Monday, March 28, 2016

Internationalization of high-end Italian family wine business

Internationalization of high-end Italian family wine business by Italian Wine & Food in China

International Marketing Trend Conference 2016, Venice, January 21st-23rd 2016

“Internationalization of Family Business in High-Range Italian Wine: the Perspective of Some Italian Key Players”

Some interesting remarks extrapolated from the abstract:

Italian wine positioning

“Italy and France share the leadership of the world wine exports in 2014, with a significant difference: Italy leads in export volumes (20.5 against 14.7 million hl of France); France in revenues (7.94 billion € against 5.11 billion € of Italy). The internationalization strategies of Italian wine are still influenced by a positioning problem, expressed by the average export price: € 2.49/liter of Italian wine against € 5,4/liter of French wine, compared to a world average export price of € 2.6/liter”

Fragmentation of the Italian wine market

“The historical fragmentation of the Italian wine sector - so many wineries with so little land: as average an Italian winery has 1,7 ha of land, against 6 ha of France, 14 ha of Chile and 18 ha of the USA”

Complexity of understanding an emerging market like China

“A big country with incredible commercial confusion. Individual attitude to trade it is amazing. A country made up of a multitude of traders but few commercial enterprises … Many businesses disconnected from each other. If you want to sell a container of wine, you can do it. But if you want to build a brand is really complex and it requires long-term investment” by Renzo Cotarella - CEO of Marchesi Antinori Spa

Long term vision

“In short, the vision that emerges today about the future of these emerging markets for Italian high-end wines, a substantial disillusionment, is that it is necessary to keep the presence but they will not become strategic markets for the next 10-15 years”

Seminar abstract link

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