Everybody - myself included - is fascinated by the Millennials and seems to overlook the older generation, the Generation Y - those people now in their 30s. A very thorough study by Proximity Worldwide showed this generation should not be forgotten because they develop very interesting consumerial patterns. The study showed three major groups:
- The cruisers: they enjoy going out and spending money on the latest trends. Generous, they admire the humanitarian icons, such as Nelson Mandela. They don't trust the international brands (Starbucks) and have no confidence in the major conservative leaders.
- The nesters: they spend a lot of time at home with a selected number of friends and their family. They appreciate brands with aspirational qualities and admire Madonna, Audrey Hepburn, Cameron Diaz and... E.T. They usually enjoy a quiet lifestyle.
- The super-breeders: they are the most complex and most interesting group. They center their life on their family (spouse and children). They want to protect their family from any kind of pollution: junk food, uncertain social values, pornography, violence, etc. They expect brands to be "moral" and ecological. Their icons are Angelina Jolie and Brad Pitt or Vanessa Paradis and Johnny Depp. This category is the rising category that will set the new consumerial trends: respect of nature, the planet and humankind.
Showing posts with label trends. Show all posts
Showing posts with label trends. Show all posts
Tuesday, June 24, 2008
Thursday, April 24, 2008
Emerging countries in the wine world
Our next live radio show will be on the emerging markets in the wine business. From a European stand point of view, the emerging countries are: China, India and Russia. We already went over some issues related to China and India. Russia is a far more difficult market to reach and understand.
In spite of a reputation for hard drinking, Russians are way behind French, Irish and Czechs in alcohol consumption, with only 9.3 liters a year per capita. Russian traditions in wine and food explain this bad reputation, and the current situation. "Russian cuisine," explains the author of the Wikipedia article on “Russian cuisine”, derives its rich and varied character from the vast and multicultural expanse of Russia. Its foundations were laid by the peasant food of the rural population in an often harsh climate, with a combination of plentiful fish, poultry, game, mushrooms, berries, and honey. Crops of rye, wheat, barley, and millet provided the ingredients for a plethora of breads, pancakes, cereals, kvass, beer, and vodka. Flavorful soups and stews centered on seasonal or storable produce, fish, and meats. This wholly native food remained the staples for the vast majority of Russians well into the 20th century. Lying on the northern reaches of the ancient Silk Road, as well as Russia's close proximity to the Caucasus, Persia, and the Ottoman Empire has provided an inescapable Eastern character to its cooking methods (not so much in European Russia but distinguishable in the North Caucasus).”
Later on, from the 16th to the 18th century, Russians imported smoked meats and fish, pastry cooking, salads and green vegetables, chocolate, ice cream, wines, and liquor. This created, for the rich and mighty aristocrats, the various sources of refined and elegant dishes. This trend was confirmed and extended in the 19th century, when the Russian court and aristocracy imported not only the ingredients but also the French and Austrian personnel able to cook the new dishes. That is why, concludes our anonymous author of the Wikipedia article, “Many of the foods that are considered in the West to be traditionally Russian actually come from the Franco-Russian cuisine of the 18th and 19th centuries, and include such widespread dishes as Veal Orloff, Beef Stroganoff, and Sharlotka (Charlotte Russe).”
It was customary for the traditional Russian to drink mostly vodka with his meals. 30 years ago, Russians were drinking 17 liters of wine per capita a year. The rest of their alcoholic consumption was dedicated to beer and vodka. By the mid 1990s, their wine consumption had plummeted to 2.5 liters, but went back up to 5.1 liters in 1998. The main core of their consumption is still vodka and beer.
This difficult history between wine, spirits and food in Russia does not influence so much the newRussia wine consumer whose profile is rather similar to the Indian or Chinese wine consumer. Drinking wine is a sign of status and social success. There are now a few hundred millionaires in Russia: their fortune is estimated at around $3.4 billion dollars. The richest of all those successful businessmen is Roman Abramovich, whose fortune is estimated at $19.2 billion. The income of the average citizen has also increased. The average income of the middle class is now $7,000 (around 4.800 euros) a year, while the national average is around $2,610 (about 1.800 euros) a year. 20 million people are now above the poverty level.
