The "Wine in China" case discussed four potential options for entry into the Chinese market. Each option came with a number of risks, so I wanted to determine if there was an option that leveraged some of these elements while de-risking the proposition even further.
Hospitality seems like a potential natural entry point into the Chinese wine market. Hotel chains in China run by U.S.-owned companies could be a really interesting target. These hotels have already spent time understanding the Chinese business market. These hotels also have a staff on the ground that could support sales before you have to staff up an FTE on the ground. Further, there is built-in real estate where a tasting room could be located, which would add a quality amenity to the hotel property. Finally, the hotel restaurant could serve this wine in their restaurants and bars. The range of promotional opportunities and the space for DTC sales makes this very appealing for a wine brand.
Would this be a good fit for Frederick Family Vineyards? At the start of the case, it mentioned that Anne Bartlett had spent time in hospitality, so she would have the experience in that market. Additionally, the brand may get access to international markets beyond China through travelers moving through the hotel, which could help refine an even broader international strategy. Finally, this would offer built-in sales to the hotel that are relatively guaranteed, de-risking the choice to not sell bulk grapes.
I'm certainly not an expert in the hospitality market in China, so I would love to hear others' thoughts on whether or not this would be a viable option!
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