An Exploration of the Luxury Wine Trade

Despite the public profile of many luxury brands, little is known about the positioning and marketing of these products, or the consumer interpretations of each brand. This article reports on a two‐part study in an attempt to understand the dynamics of this market. The first study reports on the results of interviews with fine wine consumers, distributors, and retailers in Australia. Results reveal that the interpretation of these brands is a complex process, and that their positioning revolves around a number of product and marketing related features. The second study involves interviews with a number of leading producers of luxury wine brands. Results from these interviews examine the positioning of these brands, the evolution of each firm's strategy, and the challenges and benefits from operating in this market.