In this relatively prosperous economy, more and more people have a little disposable income. Wine is a good way to spend some money; it is new and trendy as well as a sign of success. Russians drink mostly red wine (70%); white wine accounts for about 25% and rosé wines for the rest. Russians – a little like their American counterparts – have a sweet tooth. They love off-dry and semi-sweet flavors, even in red wines.
Dry wines reflect mostly the more sophisticated drinking habits of the wealthy consumers. Young entrepreneurs and high executives of international corporations are the main clients of the fine wine business. The wealthier wine consumers thrive on First Growth Bordeaux and cult wines from the New World.
The average wine drinker will mostly buy imported wines from Moldova (before the ban), Bulgaria, Georgia and France, with Italy now getting into the picture. The price of a bottle will be in the 3 euros range, but the situation is different in the major cities, like Moscow, St. Petersburg or Kiev. In those cities drinkers have a much higher disposable income and spend more on premium wines.
More traveled, highly educated, with a high income, these new wine drinkers have the time and the will to learn more about wine. They want to have access to the status symbols of the Western world. Wine, like luxury products, is highly desirable for these new consumers.
In spite of a reputation for hard drinking, Russians are way behind French, Irish and Czechs in alcohol consumption, with only 9.3 liters a year per capita. Russian traditions in wine and food explain this bad reputation, and the current situation. "Russian cuisine," explains the author of the Wikipedia article on “Russian cuisine”, derives its rich and varied character from the vast and multicultural expanse of Russia. Its foundations were laid by the peasant food of the rural population in an often harsh climate, with a combination of plentiful fish, poultry, game, mushrooms, berries, and honey. Crops of rye, wheat, barley, and millet provided the ingredients for a plethora of breads, pancakes, cereals, kvass, beer, and vodka. Flavorful soups and stews centered on seasonal or storable produce, fish, and meats. This wholly native food remained the staples for the vast majority of Russians well into the 20th century. Lying on the northern reaches of the ancient Silk Road, as well as Russia's close proximity to the Caucasus, Persia, and the Ottoman Empire has provided an inescapable Eastern character to its cooking methods (not so much in European Russia but distinguishable in the North Caucasus).”
Later on, from the 16th to the 18th century, Russians imported smoked meats and fish, pastry cooking, salads and green vegetables, chocolate, ice cream, wines, and liquor. This created, for the rich and mighty aristocrats, the various sources of refined and elegant dishes. This trend was confirmed and extended in the 19th century, when the Russian court and aristocracy imported not only the ingredients but also the French and Austrian personnel able to cook the new dishes. That is why, concludes our anonymous author of the Wikipedia article, “Many of the foods that are considered in the West to be traditionally Russian actually come from the Franco-Russian cuisine of the 18th and 19th centuries, and include such widespread dishes as Veal Orloff, Beef Stroganoff, and Sharlotka (Charlotte Russe).”
It was customary for the traditional Russian to drink mostly vodka with his meals. 30 years ago, Russians were drinking 17 liters of wine per capita a year. The rest of their alcoholic consumption was dedicated to beer and vodka. By the mid 1990s, their wine consumption had plummeted to 2.5 liters, but went back up to 5.1 liters in 1998. The main core of their consumption is still vodka and beer.
This difficult history between wine, spirits and food in Russia does not influence so much the newRussia wine consumer whose profile is rather similar to the Indian or Chinese wine consumer. Drinking wine is a sign of status and social success. There are now a few hundred millionaires in Russia: their fortune is estimated at around $3.4 billion dollars. The richest of all those successful businessmen is Roman Abramovich, whose fortune is estimated at $19.2 billion. The income of the average citizen has also increased. The average income of the middle class is now $7,000 (around 4.800 euros) a year, while the national average is around $2,610 (about 1.800 euros) a year. 20 million people are now above the poverty level.
In this relatively prosperous economy, more and more people have a little disposable income. Wine is a good way to spend some money; it is new and trendy as well as a sign of success. Russians drink mostly red wine (70%); white wine accounts for about 25% and rosé wines for the rest. Russians – a little like their American counterparts – have a sweet tooth. They love off-dry and semi-sweet flavors, even in red wines.
Dry wines reflect mostly the more sophisticated drinking habits of the wealthy consumers. Young entrepreneurs and high executives of international corporations are the main clients of the fine wine business. The wealthier wine consumers thrive on First Growth Bordeaux and cult wines from the New World.
