GNIA Explores Export Opportunities in China
The global wine industry is experiencing overproduction and traditional wine making countries are shifting their sales to Asia, hoping to meet Asias forecasted per-capita increases in consumption. Wine is becoming increasingly popular in Asian countries along with the rising popularity of Western culture. One of the main contributors to this change is believed to be the existence of the new Asian generation. Many in this group possess overseas educations and are bringing the new trends that they have acquired abroad, back to their home towns.
Considering its sheer population, the greatest efforts at selling and marketing wine is made in China, where consumption per capita varies by region, but continues to be a growing trend. Rural Chinese populations consume up to 0.4 liters of wine annually, urban settlements consume 0.7. Shanghai, with an average consumption of 2.5 liters per annum, seems to be the most favorable target for winemakers on mainland China. Wine imports in greater China are taxed by 50% whilst Hong Kong and Macau, Chinas special administrative regions have dropped it to 0%. Hong Kong leads Chinese wine consumption charts reaching 4.5 liters per person.
The Export Promotion Service of the GNIA took a trip to China in July of 2011 to explore the opportunities available for the Georgian wine industry. The GNIA is embarking on its first efforts to diversify Georgian wine exports after the implementation of Russias devastating wine embargo in 2006. The Russian market accounted for almost 85% of Georgias wine export market prior to the embargo.
The newly established direct flight from Tbilisi to Urumqi, the capital of Chinas largest, Xinjiang province (Uyghur Autonomous Region – 21 million inhabitants) can largely enhance trade and economic relations between the two countries- including tourism and cargo turnover. “When waiting for our luggage to arrive at Urumqi airport, about 15 boxes of “Tbilvino” bottles passed across us and were picked up by several passengers on our flight who seemed to be locals - says Gvantsa Meladze, Head of Export Support Service at GNIA, adding that this could be a good signal for starting trade.
Urumqi, a city of 2.5 million, was ranked 7th in 2008 in disposable income for urban residents among cities in western China. About a dozen local wine importers attended the GNIAs wine tasting at the Urumqi Sheraton, where the Georgian National Tourism Agency organized a presentation that promoted Georgian tourist attractions. According to Ann Kvaratskhelia, GNIAs Export Service Coordinator, anyone willing to do business in the region, should mind the language issues. “With the help of a translator, Urumqi wine importers lined-up in a queue to find out more about Georgian wine during the tasting. They kept asking about the most expensive Georgian wines and requesting pricelists in Chinese, handing Chinese business cards to us” she said. The GNIA is planning to sign a contract with a local marketing agency with the help of the Xinjiang Commerce Department to ease the communication challenges for Georgian companies. This is especially important because the GNIA is currently preparing for the First China-Eurasia Expo to be held in Urumqi in September of this year.
The Urumqi China-Eurasia Expo 2011 is preparing to host 2,500 participants in September. The Georgian Delegation led by Vera Kobalia, the Minister of Economy and Sustainable Development will take part in the Ministerial. The GNIA and GNTA will host a Georgian national booth and Georgian companies will be promoting their products in the European Specialty Food and Beverage Section of the Expo.
The tools for marketing wine in mainland China greatly differ from those that are to be used in Hong Kong, a special administrative region and Asian business center with over 7 million residents living and working on a territory slightly larger than Tbilisi. Hong Kong actually dictates the trends within the Chinese wine industry. The Export Support Service proceeded to Hong Kong after the Urumqi event to engage in negotiations with the Independent Wine Center, Asias top marketing company in the industry. The president of the company, Simon Tam is the founding director of the Hong Kong International Wine and Spirit Competition, which processes nearly 1,300 entries from international wine companies per event.
“China has demonstrated an increased consumption of wine, and its production has been increasing too. Although the quality may not be able to compete with leading European brands at the moment, Chinese will be there some time in future. It is therefore a good time for foreign winemakers to develop the Chinese market, as well as in Hong Kong- well-positioned as a springboard to China; it is the place to start your campaign,” advises Tersina Shieh, IWC General Manager. The company tries to market wine through wine education and has completely untraditional, innovative tools to do it.
IWC has developed its own iPhone and iPad application “Flavour Colours, food and its own wine pairing methodology. Flavour Colours helps wine lovers, a large proportion of whom in Hong Kong, are connected to mobile networks and the internet through Apple products, to receive practical pairing suggestions fast, and in real-life situations. “For example, you're in a Chinese restaurant”, reads the IWC website, “… and thinking of having roast pigeon. But what wine will go with it? In seconds you select the dish and Flavour Colours shows you five matching wines. If the restaurant doesn't have those wines, tap again to see another five. Even if the wine list is short, you will quickly find something that matches. You're in a wine shop and you want to buy a Burgundy. But what dishes might you prepare to accompany this wine? You rapidly look up the wine in Flavour Colours and receive five matching dishes. Don't like those? Tap for five more”.
The Flavour Colours pairing concept is the idea of Simon Tam, a leading Greater China-based food and wine expert. The concept considers taste holistically: not just the science of four basic flavours but also seasonality, our mood and our individual expectations of what will make a good match. Flavour Colours divides wine and food flavors into just four categories: blond, ivory, tan and brown. By accurately defining which color tone each food and wine belong to, pairing them is made simple and is 90% accurate.
Wines can be browsed within the application via country or region. Georgia is not yet on the list and the GNIAs Export team is eager to make it just one click away for Asia.
