为了考试东拼西凑的文章-终于及格了
第三级酒庄庄主
Index
The Growth of Mass Appeal Wines
Introduction Page 2
The Emergence of Mass Appeal Wines Page 3
Impact on Wine Market Page 5
Conclusion Page 8
The Growth of Mass Appeal Wines
Media and marketeers like to divide the wine market into two different camps, such as New World vs.
Mass appeal and niche market wines are a pair of it. They have opposing extremes in terms of style, brand names and labels, pricing, positioning and target consumes, marketing strategies & etc. Normally mass appeal wines have fruit-driven style, easy to remember and understand brand names and labels, good value-for-money retail price, broad targeted consumers and brand-driven marketing strategy. In contrast, niche wines achieve individuality by reflecting terroir, vintage, producer philosophy, indigenous grape varieties or idiosyncratic production techniques.
It is obvious that where the battlefield is. Mass appeal wines are showing their good value-for-money, easy-to-understand advantages by telling consumers that wine is a enjoyable daily drink, while Niche market wines are introducing their heritage, philosophy, terroir and even rarity with an indication to consumers on their “Luxury” image.
It has been lasting for decades for the battle between these two different camps. What is the result? Both of them have been fighting with each other to gain more shares and consumers, who at the end wins the battle by eating his opponent’s market share?
Wine consumption has double digit growth in Hongkong, from 1.66 Million
Still light wine is dominating 90.8% of total wine consumption in 2008, and it is also growing a little bit faster than the whole market. It grows from 1.46 million
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1 IWSR 2009, p3
2 IWSR 2009, p3
3 IWSR 2009, p17
4 IWSR 2009, p18
Since the wine market is growing, so which segment is moving faster, mass appeal or niche market wines? It is very difficult to put the exact figure on that. However, if we use Retail Selling Price HK156 (USD20) as a divide for premium wines (above this price) and standard/Value wines, premium wines consumption grows from 54,000
However, we could not get the conclusion that Niche market wines growing faster and take the shares of mass appeal wines. On the other hand, some feel that mass appeal wines are getting more and more popular in the market. The key factor needs to be considered is that in February of 2008 Hongkong has eliminated duty rates on imported wine and liquor with an alcoholic strength of not more than 30% by volume 5. This actually brings lots of consumers from mainland
It is a long way to get the conclusion; however, it will be an interesting to find out when mass appeal wines appeared.
The emergence of mass appeal wines
Wines were consumed by aristocrats and the royal families for thousands of years in
It is not until 18 century vines were planted and wine was made in
In the 1970s wine became for the first time a lifestyle choice for a new class of consumers: those with discretionary cash. They were first indentified by supermarkets in British in the 1960s.
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5 Logistics Insight Asia Magazine Website, 2008
6 The Story of Wine, p240
7 The Story of Wine, p241
“The old assumptions (fine wines came from
Another attraction is their labels and names: they are all in English. It is easy for consumers not only recognize the grape varieties, but also the regions of valley, river, creek, mountain & etc.
Sales of Californian wines to the
And following Australian and North American wines’ success in British market,
Hongkong was a cognac dominated market before 1995, then was rapidly switched to wine 10. Compared with
In 1999, the consumption of French wines takes 49.6% of total still wine market. And in 2003, there was a strong movement to the cheapest wines. In 2004, French wines shares down to 38.5%, while Australian, Chilean, US, New Zealand, Argentinean, South African wines in total increase from 38.6% in 1999 to 46.5% in 2004. In 2008, French wines further drops to 30% of total still wine consumption, and new world category grows to 59.3% of the market 12.
