The wine export market to China has been a rare opportunity to test so many premises and theories. The Brits had formed a relatively free market economy in the colony for everything except for gambling and spirits. Portuguese Macau has benefitted from Hong Kong's restriction on gambling (not to mention the preservation of morals in Hong Kong) and nobody was benefitting on the restriction on spirits. China gave the newly recovered colony even more freedom as it elected to eliminate the tariffs and restrictions on booze.
Now neither Hong Kong nor China was much of a wine drinker in 2008. With the change in the laws, there was a global shift in sales and storage of wine from Europe to Hong Kong. For several reasons I have laid out before here, Hong Kong started towards #1 in wine sales world wide, especially the auctions. I've also noted why USA had a bad reputation for wine in Hong Kong.
One reason, among many, USA wines have such tough competition is the tax laws in USA encourage rich people to open wineries. This results in misallocation of resources and malinvestment, to what degree, who knows. The market will sort it out at some point, in the meantime competition is tough. It is possible to have lots of money and bad wine, no money and good wine, and lots of money and good wine. (And I suppose, no money and bad wine, but then, we call that vinegar.)
Heading in and out of Hong Kong anyway, I did some research on the market for some associates, and got the lay of the land. But recalling from my youth when there was maybe 30 wine labels for sale in Washington state, and then by 1988, 18,000, I recollected that wine sales depended on education about wine. That began immediately in Hong Kong.
Educators began working the field, and the Hong Kong Wine Expo and competition even has a booth category of "wine appreciation/education."
One effort at market entry/wine appreciation which overcomes the problem of the bad reputation USA earned in wine exports, and to build market, is particularly good. A group of some 30 california wineries has opened a restaurant in Hong Kong that sells near 90 bottles of wine by the glass. But here is the clever part, they have reversed the traditional restaurant order of matching wine to food, and in this restaurant they match the food to the wine. You order a glass of wine you'd like to learn about, say a Riesling, and then the waiter will recommend what is on the menu you should eat with that. Brilliant exercise of ADD! They are opening a second restaurant.
Here is a video with comments below...
So this restaurant is both a platform to showcase wines and an educational venue. Brilliant.
Picky points form the video... I disagree about NY, it is over, like Venice once faded from glory. Try to open a wine bar in NYC... fogeddaboutit.... Hong Kong, as you see, no problem... When it is as easy to open a wine bar in NYC as Hong Kong then that will signal NYC is coming back. Don't hold your breath.
Of course he means artisanal wines not artesian wines. At first I though he meant artesian since water quality is an issue in winemaking, and that would be extra special. I replayed and he means artisanal, not artesian.
Competition is tough and great in Hong Kong. But competition means to strive with. Combat means to fight with. You cannot have excellence without competition. These guys have excelled by their competitiveness. Learning from their success, what is the next height to reach?
***John Spiers will be offering an all-day seminar on small business international trade start up at Orange Coast College, Los Angeles Area, June 29, 2013. Full info here...***
Feel free to forward this by email to three of your friends.
Now neither Hong Kong nor China was much of a wine drinker in 2008. With the change in the laws, there was a global shift in sales and storage of wine from Europe to Hong Kong. For several reasons I have laid out before here, Hong Kong started towards #1 in wine sales world wide, especially the auctions. I've also noted why USA had a bad reputation for wine in Hong Kong.
One reason, among many, USA wines have such tough competition is the tax laws in USA encourage rich people to open wineries. This results in misallocation of resources and malinvestment, to what degree, who knows. The market will sort it out at some point, in the meantime competition is tough. It is possible to have lots of money and bad wine, no money and good wine, and lots of money and good wine. (And I suppose, no money and bad wine, but then, we call that vinegar.)
Heading in and out of Hong Kong anyway, I did some research on the market for some associates, and got the lay of the land. But recalling from my youth when there was maybe 30 wine labels for sale in Washington state, and then by 1988, 18,000, I recollected that wine sales depended on education about wine. That began immediately in Hong Kong.
Educators began working the field, and the Hong Kong Wine Expo and competition even has a booth category of "wine appreciation/education."
One effort at market entry/wine appreciation which overcomes the problem of the bad reputation USA earned in wine exports, and to build market, is particularly good. A group of some 30 california wineries has opened a restaurant in Hong Kong that sells near 90 bottles of wine by the glass. But here is the clever part, they have reversed the traditional restaurant order of matching wine to food, and in this restaurant they match the food to the wine. You order a glass of wine you'd like to learn about, say a Riesling, and then the waiter will recommend what is on the menu you should eat with that. Brilliant exercise of ADD! They are opening a second restaurant.
Here is a video with comments below...
So this restaurant is both a platform to showcase wines and an educational venue. Brilliant.
Picky points form the video... I disagree about NY, it is over, like Venice once faded from glory. Try to open a wine bar in NYC... fogeddaboutit.... Hong Kong, as you see, no problem... When it is as easy to open a wine bar in NYC as Hong Kong then that will signal NYC is coming back. Don't hold your breath.
Of course he means artisanal wines not artesian wines. At first I though he meant artesian since water quality is an issue in winemaking, and that would be extra special. I replayed and he means artisanal, not artesian.
Competition is tough and great in Hong Kong. But competition means to strive with. Combat means to fight with. You cannot have excellence without competition. These guys have excelled by their competitiveness. Learning from their success, what is the next height to reach?
***John Spiers will be offering an all-day seminar on small business international trade start up at Orange Coast College, Los Angeles Area, June 29, 2013. Full info here...***
Feel free to forward this by email to three of your friends.
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