Private Label (OEM) Wine Is Damaging The Reputation And Credibility of Imported Wine To Chinese Cons
Most Chinese don’t read and comprehend foreign languages, not to mention the sophisticated wine labels which are made in French, Italian, Spanish, etc. Even in English, it is still about the same difficulty for Chinese wine drinkers to understand the imported wine, the grape varieties, the geographic indication, etc. if without the help of a Chinese back label (demanded by Chinese import rules) on the bottle to provide the essential wine product information in Chinese language to wine consumers for reference.
In the old days (before 2010), wine traders (importers and distributors) could easily make a fortune on selling imported wine in China, then the wine business became more and more challenging as many more players entered the wine business for her high profit margin potential.
This fierce competition had driven the imported wines’ price down. Wine traders could no longer make high profit margin liked in the old days. With the popularity of imported wine consumption, consumers were getting smarter, they know from where to seek and search the information of an imported wine (China has the most internet population in the world (read this article for detailed information) especially the pricing information which draws their most interest and concern).
This pressed the wine traders to look for buying private label wines from volume wine producers, so consumers could no way find out the genuine information of a label (original brand) wine from a wine producer (winery). Sadly most (if not all) of these imported private label wines, their prices were below @EUR2,00 (mostly between €1 to €1.50 per 75cl bottle). And importers now even accept to provide private label wine orders to smaller distributors in only a quantity of 1,200 bottles, or 2 pallets (then they could have their own branded wine to sell).
The market was flooding with these kinds of private label wine, and of course this can’t demand on quality requirement, which eventually makes an impression and perception to consumers that imported wine was not easy to tell their quality just based on their pricing to make the judgement (badly this low-priced OEM wine may not necessary sell at low price).
This kind of wine-trade act and behavior really strangles the imported wine reputation and makes serious damage to those good-conduct wine businessmen who are seriously built and incubate a sustainable imported wine business in China.
It looks that in short term the greedy of this wine trader group is not going to change (at least not in 1 to 2 years, and even longer), so if, on the position of a wine producer, will you consider to do something to regain Chinese wine consumers’ trust and confidence to your quality-produced wines by establishing, deploying and building a wine sales channel directed to end-user customers. ChinaWineBusiness.com is launching a service to help wine producers to achieve this goal. Interested parties could contact me at ChinaWineBusiness@gmail.com to learn of the details.