Tuesday, January 31, 2017

Brands vs. Wines

Brands are a big thing not just in China, but to Chinese people generally.  Even those that have immigrated to the states (my parents among them) are still fairly obsessed – whether it’s brand name schools (Harvard) or brand name careers (doctors).  In reading the case, this made me wonder what kind of shot a lesser known Napa Valley brand (at least in the Chinese context) would have in attracting consumers to give its wine a try.  As described, Chinese people also apparently drink their wines very quickly without taking the time to really taste it, which I think would only make the situation more challenging.  It appears that people consume brands, not wines.  In my view, any successful effort would necessarily include at least some form of a marketing component to build up the brand and generate pull-through sales.  Perhaps piecing together a network of boutique distributors, who have more incentive to promote a limited portfolio of wines, would work better than a larger player (assuming non-exclusivity).

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