International market japan
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INTERNATIONAL MARKET DEVELOPMENT CLASS PROJECT - WINE TRADE Students have been assigned to a team of 2 or 3 to develop an international market development project. Students are assigned to work for the same fictitious wine domaine: Domaine de X, with the same product line. They will be given fixed parameters/constraints regarding the wines and the domaine. Each team will be assigned a different market for these wines, specifically: -a specific country: Japan -a type of retailer : Hotels and restaurants
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International market japan
- 2. International Market Negociation Japanese Hotels and Restaura
- 4. Japan Produces Wine Japan produces 790,000 hl per year on 19,000 hectares. 40% comes from the Katsumana region, near mount Fuji. Mark of Origin
- 5. Japanese wine market In 2012 Japanese consumed 3,000 khl of wine. Each Japanese drinks 2.7 liters per year.
- 6. Languedoc-Roussillon and its competitors in Japan Chile & USA ship bulk wine and bottle it in Japan. They even blend it with Japanese wine. LR : 20 % of all French Rank Country 2013 khl 2013 share % Change % 2012-13 1 France 566.9 31.5 -5.6 2 Chile 364.4 20.2 15.4 4 Spain 234 13 -5.1 5 USA 115.5 6.4 9.5 6 LR 114 6
- 7. Languedoc-Roussillon and Japan LR wines: Until 2009 Japan was the #1 Asian market, now its #2 behind China. Higher profits margins in Japan.
- 8. Import tariffs and sales tax Import tariffs for: - Bottled Wine under 150 L: 1/l or 15% - Bulk Wine above 150L: 0.33/l - Chile tariffs are 5.8%. 2019 rate to 0. Australia is trying to do the same. - Pacific rims. Liquor tax 促60, 0.45 per bottle Sales tax 5% to 8%, but for all goods.
- 9. Market Situation in Hotels and Restaurants - 33% of the market. - Possibility to bypass importers and have direct sales to restaurants, hotels. - High end specialized wine shops are decreasing in favor to online shops, private clients.
- 10. Trends - Wine on the rocks. - Stand up wine bars. Glass starting at 促700, 5. - Lighter, fruitier, and low alcohol wine. - Plastic bottles and 5L BIBs. - Screw cap, ok for the younger generation. - Organic for health benefits. - Match with Washoku (traditional Japanese cuisine).
- 11. 11 Niche marketing Yearly low consumption, each bottle represents a huge % - Work with local sommeliers, wine magazines, life style magazines or bloggers. - 47% of sommeliers are women. - Japanese use Parker points to choose.
- 12. Prices in Japanese restaurant Izakaya type. AOP by the bottle: - AOP Languedoc red 2009 Les Boissieres Alain Chabanon 86 - AOP Languedoc red 2005 Chateau de la Negly La Falaise 51 IGP by the bottle: - IGP d'Oc white 2006 Trelans Alain Chabanon 51 - IGP dOc red 2009 Armonio Chateau Mas Neuf 104 Prices by the glass: AOP Languedoc Les Metairies du Clos Marie 2005: - by the glass 7.5 cl 促1,200 (9), 12 cl 促1,800 (14) - decanter 促5,000 (38)
- 13. Our Wines: Our Pricing vs the Average Market Price IGP Pays dOC Number of bottles Production costs Average EXW sale prices Average profits Red 75,000 1.90 2.38 0.48 White 75,000 1.90 1.88 (0.02) Ros辿 50,000 1.90 2.38 0.48 AOP Languedoc Standard red 60,000 2.30 3.35 1.05 Standard white 60,000 2.30 2.75 0.45 Mid-range red 60,000 3.45 3.35 (0.10) In between good wine red 60,000 4.60 3.35 (1.25) AOC P辿zenas Haut de Gamme red 20,000 7.90 3.35 (4.74) VDP Haut de Gamme white 20,000 7.90 2.75 (5.15)
- 14. Example of a label adapted for Japan dd d Label Les Clos Perdus in France Label Les Clos Perdus in Japan Price per glass in restaurant
- 15. 15 Our Labels White: 2.50 Red: 3.00 Ros辿: 3.00 White VDN style: 12.00Red: 10.50White: 4.00 Red #1: 4.50 Red #2: 5.50 Red #3 6.50
- 16. CIF pricing Aspiran to Tokyo seaport CIF fee per bottle 20 ft container with 11 pallets: 0.40 CIF fee per bottle for 1 EU pallet: 1.17
- 17. Our strategy to find and enter markets Work with local big importers : Terra vert, Marukai V.I.E who searches new markets in Japan. + = Larger presence on the Japanese Market Double strategy
- 18. Thank you for your time.