Download Inspiring Chinese wine tourists increases market demand

Inspiring Chinese
wine tourists increases
market demand
“The great advantage
for Australian
products is that
Australia offers
so many good
tourism experiences.
Wineries just have to
make sure tourists
have a chance to
encounter their
wine.”
Dr Richard Lee, Ehrenberg-Bass
Institute, University of South
Australia
Research funded by Wine Australia found that targeting Chinese visitors
to Australia can enhance exports by converting tourists into long-term
Australian wine fans and word-of-mouth ambassadors.
ISSUE
China is a vital market for Australian wine exporters. It is the top-ranked destination by
value for Australian bottled wine exports to Asia and the third largest market globally, after
the United Kingdom and the United States (Wine Australia, 2013).
However, Australian wine exporters have little direct influence over Chinese consumers,
as wines are sold through distributors and retailers. Direct mass advertising is expensive
as China’s media landscape is highly fragmented and inaccessible for smaller wineries
without scale or budget to market offshore. Australian wineries must continually find new
ways to engage with Chinese visitors when they return home, to combat a potential
‘decay effect’.
SOLUTION
Wine Australia funded the Ehrenberg-Bass Institute at the University of South Australia to
test, in three tourist settings, the proposition that tourists tend to rate a country’s products
more highly if they are enjoying their stay. It draws on country-of-origin effects that contend
that Australian wine exporters should target and harness Chinese tourists while they are in
Australia, to enhance demand and the competitiveness of wine exports to China.
RESULTS
The research showed that targeting Chinese visitors to Australia can enhance
exports by converting tourists into long-term Australian wine fans and word-of-mouth
ambassadors. Chinese consumers’ perceptions of Australia as a tour destination
positively influenced their perceived image of Australian wine.
It is expected that this research would hold true to consumers from other nationalities.
MARKET ACCESS,
INTERNATIONAL COMPETITIVENESS
Market intelligence and market access
power demand for Australian food and fibre
Image credit: Australian Wine