Page 24 - Sphere No.28 (Mar 2011)

22 Sphere
2009 to HKD4.67 billion (approximately USD600
million).
Red wines account for 80.6 per cent of the
consumption of all still non-fortified wines drunk
in Hong Kong, while white wines represent 16.1
per cent and rosé 3.3 per cent – not-
withstanding many proven suc-
cessful pairings of white and
rosé wines with Chinese
cuisine. All market
segments are growing,
but between 2009
and 2013 red wines
are expected to
grow faster than the
others.
Similarly in China
red wine consumption
accounts for 88 per cent
of the overall consump-
tion of wine, but with the
increase in women’s interest,
white is also growing. Between 2009
and 2013 the consumption of white wine is
expected to expand by more than 40 per cent.
Although consumption of high end wines is
French-dominated – the leading Bordeaux Cha-
teaux are recognised as lifestyle defining brands
in the same way as Louis Vuitton and Mercedes-
Benz – wine made, or at least bottled, in China
still dominates the market, accounting for almost
90 per cent of national wine consumption.
They are expected to grow at a
rate of 26.7 per cent be-
tween 2009 and 2013.
The market for
imported wines
however is
growing faster. Their consumption in-
creased fourfold between 2004 and 2008,
and is expected to grow by 65.6 per cent
between 2009 and 2013, reaching 16.765
million cases and accounting for 15.8 per
cent of consumption of all wines.
Watson’s has been plan-
ning its entry to the
China retail market
for some time. The
company already has
a wholesale presence
in Beijing, Shanghai
and Guangzhou, and
it was determined
that Shanghai should
be the first city on the
Mainland with its own
Watson’s Wine store. It
opened in December.
“It is in Xintiandi and it’s
in a heritage building, a stone
house or Shi Ku Men, and as well as
all the restaurants in that area, and us, there are
now Cartier and Louis Vuitton, and the Langham
Hotel. It has become a really premium up and
coming area and we think it’s a great spot,” said
Mr Hepple.
The store, which is one of the first to reflect
Watson’s Wine’s new design concept (see sidebar),
occupies two stores spread over 1,500 square feet,
and includes a tasting area and two separate sec-
tions for high end fine wines.
Watson’s Wine is now the agent in China for
the Domaine de la Romanée-Conti, one of the
greatest estates in Burgundy and an iconic French
brand.
“The level of maturity and sophistication in the
wine market is at a higher level in Shanghai than
in Beijing. That’s probably the next step, but we’ll
prove ourselves in Shanghai first. We’ll focus on a
few more stores in Shanghai next year, if we can
find the right locations,” said Mr Hepple.
The store carries no Chinese wines, which
according to Mr Hepple are regarded in China
“more as a commodity”, and like the Hong Kong
branches is focused on the higher end wines
which have been identified as the fastest imported
growth category in the near to medium term.
“We think we’ve chosen the right time to enter
the market,” Mr Hepple concluded.
The level of maturity
and sophistication in
the wine market is at a
higher level in Shanghai
than in Beijing
A comprehensive brand
makeover includes a
new premium look for
the stores – a fusion of
modern elements with a
heritage feel.