The average wine drinker will mostly buy imported wines from Moldova (before the ban), Bulgaria, Georgia and France, with Italy now getting into the picture. The price of a bottle will be in the 3 euros range, but the situation is different in the major cities, like Moscow, St. Petersburg or Kiev. In those cities drinkers have a much higher disposable income and spend more on premium wines.
More traveled, highly educated, with a high income, these new wine drinkers have the time and the will to learn more about wine. They want to have access to the status symbols of the Western world. Wine, like luxury products, is highly desirable for these new consumers.
Tuesday, April 15, 2008
Branding in Lyon
Yesterday, I spent the day in Lyon, gastronomical city and door to several wine countries (Beaujolais and Rhone Valley), with my MBA students. I thought it would be a vacation day - relaxed lunch at Bocuse, visit of the old city of Lyon and relaxed dinner in a famous "bouchon", one of those Lyon traditional restaurants. In fact, this day got me thinking about branding in the wine and food business because each event was the occasion of a presentation by the best local specialists.
When we arrived at the "Brasserie de l'Ouest" of Paul Bocuse, one of the four local restaurants created by the famous three-star chef, we were welcomed by Jean Fleury, manager of the four brasseries of Paul Bocuse. A "Brasserie" is a local restaurant for everyday meals: some are upscale like the brasserie of Bocuse; some are not much better than a coffee shop serving sandwiches, pre-cooked dishes and beverages. Paul Bocuse is certainly one of the most French chefs, along with Ducasse and others. Over 80 years old by now, Paul Bocuse never opened any other restaurants, whether in France or in an other country, besides his famous restaurant near Lyon. That's why it was a little surprising when he opened in 1994 his first brasserie, le Nord (the North), followed the next year by the South. Then came East and West. On the 4 Brasseries no sign of the name "Bocuse" - the brand-. But if you "google" "Brasseries Bocuse", you'll be sent to the site.
How do you brand a Bocuse restaurant without using the name? Jean Fleury defined the branding process by a few words: style, quality, cuisine. When you walk in one of Bocuse brasseries, there is no way you can confuse it with your around the corner brasserie: the decor is very elegant, the napkin is nicely embroidered with the name of the restaurant, the table is covered by a white tablecloth, the food is up to your expectations, and the service is impeccable. The pricing was also a very important component of the branding system: at lunch, where the customers are mostly business people on their own lunch or taking a client to lunch "at Bocuse", you can choose the 22,90 euros menu or choose "a la carte" which will cost you from 30 to 80 euros depending on your choice. At night, the brasserie customers are families or friends who eat "a la carte" for a comfortable budget. The Bocuse signature is all over the place without having to mention his name.
What about "OuestExpress"? Jean Fleury mentioned a new concept called "OuestExpress" located around the corner from the West Brasserie and opened for 3 months. Amazingly enough it is a "fast food" restaurant where customers can eat for under 10 euros at lunch. Designed like an American upscale fast food restaurant, OuestExpress provides only high quality products: salads, sandwiches, "quiches", fresh fruit juices, teas and coffes from all over the world, luxury mineral waters. No mention of the Bocuse name either but the quality of the food and the design of the place tells a story of experience and quality.
Branding through action? Not really: the Bocuse brand exists for many decades and it was certainly easier to build the brand of the Brasserie as a secondary branding. But congratulations to an icon of the French gastronomy to be able to build a young and trendy brand on his name.
When we arrived at the "Brasserie de l'Ouest" of Paul Bocuse, one of the four local restaurants created by the famous three-star chef, we were welcomed by Jean Fleury, manager of the four brasseries of Paul Bocuse. A "Brasserie" is a local restaurant for everyday meals: some are upscale like the brasserie of Bocuse; some are not much better than a coffee shop serving sandwiches, pre-cooked dishes and beverages. Paul Bocuse is certainly one of the most French chefs, along with Ducasse and others. Over 80 years old by now, Paul Bocuse never opened any other restaurants, whether in France or in an other country, besides his famous restaurant near Lyon. That's why it was a little surprising when he opened in 1994 his first brasserie, le Nord (the North), followed the next year by the South. Then came East and West. On the 4 Brasseries no sign of the name "Bocuse" - the brand-. But if you "google" "Brasseries Bocuse", you'll be sent to the site.
