What People Want from Fine Wine w/ Pauline Vicard, ARENI Global

Getting at the heart of what consumers want is essential for any business, but a vastly understudied area in the world of fine wine.  Pauline Vicard, Executive Director of ARENI Global, follows up her interview on Episode 28 and shares with us their latest research on the fine wine consumer - “The Future of Fine Wine Consumers 2021.”  We explore the role of fine wine merchants, how and why consumers buy fine wine, and the key attributes of fine wine brands.  The work covers the US, UK, China, and Hong Kong, and we discover the differences between consumers in each location.  We even touch on diversity and inclusion in the fine wine world.  An impactful, cornerstone interview to better understand the mindset of the fine wine consumer, a must listen! Detailed Show Notes:Pauline was the guest of Episode 28, where she shared findings from the 2019 research on the Fine Wine ConsumerARENI Global backgroundARENI is a global research and action institute dedicated to the future of Fine Wine. Creating conversation platforms for the Fine Wine ecosystem, ARENI brings together critical thinkers, from iconic Fine Wine producers to leading academics and business leaders, resulting in a well-researched, global and multi-disciplinary approach to a world undergoing change.ARENI studies six main forces of change and regularly publishes on:The Fine Wine Consumer: A Customer-Centric ApproachChanging Societies: Fine Wine Evolving Social frameworkThe Digital Economy and Transformative technologyAccess to market: Towards new commercial routesSustainability 2.0: Acting now, thinking long termMoney: An Essential Force of ConflictWants to break traditional silos to share information and collaborate, including with other industriesOrganizes think tank platforms and conducts research studiesARENI publishes a bi-monthly, free newsletter. To keep in touch with their research, publications, and events, sign up.Fine Wine Consumer Research2019 - was more qualitative research2020 - “The Future of Fine Wine Consumers 2021” more quantitative researchStudied fine wine consumers in the US, UK, China, and Hong KongDefinition of Fine WineComplex, balanced, potential to ageProduces emotions, reflects the winemaker’s intentionsEnvironmentally, socially, and financially sustainable (new part of the definition)Price is not in the definition but used price brackets from La Place de Bordeaux for quantitative studies (€30+, €150+, €450+)Consumers perceptions of fine winePerceive it more as brands/chateauxThe average fine wine consumer can name 2.5 wineries, most common ones - Lafite, Latour, and PetrusDoes not associate fine wine as much with country, grape variety, or type of wineUS consumers >35 know more brands than those Fine wine merchantsConsumers very loyal to merchants, but not exclusive, tend to source from severalHave high expectations of merchants, want them to bring a diversity of wines and recommend new thingsKey attributes: high customer service, pristine condition of wines, guarantee against fraud, want access to allocations and exclusive events, and easy deliveryWant access to the merchant through diverse communication channels but still have the human/personal touchHow consumers choose a fine wine#1 - vintage (UK, China, Hong Kong)Burgundy buyers use both vintage and producerScores are still important, but most people don’t follow specific critics or guide books, but they still use the scores as validation of the quality of the winePrice is not a key driver#3 factor - grape varietyThe reputation of the brand and winery importantLeast important factor - celebrity or influencer recommendationsStorytellingNot as important as was expected, the wine’s story is not relevant for every fine wine consumerSome want wines because of their status or what tastes the bestWhy consumers buy fine wineIntimate consumption was bigger than expected - wine as a treat for self and/or partner (US, UK)Special occasions, formal social events (Hong Kong, China)Gifting (China)Formal wine tastings (UK)Business occasions (China)Food and wine pairing (particularly in China)Fine Wine Consumer demographicsUK/US - 70% men, 30% womenChina/Hong Kong - 50% men, 50% womenWomen want to buy luxuryMillennial women are an important marketMore young consumers (Fine wine investorsNon-collectors that invest mostly go through a 3rd partyLook at it as another financial asset, rarely take ownership of wineTop attributes for fine wine brands#1 - the capacity to age as wine evolves with time#2 - high ratings from wine critics (the UK the lowest for this)The reputation of a region of origin and producerUK/US - complexity of tasteChina/Hong Kong - scarcity importantDon’t really think of sustainability - assume wine is sustainableTrade does think of sustainability - they are gatekeepers for consumersDiversity and inclusion“Fine wine is whiteness” was discovered in research - references to colonial terms for many countries (e.g., India, US)The industry has little to lose by having more diversityDiversity issues and systemic difficulties are different for different countriesChina - diversity more focused on gender vs. raceTo access the full report, become a member of ARENI.For more information: [email protected] Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.