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Why is Hong Kong such an important wine and spirits hub in Asia?
Hong Kong has a number of unique attributes that makes it an important wine and spirits hub in Asia. There is zero import duty on wine which makes it very easy to import and re-export. It also makes the importation of samples for events and exhibitions simple and quick. 170 nationalities can travel to Hong Kong visa-free - so bringing people and products together here is easy.
All the key fine wine traders are present with local and regional offices in Hong Kong, including the major international auction houses, due to the ease of trading – moving money and stocks in and out of Hong Kong can be done relatively stress-free. Hong Kong’s rule of law protects business and consumers and all legal and commercial paperwork can be completed in English. There is a great deal of trusted wine and spirits expertise here too.
Hong Kong is right next to mainland China so shipping wine to the mainland can be a door-to-door process – no need to pack wine onto a shipping container and send by sea freight.
What are some of the benefits and opportunities that this market holds for wineries and trading houses today?
Hong Kong’s future first as a financial hub is secure and this critical asset will help drive greater integration into the Greater Bay Area. The growing cultural exchange with mainland consumers also helps the wine and spirits industry. The GBA is a rapidly developing region of south China with a collective GDP similar in size to Italy. Hong Kong serves as a major gateway to the region so trading ties and cultural exchanges will grow.
Social media is important but there is no substitute to opening bottles. Those who are active now will ride the wave of recovery when it comes.
How has the Asian wine and spirits market changed over the last few years? What are some of your predictions for trends in the near future?
A growing middle class in many emerging economies has driven demand in recent years and a thirst for imported products has benefited the wine and spirits industry. When I arrived in Asia in the early 1990s it was hard to imagine how consumers here would afford to buy imported wines and spirits (aside from the developed markets of Japan, Hong Kong and Singapore). The evolution has been rapid, and what encourages me most is that consumers today are passionate about the product and drinking more of what they enjoy rather than just drinking big names. The diversity on offer in a wine bar in Shanghai or Shenzhen these days, for example, is staggering.
Consumers are keen to explore and the demand for wine and spirits education is extraordinary. We are seeing more white wine consumed in many parts of Asia which also shows a level of maturity in the market. This development will continue with consumers increasingly looking for authenticity and a story behind the wines and spirits they drink. This will benefit brand owners who engage with consumers on a personal level.
What are some of the main priorities buyers from Hong Kong are looking for?
Consumers are looking for value right now so buyers in retail in particular must work hard to provide that. There is little brand loyalty – consumers are less concerned about where wines or spirits are made, but they want quality at a price below their normal spending habit. Never easy. We have already seen more curated wine lists in restaurants and bars appearing in many parts of Asia where sommeliers are working hard to bring excitement as well as value for money to their clients. It's a time for brand owners to be busy. Social media is important but there is no substitute to opening bottles. Those who are active now will ride the wave of recovery when it comes.
When asked what visitors could expect from the panel discussion “Hong Kong and The Greater Bay Area: Consumer Trends, Challenges and Opportunities for the Industry”, Rob Temple emphasised the level of expertise the discussion would bring to he table: "We have a great panel of veterans of the trade to speak with. We start with a consumer survey kindly provided by Phil Chan at YouGov, the most trusted survey company in the World. We've asked consumers in Hong Kong and the Greater Bay Area about their spending habits. It doesn’t matter whether the market is up or down, we always need to understand what consumers think."
Beyond this panel, Rob Temple was enthusiastic about the importance of Vinexpo Asia as a whole, especially as he clearly noted: "Nothing in Asia is more important than meeting face to face, particularly in business." He added that what he enjoys most about Vinexpo Asia is "the professionalism of the operations and the premium quality of the presentation. It works smoothly and efficiently in an environment that is comfortable for business."
28 May 2024 / CONFERENCE
Hong Kong and The Greater Bay Area: Consumer Trends, Challenges and Opportunities for the Industry
香港及大湾区-消费者趋势调查/葡萄酒及烈酒业的挑战及机遇
2:00p.m. - 3:30p.m.