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8 The Story of Wine, p241
9 Adam Lechmere, Decanter.com, May 2003
10 Australian Trade Commission, Market Brief May 2009, p17
11 Vincrest WSET Study Materials, p4
12 IWSR 2009 report, p16
Hongkong gets strong influence from
Wine consumers in Hongkong are more likely to be expatriates and westernized Chinese. Middle aged Chinese tend to favour French wine, especially red, due to its established reputation. Expatriates and younger or more westernized Chinese tend to drink
For wine producers and organizations, they are also fighting for the market shares from these 2 camps: mass appeal and niche market wines. However, the mass appeal wines normally organize bigger events and many get strong support from their governments. Lots of point of sales promotion is organized to attract wine consumers. The strong marketing support from those big massive brands has a significant influence on growing of mass-appeal wines in the market.
Wine retailers are also categorized based on mass appeal and niche market wines. Supermarket Chains such as Welcome and Park’n Shop tend to stock more low-price wines and popular labels, while specialty wine shops carry a mix of boutique wines and fine wines. 15
Impact on wine market
Apart from appealing style and easy-to-recognize names, the image of mass appeal wines is elevated continuously during these years. The quality is improving due to increasing technical levels of wine making. It is not difficult now to produce good quality wines by applying modern technology. More and more mass appeal wines and wineries are winning medals, prizes and good ratings.
And they are also building their iconic wines by using essences of niche market wines – heritage, terroir, traditional winemaking and the star winemaker. Grange from Penfolds, Casa Real from Santa Rita, Private Reserve from Beringer are those good samples. The mass appeal wines now are promoting their good quality by tapping on their iconic wines.
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13 Australian Trade Commission, Market Brief May 2009, p6
14
15
Good price level is another attraction. And it is not only low price, but good value for money price. The younger generation of Chinese generally has limited disposable income to spend on luxury products such as niche market wines so they are more inclined to consumer wines under HK$100. That’s why Chilean and Australian labels are strong at this end of the market so tend to be popular with these consumers. 16
Another strength of mass appeal wines are good accessibility. Normally they are widely distributed. There are approximately 500 supermarket and 80 wines shops in Hongkong. Less experienced wine consumers usually buy their wines from supermarkets, while wine connoisseurs predominantly purchase from wine shops 17.
There is not so much weakness of mass appeal wines. However, the niche market wines like to attack that they are “Industrial products”, and “they produce in huge quantity, consumer-driven, lack-of-difference wines”. To some extend, it is true. Often vast vineyards, huge plants, advanced lab are seen in mass appeal wineries. Thus they are usually challenged for lack of individuality and destroy the diversity of the wine industry.
However, the opportunities of mass appeal wines are also obvious.
Hongkong consists of just over 7 million people, of which government and trade body surveys shows 47% of the population are non-drinkers and around 30% state that they drink less than one drink per month 18. And average consumer wine knowledge is still at least 15 years behind
Which one they will choose then, mass appeal or niche market wines? There is no doubt the majority of those non-drinkers will choose mass appeal wines to start, for both their price level, accessibility and easy-to-understand.
Another opportunity is the increase in wine consumption amongst young Chinese consumers. Living in an international city like Hongkong, Chinese consumers are exposed to a variety of western food and cultures. They view wine as a stylish and trendy product and choose to enjoy it with friends 20. And normally those big brands from mass appeal wines are their first choice.
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16
17
18 Vincrest WSET Study Materials, p12
19 Australian Trade Commission, Market Brief May 2009, p18
20
Economic crisis is also pushing consumers to select mass-appeal wines. The recently crisis from end of 2007 till 2009, has really bring strong impact on consumer’s behavior. Most has significant less income, and people have no confidence on future. Therefore, they spend much less than before to save money for future life.
As for wine consumption, they want to choose those wines not expensive which but still could bring them enjoyment. The mass appeal wines are meeting to this demand. A good-value-for-money mass appeal wines can still give you the happiness on drinking wines, although the happiness can be less than drinking niche market wines, it can’t be 5 times or even 10-50 times less as the price indicates.
28 million tourists visited Hongkong in 2008, and Hongkong is now a trading hub in Asia, and a spring board to Mainland
In February 2008 the government waived the duty altogether in a move to establish Hongkong as a regional fine wine hub. Prices have reduced to more acceptable levels for consumers, which has encouraged stronger market growth 22. It is good opportunity for both mass appeal and nice market wines. Price is more affordable for normal consumers to buy mass appeal wines, and for niche market and fine wines the price gap between Hongkong and Mainland is getting bigger, which is encouraging more purchase from Mainland to bring back by saving lots of money.
