Lorre White, The Guru of Luxury

Moodzine Magazine's Interview with "The Guru of Luxury" Lorre White

by: Luz Vargas

 

l Lorre White

 

In recent days I had the the pleasure to meet luxury cosultant Lorre White, through the Order of the Royal of Honour a non profit Organization based in Marbella Spain. I honestly didn't know that someone like her existed; doing the amazing job she does, teaching people the art of real luxury life style. I have been inlove with luxury since I was a little girl, I should say that I born with the gift to see beauty in everything and create beauty with everything. So when I meet Lorre was something special. When she sent me the answers to my questions, I knew what she was talking about, but what exited me was to see her courage and passion to talk about something we all have between us, wich is the joy to see and to live life in all it's beauty. Here are the answers to my questions. 

 

1.-  How you become involved in the Luxury business and for How long have you been in the consulting luxury business?

 

I have been in the luxury sector for about 20 years There are very few true Luxury marketers. Almost all marketing degrees are in mass marketing. I started to study it independently when I was in school getting a double major in marketing & finance and a minor in advertising. I took a school work internship with a company that syndicated thoroughbred race horses. My thesis was on what motivates the rich to purchases; the mind set of the ultra high net worth and what motivates them to buy. Most wealth in America is relatively new money and they did not get it by being stupid so why did they purchase race horses which are technically a very poor financial investment. I met with great success and my project lead to a whole new and successful marketing strategy for the company. My professors were thrilled with this undeveloped aspect of marketing. I was the only one doing it and my natural interest in this topic spurred me on to continue to study and develop ways to reach the uber wealthy and I was amazed at how it was often counter to all the things that were taught in traditional mass marketing.Now, large prestigious Universities like HEC offer MBAs specifically in Luxury Marketing.

2.-.- As the only Luxury Media Personality known as "The Luxury Guru". What is your goal?

 

I help people understanding different art forms. Beauty is born of the spark of God (Inspiration = in spirit) Mankind uniquely shares with God, the desire to create. Luxury is the best of man’s creation. Thus it should be used for the unification of mankind. It is a way to improve the quality of life.  Don’t just exist….Live!

Because 92% of the UHNW (Ultra High Net Worth) individuals worldwide ( with a minimum of $30 Million in liquid assets) is new money, and 80% of those have had it less than 10 years, luxury brands that use to just be able to ride on their reputation, must now aggressively educate these individuals about their brand. These individual did not grow up with the old luxury brands. I educate them on being able to distinguish the differences. The UHNW has the lowest response rate to traditional ads and they respond best to the influence of peers; my shows are affective in reaching this group.

I am in the process of finalizing capital to take my media work to the next level. As the only luxury media personality, I plan to build a multi media luxury platform starting on the web to fill the void that exists. It is unique because I am the only luxury personality. We will offer a luxury experience to our viewers and be a safe haven where top brands can benefit from being on our site. Others that has attempted to reach the UHNW group have failed at reaching this coveted group because “they just ran video without a personality, and it just became a series of ads, as there was no feeling of trust by the viewers.”  The power of the personality is seen when Oprah, a multimedia icon for social awareness, mentions some obscure book and the next day it is on the top sellers list.  A trusted media personality is what creates the invitation to return, the trust that you can believe what is being presented and gives power to the channel. I am the only luxury media personality and has a long success record of working in the luxury field.  I offer a trusted insider’s perspective on luxury; I have 20 years of luxury marketing credentials.  Precedents for Multimedia Marketing Companies include Oprah Winfrey, Martha Stewart, and Rachael Ray, etc.  Each provide a good example of individuals who have effectively created successful multimedia marketing brands based upon their appeal to various segments and then, through productions and cross licensing, have successfully monetized that brand.

