The experience of New Zealand in the evolving wine markets of Japan and Singapore

Abstract

Purpose – The purpose of this paper is to explore the developing wine markets of Japan and Singapore for New Zealand (NZ) wine. It is principally an opinion piece with some reference to the academic literature, to the trade literature and quite a bit of the authors' own experiences as marketing academics conducting research in East Asia on the growth of wine drinking in this region of the globe. Design/methodology/approach – This paper is atypical in that it is more of a descriptive commentary, or “Viewpoint”, that draws on the literature interspersed with the autoethnographic reflections regarding the experiences in looking at NZ wine in Japan and Singapore as well as drawing on data from face-to-face interviews and focus groups with a variety of participants with knowledge of the global wine industry. Informal meetings were held with individuals representing NZ wineries, Japanese and Singapore wine distributors, restaurant food and beverage managers, wine journalists, wine shop proprietors and sommeliers data. Personal reflections and opinions are interspersed with the trade and academic literature in relation to the exploration of the NZ experience in the wine markets of Japan and Singapore. Findings – The major finding is that there are marked differences between Japanese and Singaporean consumers and that the adoption of wine drinking or the incorporation of wine into one's non-traditionally wine-drinking society involves individuals who play cultural intermediary roles as communicators and distributors of “cultural products” and as translators of cultural products into meaningful local, consumption experiences. Based on personal observations, there appears to be a functional aspect to this facet of globalisation in that cultural intermediaries facilitate the adoption of wine consumption in emerging Asian markets simply through promoting it as a social accompaniment much like local alcoholic beverages, but also that wine has the capacity to enhance local cuisine. Practical implications – The insights gained through personal reflection and an examination of perspectives from participants with knowledge of the wine industry in Japan and Singapore should help NZ wine producers with specific knowledge to navigate through the complexity of emerging wine markets in the Asian context. Originality/value – The contribution is in looking at “sophisticated globalization” in the context of NZ wine producers looking to market a cultural product such as wine to specific Asian societies not traditionally known for wine drinking.

Sparkling Wine International Market Structure and Competitiveness

“…Japanese market shares fluctuated until 2013, when a period of slow continuous growth began, resulting from consumption habit changes. The people began to view wine as a daily drink, and became increasingly curious about higher quality wines (Corsi et al, 2013), which generated an increase in sparkling wine consumption, especially among women (Rod and Beal, 2014). Germany, despite presenting a constant fall, starting with 11.5 points in 2004 and experiencing fluctuations between 2006 and 2011, continued to be a strong importer, due to having sparkling wine as an occasional celebratory beverage (Dressler, 2018).…”

“…Features: fluctuates between its lowest mark, 0.92 points, and its highest mark, 0.97; the results indicated France as the world's largest exporter of sparkling wines. (Rod and Beal, 2014). -Australia: The country's figures showed that, in the first year of the analysis, it was classified as a reexporter.…”

Tariff Elimination and the Competitiveness of Wine-Exporting Countries in Japan

“…Japanese wine preferences are influenced by demographics with differences due to age, income, region, consumption frequency, and total expenditures (Bruwer and Buller 2013). Rod and Beal (2014) note that wine is viewed as an iconic symbol of globalization in Japan and consumers tend to favor French wine due to its global standing. The same associations and preferences for French wine are apparent among Chinese wine consumers (Muhammad et al 2014).…”

“…In 2006, Japanese wine consumption was 1.9 liters per capita but rose to 2.6 liters per capita in 2018. In Italy, for instance, consumption is 45 liters per capita (Rod and Beal 2014; Aoki and Negishi 2019).…”

“…By 2014, the volume increased to over 180 million liters (approximately $1.1 billion), which is a 175 percent increase in volume and a 288 percent increase in value. During this time, there was a spike in imports in 1998 linked to a boom in red wine demand after a series of studies alluded to the health benefits of consumption (Rod and Beal 2014; Aoki and Negishi 2019). The subsequent fall was due to the Asian financial crisis (Corsi, Marinelli, and Sottini 2013).…”