The expansion of wine sales to China worked quickly for Mayer at Pfarrplatz in 2013. It went well. But suddenly a plagiarism of the winery's brand appeared on the market. The winery name was copied, but the composer Johann Strauss was depicted on the label. The original still bears a picture of Ludwig van Beethoven, who had lived for a time in the Mayer's main house on Pfarrplatz. This had never happened before in Austria, so not only the wine media but also the daily newspapers reported on the case. Shortly afterwards, even the Chinese embassy in Vienna offered to mediate. "In the Chinese legal system, there was little chance of clarification at the time; it was not worth the high financial outlay for us," says Paul Kiefer, export manager of the renowned company. The fact that only the best and most sought-after wines are counterfeited in China, as country experts like to point out, was little consolation for those involved. They decided to stop exporting. In the meantime, however, the winery is again working with an importer in China. But the basic problem remains, Paul Kiefer emphasises: "We don't know who buys our wine locally. We only very rarely know the sommeliers who work with our wines, the distribution structures are hardly traceable."
"We don't know who buys our wine locally. We only very rarely know the sommeliers who work with our wines, the distribution structures are hardly traceable."
It could be that a trader orders a new container after just one month, but it could equally happen that he never orders again. "This means I can't plan quantities or investments for China," Kiefer sums up, "this is a huge difference to the other export countries where I know my partners and many customers personally and build up a close relationship over years." He recommends only working with an importer who runs the wine business professionally - and not with one of the countless distribution companies that only deal in wine because they sense a new business model in it. His current business partner, for example, has put together his own sales team in a short time. However, the employees are only paid a commission per bottle sold, so the long-term relationship is difficult to build, he says: "If another winery offers more, there is a danger that your own wine will suddenly no longer turn over at the same speed."
Further, he says, one has to be aware that China is a very brand-affine market, shaped by the marketing departments of international corporations: There is no assessment of how much a Chateau wine from France is really worth for three euros purchase price. What is important for the perception is above all a heavy bottle, a lot of gold on the label, high ratings and the corresponding advertising.
Perhaps some winemakers know it: emails that begin with "Dear Sir or Madam" and announce that one would be interested in importing wine to China. "Forget it," says Paul Kiefer, "I don't even reply to that kind of thing anymore." If no URL, no email address and no contact person are recognisable, there is no point in responding. But if you do, Kiefer says it's easy to filter out serious enquiries: "Serious business partners pay in advance and take over the fees and costs that are incurred in China. Otherwise there is a great danger of being left holding the bag."
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Paul Kiefer therefore recommends not only focusing on mainland China. "It is easier to do so in Hong Kong or Taiwan, because the people there are very strongly oriented towards the West. And there are also many millions of potential customers living there," reports the export manager. "When I think about how well the USA has developed as a market for us! The 20 years of building up the wineries and Österreich Wein Marketing (ÖWM) are clearly noticeable there. In a country the size of China, however, our marketing budgets fizzle out like the familiar drop in the ocean."
Wine is currently only drunk by a very small percentage of the population in China. But since a lot of wine is now produced in the country itself and the cuisine is highly developed, this could change in the future very much: What would happen, for example, if the countless Chinese restaurants around the world also sold Chinese wine? Just like Italian wine is offered in every pizzeria? The acceptance of wine among Chinese residents would presumably take on unprecedented proportions. "As a Viennese winery with Viennese cuisine, we see that the combination of wine-growing region and culinary offerings of the same name is a huge advantage," Paul Kiefer confirms.
So anyone who gets involved in China needs a long-term perspective. After all, exporting to China only pays off for European wineries when a certain volume is reached: In the entry-level segment, you need at least ten sold pallets, i.e. 6,000 bottles or a 20-foot container, to cover the costs of a visit to the country. Therefore, the business is hardly profitable below two containers per year. The situation is different when working in the premium segment with expensive red wines or specialities like sweet wine. Ice wine, for example, is in great demand and pays well. But to keep your wines in the conversation and to train and support the frequently changing sommeliers and F&B managers, you would often have to travel to China. The alternative is to hire an experienced, specialised agent. Or you find one of the few good importers to take care of it. Both are time-consuming and laborious, costing time and money. But if you find the right way and the right partners, you can develop good business in China today.