Press Release: Discount supermarkets the fastest growing wine purchasing channel in South Korea as wine consumers become more price conscious, according to a new report by Wine Intelligence
For Immediate Release: Friday 13th October 2017
Discount supermarkets the fastest growing wine purchasing channel in South Korea as wine consumers become more price conscious, according to a new report by Wine Intelligence.
Almost a third of South Korean semi-annual imported wine drinkers now buy wine from discount supermarkets, marking a significant increase from 2016. Wary of high tax rates, bargain hunters are increasingly likely to opt for lower alcohol beverages such as Moscato or beer, both of which enjoy lower tax rates than standard still light wine.
The latest report by Wine Intelligence, South Korea Landscapes 2017, also suggests that the increasingly price sensitive consumer base is becoming less adventurous. Just 30% report that they enjoy trying new and different styles of grape-based wine on a regular basis, down from 41% last year, while the majority – 55% – agree that they don’t mind what grape-based wine they buy so long as the price is right.
Wine Intelligence CEO Lulie Halstead comments, “Wine is still viewed as a luxury product in South Korea thanks to relatively high tax rates compared with other beverages, and wine lovers are finding their household budgets squeezed. In other markets we see that when price becomes a sticking point, mainstream consumers become more risk averse and look for ways to continue their wine drinking at lower cost.
A series of trade interviews with industry experts in the South Korea commissioned by Wine Intelligence suggests that supply is beginning to outstrip demand and that there will be a consolidation of distributors who had, until recently, benefitted from strong growth in the wine market.
“This could be good news for the South Korean consumer. Over-supply could lead to price cuts and promotional offers to stimulate purchase, while the savings from economies of scale in a consolidated market could also be passed on to the end consumer.”
About Wine Intelligence Ltd:
Wine Intelligence is the leading research-led strategy consultancy serving the global wine industry. It conducts client-specific research projects to aid companies to gain greater insights into wine markets and wine consumers, and helps business leaders develop business strategy and marketing plans. The company also assists businesses in developing new brands, and in formulating and communicating marketing messages within the industry.