Chinese Market and Consumer Behaviour Analysis

As China underwent its economic transition in the past 10 years, its citizens have become important consumers in the luxury goods market. Mainland consumers are becoming increasingly demanding of food and drink as their income and spending power increase. As luxury and lifestyle become more important to mainlanders, the demand for wine has been steadily growing in recent years, with increases registered in both the value and volume of wine imports.

China is likely to displace Britain as the world’s second largest wine consumer in terms of value by 2021, according to research from Vinexpo—one of the largest exhibitions for wine and spirits professionals globally—and the UK-based International Wine and Spirit Research.

The growth rate of the Chinese wine market is estimated to exceed 30% over the next five years, starting from 2017 onward, and attain a size of $23 billion in 2021, second only to the US.

According to the presentation of Dr. Justin Cohen, research fellow at Ehrenberg-Bass, in 2013 at Hong Kong International Wine & Spirits Fair, the most important motivation for drinking wine in China was that wine was good for the health. However, over the years, the wine consumers and consumer behaviour have changed. According to Wine Intelligence Senior Research Manager Chuan Zhou, Chinese wine consumers are now younger, and drinking for pleasure, rather than status or health.

Red wine remains the default wine choice for many in China. Red wine occupies 71% of all the wine products on online shopping malls and white wine follows as 16%. Sparkling wine makes up just 1% of wine sales in China, but in 2017, bottles of bubbly made up a lot of ground, reaching $75 million—a 33% increase from the previous year. Over the last three years, we have seen remarkable growth of nearly 80% in organic and biodynamic wine entries.

China now boasts 21 million online wine buyers who look for imported wine. Of all Chinese imported wine customers, 62% view news and information online, and 47% buy wine via online channels. Wine is the most purchased among all the online alcohol customers with a robust growth compared to other alcohols.

Hong Kong as a Major Player

For the most part, wine collectors in Asia still regard wines as an investment rather than a mere drink. Hong Kong is quickly becoming a regional wine trading and distribution hub in Asia.

This is because it has zero duties on wine, a policy instilled in 2008, which makes imports a hassle-free process. Hong Kong is also now the world’s second largest wine auctions, surpassing London. Sotheby’s was able to raise 14.3 million USD in just two auctions held in Hong Kong. To offer some context, it took eight auctions to raise the same amount of money in London. Hong Kong also provides easy access, as it has an ideal geographical location for Asian distribution. Many imported wines are then stored in Hong Kong facilities. Plenty of these storage facilities are converted factories that had been empty for long periods of time. Hong Kong is serious about wine storage, with the Hong Kong Assurance Agency launching a certification program to ensure proper storage conditions. Requirements cover adequate temperature, humidity, lighting, vibration, monitoring, and review.

Foreign Investment of Vineyards

Chinese investors have turned to vineyards as their next lucrative financial prospect. France’s wine region of Bordeaux has seen an influx of international buyers in addition to Tuscany, Italy’s wine hub. As of 2010, more than 140 wineries have been purchased by Chinese investors, many of which are hotel owners. In doing so, they are able to reduce costs and streamline the distribution process. The investments are also a way of diversifying risk, with many Chinese purchasing the vineyards as a vacation home.
According to Forbes, there are only four fundamental ways to invest successfully in fine wine:
1. Stay focused and buy the best of the best ‘brands’;
2. Buy those wines in quantity and in original packaging whenever possible;
3. Don’t be afraid to pay up for the scarcest brands;
4. Store your wines in ideal conditions.

 

Focus Wine Cellars is dedicated to bringing you luxury wine storage solutions. Learn more about our services by calling 1-905-617-6106.

The Importance of a Proper Wine Cellar Door

A high-quality wine cellar door is essential to storing wine effectively. Wine cellar doors form a barrier between the wine cellar and the rest of the home or commercial space, which helps to maintain proper temperature and humidity levels. This allows your wine to age in an environment that doesn’t risk a negative impact on its quality.

The Importance of a Protective Barrier

A carefully engineered wine cellar door is designed to block air movement in both directions and provide high thermal insulation value. The door, therefore, must be constructed to fit precisely into the frame of your door, without affecting the ease of how it’s handled.

Wine cellar doors differ from regular interior doors in that they must withstand two different climates on either side. When you don’t use a door designated for wine cellar use, you risk losing the benefits of storing your wine in a controlled climate.