Although the consequences of the growth of mass appeal wines are foreseen, the competition and threat from niche market wines will be never neglected. The group of wine connoisseurs still has strong influences in the market, through educational events and media. The promotion of niche market wines as a “Luxury” is making them a perfect match to status and knowledge. People are getting the emotion to drink better and difference when they themselves are getting better and difference. Niche market wines are those that could show consumers’ good taste, better life and luxury.
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21 Australian Trade Commission, Market Brief May 2009, p17
22
There are also demands of “Upgrade”. When people get more knowledge on wines, the mass appeal wines could not satisfy their requirement for diversity and individuality. The similar style of fruit-driven is getting weak on their captions palate. And the short history and modern technology can give more knowledge to those upgraded consumers. At that stage, niche market wines are the choice for this group of consumers.
Conclusion
Mass appeal and niche market wines are not only fighting opponents, but also a pair of supporting partners. They are targeting different consumers with different stage of wine experience, and bringing each other complementary strengths.
The mass appeal wines could easily bring young consumers and non-drinkers to the wine world, with its easy-to-understand, good-value-for-money and fruit-driven styles. It is very difficult to give those inexperienced consumers a complicated niche market wine, which will bring them more confusion and hesitation on starting to drink wines.
In Hongkong, the base of potential wine drinkers is still huge. Many of them are lack of knowledge and experience for wines. To convert them from a beer or spirit drinker to wine, needs the big efforts from key players in the market which are those big mass appeal wine brands. Those brands are famous, attractive, wide-distributed and active with point of sales activities. They all bring wines close to normal consumers, and change their perception that all wines are luxury products.
Niche market wines still take hands at this stage, to bring those normal consumers a dream on the “luxury” side of wine world. It is a goal or objective for consumers to struggle for viscounty and success, with an objective to gain the economical and social status, and finally they are able and deserved to drink those wines.
And then it happens when those consumers are getting matured and more knowledge. They also get more discretionary cash and higher rank at the society. At this time, niche market wines could meet their requirement on sophistication and showing-off.
The mass appeal and niche market wines are complementary to each other. The mass appeal wines expand the wine consumers to a wide base, and the niche market wines provide an intensive depth for the upgraded and mature drinkers. In a long term, it will bring the local market a health competition and sustaining development. Both of the categories will have a significant growth in Hongkong market, in a competition and complementary way.
Bibliography
Adam Lechmere, Decanter.com, May 2003, “
http://www.decanter.com/news/46099.html
Australian Trade Commission, Market Brief for HOFEX May 2009
Hugh Johnson, The Story of Wine, 2004
IWSR Hongkong report, May 2009, updated by
Logistics Insight Asia Magazine Website, Industry News,
http://www.logasiamag.com/article-624-worldwidecustomsregulatoryupdateshongkongeliminatesimportdutyonwineliquorwithanalcoholicstrengthofno-LogisticsAsia.html
Vincrest WSET Study Materials, 2009/2010
第二级酒庄庄主
认真的拜读了一下，让我联想到我大学考试的论文了。。。。。。
Diploma不容易考啊！
既然过来，马丁哥哥，请吃饭吧
第四级酒庄庄主
写的不错，在去宁波的路上看了。看到你提到park n' Save(不是Shop)，很熟悉阿，想到年我每周要去两次购物，但没有去买过酒。哈哈。我很扣，学校天天有酒喝，不会自己买的。哈哈
对了，你怎么都写HK情况呢，国内呢？
第二级酒庄庄主
子怡，你想PAK'N SAVE啦？
我们那里PAK'N SAVE跟NEW WORLD开在一起，两人老打架 - 酒部门的经理是师父和徒弟的关系。恶搞。。。。
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