The average consumer (me) walks into the vodka section of a liquor store and immediately recognizes most of the brand names in there. They're mostly well-known brands from a few large producers. The consumer walks a few more steps into the wine section and is immediately confused by the choice overload. What explains the fragmentation of the wine industry? How has it resisted consolidation? Or is it actually consolidated but producers decide to maintain separate brands?
Wine is one of the very few products that could be considered a Veblen good. A good that defies the laws of economics: as price rises, demand rises as well (nerd economist). Why is price used as a proxy for quality and how do wine producers exploit that to their advantage? How can wine makers differentiate themselves in such a competitive market? And what role does information play in this market?
The wine industry is a complex and unique competitive environment. I look forward to learning about the economics of the industry, strategy, marketing, global competitiveness, players in the industry and the regulatory environment. And I look forward to doing so while drinking a glass of wine and having fun.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.