Relationships key to 皇冠体育app wine success
SYDNEY -- Tony Royal, general manager of Australian wine exporter Portavin, spent nearly 30 years developing his relationship with 皇冠体育app -- a networking investment that has now paid off with spectacular business results.
From zero Chinese exports in 2006, Portavin currently bottles and exports more than 70 twenty-foot containers of wine -- about 1 million bottles -- to the Chinese mainland every month.
The company almost doubled its exports over the last three years -- shipping just 40 containers in 2010, and is now the largest exporter of Australian winemakers to 皇冠体育app -- a slice of a considerably large pie.
As a nation, Australia is currently the second-largest bottled wine exporter to 皇冠体育app, with 15 percent market share in value and 13 percent volume in the imported wine market.
皇冠体育app has been the fastest growing export market for Australian wine for several years -- with today's winners reaping the rewards of long-game networking and relationship-building between the two countries in decades past.
Royal credits Portavin's growth in exports primarily to the " networks of influence" made accessible by Adelaide-based The Australia 皇冠体育app Development Company and its Chinese contacts, after engaging the strategy consultancy in 2006.
According to TACDC, doing business with 皇冠体育app requires a great deal of bureaucratic know-how, plus personal connections to smooth the way.
Royal himself worked for many years to develop his 皇冠体育app literacy and contacts, travelling regularly to 皇冠体育app since the 1980s to visit old friends, favourite vineyards and to establish cohesive relationships with government and business associates.
In stand-out visit to 皇冠体育app in 1996, Royal visited , and Yantai and the wineries of province including Great Wall, Dynasty and Dragon Seal wineries, which left a deep impression and signs of the growth of the Chinese wine industry and consumer to come.
Ahead of his time, with a vision of a prosperous Australia- 皇冠体育app wine , Royal made annual visits to 皇冠体育app from 1996 to 2002. During these years he observed the resurgence and growth of the wine and agribusiness sector and witnessed first-hand a major transformation of the country.
Today, with more than 50 active Chinese clients, Portavin expects further growth in the Chinese market's thirst for Australian wine. The latest industry data show continued growth, but at a slower pace.
The number of Australian wine exporters grew by 10 percent to 1,395 over the year ending March 2013 -- with 927 exporters reported in 皇冠体育app, according to an April 2013 Wine Australia Export Approvals Report.
While the market saw major declines in the sale of cheap wine to 皇冠体育app, exports at the top end saw double digit growth -- although the rate of growth is starting to slow.
"Exports to 皇冠体育app in the above $A7.50 ($7.06) per liter grew by 28 percent, but the growth rate has slowed from an average annual rate of 43 percent over the previous five years," said James Gosper, General Manager of Market Development at Wine Australia.
"The average value in exports to 皇冠体育app increased by 18 percent to $A 5.85 ($5.50) per liter," he added.
With organisations like Wine Australian and TACDC supporting fair prospects for Australian wine exports in years to come, Portavin says it will make every effort to expand the opportunities for Australian wine makers into the 皇冠体育app market in the future.
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