Education is key to boosting Argentinean wine sales in China
Argentinean winemakers are losing market share to competition from both the old and new world in the booming Chinese market, and educating consumers about wine from the South American country is the only solution, according to industry analysts.
Argentinean wines, which had enjoyed steady growth a few years ago have recently been stuggling to keep up with its rivals, with exports to China and Hong Kong plummeting. The country’s share of the Chinese wine market only accounts for 1.1%, overshadowed by its neighbour, Chile, which has a 9.5% share, according to data from China Association for Imports and Exports of Wine & Spirits.
“There are too many choices of wines available in Hong Kong; wines from other wine countries are eating up the share of Argentine wines gradually,” said Jennifer Luk, a Hong Kong-based wine consultant and Argentine wine educator, after hosting a seminar on Argentine wines last week, part of the World Malbec Day event organised by Wines of Argentina and Consulate General of Argentina in Hong Kong.
Juan Antonio Barreto, consul of the Argentine Consulate in Hong Kong, agreed and added: “There’s a lot of competition from New World wines like Australia. Australia has the main share of the market because of proximity so we will have to double our efforts to make Asian consumers learn about Argentine wines.”
Chilean and Australia wine producers have been helped in recent years by their Free Trade Agreement with China, while Argentina is still subject to the swingeing 14% tariff.
The Chinese perception that Old World wines are superior to those from the New World has also hampered Argentina’s progress in China. In addition, lack of product availability and visibility has not helped Argentina’s cause either, said Luk, while understading of Argentine wines is very low.
“There’s still a lot of room for Argetine wine,” she said.
This view was echoed by Barreto. “I think the key is to dedicate our limited resources to educate and let consumers know that there’s another wine producing country in South America, particularly Argentina,” he said. “Comparing the price and value with other wine regions in the world, Argentina has a niche to enter the market.”