Luxury Wine Brands Market: Past and Future Insights
Every market category out there has a ‘luxury position, be it shoes, sunglasses, bags, or wines. In the wine industry, the competition is cutthroat. Hence, the battle from the soil to the bottle is not an easy one for a luxury wine. Some wines are tweaked to death over the course of several years before launch. Therefore, the difference in quality would be like night and day between two different wine brands.
Over the years, luxury wines are seen as a symbol of glamor, sophistication, and rich culture. Believe it or not, blind taste wine competitions are held in many places where iconic wines participate to see how well they fare in the overall market. Since nobody really gets to know about the wines that don’t grab the top slot, it’s considered to be a safe bet to participate in such competitions.
Let’s admit it; luxury wines have come a long way since their humble beginnings. It’s not uncommon for the super-rich out there to shave off thousands of dollars in a flash for a bottle of wine. However, the market did see a major decline several years back, but it has now bounced back and is gaining good momentum.
When retail sales had dropped, many luxury brands were forced to make a premature exit from the business. Some years back, people were going out less. Less traveling meant fewer shopping trips. This also meant less visits to specialty wine retailers. Phew! The chances are that you just saved yourself from stepping on a landmine by not entering into the wine business at the wrong time.
Truth to be told, it was pretty tough back then. People were generally chasing discounts. Customers were drifting towards all the discount channels as everyone realized all off a sudden that they weren’t as wealthy as they were before. Unfortunately, the property prices had seen a sharp decline, and it left people with less spending power. The restaurants were also seen replacing luxury wine brands with the low-end ones. However, the market picked up pace over the years and so did the luxury wine business.
If we ditch the past for a moment and focus on the future, the luxury wine brands are expected to make a full comeback. In fact, they have already made a grand comeback and are predicted to be in full-swing in the coming years. The wine accessories market such as luxury wine glasses is also at its booming stage and is expected to see new heights in the years to come.
Unlike the past, luxury wine brand owners have realized that visibility is the key to massive success. A full-page newspaper wine ad was unheard about in the past. However, it’s not that uncommon these days. By some estimates, thousands of dollars are pumped into online marketing as well. With luxury brand owners opening their third eye and focusing more on marketing, the luxury wine market could potentially see new growth like never before.
Moreover, luxury wine brands are not neglecting their social responsibility these days. It’s a well-known fact that socially responsible companies are well received by the masses. Therefore, why leave any cards in the sleeves? Why not focus on the social equation of the business as well? Whether it’s because of good intentions or good business strategy, the thing is playing out well.
With luxury wine brands, the price could be a sale-ruining factor simply because the high price tag of luxury brands may not suit every wallet. However, luxury brand wines cannot be made available at dirt cheap rates. Practically speaking, it cannot be done simply because it will affect its luxury status. The price is one of the factors that separate a regular brand from a premium one. In the wine world, there is no right or wrong way to price a bottle of wine. The company adds its price tag, and it’s left to the consumers to give it a shot or not. It all boils down to the quality and how deep are your pockets.
Remember, Rome was not built in a day. Likewise, luxury brands are not created in a day or two. It’s several years into the making if not decades. Carbon copies of high-end luxury brands are on the decline as they aren’t able to garner the aggregate appreciation or loyalty for too long. On the other hand, true luxury wines have stood the test of time and are continuing to do well in the market. So, don’t be surprised if the market for true luxury wine explodes in the coming years.