According to Philip Staveley, head of research at Amphora Portfolio Management, the high import duty on wine in India doesn’t let global winemakers tap in the large market that the country has for wine.
Amphora is wine specialists and the company is a friendly face in wine investment. It builds and manages portfolios of fine wine for private investors and collectors.
Staveley stated that the import duty currently is 160% which makes wine exclusive for high-net-worth individuals. Buyers store wine in UK and Dubai and carry an allowance back in India when they travel. If the import duty is reduced, it shall boost the local demand in India.
China has been a growing market. Purchasers from Chinese ‘Middle Class’ have increased. The reasons for the same include the reduction of taxes in China and an increase in e-commerce platforms that allow ordering wine online.
Hong Kong has been a major hub for wine. It cut its taxes from 80% to 0 in 2008. Sotheby, the auction house has been present in Hong Kong since 1973.
Staveley on speaking about the prevalence of Chinese in the wine industry stated that, “As developing economies’ evolve, the millionaires often aspire towards ownership of Western luxury goods, fine wine undeniably fits the bill.”
As per his experience, Chinese buyers aren’t put off by the price but rather go by higher the better, and Burgundy hence remains the favorite.
