The Singaporean Experience w/ Yi Xin Ong, KOT Selections

As part of the importer series, Yi Xin Ong, Managing Partner of KOT Selections in Singapore, provides an international perspective. From Singapore’s 2-3,000 active importers for the small island to the impact of international media, Yi Xin describes how KOT navigates the importing, distributing, and retailing of its portfolio of winegrowers.

Detailed Show Notes:

Background

Founded KOT in 2011 - they couldn’t get the wines they were buying in Singapore, three partners
Work w/ 57 winegrowers, mainly in Europe, 6 in the US

Singapore wine market (~6M population, ~20% Muslim - don’t drink)

No 3-tier system, no gov’t monopoly
It is a pretty open market, like the UK
Many players are vertically integrated - import, distribute, retail - with lots of captive distributors and retailers
Very low barriers to entry - founded KOT in 2 months for S$200 to get licensing and paperwork
Horizontally spread - ~2-3,000 active importers (in 2011, ~700 importers, mainly focused on Australia/NZ with either big brands or high-scoring wines)
Two casinos / integrated resorts provided the spark for other wines (e.g., Marina Bay Sands opened in 2011)
Generally, 1-1.5 generations behind the UK and US wine markets

Took inspiration from other importers - Kermit Lynch (CA), Louis / Dressner (NY), Yapp Brothers (UK Rhone Specialists) - importing wines others were not

Yapp - focused on winegrowers
Dressner - spent a lot of wine visiting growers, good storytelling
Kermit Lynch - newsletters (1970s) were key to storytelling for the wine growers
Storytelling is critical to standing out in a crowded market

Sourcing strategy - most wineries they bought from personally (90%) were not represented in Singapore

Informal rule - 5 visits to winegrowers between the three partners before they import
Broad portfolios - easier to serve clients and fulfill their needs
Focused portfolios - clearer story and differentiation
Optimal portfolio size - ~50-70 to give each winegrower ~1 week/year of focus

KOT differentiation

Market knowledge
Links to trade, client base
Trust of the people (have only signed one contract, mainly handshake deals, exclusive relationships) -> been burnt occasionally with generational change

Build brands in Singapore - a very organic approach

Get the right people to taste them - professionals, and influencers / Key Opinion Leaders (“KOL”)
Host tastings every year, even for highly allocated wines (e.g., Pierre Gonon)
KOLs can drive demand

Int’l media have a strong influence - English is the primary language

More important than local media
Only the top few have an impact - The Wine Advocate (Robert Parker), Jancis Robinson (less emphasis on scores, more on editorial content)
Robert Parker had a big impact on the local market; a Singaporean bought the company
100-point scores can drive sales spikes

Consumer data/reviews can start trends, increasingly important