Main Topic: Western Wine in A Chinese Setting

Hosts: Michael Turton , James Stanworth , Clyde Warden

Wine was early in Chinese culture, but never quite caught on as part of the meal. With a big emphasis on balance, Chinese cuisine dictates food combination with a strong emphasis on health. In fact, food is considered a form of traditional Chinese medicine. Western wine should fit into the health idea, but it never really has integrated. In this show, Michael Turton gives some insight as to why this is the case, how the wine market has developed, and what marketers need to do to be successful in this market. Michael recently presented his preliminary findings at a marketing conference in Washington, DC.

The whole concept of wine drinking is different here from what many Westerners experience in their home countries. We often look for the wine menu and consider what wine will compliment the food we are eating: will that bottle of poulette fumé go nicely with the salmon? In Taiwan the customer first checks if it is red (for the health properties) and then generally looks for the preferred country - France. The consumption experience focuses on the health properties and communicating to others that you have the right product (conspicuous consumption). In other words a wine from France. Michael's interviews have revealed the difficulties in this bifurcated market where one one end all that matters is a cheap price (to get red wine), and the other end where price is all that matters is high price. Check out TATUNG's ( a conglomerate that produces everything from computers to rice cookers) Website on wine, where health is emphasized and education is a big component.

Taiwan lifted alcoholoic beverage and tobacco imports in 1987, which slowly opened to a boom time in the mid 1990s ( view report here).

Local specialty wines tend to be sweet, like Clyde's favorite--Bee wine, made with poisonious bees.

The market has two ends and no middle.

Photos:

• 1) SINON supermarket promotion. 1) SINON supermarket promotion.
• 2) Common tea shop with tea master to educate consumers. 2) Common tea shop with tea master to educate consumers.
• 3) Wedding ceremony, no wine, but lots of beer and local whiskey. 3) Wedding ceremony, no wine, but lots of beer and local whiskey.
• 4) Hypermarket POP display near CNY time. 4) Hypermarket POP display near CNY time.
• 5) Huge Johnie Walker display. 5) Huge Johnie Walker display.
• 6) Green Label, more expensive, sold well--conspicuous consumption is big in Chinese food culture. 6) Green Label, more expensive, sold well--conspicuous consumption is big in Chinese food culture.
• 7) Samples are available. 7) Samples are available.
• 8) Theme bottles are big for local spirits--also all about showing off the purchase. 8) Theme bottles are big for local spirits--also all about showing off the purchase.
• 9) A horse for Horse Year would be perfect. 9) A horse for Horse Year would be perfect.
• 10) An elephant bottle. 10) An elephant bottle.
• 11) Japanese imported products, Western wine is no where in sight. 11) Japanese imported products, Western wine is no where in sight.
• 12) The wine stand, with samples. 12) The wine stand, with samples.
• 13) A consumer gets some help. 13) A consumer gets some help.
• 14) He was not looking for wine after all. 14) He was not looking for wine after all.
• 15) Hypermarket wine sample, but no education to speak of. 15) Hypermarket wine sample, but no education to speak of.
• 16) Costco wine section. 16) Costco wine section.
• 17) Samples and some education about wine at Costco. 17) Samples and some education about wine at Costco.
• 18) James looking for Great Wall wine in a Shanghai Carrefour. 18) James looking for Great Wall wine in a Shanghai Carrefour.
• 19) Tea stands all over the place are channels for consumer education--something wine needs to do. 19) Tea stands all over the place are channels for consumer education--something wine needs to do.
• 20) Tea samples are everywhere inside hypermarkets. 20) Tea samples are everywhere inside hypermarkets.
• 21) Health concerns in food consumption fit well into Chinese culture, Quaker Oats. 21) Health concerns in food consumption fit well into Chinese culture, Quaker Oats.
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ConsumerCam:

Show Links:

• Drinks, one of the early retailers to educate consumers about wine
• P9 Website (P and 9 sound like 'beer' in Chinese)
• My9 Website (sounds like 'my alchohol')
• A local Website about wine
• And another Website

Bottom Line:

• Health is a main point that attracts customers.
• Wine is not a mainstream part of ordering and thinking about Chinese food.
• Successful marketers co-opt a master/teacher so locals learn the "appropriate" way to enjoy the product.
• The market segment is small compared to say that of beer.
• High end and low end is the market. There is no in-between.
• Naming is a problem since translations of wine regions are not standardized (葡萄酒,酒,etc.).
• Few people are knowledgeable and consume wine purely for the intrinsic pleasure of consumption.
• Brand sends a powerful message about status: France is well known.
• Build a relationship with the local distributor.