Chinese Wines: Price Control and Distribution Channels Needed

Today we will focus on some real feelings and thoughts when the wine retailer interacts with the domestic wineries.

The author is engaged in wine sales for more than 10 years, mainly related to imported wines, and more interaction with foreign wineries. While the domestic wines are growing, they have become one of the options to purchase.

However, it is a two-way story from retail sales: First, how’s the quality of domestic wines? Secondly, what are the perceptions and expectations of the consumer groups for the domestic fine wines?

Thus, let’s talk about the consumer perceptions of domestic fine wines, based on commodities, prices and services.

Whether a wine is finally purchased by a retail store must be based on its product attributes, price and service to meet certain standard in order to fully meet the customer’s demand.

The Value of Some Domestic Fine Wines Can be Comparable with International Standards.

From the perspective of product understanding and cognition, we feel that some very good domestic wines appear in the market. While gradually getting recognized, domestic wines still has some fragmentation. It may come from the lack of complete understanding or some other reasons.

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In the process of selling domestic fine wines, the quality and price of the wines are equally important. Quality and price refer to wines with a retail price of more than 200 yuan, which can be compared with the international wines in the same price range. The price of 200 yuan is not only for Chinese, but internationally. Based on this, we can proudly recommend Chinese wines to consumers, and we hope that everyone will recognize and give opportunities to domestic wines from this moment.

How much you want to purchase for a wine retail priced 256 yuan in your store? For me, 105-125 yuan is the expectation, the closer to 105 yuan, the more competitive. Of course, this does not mean that 105 yuan determines the competitiveness. After thinking about products and prices, the most important consideration will be consumer service.

Some Wineries does not Pay Attention to Price Control

When I went to Xinjiang three years ago, I have purchased wines from two domestic Xinjiang wines from the winery. I bought them and sold them. The retail pricing of domestic wines is very limited compare to imported wines in terms of their purchasing price. For example, a retail price of a white wine is 256 yuan. Its purchase price is about 55% or 60% or of the suggested retail price, which is between 140-155 yuan.

I don’t have problems when I want to share some wines. However, in the process of promoting the winery market, the price of online exposure was not synchronized with the suggested retail of 256, and various price ranges between 198 and 256 yuan are seen most often.

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The price situation makes us to ask: why your wine? under the condition that there are many SKUs to choose. With the same good taste, considering of price range and market-assisted conditions, we would like to choose other wines.

Lack of Effective Distribution Channels for Retails

Before going to Ningxia last year, I always had a problem in my mind. If I decided to sell the wines from Ningxia, what would be the most serious problem? Finally, I found out that the biggest conflict between retail stores and products was the lack of effective distribution channels.

To give a simple example, if the store starts to sell wine from a country or a production area, only one brand or one single winery does not constitute a complete product serie for the store. What is the complete product serie? It should be composed of medium and low priced products, both dry white and red wines, better to have two wineries and 5-10 SKUs.

Why is that? It is very important for the store to give customers enough choices. You can have a focus to sell which will definitely affect the customer’s needs, but it is important to offer a range of choices.

However, according to the minimum of 2 wineries and 5 SKUs, it is impossible to find a matching supplier in Hangzhou. What about purchasing from the winery? It is also impossible because the retailers are unable to purchase large quantity.

The above content only represents my feelings when sell domestic fine wines. Hopefully in the future, more and more domestic wines will be in the market!

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