How do you brand a Bocuse restaurant without using the name? Jean Fleury defined the branding process by a few words: style, quality, cuisine. When you walk in one of Bocuse brasseries, there is no way you can confuse it with your around the corner brasserie: the decor is very elegant, the napkin is nicely embroidered with the name of the restaurant, the table is covered by a white tablecloth, the food is up to your expectations, and the service is impeccable. The pricing was also a very important component of the branding system: at lunch, where the customers are mostly business people on their own lunch or taking a client to lunch "at Bocuse", you can choose the 22,90 euros menu or choose "a la carte" which will cost you from 30 to 80 euros depending on your choice. At night, the brasserie customers are families or friends who eat "a la carte" for a comfortable budget. The Bocuse signature is all over the place without having to mention his name.
What about "OuestExpress"? Jean Fleury mentioned a new concept called "OuestExpress" located around the corner from the West Brasserie and opened for 3 months. Amazingly enough it is a "fast food" restaurant where customers can eat for under 10 euros at lunch. Designed like an American upscale fast food restaurant, OuestExpress provides only high quality products: salads, sandwiches, "quiches", fresh fruit juices, teas and coffes from all over the world, luxury mineral waters. No mention of the Bocuse name either but the quality of the food and the design of the place tells a story of experience and quality.
Branding through action? Not really: the Bocuse brand exists for many decades and it was certainly easier to build the brand of the Brasserie as a secondary branding. But congratulations to an icon of the French gastronomy to be able to build a young and trendy brand on his name.
Thursday, April 10, 2008
Blogs and Brands
On the OWC group on blogs, there was a post lately asking if/how it was possible to make money with your blog. Indeed more and more people are writing blogs - as a hobby, sometimes - but more often in relation to their work field and their professional expertise. It would seem logical to try to make some money when sharing experience and knowledge with your readers.
Several studies on blogs, bloggers, brands and trends just came out this week. The market research from Via Nova Spheeris is strictly about French blogs but could open some threads of discussion. First a few figures: 38.2% of French bloggers get some income from their blogging activity; 32% would like to get some revenue out of their blog. For 42.5% of bloggers, advertising is the most obvious way of making money. 17% of them see their blog as a way to comfort their professional status and even to get in touch with the traditional medias (TV, press, radio).
French bloggers ready to advertise brands on their blogs trust the brands' communication strategy: 82.9% of them think the brands' communication is "informative" and 68.6% "modern". But they regret that the brands' request for advertising on their blog are not always relevant to their blog's contents. Instead of getting money, they'd rather have products' samples, invitations to events and/or advance information on new products and services. This strategy would allow them to keep their freedom in judging the brand.
This study shows how blogs are difficult to understand by the traditional brands used to traditional medias. A blog is a media where freedom is respected. That's why the traditional medias feel threatened by this space of free speech and communities. The last market study conducted by Universal McCann on a panel of 17,000 web surfers in 29 countries shows clearly the exponential growth of blogs, podcasts and social networks as a direct competitor of the traditional medias. There are 184 millions bloggers in the world and 73% of the population read blogs. The video is now the most appreciated media just before the blogs (72.8%), sharing pictures (63.2%) and social networks (57;3%). Podcasts are now considered a major media by web surfers.
A brand can't ignore those new media. They reach directly the new consumers: young people, women, international consumer. Why wouldn't a company transfer its media budget to social network to touch the new consumers? It would seem a smart move but I'm afraid most brands are not ready to get in the 21st century... yet.
Several studies on blogs, bloggers, brands and trends just came out this week. The market research from Via Nova Spheeris is strictly about French blogs but could open some threads of discussion. First a few figures: 38.2% of French bloggers get some income from their blogging activity; 32% would like to get some revenue out of their blog. For 42.5% of bloggers, advertising is the most obvious way of making money. 17% of them see their blog as a way to comfort their professional status and even to get in touch with the traditional medias (TV, press, radio).
French bloggers ready to advertise brands on their blogs trust the brands' communication strategy: 82.9% of them think the brands' communication is "informative" and 68.6% "modern". But they regret that the brands' request for advertising on their blog are not always relevant to their blog's contents. Instead of getting money, they'd rather have products' samples, invitations to events and/or advance information on new products and services. This strategy would allow them to keep their freedom in judging the brand.
