Alder Yarrow of
Vinography has an interesting post today called “
Now THAT’s cultivating a market” about an effort to cultivate wine drinking in China among 100,000 middle class families. This is part of a broader trend aimed at satisfying expected growth in Chinese consumer demand to tap into a “luxury lifestyle” that includes wine.
An article from Business Week’s February 6, 2006 issue titled “
In China, to get rich is glorious” paints an amazing picture of how wealth creation is driving demand for luxury goods. Ernst & Young estimates that the Chinese luxury market currently generates more than $2 billion in sales annually and is growing at 20% annually. By 2010, China is expected to have 250 million consumers who can afford luxury products, more than 17 times the current number. The impact of Chinese buying will increasingly affect worldwide auction prices for fine wine and other items considered to be luxury goods.
China is already on the radar of some forward-thinking British wine retailers such as
Berry Brothers & Rudd who have been marketing Bordeaux futures to the rapidly growing number of affluent Chinese (300,000+ millionaires is a commonly quoted statistic).
Vinfolio is about to launch its own initiative in partnership with
Winespring and its local partners to sell collectible wine directly in China (it’s almost easier than dealing with interstate shipping regulations). We already sell wine to consumers in Japan, Singapore, and Hong Kong and expect this to be a growing part of our business.
