Dynasty Fine Wines aims to climb the value chain to break into the high-end market dominated by French labels.
While China may have become a major buyer in the global wine market, many of its winemakers and distributors have been finding it difficult to break into the big league.
Tianjin-based Dynasty Wines intends to change that, and is working towards gaining a bigger share of the fast-growing high-end market in the country and increasing sales of its top-drawer products in three years to 30 per cent of its total, from 10 per cent now.
'We have to change our business strategy because buying power has changed rapidly over the past five years,' chairman Bai Zhisheng said, admitting the difficulties in competing with foreign brands.
With rising wealth, foreign wine had cornered more than 80 per cent of the high-end market, Bai said. 'People prefer Louis Vuitton to domestic brands these days. The same goes with wine.'
Imported wines make up between 80 and 90 per cent of the high-end market and are stocked by big hotels, while domestic wine rules the middle and low ends of the market.
Wine dealer Gordon Yuen Tien-yau said consumers often doubted the authenticity and quality of local wine. After additives were found in locally made wine in 2010, some 30 wineries were shut down in Hebei province's Changli county, an area dubbed as 'China's Bordeaux'. The incident severely damaged the reputation of domestic wine.