 

Luxury as “the best of any art form, and like any art, luxury is defined by its ability to evoke an emotion…and like any great masterpiece, quality is inherent.  Luxury comes in every category.  It is something that separates itself from the others by uniqueness and evoking pleasure.  Not all luxuries have an expensive price tag but often the rareness, and the increased time to produce quality and the more expensive components of “the best” does drive price too.”  Because everyone loves luxury my following is expanding organically internationally.  Because of the popularity of the topic, it attracts many people. Just as an art history major may never afford to own a Michael Angelo, Picasso or Monet, they still go to the Museum to study them.  My shows are much the same way.  It allows everyone to learn about the best art of man, more generically categorized as luxury.  Not all luxuries are as expensive as a yacht or a jet. But the wealthy are the hungriest to learn because they can participate at all levels, but any appreciator of art, enjoys learning about the master pieces.
 

3.- How does affect the world economic crisis to the luxury life style?

 

The luxury market is booming.  It is scheduled to be at 2007 record luxury levels sometime in 2011.  It is the wealthy that are leading us out of recession.  LVMH & PPR, the world’s two largest luxury conglomerates are showing strong growth and earnings.  It is the middle classes that are hurt worse in economic down turns.There are 2 types of Luxury Consumers: The aspirational and the UHNW or as I call “the already arrived”.  The fashion industry depends on the first category for up to 80% of their sales.  This is why the fashion industry was hit so much harder in the global recession than the private jet companies which have exclusively UHNW and so they are not as affected by the slow down in the economy.  The truly rich can loose half of their net worth and still be rich.  If you’re worth a billion and you loose half of it, you’re still not skipping any meals or pulling your kids out of school to help support the family. In the travel world, the top of the pyramid is owning a whole private jet, next would be fractional ownership (1/16 is the smallest amount legal by the FAA), The entry point for this starts with smaller planes and smaller fractions for people with a liquid net worth around $50 million. The next step down would the card holders that buy private time by the hours.This group entry to this market starts at around 10 Million liquid assets (not including homes and other non liquid assets). Under that, there is charter, next is commercial Business Class and then Coach.  The farther down on that chart you go the more they will be affected by the economy as a whole.  The higher up, the more autonomous they are, and even if having lost ½ their net worth….they are still incredibly rich. The very rich are also usually more internationally divested and so they take less of a punch.  It is a paper loss to them until the economy turns around. The Golden Age Of Hollywood was during the Great Depression of the 1930s – 40s.  The luxury Industry was not devastated.  It was the middle class that got crippled.  In this recession the same is true, except for those luxuries that are on the cusp and whose growth relied on the bubble of wealth of the upper middle class/lower upper class that was build up during the boom of the previous two decades.  This bubble, the inspirational luxury consumers, although not able to fully participate in the UHNW lifestyle, could afford to taste it.  They might not be able to afford a plane, but could afford to charter on occasion.  They might not afford a whole line of Louis Vuitton luggage, but they could purchase a purse.

 

4.- Is there a new way to see luxury life style in this millennium?

 Luxury is the art of living. It is what we do that is above survival. It is the best of a category so it is always changing and improving yet keeping its valued heritage. Luxury is growing and as the BRIC countries develop there will be enormous expanse in the luxury sector.

 

5.- What are the luxury items /services people wants to know more about?

Types of luxuries are as diverse as all the types of items and services that exist in the world.  I would not be able to list them all, if I could spend a year just on this question. Someone that is a “gear head” wants to know about cars, a “foodie” want foods, restaurants and wine information, a “extreme sports” want to know about the exotic venture travel. Everyone has some aspect of luxury that they love. What is unique about the UHNW is that they do not have to pick and choose what they based on what they can afford, ….they can afford to experience it all.  My shows as “The Luxury Guru” cover everything from yoga to yachts, private jets to perfume, exotic cars to candle. There is a vast education out there to be had for free about the best in each art form.

6.- What country people is more into the Luxury life style?

75% of global luxury brands are European companies. Each country in Europe is about the size of just one US’s states.  Europe is maxed out of its luxury capacity, where the US is only at 36% of its luxury capacity consumption. The BRIC countries as they develop will have even more room for growth. So when you ask this question do you mean as a percentage of their economy or by shear numbers?  The love of quality, beauty and uniqueness is not limited to any specific nationalities, but is instead a quality that all mankind shares. The top 2% globally will all wear Italian shoes, buy Swiss watches, drink French Champagne, and eat Russian caviar.  There is more similarities among the UHNW than differences.  Most UHNW have multiple residencies in multiple countries.There are more distinctions as you go down the economic scale where people have not travel outside their boarders.

