Academic journal article Journal of Marketing and Management

Research on Himalayan Region Wine Industrial Cluster Innovation and Management

Academic journal article Journal of Marketing and Management

Research on Himalayan Region Wine Industrial Cluster Innovation and Management

Article excerpt

Introduction

Wine, as an international alcoholic beverage, ranks second in production and consumption in the world. The industry is expected to sell almost 300 billion bottles of wine in 2014 (Marketline, 2012). The International Organization of Vine and Wine (OIV) defines wine is an alcoholic beverage made from fermented fresh grape juice with a low content of ethanol, which is usually 8% to 14%. The world famous wine producing areas are in countries including France, Italy, Spain, Australia, and the United States. Theses areas have mostly Mediterranean climate, with warm and humid winter, and cool and dry summer. These areas provide good environments for the growth of grapes, and therefore represent the areas of production of highest quality of wine in the world.

Table 1 displays wine classification based on 1) color, 2) amount of sugar, 3) content of carbon dioxide, 4) brewing method, and 5) drinking style.

Though the Vatican City State does not produce wine, yet it has the highest consumption of 54.78 liters of wine per person, followed by Norfolk (54.50), France (45.70), Italy (42.15), Portugal (41.81), USA (9.42) and China (.69) according to the Wine Institute statistics in 2012.

Table 2 shows wine consumption in 2010; Portugal tops the consumption followed by Italy.

The industrial cluster theory has gained a lot of attention since it came into being in the 1920s as a theory of western economics; that was when Harvard professor Michael Porter first put forward the term under global economy and interpreted the phenomenon of industrial cluster in a completely new perspective of "competitiveness." Michael Porter first practiced the theory in research on the wine industry in California, USA, and then attracted scholars at home and abroad to focus on research of wine industrial cluster. The "New World" consists of some emerging wine producing countries including the United States, Australia, New Zealand, Chile, Argentina, and South Africa. The "New World" has increased its market share in the international market to 23.4% over the past decade; this is due to the mode of production: in large scale, centralized, highly organized manner, and adoption of modem wine making techniques. The "New World" also provides appropriate means for research on wine industry cluster by applying industrial cluster theory. Foreign scholars have expanded and deepened their research on wine industrial cluster to its formation, structure, use of Internet, competitive strategies, R&D and innovation, inter-company network, management and upgrade, market operation, cluster problems, suggestions, and many other aspects.

As the most populous country in the world, China will definitely grow to be the world's largest wine market in the future. However, China has just started in the development of the wine industry and wine culture. Nowadays in China's wine industry, wine varieties are relatively fewer, wine grapes are short of feature flavor, and there is also no world-class super brand, so it is difficult for Chinese wine to occupy the high-end market. However through years of research, it has been found that the Himalayan wine producing areas including the first-class and second-class producing areas has less precipitation, dry climate and moderate temperature; and that the high altitude brings good light and strong ultraviolet radiation and desiccation stress which enhance the formation and accumulation of grape fruit flavor function substances such as phenolic compounds, pigments, and resveratrol; The areas also bring fuller flavor and powerful healthcare. The practice of recent years has shown that 1) wine grapes have relatively rich scent of flesh, and 2) red wine has rich tannins and high color degree. The unique natural conditions enable Himalayan wine producing areas to have great potential of being the world's top wine industry region.

For the Chinese wine producing companies to develop and participate in the international and domestic markets, the companies should 1) do more research on the theory of industrial cluster, 2) vigorously learn from the successful practices of the wine producers in "New World" that apply the theory to develop their wine industries, and 3) combine with the unique advantages of the Himalayan producing areas. …

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