Global Dynamics of the Wine Industry Winter 2018: Red obsession

Thursday, January 25, 2018

Red obsession

Last week's case of Domaines Barons de Rothschild referenced its expansion into the Chinese market. With the rapid economics development in the past decades, China has become one of the biggest importers of wines from the Bordeaux region of France. The red obsession is undeniable!

Among Latour, Mouton-Rothschild, and many other fine Bordeaux wines available in China is Lafite. Lafite is unambiguously the synonym word for luxury Bordeaux wine in China and a pop culture symbol of 'social status' and 'power'. The unparalleled marketing success of Lafite in China is easily proven as HK mobster films and Mainland Chinese TV shows frequently feature a bottle of Lafite in the fine dining scenes (see screenshots).

What makes Lafite truly stand out compared to other Premier Cru? The legendary vintage years (e.g., 1870. year of comet) combined with the low volume makes Lafite 'investment grade' and sought after in secondary market. In addition, my hypothesis is that 'Lafite' is phonetically an easier word for Chinese consumers to pronounce, in contrast to other long French names. This unique advantage comes in handy for its branding success in the Chinese market.

1 comment:

UnknownMarch 23, 2018 at 9:35 PM
Steph - I just watched this documentary! I thought this clip attached was especially interesting. It discusses how high end wines signal not only status and "face", but also knowledge. Bordeaux is even more luxurious in China than Louis Vuitton or Hermes given you can always acquire more materials, but you cannot always grow great grapes. https://video.bonappetit.com/watch/red-obsession-ep-3?c=series
ReplyDelete
Replies

Add comment

Course Description

This course will examine the world of wine with a fresh and contemporary lens. It will explore the market dynamics of this fascinating global industry. The goal of the course is to provide insight into the branding, marketing, and distribution dynamics that shape what consumers can buy and consume with a focus on the strategies of some of the world's leading wine brands. Attention will also be paid to the legal, regulatory, and market dynamics that define the U.S. wine industry as well as to issues of contested authenticity in the world of wine.