Italian wines in the new world wine consumers countries: the case of the Russian market

Abstract

Over the last few decades, the wine market has been affected by a deep structural transformation due to globalization and mounting international competition. In particular, the wine demand has registered a geographical change with a fall in the traditional markets and an increase in the new markets among which Russia and China. Russia is one of the largest markets for wine on the planet, therefore, know what quality attributes are appreciated by Russian consumers is relevant in order to define effective business and marketing strategies. An hedonic price model has been used in this work in order to estimate implicit price for the main objective attributes of Italian wine sales in the Russian market. Our findings show that Russian consumers are willing to pay a premium price for wines from Veneto and Tuscany, and in particular for non native varieties and for IGT wines. Additionally, Vintage and the higher alcohol content have a significant positive impact on the prices that consumers are willing to pay for wines. An effort to promote a differentiated quality wine produced in specific wine growing area is essential in order to increase the knowledge of different type of Italian wines.