TWE Robert Foye: Distributor Has the Right to Set Retail Price
Write | WBO Morris
Translate and Edit | WBO Kiwi
In the latest interview with WBO, Robert Foye, President of Asia and EMEA for TWE, has disclosed TWE's development in China wine market.
Distributor set retail price
WBO Global: How many Penfolds stores have opened in China? What wines have been sold through them and what support will you give to them?
Robert Foye: I can’t tell you the exact number, but more than 50 stores have set in China, mainly sell Penfolds and American fine wines. Most stores are run by our clients directly.
We give them supports in marketing, brand building and wine educations, and sometimes master classes in the stores. Apart from this, brand design, advertisement are the assistants for sales. Our destination is to let consumers experience best service in Penfolds stores.
WBO Global: What is the retail price there? I found wines from TWE are different in retail price somewhere.
Robert Foye: We have suggested retail price, while final price was set by our clients. But when the price goes irrational, we will talk to them and require them to adjust the price. Two years ago, we stopped the partnership with one of our clients who sold our wines in sharp discount. After all, I hope our high-end wines should be treated in a right way and reasonable price.
Focus on “90+ CLUB” strategy in operating American wines
WBO Global: TWE has launched American wine collection, how is the sales now?
Robert Foye: It just came out for 3-4 months. We have to focus on “90+ CLUB” strategy and we have confidence on it. American brands under TWE such as BV, Berlinger and Sterling are the best quality high-end forerunner in China wine market.
WBO: What channels have you entered already?
Robert Foye: All channels have done yet, including traditional distribution networks and online channels. We are trying to enter grocery shops and community stores. But China is so large that we still need time to grow.
Promote French wines in the former mode of Penfolds
WBO Global: We got to know that TWE has opened an new era of selling French wines, what kind of mode will you implement the in following step?
Robert Foye: French wines accounted for 42% of the total market share in China. It’s really big even huge. In terms of market share in China, it’s pretty stable, while in terms of brand creativity, it’s lack of innovation. We know China well and understand what Chinese consumers need. Besides, we’re strong in distribution networks. Therefore, we launched French wines equiped with these advantages. From marketing modes to tastes and labels, these wines will be in line with Penfolds roadmap, attractive and noticeable. It will be a brand new start for TWE.