Friday, May 23, 2008

Koreans Pay Among World's Highest Prices, Survey Shows

Link here.

"because Korean importers seek higher profit margins"

Yep. That about sums it up. Yes, we do pay a high level of tax here for wine but that is not the sole reason for the high prices we have to pay.

Importers will put at least a 15% mark-up on a bottle with supermarkets and hotels having to pay up to a 50% mark-up! With retailers then adding between 8 and 40% to the price it is not hard to see that when it comes to the point where we are handing our notes over we are paying hell of a lot more than the bottle is worth.

I appreciate the imperative to make money, I really do. However for the wine market here to really get going we have to be looking to getting everyday wines at everyday prices.

The Austrade body for promoting Australian wines abroad states quite clearly, "Korean consumers are price sensitive with an interest in things new and different." It is a great combination as you can sell value wines that are different, you can explore less fashionable wines you can push excellent Rieslings, or Austrian wines or any of the other good value wines out there and the consumer will embrace it. By doing this the Korean market can explode. Just one importer putting it on the line and trying to push by volume rather than price could see a huge change in wine consumption here.

Fingers crossed.

No comments: