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Argentina is doing well in Asia

May 11, 2011 by Redacción | in Exports, News

The window is open. Argentina has a fast market penetration, according to figures from 2001 up to now. This is the right time to strongly enter into Hong Kong, Japan, South Korea, the Philippines and Singapore.

Reaching significant economic growth rates and per capita income, Asia results to be the most attractive market for the world’s wine countries. Among the countries having  the most important growth in wine imports (millions of dollars), China amounted a 6.4% increase, whereas Hong Kong has only a 4.6%, Japan 2.1%, Singapore 2% and Korea 1.4%.

These conclusions were drawn from the last Market Analysis symposium, organized by the Argentinian Society of Wine (Sociedad Argentina del Vino – SAV), which took place in Mendoza, Argentina.

Javier Merino, Director of Área del Vino, stated in conference: “if we add the percentages of these 5 countries, the total amounts to 15% of the world growth of wine imports. This figure is the equivalent of the total number of United States and United Kingdom, which are the most important countries in the business”.

Although Argentina is not among the main exporters to these countries, the outlook for it is promising. On the one hand, in these markets there are fewer rivals for Argentinian wine, meaning more chances of competing in quality and price.  Merino exemplified: “Japan has 45 foreign suppliers, Hong Kong 46 and China 44, against 61 of United Kingdom and 74 of Germany.”

Nowadays, the main wine supplier of Asia is France, closely followed by Italy and Spain, and a long way behind by New World’s suppliers.

“However, the analysis shows that South America, reaching a 22%, doubles the growth rate of traditional countries”, highlighted the Director of Área del Vino.

New expanding brands

Due to its dynamics, China has not registered a great brand concentration yet, unlike established markets. This fact is also an opportunity for new exporters like Argentina.

In China, 27.9% of the market is crowded with the 5 main brands, whereas in Japan this concentration amounts 17% and in Korea 10%. In particular, China shows a significant growth regarding new brands. On the contrary, among the analyzed markets, Hong Kong is the only one showing evidence of a great concentration, where 5 brands cover 52% of the market, higher than the world average concentration.

Although Argentina did not appear in any ranking up to 2009, between 2004 and 2009, its annual growth rate in China reached 32%.

“In 2010, Argentina continued the upward trend in China and showed its biggest growth in Korea. In some markets like Hong Kong, we grew a little. In South Korea and China, we had suffered a drop in relative prices”, explained Merino. “As regards the average export price, we are placed in the last position: USD 23.4 (FOB) per case and the biggest share is reported in the Super Premium wine category with 33% of wines exported to China.”

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