New book explains how wines are becoming a luxury wine brand
WHAT IS THE RITZ-CARLTON DU VIN? The Place du Parc? The best ?
The brand is known as “Luxury Wine” and a new book on the market gives some insight to collectors wondering if their cash investment is on the rise.
“Luxury Wine Marketing: The Art and Science of Luxury Wine Branding” (Infinite Ideas, 2019, $ 69.95) is written by Peter Yeung, an expert in strategic marketing, and Liz Thach, Master of Wine and professor of wine and management at Sonoma State University. .
The authors give this definition of luxury wine in the book: “It is of the highest quality, coming from a special place on earth, has an element of scarcity, a high price and produces a feeling of privilege and pleasure. for the owner. “
In a short Q&A, the authors collaborated to answer the following questions:
Q When does a cult wine like Screaming Eagle become a luxury brand? Why is it a great brand to illustrate this crossover?
A It takes time and it doesn’t happen all at once. It’s not like one year is “cult” and another is “luxury”. And many cult wines also fall into the luxury wine category, as we described in our first chapter. Most of the time, it’s thanks to consistent high quality and an ever-growing reputation over at least 20 years that gradually takes a brand of wine from cult status to luxury. This is accompanied by growing activity in the secondary market (with a secondary market premium) and greater investment demand from collectors, proof that it is a luxury brand. .
Q How will it benefit collectors the most? How can they ensure that cult taxis and other brands have luxury brand status? What is the advantage of having luxury brands in your cellar rather than simple cult taxis?
A. The book gives collectors an idea of the scope and size of what exists in terms of fine wine. (Note: For consumers, the wine industry should describe it as “a good wine” while from a business point of view the term “luxury wine” is more appropriate). Which regions are important and how much wine do they produce? Who are the most important players in each region? Seeing how the big existing fine wine brands have been successful can also help collectors know if their current wine investments are going in the right direction in the long term.
Cult taxis can come and go. True collectors also have an investment element in their collection, which calls for “luxury wines” that stand the test of time and retain their value. Have you heard of the high-end “Fisker” electric vehicle? It was a cult brand that was even featured on TV shows but ultimately failed.
Q What do you think collectors will find most intriguing about this book?
A. Depending on the collector’s level of knowledge, it may be different:
Medium level of knowledge –– market size by region for fine wines, lists of luxury and emerging luxury wine brands, and lists of the most expensive wines.
Level of in-depth knowledge –– the differences in cost, price and profitability of fine wines compared to commercial wines; the trade-offs that wine brands consider when dividing wines among customers; how wine brands view prices; and gain knowledge of the wine auction and counterfeit markets.
Q What surprised you the most about your research on luxury brands?
A. The size of the market was certainly a surprise. It was much bigger than we thought. The diversity of business strategies and experiences among the many luxury wine brands featured in the book was also surprising. This is not a one-size-fits-all type of solution or experience, but it is often the product of the different personalities of the cellar founders.