Bring out the bubbly(2)
Hong Kong-based Watsons' Wine Cellar will open its first mainland store in Shanghai in October, according to Janet Wong, business development executive of Watsons' Wine.
There are already some wine chains here run by wine importers like Aussino World Wines, Jointek Fine Wines and King Oak Cellar. Dynasty Winery, China's third largest wine producer, also launched a wine shop in Shanghai last year.
"Aussino and Jointek are very similar, focusing on French wines and with a style of shops that is targeting traditional customers," Fernández said. "Watson's is more modern but lacking a bit of what the Chinese customer needs, which is a place inside the shop for tasting and experiencing wine."
He is optimistic about wine chains in China. "Retail sales will keep growing since more customers will like to buy wine for drinking at home or for enjoying it in gatherings or for gift-giving," he said.
Wine gets bubbly
In China, however, wine is not only a drink but also a symbol of wealth and prestige.
"Chinese consumers have specific preferences toward luxury wine brands, especially when it comes to business dinners and gift-giving," Li said. "This boosts the prices of Bordeaux."
Lafite is the most celebrated wine brand in China. As the Mid-Autumn Festival nears, a Hangzhou-based gift company even released gift packages of Lafite wine with 10 crabs, ranging from 12,800 to 49,800 yuan ($1,890.56- $7,355.46).
"The price of Carruades De Lafite, the second wine under Lafite Rothschild, has increased by four times from 700 yuan ($103.39) to 3,000 yuan ($443.10) in the past four years," Li said.
Li said among more than 10,000 wines he tasted, the most expensive one is Romanée Conti. "You can find it in Beijing's BHG Market Place in Shin Kong Place, and it costs about 200,000 yuan ($29,640)."
Some experts are skeptical about the price of imported wines, partly boosted by investors and speculators. Xie Guozhong, an independent economist, wrote last month that "fine French wine, gold and China's residential property sector reached new highs in 2009," and "Chinese buyers are the force behind this positive trajectory for French fine wine."
Fernández said there are some distributors putting excessively high prices on mediocre imported wines, and the phenomenon has even hit local wines, with some companies or individuals faking the vintage on the label.
"This practice will slowly disappear as soon as Chinese consumers start to discern quality and taste more brands from abroad," he said.
