Semiotics Report on Liquor Categories in China Prepared for Strive Insight By WisdomAsia Our approach in summary SEMIOTIC APPRAISAL OF THE MARKET UNDERSTAND CONSUMER BEHAVIOUR REACTION TO DESIGNS A review of the Chinese market in terms of Cognac, Whisky and Wine to produce a semiotic code framework Online qualitative forum to understand consumer attitudes and behaviour and how this compares to the semiotic code framework Consumer workshops to understand reaction to designs – both competitor and Courvoisier present and future This report is for the semiotic phase only 2 An upfront semiotic appraisal is necessary to produce a code framework Understanding the codes used in the Chinese market We will conduct a semiotic appraisal of the Chinese market in three drink categories: Cognac, Scotch Single Malt and Premium Wine Although our focus is Cognac/Courvoisier, we feel it will be important to understand the commonalities and differences that exist in those categories. They occupy a similar space (as opposed to, for example, spirits that are drunk mixed or beer) and so will provide invaluable context for our understanding of what codes define the Cognac category We will look at the category and the players and packaging executions within it. Although we will focus on imported spirits, we will include Baijiu – a Chinese wine that is a traditional premium category now evolving quickly. This helps us take reference on packaging as well (i.e. old vs young, local vs international) Semiotic reviews should take into account the retail environment context – we will immerse ourselves in the various retail environments whilst reviewing the products themselves 3 Our Semiotic Appraisal approach will have three complementary core elements 1. 2. 3. Semiotics is the study of signs. Our process will: UNDERSTAND THE SIGNS DECODE THE CULTURE CODES ‘TRAJECTORY’ OF Cognac PACKAGING CODES The next few slides will show each of these steps in more detail 4 Step 1 – Understanding the signs Semiotics – the study of signs where we study an item (whether it be a drawing, bottle or photo) and the meaning it conveys to the consumer OBJECT MEANING So what do we do during this stage? • Visit bars and retail (including online) and talk to bartenders and Cognac lovers • This combines with desk research and our existing knowledge • We can then define the key packaging signs for Cognac, Scotch Single Malts and Premium Wine SIGNS The object is the thing, item, or code that we ‘read’ – so, a drawing, a word, a photo. Each object has a meaning, the idea or meaning being expressed by that object. Only together do they form a sign. 5 Hypothetically, these are the signs for a bottle design Overall bottle shape Bottle cap/neck wrap colour Bottle cap/neck wrap material Bottle cap material Perceived colour of liquid Bottle cap colour Perceived clarity/smokiness of liquid Bottle neck shape Logo placement Bottle body shape Bottle body material Label colour Bottle body texture Label visuals Bottle body colour Label font 6 Step 2 – Decoding the culture codes Our interpretation of these signs will always bear in mind the cultural context SIGNS CULTURAL CODES DESIGN CODES Provides Chinese cultural codes to reveal how the key Cognac packaging codes evolve in this market So, how do Chinese cultural cues influence how they perceive these signs? A basic example – we might view black secondary packaging as premium, but in China black may be perceived as bad luck Example culture code interpretation 7 Hypothetically, these are the cultural codes in the alcohol category As Baijiu is a very dynamic category that is reflecting cultural trends of the local China market, we have used Baijiu as a proxy to illustrate possible cultural codes that exist in this market PREMIUMISATION HERITAGE YOUNG COLLECTOR’S FEMALE FUN OCCASION-BASED WESTERN INGREDIENT (weddings, anniversaries) For each of these cultural codes, we will flesh out the different signs that embodies the cultural code FUN • Bottle colour looks young and modern • Bright coloured cap and labels on the packaging is vibrant and fun • Visual motifs are also fun • Unique and fun shape taken from iconic symbols 8 Step 3 – ‘Trajectory’ of Cognac packaging codes, generating the guide for future packaging innovation ideas Applying the cultural lens to the evaluation of the ‘signs’ in pack design – to produce a code framework THE MUSTHAVE DESIGN CODES OPPORTUNITY MAP We will understand packaging design trends and provide examples of how packaging is evolving to signify new trends in the category • How the market currently signifies premium and how this translates into the Cognac category • Understand relevant cues from other categories (e.g. whisky) • Inputs for future communication and design 9 Hypothetically, this is an example of how we will further contextualise the analysis to provide strategic insight for future development … Dominant Codes – stories that resist change Emerging Codes – the fresh habits/ rituals WESTERN INGREDIENT Recessive Codes – the changing codes HERITAGE COLLECTOR’S PREMIUMISATION OCCASION-BASED YOUNG FEMALE FUN (weddings, anniversaries) 10 … which is guided by the changes we have seen in the packaging design of key brands in the market over time EXAMPLE OF WULIANGYE Dominant Codes – stories that resist change Emerging Codes – the fresh habits/ rituals Recessive Codes – the changing codes 1959 1970 1978 1986 1995 2017 11 Baijiu How do Chinese consumers view Baijiu Baijiu is a Chinese alcohol that is known to be have high alcoholic levels (usually it is at least 38%, with exceptions for female-targeted Baijiu, which is at 20%). Baijiu literally means “white alcohol”, and the name is derived from the colour of the alcohol, which is transparent and colourless. The highest quality Baijiu is perceived to have the highest level of clarity and transparency, with as little or no bubbles as possible. The price range varies widely for Baijiu, for as low as RMB 10 and as high as RMB 1,500 Baijiu is usually drank by the older generation, and less preferred by younger consumer. And it is also perceived as a drink preferred by males, so females tend to choose it less. And the brands are aware of this, so there is emerging trend of new Baijiu offerings now targeting at the youth, and female. Culture Codes for Baijiu RECESSIVE CODES DOMINANT CODES EMERGENT CODES The Impressive Deluxe The Iconic Leader The Western Wannabe The Decent Antique The Trendy Purist The Modern Female The Casual ‘RTD’ Premium Codes RECESSIVE CODES A more “premium” Baijiu which is appreciated by the older generation The Impressive Deluxe WHO Middle aged (40 years old and above) drinks this? WHEN