A quality wine cellar door may contain more refined features, such as:

• an inner steel frame
• double gasket on three sides
• automatic drop seal
• concealed magnets to hold the door tightly closed when unlocked
• triple glazing with inert gas filling and an UV-filtering interlayer
• heavy duty, best-in-class hinges
• advanced manual or electronic lock options
• an elegant design

A steel frame is essential to your custom wine cellar door because it has the durability required to support the the door which must stand forces resulting from two different climate conditions on both sides. An automatic drop seal ensures there isn’t any air exchange caused by gaps beneath the door. To keep the door closed and prevent it from opening unexpectedly, wine cellar doors should include concealed magnets within the frame. Advanced security options for your wine cellar door include manual or electronic locking options; this way, you are assured that your wines are secure when left unattended.

A trusted wine cellar design specialist will support you in selecting the correct wine cellar door.

Choosing Design Elements

Although a wine cellar door is used primarily for functional purposes, it also serves as the entrance to your wine cellar and is an important component to creating a compelling design. To create an inviting entrance, your wine cellar door should follow the same theme as the rest of the space.

Cellar doors can be glazed or non-glazed. A non-glazed door can be of choice to keep the treasure away from sight, while glazed doors are asked by the majority of the cellar owners who prefer more transparency. In either options, the solid parts of the door can have wood, metal or even more fancy genuine leather finish. If your wine cellar has a modern feel, consider incorporating a sleek and simple door. For a classical wine cellar, choose a more intricate wood door with or without decorative carvings for an elegant effect.

Working with a wine cellar designer will help you refine your tastes and choose the best option for your private, commercial, collective, or industrial wine cellar.

 

At Focus Wine Cellars, we are dedicated to bringing your wine cellar vision to life. Learn more about our services by calling 1-905-617-6106.

History of the Wine Cellar

While you are sipping your prized bottle of vintage wine, you might be surprised to know that people have been enjoying wine for much longer than you think. Wine is now perceived to be a luxury item, with health benefits derived from antioxidants and polyphenols; but, amazingly, it is actually dated back up to 8000 years ago with much more modest beginnings. After wine consumption was popularized, people became interested in the various assortments of wine and the impacts of storage on quality.

Early Origins

Cultures define themselves based on the practice of rituals, vivid history, and traditional meals. But one thing that nearly all cultures share is a love for wine. The cultivation of vines for the making of wine originated some time before 4000 BCE and possibly as early as 6000 BCE. This occurred in the mountainous region between Black Sea and Caspian Sea, bordering Turkey, Syria, Iraq, Iran, and Georgia. The earliest archaeological evidence of wine has been at sites in China (c. 7000 BCE).

Earliest traces of viticulture recovered were dated back to the Early Bronze Age in the east of the Mediterranean basin. A wine shop with storage jars and drinking cups from the late Bronze Age were found in this area. In the ruins of a city that dates back to about 1700 BCE, one of the world’s oldest known wine cellars was discovered in Tel Kabri. The city was constructed and inhabited by the Canaanites, a culture that existed in what is now Israel, Lebanon, and the western parts of Jordan and Syria. The storage room is approximately four and a half by seven meters and contained 40 jars, totalling 2000 litres of liquid, or approximately 3000 bottles of wine. Archaeologists were able to determine that the contents of the jars were wine by testing the residue and found ingredients, such as honey, mint, cinnamon bark, and juniper berries. These were popular elements in ancient Egyptian medicinal wine. Early forms of storage were also found in Europe where wine was stored in caves. Although much less sophisticated than modern day wine storage, these caves were able to provide consistent storage conditions for wine to age.

The Roman Empire had an immense impact on the development of viticulture and oenology. Wine was an integral part of the Roman diet, and winemaking became a flourishing business. Winemaking technology improved considerably during this time. Wine storage rooms were built facing north, “since that quarter is never subject to change but is always constant and unshifting”.

Today

Wine cellars have become much more sophisticated in present day. Today wine cellars don’t have to be underground or facing north. Available technology enables the wine cellar specialists to design and build wine cellars in the middle of the living room, even surrounded by glass and still be protected from UV rays, solar radiation and condensation. Of course, it should be designed and build expertly to ensure insulation, lighting and temperature control elements. Focus Wine Cellars use highly insulated triple cellar glazing with a lamination film filtering 99% of the UV rays.

 

If you are look to build a wine cellar for your home or business, trust the experts at Focus Wine CellarsTo learn more about our services and discover the right wine storage solution for you, call 1-905-617-6106.