This study shows how blogs are difficult to understand by the traditional brands used to traditional medias. A blog is a media where freedom is respected. That's why the traditional medias feel threatened by this space of free speech and communities. The last market study conducted by Universal McCann on a panel of 17,000 web surfers in 29 countries shows clearly the exponential growth of blogs, podcasts and social networks as a direct competitor of the traditional medias. There are 184 millions bloggers in the world and 73% of the population read blogs. The video is now the most appreciated media just before the blogs (72.8%), sharing pictures (63.2%) and social networks (57;3%). Podcasts are now considered a major media by web surfers.
A brand can't ignore those new media. They reach directly the new consumers: young people, women, international consumer. Why wouldn't a company transfer its media budget to social network to touch the new consumers? It would seem a smart move but I'm afraid most brands are not ready to get in the 21st century... yet.
Wednesday, April 9, 2008
Brand positioning by video and TV on line
Videos are more and more present on the Net. Community sites, like YouTube, are the perfect example of this new trend. The wine business could use this new technological trend to promote wine makers, producers, wines and all the industry-related products and/or services. Marketers and communications people should use it as one of the best PR tool.
Let's be clear: I'm not talking about videos done by a journalist or an interview - this is PR, it's not brand positioning. Brand positioning by video relies on a video written and conceived for your brand, your winery, or your store by a professional. There are a scenario, a text, a music. Why? There are four communication elements, as Jerry Bader explained on his article for brandchannel.com, "Brand Positioning Using Web-Video":
Is there any interesting brand positioning videos on the Net? I can think of a few - some very sophisticated as the videos of Château Haut-Brion or more practical as those of Gary Vaynerchuk and Olivier Magny. Château Haut-Brion took the trouble to shoot very professional videos with a scenario, narration, beautiful pictures and music. The budget required by this type of brand positioning is, of course, out of reach for a lot of companies. That's why it is interesting to look how smaller and younger companies promote their brands.
As our friend from OpenWine Consortium said last night during our Internet live broadcast, thenewwineconsumer.com, Gary Vaynerchuk promotes his wine store, Wine Library in New Jersey, almost only on the Internet by his videos. The brick and mortar store doesn't even have a window on the street. His model is strictly a "click and mortar" store: his videos made Gary an international star of the wine business and his store is largely known on the Net, certainly increasing his on line sales.
Olivier Magny also owns a store in Paris, O Chateau. He promotes himself and his store through the videos of his blog, winerendezvous.com, like his funny Pinot Noir video on Place de la Concorde. On his blog roll, we can see several of our OWC friends, Petrogasm and Catavino, for example. A man of taste!
Do Gary and Olivier answer the criteria set by Jerry Bader? Almost: they provide a scenario, a text, a funny presentation full of humor and young energy - but no music. Which is also the case - weirdly enough - of a very professional endeavor: WineTasteTV.com. Their videos are introduced by a music theme but there is no sound - besides the interview or the speech - during the presentation. The music doesn't come in support of the content. As stated in their press release, "The channel is aimed at upscale consumers -- from Boomers to Millennials -- seeking relevant features to enhance their wine knowledge or discover new wine brands and regions. WineTasteTV.com enters the market as wine continues to grow in popularity among a wide range of adults, and is the first effort to bring an original, broad-based on-demand Internet channel to millions of consumers through multimedia storytelling and information."
Let's be clear: I'm not talking about videos done by a journalist or an interview - this is PR, it's not brand positioning. Brand positioning by video relies on a video written and conceived for your brand, your winery, or your store by a professional. There are a scenario, a text, a music. Why? There are four communication elements, as Jerry Bader explained on his article for brandchannel.com, "Brand Positioning Using Web-Video":
- the scenario, telling your brand story or the story of your business,
- the sight which provides the visual context and reference,
- the sound providing, through human voice, "focus, emphasis, familiarity and personality, all of which are necessary in the creation of a meaningful, memorable experience",
- the "score: Music, Emotion and Focus" - a musical score creates an appropriate emotional atmosphere providing audio cues that direct attention and re-enforce memory recall".
Is there any interesting brand positioning videos on the Net? I can think of a few - some very sophisticated as the videos of Château Haut-Brion or more practical as those of Gary Vaynerchuk and Olivier Magny. Château Haut-Brion took the trouble to shoot very professional videos with a scenario, narration, beautiful pictures and music. The budget required by this type of brand positioning is, of course, out of reach for a lot of companies. That's why it is interesting to look how smaller and younger companies promote their brands.
