Hong Kong Immigration focuses on Hong Kong's economy: “Have you heard of Indian wine? You can find even more obscure wines in Hong Kong.” said Zhang Yaocheng, President of the Hong Kong Wine Association, noting that Hong Kong is the most concentrated distribution center for wine globally and has now earned the title of “World Wine Center.”
On the 31st, Hong Kong's annual “Wine and Dine Festival” opened, showcasing not only fine wines from major wine-producing countries like France and Australia but also unique selections such as wines from Ukraine and Georgia that are less known to the public. “Duty-free is a significant reason for our entry into Hong Kong,” said Mya, Sales Manager of Georgia's Ancient Wines, “Although the distance is far, costs are reduced, and when we enter the Asian market, we first consider Hong Kong.”
Since the abolition of the wine tax in 2008, Hong Kong has encouraged the development of the wine market, leading to a flourishing wine-related industry in the region. According to the latest data from the Census and Statistics Department of the Hong Kong Special Administrative Region Government, there are currently over 1,700 companies related to the wine business in Hong Kong, with about 1,000 established since 2008, covering wine trade, retail, and even wine production from imported grapes.
As wine merchants flock to settle in Hong Kong, the Special Administrative Region Government has “added fuel to the fire” by hosting annual events such as the “Wine and Dine Festival” and the “International Wine Fair,” attracting over 1,200 wine merchants and 200,000 buyers each year. The “carnival” style interaction connects wine with life, creating a cultural foundation for establishing a “wine center.”
“Hong Kong is willing to try new things, and its business model is clear and mature, allowing foreign merchants to adapt quickly.” Laurent, General Manager of the Bordeaux Wine School, believes this is an advantage for Hong Kong in attracting wine merchants from around the world.
Hong Kong is the hub for wine trade and distribution in Asia and has been the world's largest wine auction center for three consecutive years. With a population of only 7 million, how does it support the title of “center”? “The answer lies in the 1.3 billion people of mainland China behind Hong Kong,” said Zhang Yaocheng.
“The Wine and Dine Festival has reached its fifth year, and the number of exhibitors has been increasing year after year, with a long waiting list of applicants.” said Hong Zhongxing, General Manager of Program and Tourism Product Development at the Hong Kong Tourism Board, noting that exhibitors are attracted to the Hong Kong market largely because it serves as a gateway to mainland China, with a clear trend of French, Italian, Spanish, and American wines entering the Chinese market in recent years.
Laurent also pointed out that the French wine market is clearly shifting to Asia, with more than half of French wineries having connections and agents in China. Orders from mainland China through Hong Kong outlets can sometimes fulfill quarterly targets. Mo Zhirong, General Manager of Hong Kong Junye Wine Shop, which represents Bordeaux wines from France, added that 70-80% of wines from France are shipped to mainland China. In terms of pricing, even high-end wines costing several hundred euros are very popular in mainland China.
According to data provided by the Hong Kong government, since the abolition of the wine tax, the volume of wine imported into Hong Kong has nearly increased by 70% from 2008 to 2012, rising from 30 million liters to 50 million liters. The volume of wine re-exported through Hong Kong also surged from 6 million liters in 2008 to 18 million liters in 2012. The Commerce and Economic Development Bureau of the Hong Kong government stated that comparing the figures from 2007 to now, France is the largest source of imported wine for Hong Kong, while mainland China has consistently been the largest destination for re-exported wine from Hong Kong.
“There is no doubt that global wine is shifting towards Asia, and their target is the mainland China market that Hong Kong is backed by. The mainland market is enormous, with significant potential in both volume and pricing.” said Hong Zhongxing, emphasizing that due to the advantage of being duty-free, Hong Kong is destined to become a wine transshipment hub.