 

7.- What are the brands of cars, people in the luxury world shop the most?

 “Most” is a word that connotes quantity which by definition is not a luxury. One of the qualifying factors to being a luxury brand is scarcity of the product.  Expensive items are often created in limited quantity. Preference to type of car greatly varies country to country.  Certainly the very best brands are recognized internationally.The luxury car sector is also divided between comfort cars like Rolls Royce or Bentley, and sporting cars like Ferrari or Lamborghini.Of the first category Rolls Royce has rated the highest in the US, but in China the large American cars are considered most desirable.

 

8.- Can you recommend some of the most beautiful and luxury spas in the world?

There are so many wonderful spas, in so many countries, that offer such a vast variety of services, that it is hard to compare them.  I cannot do them all service, so for brevity, I will share just 3 of mine:

Wakaya, Fiji

Pebble Beach, CA

Golden Door, CA

 

9.- How is a work day for Lorre White?

This depends on if I am on TV that day or radio, shooting my shows on location, or in the field working with a consulting clients or working off my computer. I do not have a 9 to 5 routine. There are no 2 days that are alike.

 

10.- What woman in the history you admire the most and why?

It is hard to narrow it down to one, but Eleanor Roosevelt would certainly be one. She was a very respectable woman, that accomplish a great deal as a woman, at a time when women were not traditionally valued in politics and business. She did a great deal to move the woman cause forward by being the example.

 

11.- What is your favorite food. 

King Crab legs with drawn butter and fresh homemade paste with white truffles in a light cream sauce.

 

12.- What is your favorite music? 

I listen to all kinds of music depending on the mood that I am in. To me is would be shameful to not sample and experience all the musical art forms. I guess if I had what I listen to the most is rock.

 

13.- Something that you would like to add to this interview, that you think is important for our readers to know about the luxury world?

A rule of thumb: If you know Martha (Stewart) you are probably part of the 98%....if you know Lorre (White), you are most likely part of the top 2% financially. For those interested in being in the know about luxury they can sign up to get my luxury blog postings for free, by putting their email in the box under the black & white photo on the top left, just under the header. www.LuxGuru.Typepad.com  Please note that you will receive a confirmation email. You MUST CLICK On The LINK in that email to finalize the process. Look for my shows on the web and on TV or Twitter:"Lorre".

 

"Those who say it can't be done...need to get out of the way of those who are doing it!"

 

www.LuxGuru.Typepad.com   Luxury Blog

www.WhiteLightConsulting.net 

 

This article is from Moodzine fashion magazine

http://moodzine.com/lorrewhite.aspx

Krug, one of my Favorite Champagnes, says Lorre White, Unveils Rare Champagnes in Time for the Holidays!

 Clos du Mesnil 2000

Just in time for the festive period ahead, the prestigious House of Krug has released two rare Champagnes: Clos du Mesnil 2000 and Vintage 2000.

Produced from a single walled plot of vines (in Mesnil-sur-Oger), a single grape variety (Chardonnay) and a single year (2000), Clos du Mesnil 2000 is characterized by aromas of ripe apple, toffee, honey, and citrus fruits with indulgent flavours of peaches and white blossoms, gingerbread, honey and orange zest. Best paired with seafood.

Nicknamed gourmandise orageuse, Vintage 2000 is a blend of Pinot Noir, Chardonnay and Pinot Meunier. The nose opens with notes of caramel, nougat, hazelnut and freshly baked pastries, followed by citrus-fruit gratins and lime zest on the palate. The finish is long and persistent. Excellent with desserts containing roasted fruits. Time to toast to the new year!

 

Vintage 2000

 

 

Cheers from The Luxury Guru.

