China's "Red Obsession" is Changing the Face of The Bordeaux Market

Published 08/08 2014 08:05PM

Updated 08/08 2014 08:11PM

Item: Through sheer purchasing power, China’s thirst for Bordeaux wines has fundamentally changed the market. After the bottom dropped out of the industry in 2011, causing prices to crash, China’s newly minted millionaires began hopping flights to France in order to taste the specialty wine—and, of course, as demand rises, so will the price.

Why it Matters: There is, no pun intended, a new thirst for luxury. It’s not the same luxury that existed fifty years ago; this luxury is centered on simpler things, only more upscale. In an era where everything has a knockoff, premium can be a dollar menu item or a lavish hotel suite—so, someone needs to set the bar. New luxury is about specialty and specialization, and exclusivity is only happening as brands themselves set the standards on how many of each product is available, and for what price.

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