As our friend from OpenWine Consortium said last night during our Internet live broadcast, thenewwineconsumer.com, Gary Vaynerchuk promotes his wine store, Wine Library in New Jersey, almost only on the Internet by his videos. The brick and mortar store doesn't even have a window on the street. His model is strictly a "click and mortar" store: his videos made Gary an international star of the wine business and his store is largely known on the Net, certainly increasing his on line sales.
Olivier Magny also owns a store in Paris, O Chateau. He promotes himself and his store through the videos of his blog, winerendezvous.com, like his funny Pinot Noir video on Place de la Concorde. On his blog roll, we can see several of our OWC friends, Petrogasm and Catavino, for example. A man of taste!
Do Gary and Olivier answer the criteria set by Jerry Bader? Almost: they provide a scenario, a text, a funny presentation full of humor and young energy - but no music. Which is also the case - weirdly enough - of a very professional endeavor: WineTasteTV.com. Their videos are introduced by a music theme but there is no sound - besides the interview or the speech - during the presentation. The music doesn't come in support of the content. As stated in their press release, "The channel is aimed at upscale consumers -- from Boomers to Millennials -- seeking relevant features to enhance their wine knowledge or discover new wine brands and regions. WineTasteTV.com enters the market as wine continues to grow in popularity among a wide range of adults, and is the first effort to bring an original, broad-based on-demand Internet channel to millions of consumers through multimedia storytelling and information."
Even missing an element, the videos of Gary Vaynerchuck, Olivier Magny or WineTasteTV.com are good branding positioning tools. The image carried on the Net is clean, professional and diverse, as well as driving consumers to the brands.
Tuesday, April 8, 2008
"Stealing wine marketing ideas"
I "borrowed" my title to the very entertaining and slightly challenging article of Jim Gordon in winesandvines.com. Jim just came back from the wine marketing conference held in Ohio and entitled, "Permission to steal". It would seem every speaker was very generous in sharing his or her knowledge and experience.
What attracted my attention was Jim's assertion on Bill Geist's talk: "Marketing consultant Bill Geist of Madison, Wis., amusingly dissected the American population by generation, to help wineries understand how to best reach different demographics." Here is how Jim Gordon summed up Bill Geist's conference:
"Geist suggested these marketing approaches by generation:
More interesting than this global segmentation, are the trends selected by Bill Geist to attract his 4 types of consumers: "Geist identified several trends on which wineries can jump: immersion travel, like expensive rock and roll camps for adults; drinking locally and eating locally; 90% of women say they plan to go on girlfriend getaways; weddings average more than $30,000 now, and 20% of them are held away from the bride and groom's home location; and, 25% of the U.S. population has tattoos." (Tattoos? Is it relevant for the wine world?).
Tattooed or not, consumers are changing even faster than the wine world thinks. Wineries have to adapt to those new behaviors and get immerses in the on line communities to listen to their potential customers.
What attracted my attention was Jim's assertion on Bill Geist's talk: "Marketing consultant Bill Geist of Madison, Wis., amusingly dissected the American population by generation, to help wineries understand how to best reach different demographics." Here is how Jim Gordon summed up Bill Geist's conference:
"Geist suggested these marketing approaches by generation:
- Matures (62 and over): Use the approach, "You've earned this." They lived through the Depression and World War II.
- Baby Boomers: "They want to feel special." Give them an upgrade; call them by name.
- Generation X: "They take nothing for granted. They've lived through tough times but now have kids and power. But their BS radar is high." Testimonials from their peers can work.
- Millennials (teens and 20s): Two-thirds aren't in the wine market yet. "They're smart, and they're going to save the world. They're also the most brand-loyal generation. Find out what they want, and make it.""
More interesting than this global segmentation, are the trends selected by Bill Geist to attract his 4 types of consumers: "Geist identified several trends on which wineries can jump: immersion travel, like expensive rock and roll camps for adults; drinking locally and eating locally; 90% of women say they plan to go on girlfriend getaways; weddings average more than $30,000 now, and 20% of them are held away from the bride and groom's home location; and, 25% of the U.S. population has tattoos." (Tattoos? Is it relevant for the wine world?).
