As part of the importer series, Yi Xin Ong, Managing Partner of KOT Selections in Singapore, provides an international perspective. From Singapore’s 2-3,000 active importers for the small island to the impact of international media, Yi Xin describes how KOT navigates the importing, distributing, and retailing of its portfolio of winegrowers.
Detailed Show Notes:
Background
- Founded KOT in 2011 - they couldn’t get the wines they were buying in Singapore, three partners
- Work w/ 57 winegrowers, mainly in Europe, 6 in the US
Singapore wine market (~6M population, ~20% Muslim - don’t drink)
- No 3-tier system, no gov’t monopoly
- It is a pretty open market, like the UK
- Many players are vertically integrated - import, distribute, retail - with lots of captive distributors and retailers
- Very low barriers to entry - founded KOT in 2 months for S$200 to get licensing and paperwork
- Horizontally spread - ~2-3,000 active importers (in 2011, ~700 importers, mainly focused on Australia/NZ with either big brands or high-scoring wines)
- Two casinos / integrated resorts provided the spark for other wines (e.g., Marina Bay Sands opened in 2011)
- Generally, 1-1.5 generations behind the UK and US wine markets
Took inspiration from other importers - Kermit Lynch (CA), Louis / Dressner (NY), Yapp Brothers (UK Rhone Specialists) - importing wines others were not
- Yapp - focused on winegrowers
- Dressner - spent a lot of wine visiting growers, good storytelling
- Kermit Lynch - newsletters (1970s) were key to storytelling for the wine growers
- Storytelling is critical to standing out in a crowded market
Sourcing strategy - most wineries they bought from personally (90%) were not represented in Singapore
- Informal rule - 5 visits to winegrowers between the three partners before they import
- Broad portfolios - easier to serve clients and fulfill their needs
- Focused portfolios - clearer story and differentiation
- Optimal portfolio size - ~50-70 to give each winegrower ~1 week/year of focus
KOT differentiation
- Market knowledge
- Links to trade, client base
- Trust of the people (have only signed one contract, mainly handshake deals, exclusive relationships) -> been burnt occasionally with generational change
Build brands in Singapore - a very organic approach
- Get the right people to taste them - professionals, and influencers / Key Opinion Leaders (“KOL”)
- Host tastings every year, even for highly allocated wines (e.g., Pierre Gonon)
- KOLs can drive demand
Int’l media have a strong influence - English is the primary language
- More important than local media
- Only the top few have an impact - The Wine Advocate (Robert Parker), Jancis Robinson (less emphasis on scores, more on editorial content)
- Robert Parker had a big impact on the local market; a Singaporean bought the company
- 100-point scores can drive sales spikes
Consumer data/reviews can start trends, increasingly important
- Vivino, Wine-Searcher, CellarTracker, Instagram
75% wholesale, 25% direct-to-consumer sales (mainly e-commerce)
- Private clients saw KOT through the pandemic
- Trade is vital for tourist demand
Singaporean wine trends
- New regions increasing, Japanese and Chinese wines
- Value increasing - ~$20-30 retail, ~$5-10 FOB
- The low/no alcohol trend is not a thing yet
- Rose has never been a trend
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