House of Krug

Qatar, Kuwait to invest US$ 3 billion in Morocco's tourism

Rabat, Morocco

 

 

Sovereign wealth funds from Qatar and Kuwait led pledges on Thursday to invest almost U$ 3 billion in cash-strapped Morocco, cementing ties between Arab monarchies at a time of political turmoil in the region. Qatar's sovereign wealth fund and the Moroccan state agreed to establish a 50-50 investment joint venture worth $2bn that aims to help Rabat fund major development projects, a statement from the Moroccan government said. Visiting Qatari ruler Sheikh Hamad bin Khalifa al-Thani and Morocco's King Mohammed attended the signature ceremony for the agreement in Rabat to set up the joint venture fund between the Qatar Investment Authority (QIA) and its Moroccan equivalent. QIA's Qatar Holding, Kuwaiti Investment Authority's Al Ajial Investments and Abu Dhabi's sovereign wealth fund Aabar Investments also agreed on Thursday with Morocco's Fund for the Development of Tourism to inject $2.5bn into a newly-created vehicle called Wessal Capital. It will focus on the development on new resorts in Morocco, a statement from the tourism ministry said. if(typeof(DFP_ord) == "undefined"){var DFP_ord = 1322257788;} if(typeof(DFP_host) == "undefined"){var DFP_host = (("https:" == document.location.protocol) ? "https://" : "http://");} if(typeof(DFP_adid) == "undefined"){var DFP_adid = "";} if(typeof(DFP_tile) == "undefined"){var DFP_tile = 1;} else {DFP_tile++;} document.write(''); #ad-special-execution {display:none;} United Arab Emirates Crown Prince Sheikh Mohammed bin Zayed Al Nahyan also attended the signing ceremony for the setting up of Wessal. "Wessal will create an investment firm led by Morocco to fund investment opportunities proposed under Morocco's tourism development plan by 2020," added the source. An invitation earlier this year for Arab kingdoms Morocco and Jordan to join the Gulf Cooperation Council signalled that monarchies in the region were trying to strengthen links in the face of the "Arab Spring" uprisings. Morocco has devised a plan worth 100 billion dirhams in investment to join the world's top 20 holiday destinations and double tourism receipts to 150 billion dirhams by 2020. Tourism is Morocco's main source of hard currency, contributes close to 10 percent of its gross domestic product and directly employs 450,000 people.

adapted from Arabianbusiness.com via www.Cpp-luxury.com

FDI (Foreign Direct Investment) now allowed on multi-brand retail in INDIA

The Collective luxury multi-brand store Mumbai

 

 

On Thursday, in a  two-hour meeting chaired by Prime Minister Manmohan Singh, the Indian Government allowed 51% foreign direct investment (FDI) in multi-brand retail as well as 100% FDI in single brand retail. The cabinet also cleared the new companies bill that is aimed at overhauling corporate governance norms. The FDI clearance comes with several caveats to address fears of small traders that giant global chains will drive them out of business and throw millions out of jobs. Foreign chains like Walmart already have a presence in India in the cash and carry (wholesale) sector. Hindustan Times had reported on November 18 that the government was likely to clear FDI in mutli-brand retail, among other measures, to counter perceptions of political drift and policy paralysis. The Congress also possibly sees this as signal to the urban middle classes who will be the main beneficiaries of an expansion of organised retail. This class has turned hostile to the government on the issue of graft and prices. "This is a bold and significant move. It will redefine India's supply chain infrastructure and bring down prices," said Raj Jain, Walmart India managing director and CEO. "The consumer will gain from lower prices," said Kishore Biyani, founder and group CEO of Future Group that runs Big Bazaar and other stores. "The farmers will gain as retailers will offer them higher prices for their produce. Small entrepreneurs will benefit as 30% of all products will have to be sourced from them," added Biyani Sitaram Yechury of the CPM, however, nuanced his criticism. He said FDI was acceptable only if it fulfilled three conditions: "generating employment, enhancing capacities and bringing new technologies. FDI in retail may bring just the first". The ease of legislation on FDI will have a very positive impact on the luxury retail sector, CPP estimates that turnover of multi-brand luxury retail, especially fashion and accessories will increase by at least 30%, once the new FDI legislation is implemented.

