positive picture for the high-end wine market in China
By 2012-2-21 15:57:56
The sharp drop in the price of the legendary wine Chateau Lafite hit a bottom in 2011 and the price has registered a slight increase, according to a report from a Chinese wine exchange.
The 2012 Wine Investment Market Annual Report from the Shanghai Wine Exchange says the prices of high-end fine wines underwent a long-term adjustment and decline in 2011. However, they will return to an upward trend this year, with an annual rate of growth of more than 15 percent.
The prices of Chateau Lafite Rothschild, which peaked between 2009 and 2010, declined significantly last year, to the surprise of many investors.
"The price decline started in October and ended in December," said Wang Jiaqi, the business development director of the exchange, which was founded in 2011. "High-end wines, including Chateau Lafite-Rothschild, have seen price growth of between 2 and 3 percent since January."
The prices of high-end wine, the majority of them Lafites, slumped between 50 percent and 80 percent, with some vintages down by between 100 percent and 200 percent, Wang Xinliang, of the Beijing branch of the Shanghai Wine Exchange, told the New Express Daily.
Wang Jiaqi saw the decline in Lafite as a natural market correction. "It is reasonable to see the price fall after becoming a bubble," she said.
The report said a sluggish global economy and China's tightened fiscal policies have had an impact on the market for fine wines.
The emergence of brands from other renowned vintners, coupled with the rise of counterfeit Lafite, have also pushed prices lower, according to industrial insiders.
However Wang predicted a positive picture for the high-end wine market in China.
"Although we don't know the short-term development clearly, we have reached a common conclusion that the outlook for the consumption of wine in China in the next five to 10 years is very bright," she said.
"The story of how Lafite became highly sought-after by the nation's newly rich after 2009 can be applied to other high-end wines, as the market has matured."
The report saw great demand potential for fine wines in China. The import volume of bottled wine rose continuously in 2011, reflecting an expansion in consumption from existing buyers in the southeastern coastal cities to new investors in first-tier cities in the central and western regions.
"Fine wine is a sound alternative investment for investors to diversify their portfolios," said Wang Jiaqi.
The 2012 Wine Investment Market Annual Report from the Shanghai Wine Exchange says the prices of high-end fine wines underwent a long-term adjustment and decline in 2011. However, they will return to an upward trend this year, with an annual rate of growth of more than 15 percent.
The prices of Chateau Lafite Rothschild, which peaked between 2009 and 2010, declined significantly last year, to the surprise of many investors.
"The price decline started in October and ended in December," said Wang Jiaqi, the business development director of the exchange, which was founded in 2011. "High-end wines, including Chateau Lafite-Rothschild, have seen price growth of between 2 and 3 percent since January."
The prices of high-end wine, the majority of them Lafites, slumped between 50 percent and 80 percent, with some vintages down by between 100 percent and 200 percent, Wang Xinliang, of the Beijing branch of the Shanghai Wine Exchange, told the New Express Daily.
Wang Jiaqi saw the decline in Lafite as a natural market correction. "It is reasonable to see the price fall after becoming a bubble," she said.
The report said a sluggish global economy and China's tightened fiscal policies have had an impact on the market for fine wines.
The emergence of brands from other renowned vintners, coupled with the rise of counterfeit Lafite, have also pushed prices lower, according to industrial insiders.
However Wang predicted a positive picture for the high-end wine market in China.
"Although we don't know the short-term development clearly, we have reached a common conclusion that the outlook for the consumption of wine in China in the next five to 10 years is very bright," she said.
"The story of how Lafite became highly sought-after by the nation's newly rich after 2009 can be applied to other high-end wines, as the market has matured."
The report saw great demand potential for fine wines in China. The import volume of bottled wine rose continuously in 2011, reflecting an expansion in consumption from existing buyers in the southeastern coastal cities to new investors in first-tier cities in the central and western regions.
"Fine wine is a sound alternative investment for investors to diversify their portfolios," said Wang Jiaqi.
From China Daily