A Case Study for
An Australian Winery in Hong Kong
Our client, a medium-sized Australian winery wanted to sell its mid-range and premium wines in Hong Kong. The winery saw the market as a good entry point into the Chinese markets. So, they approached us to help them.
The Australian winery produced different varietals of wine—including Pinot Noir, Chardonnay, and Sauvignon Blanc. However, they were not sure which varietals would sell well in Hong Kong, which local markets they should focus on first (e.g. Kowloon), how they could compete on price, or how they should position their brand to appeal to target customers. They also needed help finding the right distributors for their wines.
How We Did it
Assessing competition in the market
We analyzed competition in the market based on their target price range and competition for the wines being considered. We concluded there was a good opportunity in the market for all of them.
Identifying the best local markets for their wine
We carried out a target market analysis, examining all 5 local markets in Hong Kong. Our team applied several key quantitative metrics to identify the best markets for our client’s beers. The analysis also included a detailed target consumer profile, including demographic information and buying habits.
Evaluating market pricing and strategy
We looked at average pricing for each varietal of wine all of Hong Kong and in each local market identified in the target market analysis. Additionally, we compared pricing to their target consumer’s ‘willingness to pay’. Our evaluation made it clear how competitive our client’s prices were and the best strategy for them to follow in Hong Kong.
Evaluating Branding and localization strategy
Our market and design experts examined their existing branding—including labels, packaging, messaging, etc. We compared it to that of competitors, assessed its suitability for the market and their target customers. The winery received detailed recommendations on how to better localize and position their brand in Hong Kong.
Finding good distributors
We compiled a focused list of distributors who met our client’s needs, had expressed interest in their wines, and had strong distribution networks in the local markets we were interested in (e.g. Kowloon).
Carrying out due diligence
Once our client chose a few distributors they were interested in speaking to, we carried out due diligence on each distributor to confirm capabilities and assess risk. Our team delivered a detailed assessment, including information about each distributor’s licenses, operations, and other key information, as well as a risk assessment.
Negotiating and signing a good contract
Our client chose a distributor they most wanted to work with based on our due diligence assessment and recommendations. We then supported them through the entire negotiation process through contract signing, solving any challenges along the way.
Arranging for import and sales
We worked with both our client and the distributor to ensure the product met local regulatory requirements and were imported into Hong Kong and ready to be sold without any problems.
Working with Mersol & Luo, our client was able to achieve its goals of: