Understanding Asian market demand using Asian consumers in Australia

Abstract

One of the key cohorts to influence in Asia is the younger and more educated part of the population. Australia is in a unique position to access a sample of this important segment, because over 500,000 Asian students are currently studying in Australia. The results of this project show that an education by regions-of-origin with Western terminology are more effective in improving the likeability, willingness-to-pay (WTP) and perceived price point (PPP) of Australian wines. In addition, one-off education sessions (e.g. master classes) are a more time-effective way to shift consumers’ choice.

Summary

One of the key cohorts to influence in Asia is the younger and more educated part of the population and, with over 500,000 students studying in Australia, Australia is in a unique position to access a sample of this important segment. Working with Asian students studying in Australia, this project confirmed that there is value in educating these novice consumers during their stay and that three one-hour classes improved the students’ overall interest in wine, willingness to purchase, and raised the price they are willing to pay. Specifically: 1. education by regions-of-origin is more effective than one by grape variety, and can improve the likeability, WTP, and PPP of wines. 2. education based on Western descriptors is slightly more effective than an education based on Chinese terminology although it is questionable whether this would differ in the Asian markets. 3. one-off education sessions (e.g. masterclasses) are a more time-effective way to shift consumers’ choices. With most of the effect of the wine education class occurring in the first session, the recommendation for a wine educator includes: 1. develop a simple wine training courses based on regions-of-origin for use in Asia. 2. focus on single sessions for younger and less involved wine drinkers in Asia, with multiple or longer sessions for more involved wine consumers. 3. trial Chinese flavour descriptors in China as well as Western descriptors, before deciding which works better. The Western descriptors worked better in Australia, but the two types have not been compared in China. | Previous Item |Next Item