‘Advance Australia Fair?’ Determining the country of origin associations for Australian wine in emerging and established markets

Abstract

This was the first empirical investigation of Australia’s country image, comprising qualitative and quantitative data collection from frequent wine buying consumers, wine importers and retailers in seven international markets (the USA, UK, China, India, Vietnam, Indonesia and Korea). Subsequent analysis quantified the specific dimensions of Australia’s country, wine, food and people personalities and the affective, or emotional, reactions they stimulate. Follow-up research undertaken in the USA, UK and China corroborated the findings of the initial studies.

For wine consumers, Australia’s personality dimensions, and the feelings they evoke, were investigated to reveal their respective and combined influences on consumers’ beliefs regarding our ability to produce premium or fine wines, with flow on effects to their likelihood to buy Australian wine and the price they are willing to pay for it. Similar studies were conducted by surveying premium wine importers and retailers in all countries, with the outcome variable being their willingness to recommend Australian wines to their customers.

Australia's country of origin (COO) associations have a direct and indirect influence on wine consumers' perceptions of Australia's ability to make fine wine, their decision to buy Australian wine, the volume of Australian wine they buy and the price they are willing to pay for it. It will be critical for Australian wine producers and associated agencies to start to add a new dimension to Australia’s country image and COO-based personalities – one that reflects our prosperity, high standards of living, excellent cuisine, innovative culture and high-quality wines.

Findings showed that fine wine fit and Australia’s positive country, wine, people and food personalities all have significant and substantial influences on spend-related buying behaviours. The stronger the fine wine fit and the more wine consumers associate Australian wine with the positive COO attributes discussed (bold, exciting, authentic, prosperous, strong, charming, sincere, honest, imaginative/innovative and down to earth), generally the more likely they are to buy Australian wine, to buy more of it and to be willing to pay more for it.

Summary

Research findings show that Australians are viewed as bold, exciting, authentic, prosperous, strong, charming, sincere, honest, imaginative/innovative and down to earth. These positive country of origin attributes have significant and substantial influences on spend-related buying behaviour.

The stronger the fine wine fit and the more wine consumers associate Australian wine with the positive country of origin (COO) attributes discussed, generally the more likely they are to buy Australian wine, to buy more of it and to be willing to pay more for it.

As with the country images for other places, much of what is believed about Australia is not based on reality; however, this is of no consequence in terms of impacts on buying behaviour, at both a consumer and importer/retailer level. There must be a concerted and long-term effort made to distance Australian wine from these stereotypical beliefs where they damage a quality position, and exploit those that support our uniqueness via the promotion of our quality wines with a distinctive and difficult-to-copy positioning strategy.

Fortunately, many positive Australian COO associations were revealed in the research that indicate we can vastly improve our positioning against all competitors, from both the ‘old’ and ‘new world’. However, to achieve leverage them in a positive way and distance ourselves from those that work against premium positioning will take some time, education and a concerted and dedicated new approach to how we present Australia, ourselves and our wines internationally.

It is critical for Australian winemakers (and makers of other premium products) to inform other dimensions to our country images that are congruent with premium, if not luxury, products – while at the same time remaining authentic and truly Australian. This is achievable and the results of the project provide the advice. The full report is available to Australian grape and wine research R&D levy payers by emailing Jo Hargreaves at research@wineaustralia.com.