Mostly for collection or receive as a gift – not for consumption do they drink this? WHERE Chinese Restaurant do they drink this? WHAT does it symbolise? WHY do they drink this? HOW Do they drink it? Premium Wealth Social status Usually kept at home for collection To celebrate an occasion Neat RECESSIVE CODES Perceived as a gift for older generation due to its design which is similar to Chinese Antique. However, it is getting less and less popular as younger generation prefer something more trendy. The Impressive Deluxe RECESSIVE CODES The Impressive Deluxe BOTTLE SHAPE • The rounded egg-like body shape are similar to Chinese antique (white and blue porcelain) therefore it is only for collection. Thus, the antique represents wealth and prosperity in Chinese culture BOTTLE COLOUR • Red color represents the occasion of joyous and golden color represents prosperity in the Chinese culture codes RECESSIVE CODES The Impressive Deluxe MOTIFS • The motifs on the bottle is written by Chinese pictography or calligraphy, which reflects traditional Chinese artwork has keeping value RECESSIVE CODES Baijiu that has a strong connection with the Chinese culture The Decent Antique WHO Middle aged (40 years old and above) drinks this? WHEN do they drink this? WHERE do they drink this? WHAT does it symbolise? WHY do they drink this? HOW Do they drink it? Social gathering Personal gathering Home Chinese Restaurant Vintage History Old-fashioned To celebrate an occasion Kept at home for collection Neat RECESSIVE CODES Porcelain Bottle design conveys strong Chinese cultural heritage, but traditionalism is losing its relevance with younger generations The Decent Antique RECESSIVE CODES BOTTLE MATERIAL • Porcelain bottles are used as it represent traditional Chinese style of keeping alcohol. However it is seen as out-dated by many The Decent Antique LABEL • The brand names on the bottle are written in Chinese calligraphy which is the traditional way of writing therefore is it well-liked among the older generation BOTTLE COLOR • The use of plain and dull colours is consistent with olden Chinese Porcelain design rare nowadays and is mostly for collection DOMINANT CODES Ranges from the very cheap variant to the super premium variant (very limitedly produced) and it caters to everyone The Iconic Leader WHO drinks this? WHEN do they drink this? WHERE do they drink this? WHAT does it symbolise? WHY Middle aged people (40 years old and above) As a gift to government officials Higher level income individual Gathering with friends & family members Social gathering Chinese Restaurant Home Traditional Premium Social status To celebrate an occasion do they drink this? HOW Do they drink it? Neat DOMINANT CODES Gold and red colour label with transparent or white coloured bottle are the most iconic design of Baijiu that are closely linked to Wuliangye and Maotai The Iconic Leader DOMINANT CODES BOTTLE SHAPE • Long Bottle neck, broad shoulders, and fat circular body is seen as a traditional classic Baijiu bottle (Wuliangye) The Iconic Leader BOTTLE MATERIAL • The transparent glass bottle is iconic. use to determine the quality of the Baijiu, the lesser the bubbles, the higher the quality DOMINANT CODES The Iconic Leader BOTTLE MATERIAL • The bottle of a Maotai Baijiu is seen to be similar to the iconic pillars located in front of Tian An Men, Beijing which is made out of white Jade although consumer are aware that the bottle is made from plastic, they sees the similarities in them and thus perceive it to be premium LABEL COLOUR • The use of gold and red colors in their bottle label since the beginning is has been the same as both gold and red translates to prosperity in the Chinese culture DOMINANT CODES The Iconic Leader Two leading brands, Moutai and Wuliangye, defined the classic design of Baijiu and it has retained its iconic look over time. Moutai has hardly changed its packaging over the years, keeping to the iconic bottle shape, and gold/red label design 1950s 1960s 1970s 1980s 1990s 2000s Current Wuliangye had changed its design over the years, in terms of the bottle shape and dropping the red in the label at certain intervals, but it has kept the transparent glass colour, giving it the iconic look. It’s current bottle shape and colour strongly differentiates it from other brands in the market. 1959 1970 1978 1986 1993 1995 2017 EMERGING CODES A more trendy Baijiu to cater for the younger to middle age consumers The Trendy Purist WHO drinks this? WHEN do they drink this? WHERE do they drink this? WHAT does it symbolise? WHY Younger to Middle aged (30 – 45 years old) Higher, senior level people Social gathering Personal gathering Chinese Restaurant Home Trendy Pure Fashionable To celebrate an occasion do they drink this? HOW Do they drink it? Neat EMERGENT CODES It’s a modern shift from ‘The Iconic Leader’ and leverages on the cues of distillation process of producing Baijiu (i.e. water drop shape and colours) The Trendy Purist EMERGENT CODES The Trendy Purist BOTTLE SHAPE • Long bottle neck and short, round bottle the shape of water drop, an innovative design without forgetting its roots of distillation BOTTLE COLOR • Blue can be associated with purity while white can represents clarity high quality baijiu without any mixture EMERGENT CODES More appealing towards the younger crowded due to its more “Western” design The Western Wannabe WHO Young generation (20 – 30 years old) drinks this? WHEN Social gathering do they drink this? WHERE Chinese Restaurant do they drink this? WHAT does it symbolise? WHY do they drink this? HOW Do they drink it? Trendy Western-style • Willing to try new things • Adventurous Neat EMERGENT CODES As the Western culture has always been the “thing” in China, Baijiu players are attempting to attract the younger generation of consumers by creating a “western” bottle design The Western Wannabe EMERGENT CODES The Western Wannabe BOTTLE SHAPE • Long bottle neck and round, fat & short bottle is similar to the imported liquor such as Cognac hence it feels western and premium LABEL • The words on the label are in English and the Westernstyle images which can be related to western-style products more premium than local products EMERGENT CODES Suitable for the younger female consumers due to smaller bottle as well as lower alcohol content The Modern Female WHO drinks this? WHEN do they drink this? WHERE do they drink this? WHAT does it symbolise? WHY Young generation (20-30 years old) Female Gathering with friends Social gathering Restaurant Bar Home Cute Fashion Low alcohol level do they drink this? HOW Do they drink it? Neat EMERGENT CODES As Baijiu is a male skewed