Case Study

Australian winery successfully enters the Hong Kong market

Client Profile

Australian Wine Co.* is a medium-sized Australian winery producing a range of beverages, including premium wines, ciders and fusion beverages.

Client Challenge

The company did not know which local markets were best for their products or how to enter those markets.

Client Testimonial

Mersol & Luo delivered the best market strategy work I’ve seen in my 20+ years in the wine industry.”
CEO, Australian winery

Our Solutions

Mersol & Luo developed a market entry strategy while managing local import and distribution partnerships with the goal of obtaining long-term growth for Australian Wine Co.

Client Problem

Client Problem and MERSOL & LUO’S SOLUTION

Mersol & Luo’s Solution

Choosing the right market

Our team assessed the company’s goals, product and available markets to identify the best markets that fit best. Given Australian Wine Co.’s brand position, product quality, pricing, available volumes and risk appetite we recommended Hong Kong SAR as an initial entry point into the Greater China markets.

Targeting the right customers

Mersol & Luo defined the ideal customers in Hong Kong SAR specifically by taking into consideration market segmentation, demographics, purchasing habits and other key variables. This was critical to ensure resources were focused on targeting the right customers to gain market share from competitors while growing revenues. 

Determining pricing strategy

Although Hong Kong is a wealthy consumer market, its low barrier to entry creates fierce competition at every price level. Drawing on the latest market data and the client’s desired price point, we identified several pricing strategies and made recommendations to deliver the greatest long-term growth for the client.

Managing import and distribution partnerships

Without having a local presence, speaking the local language, or understanding local business culture and distribution process, brands face difficulty managing relationships with local import and distribution partners. We bridge this gap for companies by leveraging our local presence, knowledge and expertise to help build strong relationships, overcome challenges, and ensure a successful initial entry and growth trajectory in the market.

Mersol & Luo helped Australian Wine Co.* to:

Identify the most viable markets for their products

Understand their target market and consumers

Develop a winning and profitable local pricing strategy

Manage strong and effective partnerships with importers and distributors

Results

Introduced

3

Labelsinto the Hong Kong market
Introduced

5

Productsinto the Hong Kong market
Established presence in

20+

local supermarkets and bars

Within the first 18 months Hong Kong accounted for

7%

of client’s global revenues​

*Names and information have been anonymized to protect the confidentiality of our clients.

About Mersol & Luo

Mersol & Luo’s expertise on the Chinese economy assist global companies in ensuring their expansion to China is appropriately prepared for to maximize profits and market impact. By having local understanding, relationships and real-time trade experts Mersol & Luo guides you through the process. 

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