|
|
|
|
|
|
Wine Sales Rack Up Vintage Years in
Singapore
In this last decade of the 20th century, time is not the only commodity that flies--particularly in the trade haven of Singapore. Wine sales, with a growth rate exceeding 20 percent a year, are zooming off the charts. What makes this of particular interest to U.S. producers: It’s almost all imported wine.
Most of the recent bump-up in sales can be traced to Western influences on an increasingly global economy. Besides the rising affluence of the predominantly Chinese Singaporeans, aggressive promotional efforts by the Australian and French embassies--aided by supermarket promotions--have encouraged the flood of wine imports. Also adding to sales impetus: Western culture brought home by students studying abroad.
Wine Fanciers: Young, Affluent
Most wine connoisseurs in Singapore fall within the 25-to-40 age group. And these young adults prefer medium-priced wines, though beginners often experiment with lower end wines. There are even a few serious wine drinkers-- with the money to support their desires--who are willing to part with thousands of dollars for a rare bottle.
As late as 1995, over half of Singapore’s wine drinkers
were expatriates. Now equally represented, locals and expatriates
who drink wine tend to be college-educated professionals with
incomes exceeding $1,300 per month (which isn’t hard to find
in a 
country with a yearly per
capita income in excess of $22,000).
Though males are more likely to drink wine (and make it red, please), females who partake tend toward the sweeter rosé wines.
Red wines outsell whites by four to one, mainly due to the reds’ vaunted health benefits and the growing sophistication of local palates.
Still wines will probably always be the best sellers, since sparkling wines are generally saved for festive occasions. Only the sake wines from Japan, imported primarily for the Japanese expatriate community, have lagged in sales.
The 75-centiliter (cl) wine bottle, by far the most widely sold, ranges from $16-23. Forget the larger sized party packs--most households in Singapore do not entertain at home. The small 18.7-cl bottle on shelves of supermarkets, appeals mostly to the wine novice sampling what’s available.
The price markups in Singapore could make U.S. wine fanciers wince: After excise duties, import markups range from 20 to 30 percent; retail markups add another 18 to 30 percent, while the food service sector adds a stiff 65 to 200 percent. But price hasn’t hindered the evolving market so far.
United States Ranks Third in Market
Share
France still leads the pack with 50 percent of the market, anchored by strong sales of its still and sparkling wines. Australia has a 17-percent share and the United States, an 11-percent share. In 1996, Japan was the only supplier of sake.
Though France’s highly respected, good-quality wines dominate market share, adventurous Singapore consumers have been cruising shelves for wines from newer exporting areas--like Australia, the United States (California), South Africa and Chile. Wines from these countries have reputations for quality comparable to French wines, along with reasonable prices.
In keeping with its reputation as a crossroads, Singapore also re-exports almost 30 percent of its wine imports to other Asian countries--Japan, Malaysia, Cambodia, Hong Kong, the Maldives, Thailand, Myanmar and Vietnam. In 1996, Singapore re-exported 1.1 million liters of still wines and 900,000 liters of sparkling wine.
Best Bets for U.S. Vintners
Red wine varieties have the
best sales prospects as the Singapore market overwhelmingly votes
for their more full-bodied flavor. Since Singapore consumers
don’t blink at the prices, medium-priced U.S. wines will
most likely retain their their strong position.
One bit of good news for those worried about the short term--export growth is expected to remain constant, unaffected by the current Asian money crisis.
However, stiff competition is expected to develop among the newer exporting countries.
U.S. exporters who want to maximize their sales in this market need to reach their Singapore customers by conducting market research in-country and developing relationships with distributors and retailers. The Agricultural Trade Office in Singapore can help, offering information on available promotional opportunities in fairs, supermarkets and restaurants, trade shows and other events.
And as with other products sold in this market, presentation is all-important. Attractive bottling and labeling add pizzazz that attracts customers.
Education plays a crucial role, too, for this sophisticated public. An excellent way to keep a product in the public eye is through local publications such as Wine and Dine.
Export and Market Info
Before any markups by distributors or retailers, the steep excise tax takes a swipe at the imported wines: Still wine faces $6.13 per liter compared to sparkling wine’s $8.39 charge.
Labels for retail sales must include: the common name, brand name, ingredients, alcoholic content, net volume of the wine, country and region of origin and name and address of the importer. Fortunately for U.S. exporters, labels are required to be in English.
About 50 percent of wines reach consumers through supermarkets. Upscale supermarkets tend to have wider selections than stores serving the mass market. The other half reaches thirsty customers through hotels, restaurants, pubs, duty-free shops, institutions and the new wine bars. Riding a trend when they see it, entrepreneurs have begun opening wine bars that have already grabbed 3 to 4 percent of the market and promise further growth.
One surprising sales source: carefree airplane flight passengers, whether arriving or departing Singapore, consume 60-80 bottles of wine per flight. Cheers!
__________________________
The article was based on a report submitted by the
Agricultural Trade Office in Singapore. Tel.: (65) 737-1233; Fax:
(65) 732-8307; E-mail: ato-sing@pacific.net.sg
|
|