category, it is seen as wanting to cater to the more niche female market by offering a more “fun” and “feminine” bottle designs. The Modern Female EMERGENT CODES The Modern Female BOTTLE SHAPE • Long bottle neck and slim bottle with a curve design can be seen as suitable for female seen as easy to carry around in handbags • Curvy bottle shape looks feminine seen as an ideal woman’s body BOTTLE LABEL • The image of a girl on its label create a more softer, feminine look EMERGENT CODES A young, trendy and innovative drink to appeal to the younger generations The Casual ‘RTD’ WHO Young generation (20-30 years old) drinks this? WHEN Gathering with friends do they drink this? WHERE do they drink this? WHAT does it symbolise? WHY do they drink this? HOW Do they drink it? Chinese Restaurant Bars Convenient store Trendy Innovative Fresh Want to try new things Want to have a substitution of juice, beer and other drinks For enjoyment Low price Neat Mixed with other liquor for making cocktail Drink directly from the bottle EMERGENT CODES As consumers’ lifestyle is becoming more and more fast paced (especially the younger generation), everything is mobile and on-the-go, marketers are trying to seize this opportunity by capturing these youths The Casual ‘RTD’ EMERGENT CODES The Casual ‘RTD’ BOTTLE SHAPE • Unique bottle shapes (ex. Perfume bottle, light bulb) new and innovative design, gives a trendy looking feeling BOTTLE SIZE • Smaller bottle size that makes it easy for single consumption easy to pick up while on-the-go EMERGENT CODES The Casual ‘RTD’ BOTTLE LABEL • The cute and cartoon design on the bottle label looks fun and attractive appealing to the younger consumers Overview of culture codes for Baijiu More Premium Less Premium The Trendy Purist The Decent Antique The Casual ‘RTD’ The Iconic Leader The Impressive Deluxe The Western Wannabe The Modern Female Dominant codes (Iconic Leader and Trendy Purist) are considered more premium, while emerging codes (Casual ‘RTD’, Western Wannabe, Modern Female) are non-premium. For the Baijiu category, it seems like there is a shift towards becoming more accessible to the masses and expanding consumer base to youths and females Overview of ‘premium’ signs for Baijiu For the Baijiu category, the most of the premiums signs differ from Western alcohol categories (see next few sections) Less Premium More Premium BOTTLE COLOUR OPAQUE TRANSPARENT BOTTLE SHAPE UNIQUE CLASSIC LABEL COLOUR PLAIN / DULL COLOURS MOTIF DESIGNS CARTOON RED & GOLD CALLIGRAPHY / ANTIQUE PROCELAIN PAINTING Wine How do Chinese consumers view Wine Wine is slowly gaining popularity in China, however is it often shadowed by the more traditional “yellow wine” or “Baijiu” because of its cultural ties. These traditional spirits has long been a part of the Chinese culture since the beginning and has since been a part of many Chinese consumer’s lives growing up. Wine started to pick up when the Chinese consumers were slowly getting exposed to Western culture including their cuisine which wine is closely linked to (“Western Fine Dining”). As the demand for Western cuisine gradually increases, so did Wine. Wine is translated to “Pu Tao Jiu” in Chinese which back translates to Grape Alcohol and when Pu Tao Jiu is mentioned, it is directly linked to red wine (more dominant in China) and seldom referred to as White. There is little difference in the bottle design for red wine vs white wine, apart from the dark tinted bottle (red wine) and clear or lightly tinted bottle (white wine). In addition, most Chinese consumers are not very knowledgeable about wine. They are unable to differentiate between the sub-categories of wine (ex Shiraz vs Merlot or Chardonnay vs Sauvignon Blanc). Culture Codes for Wine RECESSIVE CODES DOMINANT CODES EMERGENT CODES The Pretentious Practical The Classy Grandeur The Pretty Gift The Celebratory Emblem The Hobby Collection The Modern Classic The Imitator RECESSIVE CODES The Pretentious Practical Pursue quality of life while being cost conscious WHO drinks this? WHEN Someone doesn’t know wine too well Wants to try something different but at the same time want to be seen as drinking an imported brand Alone do they drink this? WHERE do they drink this? WHAT does it symbolise? WHY do they drink this? HOW Do they drink it? Supermarket Online Home Imported Value for money Cost saving, more economical Want to appear westernised, sophisticated By wine glass RECESSIVE CODES Consumers are becoming more sophisticated and are willing to pay more to satisfy themselves so they might no longer be prioritising valuefor-money. Also consumers are increasingly looking at attractive-ness of design The Pretentious Practical RECESSIVE CODES The Pretentious Practical BOTTLE SHAPE • Larger size and bigger wine bottle more quantity, value for money DOMINANT CODES Grandiose interpretation of classic wine bottle design The Classy Grandeur WHO drinks this? WHEN do they drink this? WHERE do they drink this? WHAT does it symbolise? WHY do they drink this? HOW Do they drink it? Young to older generation (18 years old and above) Higher income individuals Social gatherings Personal gatherings Home with guests/close friends and families On board First Class flights Premium Generosity Social status A more “expensive” option Appear to be classy With a wine glass DOMINANT CODES Keeping to the iconic bottle shape of wines which makes it a part of the dominant trend, while adding a level of premium-ness through the wider circumference of the bottle The Classy Grandeur DOMINANT CODES The Classy Grandeur BOTTLE SHAPE • Tall and longish, cylindrical shape with Broader width wine bottles has always been tall and longish (since introduced to China), however the broader width feels bigger and grander than normal slim wine bottles (Chinese prefer to have things wider ex cars.) DOMINANT CODES The Celebratory Emblem Want to celebrate an occasion but at the same time don’t want the effect of a hangover WHO drinks this? WHEN do they drink this? WHERE do they drink this? WHAT does it symbolise? WHY do they drink this? HOW Do they drink it? Younger generation (25 years old or above) Middle to high level income earners Social gatherings Celebrations Club Bar/KTV Lounges Fun Enjoyment Achievenment Lower alcohol content Want to enjoy but doesn’t want to get drunk With a champagne glass DOMINANT CODES Champagne has always been seen as not a serious drink because of its lower alcohol content as well as its gas and is purely for the sake of celebrating The Celebratory Emblem DOMINANT CODES The Celebratory Emblem BOTTLE SHAPE • Cylindrical shape classic-looking (similar to wine bottles, refer to modern