The East is Red: French Wines in Asia

Published 01 Nov 2001
Reference 4847
Topic Marketing
Region Asia
Summary

The case describes the boom and bust of sales of French wine, especially expensive Bordeaux wines, in Asia. The unstructured and fragmented markets of developing Asia offer opportunities for tailor-made, branded products. However, such entry may be too early. In Japan, bulk imported French wine is already successfully marketed by Japanese companies under their names. For David, a young MBA, Japan may be too late for an entrepreneurial venture.

Teaching objectives

The case requires the analysis of a business which in France is mature and sophisticated, but in Asia is in its infancy and, thus, volatile. Judgement is required whether the burst of demand from Asia is only a fad or the beginning of a tremendous market development. This judgement and the consequences for a marketing strategy has to take into account the vast differences in consumer behaviour between Asia and the West.

Keywords
  • RD1099