LONDON, ENGLAND, October 17, 2013 /24-7PressRelease/
-- China is now the fifth-largest consumer of wine in the world and more importantly, it has surpassed the UK and Germany as the largest importer of Bordeaux wine.
The demand for fine wines is most certainly on an upswing in China but more surprisingly, they are buying for multiple reasons and not solely for consumption.
'Fine wine has become an aspirational must have asset to many well-heeled Chinese entrepreneur. Soaring Shanghai stocks, coupled with government stimulus and explosive property market have converged to make the Chinese tycoon the world's most potent high net worth individual', says Daniel Paterson, Senior Market Analyst at BWC Management & Consulting
, one of the UK's leading wine investment advisory agencies.
Back in October of 2009 the Chinese began their dominance of fine wine trading with a six-day display of financial muscle flexing in Hong Kong at a series of auctions held by Sotheby's, in which a single litre bottle of Chateau Petrus was sold for GBP58,000, far exceeding its estimate. This lead many industry figures to suggest that China would soon emerge as the global capital for vintage wine trading. Today those predictions are still firmly on course but with the Chinese not only buying for consumption and customary gifting but now it seems, also for investment.
'The Chinese have now realised the investment potential in the market and many are looking at the volatility of stocks and shares and whispering; why not invest in something that not only holds value but more often than not appreciates consistently each year', explains Samuel Cheung, senior private client portfolio manager at BWC Management & Consulting.
A recent 2013 Chinese Millionaire Wealth Report
, an annual report of the wealthiest individuals in China published by The Hurun Report, would seem to support BWC's analysis of the Chinese newfound investment mentality. The publication is a monthly magazine best known for its "China Rich List". It includes a vast amount of statistical information about how private wealth in China is growing at an unimaginably fast rate and how these individuals are choosing to invest their money and, most relevantly to wine, how they are choosing to "gift". Interestingly, as the report points out "the gifts which is most commonly given to wealthy Chinese men are watches, followed by red wine". Perhaps more interesting still is the fact that Lafite Rothschild is the only wine brand in the top 15 preferred brands for gifting by male millionaires, coming in at No. 10 before Armani and Prada.
Lafite first came to the spotlight in China after the famous Hong Kong movie star Chow Yun-fat uttered the lines, "uncork me a bottle of 1982 Lafite" in the 1989 movie, God of Gamblers. Since then Lafite has attained cult status and is seen more as a symbol of status and wealth in China. But such widespread popularity, huge demand and limited stock availability has made even the most obtuse millionaire or billionaire sit up and take note of the very obvious investment potential of the Lafite and other wines within its class.
Cheung goes on to say, "This would suggest that investors faith in Chateau Lafite Rothschild over recent years is set to continue generate consistent returns." It is well known that the prices for Lafite across certain vintages are currently considered to be low and with a hugely frantic Mid-Autumn festival, a key time for gift giving among valued business acquaintances and family in China, just behind us there is no better time to start bedding down fine wine for the future.BWC Management & Consulting
is an independent fine and rare wine brokerage with no ties to any producers, enabling the company to make recommendations free from bias. Headquartered in central London, the company offers brokerage services to high net-worth individuals, corporate and institution organisations throughout the United Kingdom and Europe. BWC Management & Consulting's client base consists of more than 2000 clients in the United Kingdom alone and is growing exponentially. The rapid expansion the company has experienced since inception has led to plans to expand further afield and start operations in both India and China by the end of 2014.
Everybody at BWC Management & Consulting has a sincere passion for fine wine. This results in the business being a labour of love and also the company's mantra, which is 'combining business with pleasure'.