classic) • Shorter body vis-à-vis longer bottle neck distinguish itself from a normal wine and seen as a “sparkling wine” BOTTLE SHAPE • Broader body width, bottom-heavy Similar to Classy Grandeur whereby it is seen as more “grand” DOMINANT CODES The Celebratory Emblem BOTTLE CAP • Sticking out cork wrapped with coloured foil creates a “pop” sound while opening, generates excitement and to symbolize the start of celebrating an occasion DOMINANT CODES Caters to all level of wine drinkers The Modern Classic WHO drinks this? WHEN do they drink this? WHERE do they drink this? WHAT Younger to older generation (18 years old and above) All level of individuals Social gathering Personal gathering Alone Bars Restaurants At home Social status does it symbolise? WHY do they drink this? HOW Do they drink it? To relax Form of enjoyment Using a wine glass DOMINANT CODES Adopting the same bottle design throughout the years (both red and white). The same can be said for locally made red wine. The Modern Classic DOMINANT CODES The Modern Classic BOTTLE SHAPE • Cylindrical shape, slim and narrow body, tall and longish Classic wine bottle design, has been introduced to this bottle shape since the introduction of wine to the country therefore consumers see this as the classic, standard wine bottle EMERGING CODES Want to be seen as putting in effort when choosing a gift, shows how much you value the recipient The Pretty Gift WHO To be given as gifts drinks this? WHEN do they drink this? WHERE do they drink this? WHAT Persona gathering Social gathering Supermarkets Online Home That they value the recipient does it symbolise? WHY do they drink this? HOW Do they drink it? Presentable Nice looking Looks sincere Using a wine glass EMERGING CODES Gifting in China is a popular trend. Increasingly, consumers tend to understand and appreciate wine more (perceive more premium than traditional Baijiu), therefore is an emerging trend The Pretty Gift EMERGING CODES The Pretty Gift PACKAGING • Wine is normally sold by the bottle without a box, therefore consumers sees this a more premium and expensive wine due to its packaging PACKAGING DESIGN • In addition to box, the design/pattern is sophisticated but at the same time seen as elegant and trendy suitable as a gift EMERGING CODES A wine that is very personalized and bought solely for collection purpose The Hobby Collection WHO Collectors drinks this? WHEN Usually kept at home, not for drinking do they drink this? WHERE do they drink this? WHAT does it symbolise? WHY Imported and exclusive supermarket Online Limited Edition Rare Collection Not drunk but kept as a collection do they drink this? HOW Do they drink it? Usually displayed at home where everyone can see EMERGING CODES As the popularity of the brand grows, consumers are willing to spend and buy the related products of the brand especially if it links to their particular hobby just for the purpose of collection The Hobby Collection BOTTLE SHAPE EMERGING CODES The Hobby Collection LOGO • Brand label has nothing to do with wine targets specifically to those who favours the brand • No year, type of wine mentioned low quality wine EMERGING CODES Unable to tell that it is a wine at first glance The Imitator WHO Younger generation (18 – 30 years old) drinks this? WHEN Casual gathering with friends do they drink this? WHERE do they drink this? WHAT does it symbolise? WHY do they drink this? HOW Do they drink it? Restaurant (Any) Home Adventurous Stand out Risk taker Try out new things To be different from the rest With any glass EMERGING CODES Attempting to break out from the normal codes, trying to be different to capture those who are willing to try new things The Imitator EMERGING CODES The Imitator SHAPE • Square-ish body looks like a vodka, consumers do not know what to expect (in terms of taste) therefore not for serious ocassion • Long neck with a round body looks like Bailey’s, similar with the above Although different types of wine can be indicated from the bottle design, Chinese consumers are not savvy enough to identify it. Riesling is not commonly known in China, so when they see this bottle design, they could mistaken it for ‘Ice Wine’ as is fits their perception of small and slim design Other than the designs in the dominant codes, Chinese consumers might not be able to decode the designs Overview of culture codes for Wine More Premium Less Premium The Classy Grandeur The Modern Classic The Hobby Collection The Celebratory Emblem The Pretty Gift The Imitator The Pretentious Practical Dominant codes (Classy Grandeur, Celebratory Emblem) are considered more premium, while recessive codes (Pretentious Practical) are non-premium. For the Wine category, it seems like dominant trends are considered more premium, while emerging trends are more mid-level premium as consumers might see novel trends as ‘gimmicky’ hence lacking high premium-ness Overview of ‘premium’ signs for Wine For the Wine category, there are less fewer signs of premium-ness and is consistent with other alcohol categories. Less Premium BOTTLE SHAPE UNIQUE BOTTLE WIDTH NARROWER CARTON WITHOUT CARTON More Premium CLASSIC WIDER WITH CARTON Scotch How do Chinese consumers view Scotch In China, Scotch is a lesser established category compared to Cognac due to its shorter presence in the country. However, Scotch seems to be more appealing towards a more younger crowd. One of the main reasons is that its entry level brands are cheaper than the entry level brands for Cognac thus allowing the younger consumers to enjoy imported spirits at a lower cost. Scotch is becoming a more and more popular choice for teenagers in clubs, KTVS as well as bars mainly because if its cheaper way to have fun. With that being said, because of the higher overall awareness of Scotch as well as the higher demand for the category, the more premium range has been introduced to the market. Consumers are now slowly switching from the traditional Baijiu to premium Scotch for gifting purposes, especially to younger affluent consumers. Culture Codes for Scotch RECESSIVE CODES DOMINANT CODES EMERGENT CODES The Wealthy Flaunter The Exclusive Tribute The Trendy Entree The Sincere Gratitude The Next Level Up Premium Codes DOMINANT RECESSIVE CODES CODES Seen as showing of his/her wealth by enjoying a bottle of premium scotch The Wealthy Flaunter WHO drinks this? WHEN do they drink this? WHERE do they drink this? WHAT does it symbolise? WHY do they drink this? HOW Do they drink it? Middle aged and above (40 years and above) High income level individuals Banquet Social & personal gathering Business occasion High End bars At home Chinese Restaurants Premium