Newcomer El Toro sets its sight on Hong Kong

Hong Kong - Spanish wine company El Toro Group knows locals currently prefer Chateauneuf, Bordeaux and other French wines, but it's hoping that by bucking traditional advertising strategies to focus on wine tasting events, it can attract discerning customers. 

El Toro Hong Kong, which entered the Hong Kong market early this year, saidalthough Spain is the third largest wine producer in the world, its wines only hold a 1.5% share of the market in Asia. But the vintner is hoping that with its new advertising strategy, more of the market will swing its way. 

Steve Kwong, marketing manager of El Toro Hong Kong, said marketing spend for the group has targeted social networking and wine events through banners and a Facebook group, which currently has over 700 members.

"We discovered that majority of wine consumers favor French and Australian wines, but most of them don't know a lot about wine. Product prices and countries are the fundamental appeals to regular consumers, but this attitude is wrong."

Andy Dong, sale director of Handpicked Wines International for Greater China, said most people are in favor of French wine because of its history and culture "and that's what's in people's mind."

Kwong add, "We want to use our funding efficiently... Traditional marketing does not work for us here. Spending money on ads will be like pouring water down the drain."

Both Kwong and Dong agreed the local wine market is very competitive.

Since the Hong Kong government imposed a tax waiver on wine, in March finance secretary John Tsang announced a HK$150 million investment to attract high-quality wine conventions and exhibitions to the city to consolidate its position as a fine wine hub, according to the Hong Kong Trade Development Council.