How to show China's wine lovers a good time

While the wine industry in China has been booming for years now, the industry is far from the simple gold mine that it seemed to be in the past. Those who have lived in China for some time will remember the “grape rush” circa 2010, as many a Frenchman came to cities such as Shanghai, quickly opening up a wine importing/retail company, before just as quickly shutting it down as Chinese consumers were able to buy any grape under the sun from Tmall and China’s other m-commerce giants.

A decade ago, a bottle of wine was a mere box on the checklist of middle-class aspiration – a token alongside cheese, coffee and golf – while nowadays there has been a shift to genuine enjoyment, knowledge and, dare we say, oenophilia – while a checklist photo of the wine glasses “cheers” is still a common WeChat sight come Friday evening. Domestic vineyards are proving so bountiful that Chinese wine tourism is set to become a common phenomenon. Counterfeiting is finally being tackled. Trade organisations are allegedly throwing huge amounts of money at borderline unknown Chinese “KOLs” – key opinion leaders – to live-stream themselves drinking particular wines.

China’s cup poureth over in terms of demand, with the country set to become the world’s second biggest wine market overall by 2020, and is in fact already leading in the top-end segment, as is revealed below. But what is the state of this unique marketplace? In terms of reaching the Chinese wine drinker whether you’re a national wine group, a label, importer or restaurant/bar, what’s happening in 2018 and what should you know about the “grape wall of China”?

In terms of the aforementioned top-end of the market, we can look to Sotheby’s recently released 2017 wine report which shows that China leads purchasing, with 53 per cent worldwide. In terms of highest prices, the results highlight the continued importance of the Asian market: eight of the 10 highest prices achieved were in Hong Kong, five of which were at auction and three of which were at retail.

Another recent boon was seen in Hong Kong, as The Burgundy Collection achieved HK$17.3 million (US$2.2 million), far over estimates. Jamie Ritchie, worldwide head of Sotheby’s Wine, commented that, “The Burgundy Collection in Hong Kong concludes a phenomenal first half for Sotheby’s Wine, bringing the year-to-date global total to a staggering HK$423 million, compared to all-year sales of HK$500 million in 2017,” noting that the increase was in part due to “our diverse selection of offerings and innovative sales initiatives”.

Newly launched in China – currently available in Hong Kong only – is Sotheby’s “Instant Cellars” a seamless online service which allows collectors to purchase a specially curated selection of wines, handpicked by Sotheby’s global specialists and delivered within 24 hours. Jamie Ritchie explained that “as the wine market continues to rapidly evolve, it has become clear that there is a growing need for additional services that provide advice and guidance, both for those who are just beginning to enjoy wines and wish to build a collection, as well as for those who want to refine their existing cellar”.

As well as the big numbers, what are industry experts seeing in 2018 in terms of both taste preferences and how a label can look to fortify their wine in China’s market of enormous opportunity?

We spoke with Matteo Cecchetto, brand manager of Fine Wines at Summergate, Johnny Zhang, sommelier of M Restaurant on the Bund in Shanghai, Rachel Jing, brand manager at ASC Wines, and Guillaume Deglise, the previous CEO of Vinexpo.