 

 

 

 

 

www.Cpp-luxury.com

Hublot App for your iPhone

Hublot

Hublot's foray into mobile marketing harnesses the power of augmented reality: one of the key features of the app is the Try It function, where you snap a picture of yourself to view how a particular timepiece would look, scaled to fit the dimensions of your wrist.

The gallery showcases the Swiss brand's latest novelties in panoramic, 360-degree viewing angles, and the very fun Compose Your Hublot function invites you to select a sound and color, depending on your mood. What happens next is almost magical: Hublot will decide which model would best fit your aural and chromatic inclinations at any particular time so no two results will be the same.

This screenshot gives you an idea of how the Try It function works: the rendering of the watch of your choice on a photo of your wrist is not of Avatar photorealistic quality but close enough to give you an idea of how it might look on you

The latest version of the app at the time of writing, v 1.3, gives you unprecedented (virtual) access to the latest novelties in the King Power, Big Bang and Limited Editions collections, as well as magnified views of the exquisite Hublot manufacture UNICO movement. There are also tons of extras, like a mini-game where you get to win 'prizes' by 'winding' up a virtual power reserve - you wind the watch by shaking your iPhone.

Dream Watch IV iPhone Case

 

Ranking high on our wishlist for Christmas is De Bethune's gorgeous and very functional new bauble, the 12-piece only Dream Watch IV iPhone Case, a futuristic sheath wrought from polished, bead-blasted titanium.

Horologists with a keen eye will notice that the new Dream Watch IV, which features an embedded watch dial of hand-polished blued titanium accented with gold and diamond stars, takes design cues from the exquisite one-of-a-kind watch De Bethune made for the Only Watch 2011 auction.

The Dream Watch IV dial also uses De Bethune’s patented DB2105S caliber with twin barrels and a silicon and platinum annular balance, making the iPhone case a true melding of fine watchmaking and high tech gadgetry.  De Bethune says the Dream Watch IV's armour of high-grade titanium will also offer the toughest protection for your phone within, and shield your body from potentially harmful electromagnetic radiation.

If you're keen to see the technological marvel in the flesh, De Bethune will be unveiling the case - and providing more details about its mysterious, as-yet-unannounced functions - during next year's SIHH at the Grand Lac salon of the Hotel des Berges in Geneva from January 15 to 20, 2012.

De Bethune

Luxury wines and cars from Europe might be cheaper in India, new E.U. agreement

 

Luxury wine cellar, Italy

 

Click on the picture to see gallery (1 picture)

 

Fine wines and spirits and luxury cars may cost less with India softening its position on reducing import duty on these products shipped from the European Union.

The concessions are expected to be offered under the proposed free trade agreement that is being negotiated with EU. Official sources indicated a softening of stance after holding firm for several months. The concessions are likely to come in return for benefits in services sector as well as for products that Indian companies export to the 27 country trading bloc.

All these months, the government had not budged on the issue in the wake of protests from the domestic industry, which feared a flood of imports if duties were cut on these two product segments. But officials said that in case of automobiles, India was slowly emerging as a major production centre for small cars but it was not the case with top-end cars, which companies still found cheaper to import given the low volumes. "Lower duty on high-end vehicles will not necessarily result in a rush of imports because the market is limited," said a commerce and industry ministry official. 

  adapted from The Times of India  via www.Cpp-Luxury.com

Domenico Dolce and Stefano Gabbana 1 billion tax evasion trial could be reopened

 

 

Domenico Dolce and Stefano Gabbana

 

Click on the picture to see gallery (1 picture)

 

The Italian Court of Cassation has annulled this week the acquittal of Italian designers Domenico Dolce and Stefano Gabbana, owners of Dolce Gabbana Group, in a 1 billion euro fiscal evasion trial earlier this year. The high jurisdiction of Italy decided Wednesday to resend the legal file to another judge who would rule whether it will be re-opened. Together with five other individuals the Domenico Dolce and Stefano Gabbana made a tax evasion of  840 millions d'euros, by creating an interface company in Luxembourg to evade Italian taxation.

www.Cpp-Luxury.com

Jacques-Antoine Granjon, the man behind the 1 billion euro luxury e-tailer Vente-Privee