Tattooed or not, consumers are changing even faster than the wine world thinks. Wineries have to adapt to those new behaviors and get immerses in the on line communities to listen to their potential customers.
Friday, February 22, 2008
Wealthy Chinese prefer French wine brands
China is one of the emerging markets for the wine business. I already mentioned on that blog that Chinese people are fond of wine and especially French wines.
A recent study conducted by VisaCard Worldwide and based on a survey of 1,800 respondents with an annual income exceeding $16,000 in Beijing, Shanghai and Guangzhou, identified the top brands of affluent consumers in key spending categories, such as automobiles, wine, consumer electronics and fashion.
This study confirmed the taste of wealthy Chinese people for French wines over other European wines and, even, local wines. 80.7 percent of the respondents think French wine is the best, with Chinese brands third after Italian wine and ahead of Spanish, Australian and German wines.
Why is that? In Wine Brands, I tried to answer - at least partially and as best as I could - this puzzling question. There is a “snob value” applying to Chinese wine drinkers. Indeed the drinkers’ profiles are typical of the emerging markets: rich people, executives, high-ranking officials and new millionaires. They drink expensive imported wines, while the middle-class people drink local wines, but everyone wants to drink wine. It is a matter of social status and image.
In Beijing and in Shanghai, wine is the gift that will give most pleasure and prestige, especially imported French wines.Wine is still a mystery to most Chinese. The average wine consumer in China is between 20 and 35 years old, relatively affluent and living in an urban area. Chinese consumers do not necessarily serve wine in the Western way. Iced red wine is popular--white wine is often mixed with coca-colas and red with sweet drinks. But, as in many emerging markets, education is provided by tastings in stores, while more traveling and studying overseas create an elite of connoisseurs.
Chinese wine experts believe that the market is made up of about 1,000,000 consumers with a potential of 30 million. More and more international managers and executives who studied abroad discovered wine while traveling in Europe. Back in China, they retained their interest in wine and broadened their knowledge. They are mostly interested in red because of the symbolism of the color in Chinese culture. Red is associated with luck, happiness and wealth. White is the color of mourning and death, which fights against white wine. It also uses the same word used for liquors and rice wine – “Bai Ju”. White wine, therefore, has a problem distinguishing itself from rice wine. The language too is a problem. Some wine names are very easy to remember: La Tour is “La Tu” and Lafite “La fei”, for examples in the Bordeaux area. Some names are so complicated that people are afraid to order them: “It’s embarrassing to ask for a good wine when its name cannot be understood by my friends because of its pronunciation”, said a Chinese executive to L’Amateur/The Wine Lovers journalist, Sophie Liu (Fall 2007).
In spite of all those problems, wine is becoming a major new trend in China.
A recent study conducted by VisaCard Worldwide and based on a survey of 1,800 respondents with an annual income exceeding $16,000 in Beijing, Shanghai and Guangzhou, identified the top brands of affluent consumers in key spending categories, such as automobiles, wine, consumer electronics and fashion.
This study confirmed the taste of wealthy Chinese people for French wines over other European wines and, even, local wines. 80.7 percent of the respondents think French wine is the best, with Chinese brands third after Italian wine and ahead of Spanish, Australian and German wines.
Why is that? In Wine Brands, I tried to answer - at least partially and as best as I could - this puzzling question. There is a “snob value” applying to Chinese wine drinkers. Indeed the drinkers’ profiles are typical of the emerging markets: rich people, executives, high-ranking officials and new millionaires. They drink expensive imported wines, while the middle-class people drink local wines, but everyone wants to drink wine. It is a matter of social status and image.
In Beijing and in Shanghai, wine is the gift that will give most pleasure and prestige, especially imported French wines.Wine is still a mystery to most Chinese. The average wine consumer in China is between 20 and 35 years old, relatively affluent and living in an urban area. Chinese consumers do not necessarily serve wine in the Western way. Iced red wine is popular--white wine is often mixed with coca-colas and red with sweet drinks. But, as in many emerging markets, education is provided by tastings in stores, while more traveling and studying overseas create an elite of connoisseurs.