Expensive Social Status Premium Quality Show off Neat On the rocks DOMINANT CODES Having face value is a strong element in the Chinese culture and those who are able to would tend to flaunt them The Wealthy Flaunter DOMINANT RECESSIVE CODES CODES The Wealthy Flaunter PACAKGING COLOR • Navy blue color influenced by the western legacy that darker colors symbolizes premiun-ness PACKAGING DESIGN • ‘One-door side opening’ different from the normal top opening, able to showcase the bottle without taking the whole bottle out, seen as more classy DOMINANT RECESSIVE CODES CODES The Wealthy Flaunter STOPPER DESIGN • Unique bottle stopper design overall stopper sees as “high class” because of the more sophisticated design STOPPER FEATURE • Golden ring stopper shows its premium-ness as it is uncommon for a whiskey bottle to have such stopper DOMINANT CODES Entry level Scotch to cater to the younger crowd that is not so financially capable The Trendy Entree WHO drinks this? WHEN Young generation (20-30 yrs. old) People who started to drink Scotch Gathering with friends do they drink this? WHERE do they drinks this? WHAT KTV Bars Night clubs Want to be seen as drinking Scotch does it symbolise? WHY do they buy this? HOW Do they drink it? Available in almost every bar and KTV Cheap On the rocks With mixes (e.g.. Soda, Coke) DOMINANT CODES Typically, these Scotch are the first choice for young generation or entry-level drinkers as they are not expensive. While at the same time being more trendy than drinking Cognac, which is perceived to be for a more matured audience The Trendy Entree DOMINANT CODES The Trendy Entree PACKAGING MATERIAL • The packaging is made up of thin cardboard seen as easily tear-able and flimsy therefore cheap PACKAGING COLOR • Bright coloured packaging is seen as less premium due to influence of Western context whereby premium is associated with darker/black colours while the cheaper one are more bright and eyecatching EMERGENT CODES Seen as premium gifts for the important person The Exclusive Tribute WHO Use as gifts for important people drinks this? WHEN Usually kept at home, not for drinking do they drink this? WHERE do they buy this? WHAT does it symbolise? WHY do they buy this? HOW Do they drink it? Premium imported supermarket/ Shopping mall Online Duty-free store Luxury Social Status Exclusive Limited Edition Presentable NA EMERGENT CODES When presenting a gift, the presentation is the most important factor to consumers, the more elegant and premium the packaging, the more the giver will not “lose face”. An emerging trend as Scotch is becoming more and more popular amongst consumers The Exclusive Tribute EMERGENT CODES The Exclusive Tribute BOTTLE SHAPE • Bottle shape is unique and perceived as limited edition for collection symbol of premium BOTTLE MATERIAL • High quality glass are used for reflecting the good lustre of the Scotch EMERGENT CODES The Exclusive Tribute STOPPER DETAILING • Engraved Lettering on the bottle stopper produce the aesthetic feeling which make the Scotch more premium. STOPPER MATERIAL • A bottle stopper made out of materials like crystal or silver is seen as more premium as most bottle stopper comes with a metal cap and at most a plastic stopper EMERGENT CODES The Exclusive Tribute PACKAGING MECHANISM • ‘Two-door front opening’ creates a more exclusive feel to the overall Scotch as it is similar to a cupboard able to protect the inside while at the same time showing it off without taking out the whole bottle PACKAGING COLOUR • Dark color packaging again represents premiumness as it is seen as elegant and stylish EMERGENT CODES Its well-known brand combine with its more premium design makes it suitable for an ideal gift to close friends and families The Sincere Gratitude WHO To be used as gifts (close friends and families) drinks this? WHEN do they drink this? WHERE Personal gathering Alone consumption At home with friends and family members do they drink this? WHAT does it symbolise? WHY do they drink this? HOW Do they drink it? Premium High-end Social Status High quality Scotch Neat On the rocks EMERGENT CODES Slowly converting from using Baijiu as a gift towards whiskey as it is seen as more “premium” compared to Baijiu The Sincere Gratitude EMERGENT CODES EMBOSSMENT • The unique embossment design on the bottle is not something common for a whiskey bottle thus seen as an “upgrade” due to its more sophisticated patterns The The Sincere Show Gratitude off STOPPER DESIGN • The stoppers looks high class and premium because of the usage of gold color. PACKAGING COLOR • The mellow colors used on the packaging is something not too overwhelming but at the same time able to elegant-ness due to its simple and direct approach EMERGENT CODES Seen as upgrade compared to the normal Scotch due to its price as well its perceived higher quality at the same lesser known variant The Next Level Up WHO drinks this? WHEN do they drink this? WHERE do they drink this? WHAT does it symbolise? WHY do they drink this? HOW Do they drink it? Middle Aged (30ies and above) Medium to high level individuals Personal gatherings Social gatherings High end Bars Night clubs Social Status Premium Want a higher quality Scotch Want to be different Neat On the rocks With Soda EMERGENT CODES As younger consumers increasing have higher purchasing power, they tend to be on a look out for an “upgrade” to show their higher social status The Next Level Up EMERGENT CODES The Next Level Up BOTTLE LABEL • The higher the number of years on the bottle, the more higher the quality which translates to more premium PACKAGING COLOUR • Colour used in the packaging are a more softer shade of colour compared to the “Trendy Entree” (refer to trendy entree slide) which is more brighter and eyecatching. However, it is not as premium as the “Exclusive Tribute” (refer to Exclusive Tribute slide) Overview of culture codes for Scotch More Premium Less Premium The Trendy Entree The Next Level Up The Wealthy Flaunter The Sincere Gratitude The Exclusive Tribute Dominant codes (Trendy Entrée and Wealthy Flaunter) are at 2 ends of the premium-ness spectrum, while emerging codes (Next Level Up, Sincere Gratitude) are positioned in between this dischotomy. For the Scotch category, it seems like emerging codes are considered providing different levels of premium-ness for Scotch, and also increasing the occasions and target group. Overview of ‘premium’ signs for Scotch For the Scotch category, there are more signs to differentiate the premium level of the various offerings, compared to Wine and Baijiu Less Premium More Premium STOPPER DESIGN PLAIN INTRICATE STOPPER MATERIAL CORK CRYSTAL, SILVER