DESIRE by Erwin Olaf for VENTE-PRIVEE

 

Click on the picture to see gallery (3 pictures)

 

With the occasion of its 10th anniversary, leading luxury e-tailer VENTE-PRIVEE.COM presented in Paris a short film entitled ''Desire''. Shot in 2010 with a duration of 2 minutes and 50 seconds, the spot was directed by Dutch photographer Erwin Olaf. He emphasizes, in a retro style, the seduction game between a woman staring at a delivery man. "The desire is part of our DNA, with private sales that combine a little addiction with a slight frustration while having a lot of fun," said Jacques-Antoine Granjon, co-founder of VENTE-PRIVEE.COM Reflecting on his company's history and evolution, Granjon said : "The company was actually funded in 1985 by encompassing an older business - the sale of discontinued items,"  He added that VENTE-PRIVEE.COM is one of the few e-commerce sites to have been founded by professionals who had expertize in logistics and who understand the raw material - the unsold goods''. Since 2007, Granjon identified  500 companies which attempted to copy the business mode of VENTE-PRIVEE.COM but have all failed to become profitable.  A company of 1.500 employees, VENTE-PRIVEE.COM has set record figures: 175 million products since the establishment of the site or that of 3 million euros in sales made ​​each day. In 2011, management expects a 14% increase in sales and a turnover of 1.1 billion euros. After years of strong growth,VENTE-PRIVEE.COM is in the process of consolidation and diversification. One of the company's projects, Rosedeal, offers coupons with a face value which is much higher than the price, allowing retailers to attract customers in the shops whether offline or online. Another project of the company is VPticket which provides customers to buy concert or event tickets at the last minute. "It is possible that in 2013, stocks of brands are smaller. These projects also allow us to be more detached from fluctuation of stocks, which are our raw material," said Jacques-Antoine Granjon.
The company's top strategic priority is international expansion.  80% of its sales are made through its French sites. VENTE-PRIVEE.COM has also been  present in 8 European countries, adding the U.S. where it made its first sale at the beginning of November. To cross the Atlantic, the group created a joint venture with American Express, each side investing invested 18 million dollars. An English version website was launched recently in the Netherlands with the aim to cater Scandinavian markets too.
  Probably the most important conclusion to emphasize and to which Jacques-Antoine Granjon has drawn attention to, is  the independence of his company and the fact that they never had to raise any funds. In other words, an IPO is not on the agenda. adapted from FashionMag.com and data from vente-privee.com (press) The vente-privee USA site will provide a unique experience through customised online boutiques with sales events featuring HD videos, stunning photography and original music. Each customised site is designed to allow brands to showcase their merchandise in a way that enhances the customer’s experience while preserving the brand’s identity. Drawing on American Express’ marketing expertise, vente-privee USA will provide unparalleled insights for its partners by reaching a targeted and relevant audience. “vente-privee USA creates exclusive events for top brands. We bring our partners new revenue while investing significantly in media that supports their image,” said Mike Steib, CEO, vente-privee USA. “For our members, we promise world-class products at insider prices. Our aim is to be to the US market what vente-privee.com is in Europe – a leader and innovator in e-commerce.” As the official card of vente-privee USA, American Express Cardmembers will be able to enjoy benefits at launch. Cardmembers are offered an incentive for their first purchase until the end of the year and Membership Reward points can be used to redeem vente-privee USA gift cards.

www.Cpp-Luxury.com

How China's changing taste for wines effect the rest of the world.

Shift From Bordeaux To Burgundy Among Chinese Elite Could See Prices Rise

A bottle of 2007 Romanee-Conti currently costs around 110,390 yuan (US$17,370) in China

Since the beginning of this year, Jing Daily has kept a close eye on one wine trend that could have earth-shaking effects on the global wine market: a shift among wealthy Chinese wine collectors (and drinkers) from Bordeaux to Burgundy. For years, the high-end wine market in China has been the domain of French wineries, with the country accounting for around 55 percent of China’s wine imports. And arguably no French wine-growing region has achieved the level of success in China seen by Bordeaux, with top-tier regional winemakers like Château Lafite achieving such ubiquity on the tables and in the cellars of the wealthy that China is joked to have more bottles of 1982 Lafite circulating around than have ever been produced.

