Recently, Liv-ex issued an article that the total trade value of Bordeaux has fell all the way, hitting the lowest record.
More remarkably, this decline is related to China market demands.
Trade share of Bordeaux fell from 95% to 60.7% in 8 years
At the beginning of this year, total trade value of Bordeaux wine was merely 68.3%, which could be called a nightmare compared to the year of 2010. That’s just a start, total trade value of this region has fallen sharply to only 60.7% from the beginning of 2018 to now, a record low in Liv-ex.
Although trade share of Bordeaux still weighs the most at present, its influence has dropped too much.
According to Liv-ex, many reasons were accounted for Bordeaux's trading down in the past few years.
Since 2011, unsustainable high prices for top-end wines, coupled with reduced interest in the Chinese market, have pushed Bordeaux down. Secondary Market shows wines from different regions trade actively.
Burgundy rose from 12.5% in 2017 to 14.7% in 2018, the share of Champagne, Rhone Valley and Italy also increased. That’s why Bordeaux's share gets further compressed.
Imports data of Hongkong showed Mainland market's enthusiasm for Bordeaux faded away
Since Hong Kong is the main transit port for mainland fine wines, imports data of Hong Kong also illustrate the problem.
According to statistics released by Hong Kong Government, in the year of 2017, French wine imported into Hong Kong increased by -6.0% in value and -7.7% in volume.
Although the absolute value goes up and down, the proportion of French wine in Hongkong has been decreasing year by year. Figures show that Hong Kong's French wine imports accounted for 35.1% in volume and 62.4% in value in 2015, and these two figures fell to 33.4% and 59.5% respectively in 2017.
China mainland is the most important market for Hong Kong’s imported wines. According to the TDC data, China mainland accounted for more than 80% of the total wine trade transfer volume in Hong Kong between 2015 and 2017, ranking first among the wine trade transfer destinations in Hong Kong.
Chinese vintner’s demand for Bordeaux has weakened
A fine wine importer in Changsha told WBO: Bordeaux's famous wineries are too transparent in price, about which customers usually complain, and even be obsessed with fake wines. It takes a lot of effort to explain to them, however, some don’t listen.
Chen Weiran, founder of a fine wine studio in Beijing, also said that Bordeaux wine had became standard product in China. She could make some sales a few years ago, but she didn’t push hard now.
Founder of Fine West pointed out: in recent years, Chinese buyers have lower interest in Bordeaux wines. In addition, customers following Liv-ex are actually wine investors and collectors. Many Chinese customers may have shifted from Bordeaux to wider purchase range.
Fine wine consumers developed to be diversified
However, as sellers of fine wines, will it affect business when they don’t push Bordeaux?
Fang don't think this will happen.
“Bordeaux Grand Cru Classe taste so much alike that almost all our energy is spent on creating a cultural romance of what the Chateaux really deliver. Similar taste, high trade price and new vintage disrupting the market, all these factors make Bordeaux fines wines spread to the market, even if they are not reach their proper drinking age,” Fang added.
“About 7 years ago, most of the wines we could find in China market were Bordeaux. At that time, consumers had no other choices but Bordeaux, but now, more vintners are selling fine wines from other regions or sub regions of the world, and this provide consumers more chances to try new wines.” Chen said.
Chen also analyzed, consumption intention for most people are for giving gift sake. But with the developing trend of wine world, they have many good even better choices that can replace Bordeaux.