BOTTLE MATERIAL THIN GLASS LABEL INFORMATION 12 YEARS BOTTLE SHAPE CYLINDRICAL THICK GLASS 25 YEARS NON-CYLINDRICAL Overview of ‘premium’ signs for Scotch For the Scotch category, there are more signs to differentiate the premium level of the various offerings, compared to Wine and Baijiu Less Premium CARTON MECHANISM CARTON MATERIAL CARTON COLOUR LABEL INFORMATION NORMAL TOP FLAP BOX THIN CARDBOARD LIGHTER SHADE (Single Colour) 12 YEARS More Premium FRONT OPENING ‘DOOR’ WOOD DARKER SHADE (Single Colour) 25 YEARS Cognac How do Chinese consumers view Cognac Cognac is seen as a luxury spirit that has been in the market for a long time. As the number of “mass affluent” and high net worth individuals have been rapidly increasing in China which then in turn pushes the demand for Cognac. The higher range (XO and above) are typically used as gifts (to close a business deal or as a favour). The strong overall flavour and higher alcohol content is seen as an acquired taste therefore appeals more towards the older crowd. Most consumers who consume Cognac are looking to experience the “French lifestyle”. Besides that, the young generation are slowly converting towards drinking Cognac to show that they belong to the international higher social class. Consumers see Cognac as a more premium spirit compared to the local Rice wine and Baijiu mainly because of its heritage (Western brand is seen as a more premium compared to local brands), availability (needs to imported therefore lesser quantity and more expensive) and is a indulging moment that not everyone can afford. Although, Cognac is a Western spirit, it also blends well with Chinese cuisine as many consumers will tend to bring their own bottle while dining out in a Chinese restaurant. Culture Codes RECESSIVE CODES DOMINANT CODES EMERGENT CODES The Next Best Thing The Definitive Venerable The Stylish Peacock The Modern Twist The Vintage Adaptation The Hidden Gem The Young Trendy The Established Prudent The Whiskey Crossover Premium Codes RECESSIVE CODES Not the classic Cognac but acceptable choice to those who are costconscious. The design seems mid-end, while its price point is low end, hence it is in an ‘awkward’ position. For those who are looking for cheap options, it would look above their budget, while for those who are willing to pay more, they will want a more attractive design. The Next Best Thing WHO Younger to middle aged (25 – 40 years old) drinks this? WHEN do they drink this? WHERE do they drink this? WHAT Social gathering with friends Alone at home Bars KTV Home Lower end cognac does it symbolise? WHY do they drink this? HOW Do they drink it? Willing to try new things Adventurous Cost-conscious With mixers (ex. Coke) RECESSIVE CODES Used to be a considered option due to relatively friendlier price for Cognac However, due to its lower perceived image consumers are starting to trade up due to consumerism upgrade trend in China The Next Best Thing RECESSIVE CODES The Next Best Thing BOTTLE NECK BOTTLE SHOULDER • Long slim bottle neck do not seen it as Cognac at first glance (not typical Cognac design) hence lacking the premium look associated with Cognac • Feels the purpose of the long neck is for gripping, similar to how beers bottles are gripped which makes it easier to bring around in clubs/KTVs (venue for cheaper alcohol choices) • Steep bottle shoulder bottle design not proportionate, however feels that bigger based will give more stability to the bottle, similar to its target market (matured and establish individuals) BOTTLE SHAPE Long neck + short body similar to local soy sauce bottle – which makes it look cheap DOMINANT CODES The Definitive Venerable Most premium quality cognac, only drunk on special occasions/gift to important people WHO drinks this? WHEN Middle age (35 years old and above) High level income earners Gift to important people (ex. business partners) Special/important occasions do they drink this? WHERE do they drink this? High End Bar Chinese restaurants Premium KTV lounge does it symbolise? WHY Form of enjoyment To celebrate an occasion WHAT do they drink this? HOW Do they drink it? Heritage History Wealth Social status On the rocks Neat DOMINANT CODES Classic and the most iconic Cognac design that transcends time The Definitive Venerable DOMINANT CODES The Definitive Venerable BOTTLE SHAPE • Bottle is round in shape with short bottle neck seen as the most classic and iconic design mainly because it if one the first few to arrive in the country therefore has a lasting impression on consumers minds EMBOSSMENT • Different carvings, embellishments on the bottle as plain bottles are seen as the norm, bottles with embossment are viewed to be a sign of effort put into designing the bottles therefore translates a more premium feeling DOMINANT CODES The Definitive Venerable PACKAGING MATERIAL • Box Material the use of wood/leather is seen as one of the more premium packaging available as it is perceived that it needs to be custom made therefore creates an exclusivity feeling DOMINANT CODES To be bought/drank with close friends and family members, premium but low key The Modern Twist WHO drinks this? WHEN Middle aged (35 years old and above) To be given as gifts to close family and friends Personal gatherings do they drink this? WHERE do they drink this? WHAT does it symbolise? WHY do they drink this? HOW Do they drink it? Chinese Restaurants At home Trendy Premium but lower profile One of the “better quality” cognac To celebrate an occasion On the rocks Neat DOMINANT CODES Hints of the classic iconic cognac design with a twist of innovation The Modern Twist DOMINANT CODES The Modern Twist BOTTLE DESIGN • Visible space between brandy and the bottle consumers are able to see the thickness of the bottle therefore seen as a more sturdier, high quality glass bottle (only seen is more modern bottle design) BOTTLE SHAPE • Bottle is round in shape with short bottle neck retains its classic Cognac bottle design (similar to The Definitive Venerable) • However, its plain bottle design gives consumers a twist of modern feel as consumers are pre-accustomed to the embossment in the Definitive Venerable, a plain design gives it a simple yet elegant look DOMINANT CODES The Modern Twist PACKAGING DESIGN • Square box instead of a rectangular box used a square box is seen as robust while at the same time sturdy, suitable to bring out during meals (a sign of generosity) instead of the more cheaper rectangular boxes BOTTLE CORK • Trendy bottle cork design the use of black, gold and silver cork is seen to be trendy and unique while at the same time not too overwhelming, matching with the overall classic bottle