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IJWBR
21,3
Is a glass of Merlot the symbol of
globalization?
An examination of the impacts of globalization
258 on wine consumption in Asia
Kyuho Lee
College of Business, Western Carolina University,
Cullowhee, North Carolina, USA
Abstract
Purpose – The purpose of this paper is to investigate how underlying globalization could influence
Asian consumers’ wine drinking patterns and behaviors. Specifically, a theoretical framework that
explains the underlying motivations of Asian wine consumers is developed.
Design/methodology/approach – A broad range of literature is reviewed in an attempt to develop
a theoretical framework for the impacts of globalization on the Asian wine market.
Findings – Three key forces that drive change in the Asian wine markets are identified; these
changes explain the explosive growth of wine consumption in Asian countries.
Research limitations/implications – A theoretical framework is developed in an effort to explain
the impacts of globalization on Asian wine consumption. Therefore, no empirical tests are conducted
to validate the theoretical framework. Future studies could test the theoretical model by conducting
an empirical study.
Practical implications – Multi-faceted global progress in terms of economic, technological, and
socio-cultural influences has influenced Asian consumers’ wine consumption positively. Therefore,
Asian consumers’ wine consumption will continue to grow significantly. A theoretical framework that
explains the relationship between the progress of globalization and wine consumption in Asia is
developed. This framework will help international wine marketers better understand the recent rapid
growth of wine consumption in Asia.
Originality/value – This is the first research that attempts to investigate how globalization has
affected the Asian wine market.
Keywords Globalization, Wines, Consumer behaviour, Asian studies
Paper type Research paper
Introduction
Wine, one of the most traditional Western alcoholic beverages for centuries, has
become one of the most popular global alcoholic beverages. Traditionally, drinking
wine was regarded as a long tradition of Southern European countries. Yet, between
1994 and 2000, Asian countries increased their wine drinking significantly; Japan,
Taiwan, Singapore, China, and Korea recorded average growth of 68, 87.1, 105.9, 72.7,
61.8, and 13.2 percent, respectively, which led the global wine industry to further
explore the potential of these markets (VinExpo, 2002). It is astonishing to see this
dynamic growth in wine consumption in Asia because most Asian consumers have not
traditionally drunk wine and each Asian country has its own traditional alcoholic
beverages, such as ‘‘sake’’ in Japan and ‘‘sochu’’ in Korea. Furthermore, there is a strong
association between culture, eating habits, and food preferences (Fieldhouse, 1995). In
International Journal of Wine other words, individual dining patterns are deeply based on the culture with which an
Business Research individual is affiliated (Fieldhouse, 1995). Thus, it is very difficult for an individual to
Vol. 21 No. 3, 2009
pp. 258-266 change preferred food items and beverages, including alcoholic beverages.
# Emerald Group Publishing Limited
1751-1062
The recent growth in wine consumption in Asian countries such as Japan, Hong
DOI 10.1108/17511060910985971 Kong, China, Korea, and Thailand has drawn attention from both academic researchers
and industry practitioners (Cook and Lockshin, 1997; Lee et al., 2005). This growing Wine
wine consumption is an interesting phenomenon and is worth investigating in an
attempt to understand the underlying factors that motivate Asian wine consumers. A
consumption
conceptual model that integrates the motivations of Asian consumers with a in Asia
consideration of the influences of globalization has not been developed despite a
growing amount of research related to Asian wine consumers. Most wine research
(Cook and Lockshin, 1997; Dewald, 2003; Handley and Lockshin, 1997; Lee et al., 2005;
Wilson and Huang, 2003) that is relevant to Asian wine consumers or the Asian wine 259
market has tended to highlight the marketing aspects of the Asian wine market. In this
paper, I relate the progress of globalization to growing wine consumption in Asia in
order to better understand and explain the growth of wine consumption in Asia. A
theoretical model underpinning the relationships between wine consumption in Asia
and the progress of globalization is presented. In addition, three crucial propositions
will be developed on the basis of the model.
Specifically, the model is designed to present a framework to answer the following
questions:
. How has the progress of globalization affected wine consumption in Asian
countries?
. What are the key drivers of globalization that influence wine consumption in
Asia?
A broad array of literature ranging from discussions of globalization in the hospitality
industry to Asian wine marketing will be reviewed in order to connect the globalization
concept to the recent phenomena of growing wine consumption Asia. This paper is
divided into two parts. In the first part, literature relevant to globalization is reviewed. In
the second part, the outlook for the global wine industry as well as the literature dealing
with Asian wine consumption and wine marketing are discussed. In addition, three
critical propositions that link the progress of globalization to wine consumption in Asia
are constructed on the basis of the theoretical discussion in the second part of the paper.
Conclusion
Huntington (1993) postulated that global civilizations have conflicted with each other
due to the religions, philosophies, and perspectives that underlie each civilization. In
particular, cultural differences between civilizations are not exchangeable; thus, each
culture is less likely to adapt to another’s culture (Huntington, 1993). Huntington (1993)
argued that the rest of non-Western civilization has sought to acquire both modernity
and a Western lifestyle that is characterized by wealth, technology, and machines.
Huntington’s (1993) argument makes sense in explaining the recent growth in wine
IJWBR
21,3
264
Figure 1.
Globalization and its
impacts on Asian wine
consumption
consumption in Asia. Even if Asian consumers are still inclined to prefer the traditional
food and alcoholic beverages of their cultures, this trend has been changing slowly in
the globalizing economy.
For instance, Starbucks operates over 535 stores in Japan, and 148 stores in China
even though the preferred traditional beverage in these countries is green tea
(Biederman, 2005). Biederman (2005) claimed that Starbucks has been able to succeed
in Asia due to the growing number of the middle-class Asian consumers’ who desire a
Western lifestyle. In the case of China, it is estimated that there are about 250 million
new members of the middle-class thanks to the country’s quick economic development.
As a result, China has become the most dynamically growing wine market in the world,
with the potential to grow continuously (Pike and Melewar, 2006). However, very few
Western wine marketers might have foreseen this significant increase of wine
consumption in Asia in a couple of decades ago.
This study has attempted to explain the growing popularity of wine in Asia based
on an understanding of recent trends in globalization. The study has developed three
key propositions in an attempt to explain the relationship between globalization and
wine consumption in Asia. These propositions shed valuable light on the underlying
dimensions of the current popularity of wine in Asia and the potential growth of wine
consumption in Asia. It is recommended that future research test the conceptual model
of the study empirically to see if the study’s conceptual model is valid. In addition,
given the scarcity of reported research on wine consumers’ behaviors and the cultural
impacts on consumers’ preferences for wine, there may be a huge opportunity for
further theory building and empirical testing regarding these topics.
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Corresponding author
Kyuho Lee can be contacted at: klee@email.wcu.edu