Will the Removal of ‘Deep Discounting’ Help put the Value Back in Wine?
Posted on Mon 22nd Feb 2016 at 12:22
The supermarkets have a lot to answer for. With their constantly ‘slashed’ wine prices that encouraged consumers to look only for the price, and not what was in the bottle, they single-handedly devalued the wine market and caused a lasting scar across the industry.
Now, however, with supermarkets stopping this practice and instead pursuing a policy of ‘everyday good value’, will consumers once again learn to put a greater value on wine? There is certainly an argument that, once consumers are forced to focus on the style and type of wine rather that then price, they may once again start to explore wine in a more meaningful way. It is further plausible that, now supermarkets are reducing the numbers of wines they stock and focusing more on selling wines exclusively made for them, customers will start returning to independent wine shops for more variety – not to mention a bottle they can put on the table at a dinner party without embarrassment. Independents have a great opportunity to seize the opportunity and heavily promote the benefits of their wines, including aspects such as value for money, variety, regionality, possible food pairing et cetera. In particular, Oddbins research has demonstrated that the segment most likely to be looking for wines from independents is those consumers who normally buy wines at between £8-£12 per bottle, exactly the price point where Stobi sit. Yet despite the sense of optimism among many, few independent retailers have concrete plans to capitalise on the situation. A recent Harpers article on the subject noted that “few of those spoken to while researching this feature have any plans to make any noise about their great strengths of better choice, quality, knowledge and the genuine, sustainable value offered by their independent ranges.” Although independents may be wary that supermarkets may yet revert their approach and once again lure customers in with loss-making deals, we would argue that it’s time to seize the day and start emphasising your incredible and multiple strengths. If not now, when?