Wine traders expect rapid bounce back

With the abolition of wine duties in 2008, Hong Kong kicked off its transformation into the undisputed wine hub of Asia, drawing in traders and experts from across the world. Hospitality and catering-related industries have been under heavy pressure this year as a result of the COVID-19 outbreak but those in the wine industry are bullish that it will quickly revive. Fine wine expert Simon Tam believes the knowledge, experience and market demand built up over the years will hold Hong Kong in good stead to bounce back strongly from the challenges faced today.““I believe the wine industry is so well established here, there is no way it won’t come back strongly,” said Mr Tam, Wine Auctioneer at Madison Auction.

“At Madison Auction, we’ve found online sales have been very well received. Last year we programmed five (online) sales for 2020, and now in April we’ve already done four. The market is telling us that, yes, we still want to procure and accumulate a wine collection, even though we can’t sit in a ballroom with 100 others bidding.”Mr Tam said the online platform “is doing the job of an auctioneer at a live auction, bringing wine to life and talking about food and wine pairings”, he said, adding that “we are very encouraged by the results of our online sales”.Jason Ginsberg and Mandy Chan, married co-founders of Ginsberg+Chan Wine Merchants, are also finding ways to keep their loyal customers on board. Having established their business in 2010, the Canadian couple specialise in rare, older vintages, supplying collectors in Hong Kong and all over Asia.“Hong Kong really is the hub for fine wine in Asia, and alongside New York, is one of the most important auction markets in the world,” Mr Ginsberg said.“Sales have dropped, but we are trying to stay positive,” he said of the current crisis. “The main thing is to preserve the business and the team we have.”

As wine is a “sentimental” business, staying in touch with their existing clientele is key.“A lot of our customers are still enjoying fine wine right now, but they tend to be drinking from their collections, and are not replacing them at the moment,” Mr Ginsberg said.In response, the company has increased its offering of bottles in the more affordable HK$150 to $1,000 range, which is proving successful. Meanwhile, e-commerce is apparently a bright spot. “Our online sales channel has really increased, from less than 2% of our business before, to 10% to 15% now,” Mr Ginsberg said. “That’s a huge shift in buyer behaviour in Hong Kong, where traditionally clients would call their relationship manager to place an order, or come into the shop to buy.”Ginsberg+Chan Wine Merchants is also partnering with a local restaurant to offer wine pairings with its food delivery service.

Founded in 2003 with its head office in Shanghai, EMW runs offices in Hong Kong as well as other parts of China, including Beijing, Shenzhen, Chengdu, and Macao.) Additionally, it has representative offices in Guangzhou, Chongqing, Suzhou, Hangzhou, Nanjing, Shenyang, Qingdao, and Xian. The company has grown to more than 200 professional employees and provides services to more than 3,500 trade customers across Mainland China, Hong Kong and Macao. “Today EMW ships wine to over 160 cities across China,” Mr Bielot said. “Over the years we have seen the wine market develop tremendously. We see a future where one day China is the world’s most important market for imported wine.“Over our almost 17 years’ history we have seen many crises but no doubt this is one of the biggest challenges we have faced,” he continued. “The coronavirus has impacted our business severely as well as the lives of our employees. In addition, we are very sensitive to the negative impact this crisis will have on our clients’ (hotels, restaurants and retailers) businesses. However, EMW has continued to offer delivery to our clients, and is working hard to support our customers and to make decisions that protect the long-term for our employees, our clients, and our supplier partners.”