2016
DOI: 10.1016/j.ememar.2016.08.014
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Red obsession: The ascent of fine wine in China

Abstract: This article uses hammer prices from five global auction houses to analyse the price premium Bordeaux fine wine yields at Hong Kong wine auctions. We find that fine wine is on average sold at a 19% premium in Hong Kong. We further observe that the Hong Kong premium is not uniform and most pronounced for wines with perfect Parker scores and the most powerful brands. The premium has declined throughout the sample period from 60% in 2008 to a level of around 15% since 2012. This can be attributed to the increase … Show more

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Cited by 44 publications
(45 citation statements)
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“…Mainland China consumers also differ from the ones in Hong Kong, where vintage has been found to be significant (Masset et al, 2016). This is attributable to the novelty of the wine product and consumers' inexperience in China (Balestrini and Gamble, 2006;Hu et al, 2008).…”
Section: Discussionmentioning
confidence: 96%
See 1 more Smart Citation
“…Mainland China consumers also differ from the ones in Hong Kong, where vintage has been found to be significant (Masset et al, 2016). This is attributable to the novelty of the wine product and consumers' inexperience in China (Balestrini and Gamble, 2006;Hu et al, 2008).…”
Section: Discussionmentioning
confidence: 96%
“…In our study, we assume that Hong Kong consumers differ from Mainland China ones as they have gone through a different modernization paths. In this regard, Masset et al (2016) acknowledge that Hong Kong has a longer wine consumption history than China. A recent study by Ortega et al (2017) on pork products also confirms the demand heterogeneity between from Hong Kong and Mainland China (Guangzhou), suggesting a higher concern for food safety for the latter.…”
Section: Literature Reviewmentioning
confidence: 99%
“…Since Chinese consumers are becoming more experienced, intrinsic cues such as taste, quality, and value-for-money are more valued for regular consumption (Liu et al, 2014). Besides wines from Bordeaux, Chinese consumers are more inclined to go for excellent wines from other wine regions of the world and getting more information from wine courses and websites (Masset et al, 2016). Enhanced customers' knowledge, product familiarity and emotional attachments to a specific wine region could contribute to the ethnocentrism of wine (Yang and Paladino, 2015).…”
Section: Introductionmentioning
confidence: 99%
“…Even though China's overall food consumption volume has remained stable in the past decade, its food trend has unfolded new patterns. Responding to recurrence of food safety incidents, the market has shown rising demand for healthy animal proteins such as seafood (Xu et al 2012), organic foods (Leobnitz and Aschenmann-witzel, 2016), imported luxury beverages of red wines Masset et al 2016), and lately the imported healthy snack of pistachios (Xu and Wang, 2014). The consumption of these relatively expensive but entertaining food items is well documented in the Western literature as a result of trending food styles in affluent and industrialized countries.…”
Section: Introductionmentioning
confidence: 99%