LEUNG CHI KIN, CEO and Executive Director, Major Holdings Ltd., speaks on the changing trends of fine wines consumptions and prospects for the industry.
Reputed wine icon, Major Cellar Co Ltd, a wholly owned subsidiary of Major Holdings Ltd is riding the crest with rising consumption of wines, increased interest from mainland consumers and more widely available education on the value of appreciating wines.
“The rise of Chinese spending power, especially on luxury products is impacting the sale of quality wines in both PRC and Hong Kong,” says Leung.
“China already has a drinking culture but it’s usually baijiu/white spirits, however drinking too much baijiu leads to health problems due to strong alcohol it contains, whereas red wine promotes good health so the trend is changing.”
“Mainland China is now more open to western culture as compared to decades ago and we’ve seen a growing interests in the knowledge of wine in terms of both, for love of wine itself as well as for wine as an investment. Of course the 2008 tax reduction on wine in Hong Kong has also helped the industry to expand.”
In the beginning, most China customers only bought the most sought after brands, mostly are the First Growths, Lafite, Mouton, Margaux, Latour and Haut Brion…due to the brands’ reputation; and we imported great quantities to satisfy the market, Leung says.
“Not long after the tax deduction, wine cellars opened up one after another; most of them were just selling the hot items, then we even broadened our wine list, bring in more quality brands and boutique wineries to customers.”
“When the market was adjusting from ‘over selling prices’ for rare and fine wine in 2013, we strategically shifted our purchase allocation to fine wines to avoid frustration on rare and fine wine.
“Counterfeit wine is always a problem and we have guideline and polices internally to spot and avoid them. We tag every single bottle of the specific brand’s wines with hologram to increase customer confidence as well as to trace every bottle of wine we have.
On the left: Cheung Chun To, Chairman & Director; on the right: Leung Chi Kin, Executive Director, Major Holdings Ltd: “Rising interest in the study and appreciation prospects of quality wine have taken the markets to new heights.”
The company offers a wide range of wine and spirits including more than 3000 brands with over 80 vintages, experienced sales teams with one-stop services for a vast array of wine and spirits related products.
“We have well-established and stable relationships with major suppliers we have established presence in fast-growing wine and spirits industry in Hong Kong and we have a broad and loyal customer base,” Leung says.
“Customers view us a one-stop service from a team of experienced wine consultants who bring value-added knowledge to the table. The market recognizes us for our broad range of products in terms of price and variety and the strict guideline and control we offer on authenticity and storage of the wines.”
As for expansion plans we are looking for new shop locations, at developing online shopping and possible partnership with 3rd parties,” says Leung.
Our success comes from our investment in time and effort to learn the market and get our customers what they need. This is a very competitive and discerning market segment and we cannot afford to rest on our laurels.”
“Winning the prestigious HKMVC Award is a fitting reward for our hard work in bringing value to the Hong Kong market. The Award will reinforce our commitment to our customers and serve to inspire us to reach for new levels of customer satisfaction.”
For additional information please visit www.majorcellar.com
Hong Kong’s Business Leaders share market and interest intelligence in the pages of HKMVC 2017