look DOMINANT CODES Elegant yet keeping a low profile The Hidden Gem WHO drinks this? WHEN Middle aged (35 years old and above) Cognac connoisseurs Personal gatherings do they drink this? WHERE At home with close family members do they drink this? WHAT does it symbolise? WHY do they drink this? HOW Do they drink it? Premium High quality Form of enjoyment When relaxing To celebrate an occasion On the rocks Neat DOMINANT CODES Although black is an inauspicious colour in China, consumers see it differently for Cognac mainly because of its western legacy which also translates to premium The Hidden Gem DOMINANT CODES The Hidden Gem BOTTLE COLOUR • Dark bottle colours used create a sense of mysteriousness, perceive to be good quality brandy MATERIAL • Matte black material bottle is seen as an expensive texture and not everyone knows how to appreciate the material, so it feels more targeted at connoisseurs who know how to appreciate it DOMINANT CODES The Established Prudent Cheaper alternative to the more higher class “Definitive Venerable” WHO drinks this? WHEN Younger generation (18 -30 years old) Just started to drink Cognac Social gatherings do they drink this? WHERE do they drink this? WHAT does it symbolise? WHY do they drink this? HOW Do they drink it? Club Bar/KTV Lounges Fun Young Cheaper alternative High alcohol content To get high / fun With mixers (ex. Coke) Neat via shot glasses DOMINANT CODES The option to go to especially for younger generations when in a club or KTV due to its lower price point while at the same time its long bottle neck makes it easier to carry around tables. Therefore the codes suits well with the local KTV and bar scenes The Established Prudent DOMINANT CODES The Established Prudent BOTTLE NECK BOTTLE BODY • Long slim bottle neck do not sees it’s as Cognac at first glance, and it seen for gripping (similar to The Next Best Thing) BOTTLE SHOULDER • Fluid curved bottle shoulder, non-angular vague resemblance to classic Cognac shape, sees it as less serious and more fun • Cylindrical instead of flat unlike the classic Cognac • Slightly curvy shape looks rounded and somewhat indicates the rounded silhouette of the classic Cognac design, breaking away from its matured look to be younger EMERGING CODES Want to enjoy Cognac without paying a premium price for it The Whiskey Crossover WHO drinks this? WHEN Younger generation (20 -30 years old) Whiskey drinkers Social gathering do they drink this? WHERE do they drink this? WHAT does it symbolise? WHY do they drink this? HOW Do they drink it? Bar KTV Home New, Fresh Cheaper, lower quality Cheaper variant of Cognac (still want to be seen as enjoying a bottle of Cognac but not willing to spend a fortune) With mixers (ex. Coke) EMERGING CODES Bottle design looks like a whiskey bottle attract whiskey drinkers to trade up to Cognac The Whiskey Crossover EMERGING CODES BOTTLE SHAPE • Tall, straight cylindrical, slim similar to typical whiskey bottle design (tall slim with minimal curves) The Whiskey Crossover BOTTLE LABEL • Number of years shown Unique only to whiskey (uncommon for brandy) BOTTLE SIZE • 12 year old Courvoisier is seen as the lowest among the three due to its more petty bottle size similar to the local yellow wine bottle therefore seen as low quality EMERGING CODES The Vintage Adaptation Caters to the niche Cognac lovers who is looking for something different WHO drinks this? WHEN do they drink this? WHERE Middle aged (35 years and above) Middle to high level income earners Enjoys the taste of Cognac Alone Social gathering At home do they drink this? WHAT does it symbolise? WHY do they drink this? HOW Do they drink it? Heritage History Vintage Form of enjoyment To savour the taste On the rocks Neat EMERGING CODES An emerging trend as more and more consumers are looking beyond the norm for something that can excite them The Vintage Adaptation EMERGING CODES The Vintage Adaptation BOTTLE LABEL • Bottle label with paper brown background the brown-ish paper label on the bottle creates an old vintage feeling (similar to labels used in the olden days) PACKAGING COLOUR • Different shades of brown used brown is seen as a colour that is old and has been kept for a long time, valuable and vintage EMERGING CODES Targeted towards the younger female group unique and ‘cute’ packaging design The Young Trendy WHO drinks this? WHEN do they drink this? WHERE do they drink this? WHAT does it symbolise? WHY Younger generation (20 – 30 years old) Females Usually kept at home not for consumption as it is too ‘pretty’ to be opened and consumed Imported and exclusive supermarket Online Limited Edition Fun Special As a gift to someone who doesn’t drink do they drink this? HOW Do they drink it? NA EMERGING CODES Up and coming to entice the younger audience because of its eye-catching and “unique” packaging design The Young Trendy EMERGING CODES BOTTLE DESIGN • White bottle with white foil stands out from normal bottles, white gives a more young and vibrant feel compared to the usual dark and gloomy bottles The Young Trendy PACKAGING DESIGN • Drawings on the box creates a fun and casual feeling • Something different able to grab attention (normal Cognac boxes are without drawings) OVERALL DESIGN • Similar drawings to create a France feeling (red, blue, yellow as well as the buildings). However hard for consumers to spontaneously identify EMERGING CODES Classy and premium suitable as a gift, however content might not be as good as The Definitive Venerable The Stylish Peacock WHO drinks this? WHEN Early thirties ( 30-35 years old) High level income earners Personal gatherings do they drink this? WHERE do they drink this? Home (own consumption) Kept at home (Decorating purpose) does it symbolise? WHY Badge Value / Show off WHAT An expensive gift Classy Respect Social Status do they drink this? HOW Do they drink it? Neat On the rocks EMERGING CODES Highly presentable design trendy, unique, stylish and premium The Stylish Peacock EMERGING CODES BOX COLOUR • Uses black as the main design of the box sign of premium-ness as well as looking stylish The Stylish Peacock BOX MATERIAL • Glossy texture, sturdy material high quality, elegant BOX DESIGN • ‘Two-door’ opening (i.e.opens from the front in the middle) of the box presentable, for big occasions EMERGING CODES BOTTLE SHAPE • Unique shapes, looks delicate like fragrance bottle designs deemed stylish at the same time can be kept as a decorative item at home The Stylish Peacock BOTTLE LOGO • Discreet position and not obvious at first glance embedded in the bottle design, more stylish and premium BOTTLE CAP • Unique bottle cap design classy and stylish, provides