Business Idea of the week: Wine export to new economies
Our idea this week focused on providing an existing product to new markets. Wine export is certainly nothing new to South African entrepreneurs and our wines can be found in places that many of you may never have heard of. But with the global economy, global tourism and the westernization of many countries comes the change in tastes and of many of the worlds citizens.
Wine sales and especially red wine sales have dramatically increased in countries like Poland, Ireland and India, so to as much as ten fold of what is was 10 years ago. With quality wine a plenty in South Africa and the Rand de-valuing at an alarming pace, the time for exporting wine to new economies could not be better.
Upside: Apart from the already existing high reputation and low prices of South African wine, the Rand is expected to fall even further in 2007. This opportunity can get of the ground with a relatively low initial investment.
Downside: Advertising abroad is expensive and it may initially be challenging to build your reputation if you are not physically present.
There is allot of competition from wine regions in Australia, Chile, the US and Europe.
Verdict: A great business idea that seems ideal for the South African entrepreneur with gusto, foreign contacts and a thirst for earning foreign currency.
PLease contact me should you need further information and support with this idea.