Chinese wine experts believe that the market is made up of about 1,000,000 consumers with a potential of 30 million. More and more international managers and executives who studied abroad discovered wine while traveling in Europe. Back in China, they retained their interest in wine and broadened their knowledge. They are mostly interested in red because of the symbolism of the color in Chinese culture. Red is associated with luck, happiness and wealth. White is the color of mourning and death, which fights against white wine. It also uses the same word used for liquors and rice wine – “Bai Ju”. White wine, therefore, has a problem distinguishing itself from rice wine. The language too is a problem. Some wine names are very easy to remember: La Tour is “La Tu” and Lafite “La fei”, for examples in the Bordeaux area. Some names are so complicated that people are afraid to order them: “It’s embarrassing to ask for a good wine when its name cannot be understood by my friends because of its pronunciation”, said a Chinese executive to L’Amateur/The Wine Lovers journalist, Sophie Liu (Fall 2007).
In spite of all those problems, wine is becoming a major new trend in China.
Tuesday, January 29, 2008
Women and wine: special designed brands?
Decanter.com, the online version of the British wine magazine, Decanter, announced today that Marks and Spencer launched a new brand of Port, specifically targeted to young, female wine drinkers. "The new style", writes editor-in-chief Adam Lechmere, "is 'bright pink in colour with fresh fruit aromas.' The port has the same sugar levels as ruby ports, while acidity levels are 'finely tuned to ensure the right balance.'"
After tasting the wines, Decanter editor Guy Woodward is very skeptic about the quality and opportunity of such a wine: "While I applaud M&S's effort to take port out to a wider audience, I'm not convinced this is the way to do it. This doesn't taste like any port I know – it's more like vodka and cranberry juice. I suspect they're trying to jump on the rosé bandwagon. The nose smells like a rosé but then you get this whack of confected fruits and alcohol on the palate."
Marks and Spencer would not be the first company trying to surf on the wave of the new consuming trends and new consumers. Women are a very important potential target: they buy 70% of the wines sold in UK supermarkets and 80% sold in US supermarkets. It seems like a good idea to specifically design wines for them. Unfortunately women are resisting this trend. Some do not recognize themselves or their tastes in those light and unsophisticated wines, as Margreet O'Sullivan says on the Decanter site: "I love a full bodied, concentrated, complex wine with a well integrated, but noticeable tannic structure - and above all - length!"
Why is that? First, biologically, women are recognized as having a finer palate than men. Then, if their wine culture is not as large or sophisticated as men's wine culture, women usually know what they like: a good wine pairing well with their meal or the occasion of the meal, i.e. an evening with friends, a formal dinner, a special occasion, a barbecue or a picnic. Last but not least, they choose their wine for the pleasure of drinking and sharing a good time, more than for impressing their guests (or their hosts).
Wines specifically designed for women are made by people who think they know what women like, when, most of the time, women will buy in the spurr of the moment. Our advice to winemakers and producers: create a great wine, without bothering to craft for men or women. Design it for our pleasure!
After tasting the wines, Decanter editor Guy Woodward is very skeptic about the quality and opportunity of such a wine: "While I applaud M&S's effort to take port out to a wider audience, I'm not convinced this is the way to do it. This doesn't taste like any port I know – it's more like vodka and cranberry juice. I suspect they're trying to jump on the rosé bandwagon. The nose smells like a rosé but then you get this whack of confected fruits and alcohol on the palate."
Marks and Spencer would not be the first company trying to surf on the wave of the new consuming trends and new consumers. Women are a very important potential target: they buy 70% of the wines sold in UK supermarkets and 80% sold in US supermarkets. It seems like a good idea to specifically design wines for them. Unfortunately women are resisting this trend. Some do not recognize themselves or their tastes in those light and unsophisticated wines, as Margreet O'Sullivan says on the Decanter site: "I love a full bodied, concentrated, complex wine with a well integrated, but noticeable tannic structure - and above all - length!"
Why is that? First, biologically, women are recognized as having a finer palate than men. Then, if their wine culture is not as large or sophisticated as men's wine culture, women usually know what they like: a good wine pairing well with their meal or the occasion of the meal, i.e. an evening with friends, a formal dinner, a special occasion, a barbecue or a picnic. Last but not least, they choose their wine for the pleasure of drinking and sharing a good time, more than for impressing their guests (or their hosts).
Wines specifically designed for women are made by people who think they know what women like, when, most of the time, women will buy in the spurr of the moment. Our advice to winemakers and producers: create a great wine, without bothering to craft for men or women. Design it for our pleasure!
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