a more premium overall look CODE-DEFIER: Some designs do not fit into any of the culture codes. Despite some similarities to local products, it does not detract from its premium-ness Although at first glance the bottle is seen as similar to the Chinese traditional Rice Wine which is low in premium-ness, however consumers still seen it as a premium Cognac due to its strong brand image and consumers familiarity towards it. Mapping of the Cognac category (based on packaging design) Remy Martin Martell Hennessey Courvoisier Less Premium Caveat: Ranges are chosen based on their availability in the market More Premium Overview of culture codes for Cognac More Premium Less Premium The Established Prudent The Hidden Gem The Definitive Venerable The Modern Twist The Whiskey Crossover The Vintage Adaptation The Stylish Peacock The Young Trendy The Next Best Thing Dominant codes (Definitive Venerable and Modern Twist) are considered more premium, while certain emerging codes (Whiskey Crossover and Young Trendy) are non-premium. For the Cognac category, consumers still tend to prefer the more classic iconic design and also see them as the best in terms of quality. Overview of ‘premium’ signs for Cognac For the Cognac category, most of the sign of premium-ness revolves around being classic Less Premium BOTTLE SHAPE UNIQUE BOTTLE EMBOSSMENT SIMPLISTIC CARTON MECHANISM TOP OPENING CARTON MATERIAL THIN CARDBOARD BOTTLE LABEL OBVIOUS CARTON COLOUR BRIGHT More Premium CLASSIC INTRIGUED TWO DOOR OPENING WOOD/LEATHER SUBTLE DARK Key Takeouts About the cultural codes… 1 Most of the premium culture codes tend to be the dominant codes. China is a collectivistic society that tends to value mainstream recognition of what is considered premium, so the dominant codes (which tends to be widely accepted) tend to form the ‘gold standard’. 2 Within the dominant codes, the codes that are iconic and/or classic is the most premium. Hence new and unique designs (which tends to be the limited editions/gift editions) might be less appreciated as the highest standard of premium-ness About the premiums signs… 3 4 5 Amongst the 4 categories, Baijiu and wine have less design signals. Compared to Scotch and Cognac, Chinese consumers only notice few things about the design of the bottle of Baijiu and Wine. Wine has consistent premium codes as Scotch and Cognac. This includes having a classic bottle shape for the category, wider looking bottle to look more voluminous (abundance, stable), carton packaging. There is not much premium signs to be learnt from Wine. Baijiu is differentiated by its strong cultural signs. Some premium signs include highly transparent glass bottle (to showcase the colour and quality of alcohol within), as well as red and gold colours (the colour of auspiciousness, royalty, prestigious). Caution against including Chinese calligraphy/antique motifs for Cognac, as it might come across as gimmicky and lose the premium look About the premiums signs… 6 Scotch has the most premium signs, of which some of them could be adapted by the Cognac category. - Intricate stopper design - Crystal or silver for the stopper material - Thick glass for the bottle material BOTTLE MATERIAL • High quality glass are used for reflecting the good lustre of the Scotch STOPPER DETAILING STOPPER MATERIAL • Engraved Lettering on the bottle stopper produce the aesthetic feeling connoting craftmanship and effort put into the design • A bottle stopper made out of materials like crystal or silver is seen as more premium as most bottle stopper comes with a metal cap and at most a plastic stopper About the premiums signs… 7 Shapes play a bigger role in communicating premium-ness, compared to colours - Classic shapes for each respective category tends to be the most premium - Colours are play a smaller role in differentiating levels of premium-ness, mostly signalled by the types of colour, and to a very small extent the shades within a colour TYPE OF COLOURS LESS PREMIUM MORE PREMIUM • Darker colours seem more premium as it is perceived to be more mature and mysterious and classy SHADES OF A COLOUR LESS PREMIUM MORE PREMIUM • Darker shades of perceived to be more premium for Scotch, as darker shades seem more mature and classic. This does not seem to be visible in the Cognac category, because players are not using shades of colours to differentiate the range Premium signs for Cognac and its Implications towards each brands For bottle shape, it still very much revolves around the classic/iconic round body with short neck shape Less Premium Remy Martin Martell Hennessey Courvoisier UNIQUE BOTTLE SHAPE More Premium CLASSIC Premium signs for Cognac and its Implications towards each brands Embossment to consumers is seen as “putting in” effort into creating a more premium bottle. However this is considered a secondary code, i.e if it applies to a classic bottle then it would come across as “premium” how on its own it might not have that similar effect Less Premium Remy Martin Martell Hennessey Courvoisier SIMPLISTIC BOTTLE EMBOSSMENT More Premium INTRICATE Premium signs for Cognac and its Implications towards each brands Two door opening is seen as the more premium way for a Cognac bottle to present itself and currently Courvoisier’s highest range is only one door side opening therefore there is an opportunity for Courvoisier to bring it up a notch. Less Premium Remy Martin Martell Hennessey Courvoisier TOP OPENING CARTON MECHANISM More Premium TWO DOOR OPENING Premium signs for Cognac and its Implications towards each brands Materials like wood and leather is perceived to be custom made and exclusive which is the main contributor for its premium-ness level, and again there is an opportunity for Courvoisier to “join” the segment as both their most premium range do not have wood/leather material included Less Premium Remy Martin Martell Hennessey Courvoisier THIN CARDBOARD CARTON MATERIAL More Premium WOOD/LEATHER Premium signs for Cognac and its Implications towards each brands Consumers view Courvoisier’s bottle label as obvious hence there is a way to further premiumise it by making the label it more subtle. Less Premium Remy Martin Martell Hennessey Courvoisier OBVIOUS BOTTLE LABEL More Premium SUBTLE Premium signs for Cognac and its Implications towards each brands Bright colours is seen as less premium and cheap (refer to Trendy entree) and Courvoisier’s colour of purple and gold is seen as bright/light and its not considered a royal colour like in the Western countries therefore it doesn’t connote any from of premium-ness Less Premium Remy Martin Martell Hennessey Courvoisier BRIGHT CARTON COLOUR More Premium DARK