Carruades de Lafite Bounced back in 2016
WBO reporter | Morris
Translate and edit | Kiwi
WBO has received dynamics from several channels that signs of price rise appeared in Carruades de Lafite (second wine of Chateau Lafite Rothschild) from 2016.
Some rised 60% comparing to the lowest price
A vintner, mainly focus on group purchase, told WBO that he has imported ten cases of Carruades de Lafite 2013 at CNY 1350/ bottle (€184.34). After selling for one year, only 2 cases was left and when he planned to import again in December 2016, he found that it has increased 40% for each bottle, which finally reached up to CNY1900 (€259.58) with the price rise of CNY450 (€61.48) per bottle.
Same situation was seen in Wine & Wine, the branch of selling well known fine wine under COFCO, who has promoted 360 bottles of Carruades de Lafite 2013 at CNY 1550 (€211.88) in last November. But now we found that the price has bounced back to normal CNY1850 (€252.89) and all sold out.
Meanwhile, as is known by WBO, a fine wine company has witnessed price rise inCarruades de Lafite too. Its 2013 vintage was suggested to sell at CNY1350 (€184.34) in trade price and CNY1480 (€202.29) in retail, whereas it has raised 60% to CNY2090 (€285.67) and CNY 2350 (€321.21) respectively.
Price is lower online than in traditional channel
Of course there are channels for selling Carruades de Lafite in comparatively lower price, that is online channels.
WBO reporter has searched “Carruades de Lafite 2013” on one of China’s most known online shopping platform JD.com, and found that COFCO Wine & Wine set the price at CNY1988 (€272.10). While reporter searched in www.Jiuxian.com, it was sold at the price of CNY1899 (€259.92) with importer hidden from its back label, whose price set even lower than other traditional distributors.
However, when reporter added it to shopping cart in Jiuxian.com, only to find that it was out of stock either by single bottle or case, meanwhile merely 2 bottles was in stock in JD.com. Then reporter checked another online seller yesmywine.com, it also turned out that vintage 2010, 2011, 2012 are all sold out, not just 2013.
It is decided by supply and demand change
What the reason for price rise of Carruades de Lafite? As is told by insider working in close relationship with DBR Lafite, “Carruades de Lafite has been abiding by en premiur purchase policy, its market price was controlled by supply and demand, not brand owner.”
Fang Yi, general manager of Puyi Fine Wines in Changsha, said, “I still remember the last boom for DBR Lafite lies in the favor of government and business consumption. However, consumers are getting mature from wine education and guideline, Lafite is the word that they heard most in China. Its strong brand recognition finally made it prevail again after 2-3 years’ downturn.”
Moreover, WBO reporter has witnessed the “Carruades de Lafite rush” in a wechat group. A vintner asked for Carruades de Lafite 2013, authentic and parallel products are both accepted. Then demands for the same product followed by other vintners, but reply came as a disappointment that none vintage of Carruades de Lafite can be found, even in C&D (a sophisticated importer in China).
Customs are fighting against parallel wines
While some pointed out that the supply shortage and price rise of Carruades de Lafite has more to do with the Customs crackdown. A vintner told WBO it is more difficult to find parallel bottles in mainland market because they are intercepted by Customs, which accelerate sales volume and price rise of authentic bottles.
Some high-end brands bounced back in 2016
It’s worth noting that price rise not just occurred in Carruades de Lafite, but also in some high-end Chinese liquor like Flying Maotai series. As is known by WBO, this series has rocked to CNY1100 (€150.10) per bottle, with the trade price around CNY1000 (€136.46), which only priced around CNY900 (€122.81) in last March.
But WBO has found that price rise was not seen in majority among China wine market. They are just two prime examples.
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