China to China in 9000 years
With a little diversion into the
theory of value on the way
Archaeology of wine
Neolithic wine jar 5000 years
old
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Ancient Chinese bronze vessels
Early artistic evidence of wine drinking
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Engraving from Chinese book showing
distillation in a brewery
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The traditional (but certainly unlikely)
birthplace of wine in China
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Art poetry and wine combined
A morning shower in Weicheng has settled the
light dust;
The willows by the hostel are fresh and green;
Come, drink one more cup of wine,
West of the pass you will meet no more old
friends
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An excavated cellar of around 2500 litres of wine in
storage
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Mesopotamia and Egypt art evidence of wine
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Greek art showing wine production
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- and consumption
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Familiar technology goes back a long way
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But things are changing rapidly
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Value from both sides of the fence
What you get
+ What you avoid
- What you pay
- What you don’t get
- What you don’t avoid
-------------------------= Buyer’s value
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What the buyer is
prepared to pay
– what it costs to
produce
= Seller’s value
Value
+ve
Best Value Option
(Optimal Outcome)
Satisfactory outcomes
Paid too little so cannot
achieve required outcomes
Value
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-ve
Lowest cost acceptable
option
Highest cost that has
positive value
Paid too much so
value is lost
Value
+ve
Area of satisfactory value but little
variation in value - product sales are
demand driven
Cost
Steep
Value
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-ve
Sales volume is
low product is
not sought
after. Market
may be growing
Price becomes too high
and there is a suitable
competitor above the
point
Faced with a value curve like this what can you
do?
• Cut your cost of production
• Enhance value by changing the package
•
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Establish the point of rapid drop off and price
just below it.
So the buyer’s value equation for a quality
bottle of wine could be
Value = Pleasant sensory experience +
positive image + social ambiance + a
sense of history - avoidance of
disappointment – cost – side effects of
alcohol.
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What factors can drive value higher?
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• What the consumer actually gets ( add
volume perhaps)
• What the buyer thinks they get ( buyer
perception of value/image/quality)
• Increased utility or benefit (health or
medicinal benefits)
Other market factors can drive value
as well:
• Price point
• Market demand/product popularity
• Competitive prices
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But note these are mostly price based
values
A valuable package like this antique Chinese wine
container could change the market position
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New technologies like cross flow and Reverse Osmosis
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Continuous
Stabilisation
New yeasts
Packaging to match new
gadgets
Verification codes to avoid
counterfeiting
3D printing technologies
Braille wine labels
New barrel materials
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Environmentally
responsible wine
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Replica Chateaux in complete detail
Yes this is really in China
complete with replica artwork
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Chinese symbol for 8 on a bottle
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This looks scruffy but emphasises the
“foreignness” of the product
Photo from Wine Intelligence
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It really should be a video!
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