A glass half full

Young consumers drive growth

China is presently the third largest wine market in the world by value. According to a joint report released in February by Vinexpo, one of the largest exhibitions for wine and spirits in the world, and UK-based International Wine and Spirit Research, the growth rate of the Chinese wine market is forecasted to exceed 30 percent over five years starting from 2017. By 2021, China would become the second largest wine market in the world with a value of $23 billion, behind only the United States.

While the sales and export numbers of premium wines suffered after the Chinese central government rolled out a sweeping anti-corruption campaign in 2013, this incident had at the same time resulted in a boom in the mass segment as more importers and dealers flooded the market with bottles that cost below $20.

Attracted by the affordable prices, young consumers have since poured into the market. Guillaume Deglise, CEO of Vinexpo, said that these consumers have become one of the key growth engines for the Chinese wine market.

"There used to be a weird phenomenon in China's wine circle where people who buy don't drink, and those who drink don't pay. Today we are very happy to see a rise of 'real drinkers' who shop based on their own preferences. This is definitely a good sign for any market looking for organic growth," said Deglise.

A consumer survey by UK consultancy Mintel showed that a wine's origin is the most decisive factor for Chinese consumers when picking a bottle, and France, which is the largest wine exporter to China, is the most popular choice.

The 2017 survey, which polled about 2,500 young wine buyers, also found that wine standards or preferences have not emerged on a national basis, and that Chinese consumers have yet to develop a loyalty to brands. This means a level playing field for new entrants to the Chinese wine market like Raspaud.

"I am told that Chinese consumers want to be different and individualistic, be it in their choice of wine or fashion," said Raspaud, who hopes to brand his wines as such.

Comparing high-end wine brand Laite to luxury label Louis Vuitton, the Frenchman said that his winery would be the equivalent of an independent designer whose products are coveted by a small but passionate following.

He also pointed out that factors such as packaging and marketing matter more in China than in traditional markets like France or other European countries. As such, he has undertaken measures to redesign his wine labels exclusively for Chinese market. Last year, Domaine de Rombeau exported 60,000 bottles of wine to China. Raspaud is hoping to double the amount this year.