to producers trading in Asian markets Debra Meiburg said.

Earlier this year,

during a seminar hosted by nonprofit industry organisation Wines of South Africa, in Stellenbosch, in the Western Cape, the US-born wine specialist discussed ways of approaching markets across the Pan-Asian region.

She stated that Hong Kong, China, was like the Wall Street of Asia and the home of fine wine, deep pockets and big cellars; however, this market remained bipolar, with people either routinely drinking Bordeaux first growths and other fine wines at outrageous prices or buying low-end products.

Now was a great time for South African producers to enter this market, as there is enormous growth potential for midpriced wines, she said.

Nevertheless, low barriers to entry meant that the Hong Kong market was fragmented and populated by high numbers of agents and distributors.

“It is important to work with importers who are good at trading and brand building,” she said.

Further, Meiburg emphasised the importance of Hong Kong as a springboard to accessing the Mainland China market.

She stated that in China alone, there are nearly 1.4-billion people in 34 provinces, which each have their 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,” said Meiburg.

She added that only 10% of China’s middle class drank wine but that the wine market was growing at a compound annual growth rate of 15%.

The Chinese middle class 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,” she said.

South Africa can establish a good reputation if it enters the Chinese market with its high-profile wines instead of low-end wines.

Meanwhile, she pointed out, education in China was greatly valued and people are highly receptive to learning about wine and the narratives associated with individual producers.

“The Chinese find Western lifestyle and luxury intriguing, and they also understand the typicity of origin, giving wine- makers ample scope for communication,” she noted.

In addition, nearly all wine consumed in China is red, but there is a growing interest in sparkling wines and this could be an opportunity to find ways of encouraging consumers to extend their repertoires by drinking white wines.

“Currently, white wines are perceived as insipid, but there could well be a way to change that and perhaps the conduit could be seafood,” she added.

There are very few national distributors in Mainland China and producers should target specific markets within the country and find appropriate distributors. Second-tier cities where populations are frequently significantly larger than in many mainstream Western cities offer good potential, she said.

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,” said Meiburg.

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

However, she suggested that local winemakers should also look at developing brand names that were easier to pronounce than many of those currently available on international makets.

Further, 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 potentially 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, owing to a favourable bilateral trade agreement with the country,” Meiburg stated.

Edited by: Chanel de Bruyn
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Brewery and Winery News
Brewing and bottling company SABMiller CEO Alan Clark initiated further realignment of responsibilities within the group’s executive committee last month, following the combination of the company’s South Africa and Africa business unit into a single region. The...
BIODIVERSITY AND WINE INITIATIVE The BWI encourages wine producers to farm sustainably and express the advantages of the Western Cape’s abundant diversity in its wines
The winners of this year’s Nedbank Green Wine Awards were announced at Cape Town-based Myoga restaurant last month. The awards honour wine farmers who endeavour to reduce the impact of farming on their land and farm more sustainably. Sixteen top achievers were...
Hotel group Tsogo Sun spent just under R3.2-million at two wine auctions this year, namely the Nederburg and Cape Winemakers Guild auctions, highlighting its commitment to offering guests at its hotels an exceptional quality food and beverage experience. The group...
More
 
 
Latest News
Industrialisation remains a major part of the South African developmental agenda and an important vehicle towards achieving the Department of Trade and Industry’s (DTI’s) target of creating 100 black industrialists in the next five years, Trade and Industry...
The construction of a new innovation hub in the heart of the Dube TradePort, in Durban, was set to kick off in March 2016, as Dube TradePort Corporation sealed a R160-million lease agreement with Eureka Capital. Eureka Capital planned to develop a seven-storey 21 500...
South Africa will become the first African country to host the Organisation for Economic Cooperation and Development’s (OECD’s) Steel Committee Conference when the committee’s seventy-seventh session takes place in Cape Town between December 11 and 12. The...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
JAMES ROBERTS The MOM incubator was designed to help babies in developing nations who were dying in conflict-struck nations or who do not receive hospital care
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks