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How To Develop a Wine Brand in China

21/01/2019

It’s important to develop a recognizable wine brand to stand out in the minds of tens of millions of wine consumers across China.

Selling wine in China has become a very competitive business, with a reported one million different wine brands vying for shelf space in retail stores, hyper-marts and convenience stores. In order to stand out from the crowd and differentiate your wine in the minds of tens of millions of wine consumers across China, it’s important to develop a recognizable wine brand. Here’s what you need to know about developing a wine brand in China.

Create Experiences Around Your Wines

The most popular types of experiences are wine tastings, which are now quite popular in major cities like Beijing or Shanghai. These events, which tend to attract younger millennial drinkers curious about international brands, are a great way to create a unique experience around your wine brand. If you are looking to establish your wine brand as a luxury, prestige brand, then every aspect of the experience should help to communicate and tell that story.

Wine tastings are so important because China is still a relatively young nation when it comes to wine culture. While the history of winemaking in China dates back centuries to the great imperial dynasties, it is only since 2001, when China entered the World Trade Organization (WTO), that modern wine culture in China emerged. At that time, prestige French producers from Bordeaux led the way, and the common perception in China at the time was that the only wines worth buying were expensive, high-end Bordeaux red wines, preferably from a recognizable producer like Lafite. Even today, Lafite Rothschild remains one of the most recognizable, famous and popular wine brands within China.

So, as a relatively unknown wine brand, you need to think of ways to tell your story in a creative way that helps to overcome the perception that only French red Bordeaux matters. The good news is that there are plenty of new ways to tap into events, such as new trade fairs, wine competitions, and wine expos that now take place in Shanghai.

Tap Into Emerging Online Communities Of Wine

Especially amongst the new millennial wine drinkers of China, there is a growing sense of community around wine. There’s perhaps a no better way to see this in action than on B2C websites like YesMyWine or Vinehoo. Unlike larger, more popular e-commerce platforms like Tmall.com, e-commerce sites such as YesMyWine and Vinehoo function much more like online communities of wine enthusiasts, complete with a very robust social media presence. Vinehoo, for example, now conducts “flash sales” for members.

According to China Wine Market, there are now 48 million wine enthusiasts in China who regularly drink wine. And YesMyWine is now estimated to have more than 6.6 million members, making it the world’s largest imported wine sales platform. That’s a very good sign for emerging wine brands, which can piggyback on the phenomenal growth in this younger demographic market.

Partner With Wine Experts And Key Opinion Leaders (KOLs)

In China, much more so than in Western markets, online influencers play a very important role in building links between wine brands and wine drinkers. In part, that is because wine is still a relatively new luxury good in China, and consumers are counting on these influencers to do the initial market research for them. And, in addition, wine is very much seen as being part of an attractive, up-market lifestyle that appeals very much to young millennials, many of whom see wine as a form of social status or social cachet. In fact, Key Opinion Leaders are so important in China today that national trade associations like Wine Australia are working directly with them, eager to see if they can help to increase the prestige of international wine brands within China.

Sell Wines Online Via E-commerce Marketplaces

Instead of focusing on gaining distribution for your wines via brick-and-mortar retail stores, why not focus instead on gaining traction for your wines via giant online e-commerce marketplaces, such as Tmall.com? On Tmall.com, it’s possible to create a dedicated online storefront for your wines. For example, Wine Australia has created a dedicated online storefront on Tmall.com as a way to highlight popular Australian wine brands directly to buyers. According to one study, 69% of young wine consumers look for brand information online. Thus, make sure that you provide detailed descriptions of your wines, both on your home website and on any e-commerce marketplaces where they are featured.

Leverage Chinese Social Media Platforms

For any wine brand looking to gain momentum in China, social media needs to be a key part of the overall digital marketing mix. Right now, two of the hottest social media platforms include Weibo and WeChat. It is becoming increasingly popular for brands to establish a digital presence on these platforms, much as they do in Western markets with Twitter, Facebook and Instagram.

Use Video For Storytelling About Your Brand

One of the hottest online trends right now in China is live video streaming. New video platforms like TikTok are starting to take off, and so one of the best ways to tell stories about your wine brand is via video. Here, it’s important to have a good first-hand knowledge about what Chinese consumers are talking about, and what types of content are engaging them. For example, short, amusing or funny content is going to do very well online. So don’t be afraid to take a light-hearted approach to market your brand to young Chinese wine drinkers. This works particularly well with Australian wines, which have a much more laidback image than wines from France or Italy.

Emphasize Any Awards Or Medals From International Competitions

Since many Chinese still equate wine with luxury, prestige and status, it’s perhaps no surprise that any “proof” of quality and prestige is going to get a positive reaction from Chinese wine drinkers. If your wine has won a medal or award in the competition, that’s something that you can highlight as part of your overall digital marketing. If the wine competition happens to take place in China (such as the upcoming China Wine Competition in Shanghai), all the better. This is a great way to acquaint Chinese consumers with unfamiliar wine regions or up-and-coming wine brands.

As can be seen above, online marketing is a key element in building a modern wine brand in China. The scale and scope of this online marketing need to be tailored for the unique needs of your brand. It can include partnerships with online wine communities and e-commerce platforms, or it can involve a digital presence on social media and outreach to Key Opinion Leaders. The main idea is to connect with consumers and build a reputation for quality. If you can do that, the sales will follow.