DEFYING the recession, Watson's Wine Cellar has opened its first shop in the heart of Hong Kong's collapsed retail sector.
The store, in Queens Road Central, aims to build a chain of outlets on the back of a shrinking cognac market with aggressive consumer education and other tricks, including handling wine so it does not 'cook' on the rack.
Watson's plans to make inroads into the market using Hutchison-Cheung Kong global muscle to cut supply deals directly and offer the widest and most exclusive range Hong Kong has known - at prices ranging from $39 to $10,000.
More than 400 wines will be exclusive, including Isla Negra from Chile and Argentina, some Tuscan varieties (from Poliziano and Fontodi) and Fuiza Portuguese vintages from Australian vintner Peter Bright. Despite this exclusivity, shop prices would be reasonable. General manager Clive McLaughlin said: 'Brand for brand, we're as competitive as you can get. And where we're not, we will look to achieve that competitiveness.' While suggesting that some shops sold wine boiled past its prime, he said that would not be the case with the Wine Cellar as warehouse and shop temperatures are kept constant.
While the upper range at the Wine Cellar snares the old XO set, the real job will be getting bottles moving at less stratospheric levels. Mr McLaughlin said local consumption is only 10 per cent that of Britain, where annual consumption is 14 litres per capita, compared to 1.25 litres here.
The market needs a lot of educating, he said, explaining that sales in some cases are being built around six-bottle 'starter packs' devised to introduce consumers to flavours within a particular region or range.
Wine tastings are laid on daily and sales staff are on hand to explain a vintage's properties.