With South Africa’s high unemployment rate, inflation, and currency volatility, wine can be a tough sell. Less disposable income makes premium products less accessible and forces consumers to shop around. Are there lessons to be learned from the example of luxury goods?
“Consumers choose a product that’s the best quality for what they can afford at that moment, or they will look for more value in the products they purchase by shopping around for the best prices or shopping at retailers that offer some sort of added value,” says Reagan Clay, Champagne brands manager at Vinimark.
Vinimark represents prestigious Champagne brands such as Nicolas Feuillatte, Pommery and Bollinger in South Africa.
Reagan explains that consumers who choose a luxury product are after more than just the product. “They buy what it represents. In most cases, the price becomes a secondary part of their shopping decision. It’s about brand equity – how the brand makes them feel and what it represents to them and their social circles; and, more importantly, the trust and confidence in quality that the brand represents because of all the years these brands have been around.”
In other words, consumers in the luxury goods space are prepared to spend the money even in a difficult economy.
Opportunity beckons
This creates an opportunity for brands to provide value; not necessarily from a price perspective, but in consistent quality, care, and craftsmanship. This translates into confidence in the brand, and ideally, brand loyalty.
“It’s important to ensure that wherever your product is sold, it is presented at the standard aligned with the brand – from where it’s positioned in the store to how it looks on the shelf, ensuring that whoever sells your product understands the brand and how best to present this to the customer,” Reagan adds.
“From a Cap Classique and general sparkling wines perspective, we do see consumers switching between brands – in some cases based on price or value-add offerings – but there are also very brand-loyal consumers who will always purchase the brands they trust or have a brand love for.”
“For these brands, it’s important to understand what your consumer values about your brand and what created the brand love in the first place, and to really try to offer as much to the consumer as possible from a brand experience perspective – if they visit the brand homes, provide the best experience possible; if they engage on social media, engage with them; understand what excites your customer and deliver on what is important to them.”
Communicating value
Vinimark makes use of various internal initiatives to ensure its sales force is equipped with the necessary knowledge, training and tools to serve its customers, Reagan says. “From a brand marketing perspective, we ensure we understand and align to the global brand objectives and strategies to communicate a brand’s proposition in the market.”
This attention allows them to maintain a consistent luxury standard across all activations, while relying on PR partners to highlight news, awards and accolades which reinforce the message internationally.
Keeping up engagement with key stakeholders also opens channels to market segments where people value luxury, quality, and craftsmanship and are willing to invest in that experience. These may be wine enthusiasts and connoisseurs or corporate clients and businesses.
“I think we’re still in the beginning stages within the Champagne space,” Reagan says. “There are so many amazing brands that our market hasn’t had the opportunity to experience yet. Within the Bollinger portfolio, we will focus on allowing our customers and consumers to experience the Bollinger La Grande Année Brut and rosé, made only from Grand and Premier Cru grapes. We also have limited-release offerings and exceptional Champagnes reserved for collectors.”
To this end, Vinimark is pursuing strategic partnerships with key local on-trade customers who can offer an exceptional experience, as well as chefs who can create experiences that resonate with South African consumers.
