Vinfolio is taking immediate steps to launch its first international operations in Hong Kong by Fall 2008. See today's press release. Here are a few factors which drove the decision:
- The demand for fine wine has been growing steadily in the region and we expect it to continue.
- The recent elimination of wine duties in Hong Kong provided a further catalyst and, over time, will create pressure for other countries to cut duties, too.
- Hong Kong offers an attractive business environment and excellent location from which to serve neighboring geographies, especially mainland China.
- The weak U.S. dollar is stimulating more Asian buyers to focus on the U.S. market to buy their fine wine.
- Additional wine storage services are needed to support the arrival of wine historically stored outside Hong Kong. Vinfolio's experience in running a full-service storage facility in San Francisco combined with our VinCellar online cellar management software create competitive differentiation for our services.
Next steps
I will be in Hong Kong again from April 8-11 to begin exploring warehouse and office locations. In addition, we'll start searching for a Managing Director/General Manager hire.
Bottom line: The fine wine business is global and Vinfolio's operations need to mirror the market to maximize our opportunities. This is no doubt only the first step in the globalization of our business.
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