Over the course of recent auctions, though, a clear sea change has become apparent, perhaps due to a sort of “Lafite bubble,” perhaps due to rampant counterfeiting of top Bordeaux, or possibly just due to changing tastes. Following the Bordeaux-heavy October 2 auction at Sotheby’s Hong Kong that became the auction house’s first since 2009 to fail to sell out, and (as a counterpoint) last month’s massively successful, Burgundy-weighted Acker Merrall & Condit sale, which took in a grand total of US$14.5 million and became the city’s biggest wine auction of the year, speculation that Burgundy is China’s “next big thing” has hit fever pitch.

Having seen how wealthy mainland Chinese home in on the most expensive products in luxury segments they’re new to, whether it’s cars, fashion or jewelry, the possibility that the world’s top Burgundy vintages could be next in their crosshairs has naturally caused tremors in the wine press.

Last month, Jing Daily projected that the celebrated Burgundy, Domaine de la Romanée-Conti (DRC), long considered one of the world’s best red wines, could become “China’s Next Lafite.” Unlike Lafite, which at 15,000 to 20,000 cases produced annually is far from rare, the much smaller production of Romanée-Conti (450 cases annually, on average) means any word that Chinese drinkers could be developing a thirst for DRC sends shivers through the spines of wine lovers around the world. Some of this is warranted, though, since DRC is far more vulnerable to China-induced price spikes than other wineries in Burgundy with larger annual production. As Fred Shaw, proprietor of New York’s Tribeca Wine Merchants, put it to Jing Daily earlier this month, “If Chinese buyers are turning to DRC, how much higher can they go from there?”

Burgundy producers like Domaine Leroy could soon benefit from greater Chinese interest in the region

Today, the British wine expert and critic, Jancis Robinson, writes in the FT about the possible effect that greater Chinese interest in Burgundy could have on the broader global market, noting that it could prove “dangerous” for Burgundy lovers. Robinson also touches on another gradual trend we’re currently watching, the simmering rise of white wine in China:

There are dangerous signs that China’s (still small) nucleus of seriously well-heeled wine buyers may now be turning their attention to Burgundy. Dangerous because the quantities of top burgundy produced are so tiny that Chinese interest could upset the market. “DRC” (Domaine de la Romanée-Conti, Burgundy’s most famous domaine) could become the new Lafite – which is remarkable when one considers that as recently as two years ago, Aubert de Villaine of DRC went to Beijing and Shanghai to present, at free tastings, his wonderful 2005 vintage. According to Marcus Ford of Pudao, a subsidiary of Summergate, these events were, incredibly, very poorly attended. The Chinese wine market is indeed a volatile one – and one in which fakes (particularly of Lafite and DRC, and often of pathetic quality) are rife.

For the moment, Yang Lu reports, champagne is difficult to sell by the bottle, yet that situation could change overnight. The Chinese are even beginning to drink white wine – although it probably needs to be called “pale” or “golden” to distance it from the association in Chinese culture of the colour white with death.

While it’s far too early to pronounce the death of Bordeaux in the China market and declare Burgundy the new champion in the premium wine segment, the rapidly shifting tastes of China’s elite can’t be ignored. Mainland China and Hong Kong still account for nearly 60 percent of Bordeaux’s total exports, and nothing suggests that Bordeaux will rapidly fall out of favor, leaving a massive window open for other French wine-growing regions or producers from the US, Spain, Italy or Australia. Bordeaux will likely remain many Chinese drinkers’ first foray into wine, and a reliable region for less educated Chinese gift-givers. But at the highest of the high-end wine segments, if Burgundy superstars like DRC, Domaine Leroy and Henri Jayer do indeed supplant Lafite as the most desirable labels among Chinese collectors and drinkers, the wallets of wine lovers in Europe, North America and elsewhere could take serious hits in the years ahead.

 

 

 

www.jingdaily.com