In the rapidly evolving Chinese wine market, EMW Fine Wines has carved out a niche over the past 20 years, navigating shifting consumer preferences and market challenges. Olivier Six, who ascended to the role of CEO amidst the tumultuous years of the pandemic, reflects on the company’s journey and its strategies for success.
As the world grappled with the onset of a global pandemic, Olivier found himself stepping into the role of CEO at EMW Fine Wines, a moment that was as daunting as it was defining.
The ascension marked a pivotal moment in both his career and the company’s history. In conversations about this intense period, Olivier’s descriptions are vivid and personal. This period wasn’t just about managing a company; it was a profound learning experience that shaped him both as a leader and as an individual. “Learning from the super hard time is also helping you later in your business to make wiser decisions,” he shares, reflecting on how those days honed his decision-making skills and strategic thinking.
The pandemic, as described by Olivier, brought about significant shifts in market dynamics. Recalling its extensive damaging impacts, he detailed, “The pandemic impacted the wine industry like any other industry. Not only on the consumption, but it was also so hard to find containers. I remember the cost of transportation itself was already a restriction.”
From logistics nightmare and container shortages to depressed demand and draconian social distancing measures, the newly appointed CEO confessed, “It was making my head spin, and I had many sleepless nights.”
However, as daunting as it was, he was certain this downturn necessitated a strategic pivot. EMW’s response involved diversifying and adapting its sales channels. The company just set up its e-commerce department in 2019, right before the pandemic, a decision that, till today, he counts as a stroke of luck and the right move from Edouard and Gregory. “Right before the pandemic hit, we had initiated our own e-commerce department. I often think of it as a stroke of luck, because we were building it from the ground up, handling everything in-house,” he noted. “We moved from a very small percentage of commercial sales online to something quite valuable.”
What stands out in his narrative is his agility and adaptability in the face of adversity from shifting market dynamics to logistical nightmares. “It was really a very stressful time so you have to be really nimble and be able to navigate through all of those,” he stressed.
Record Year in Pandemic
As it later turns out, Olivier not only navigated EMW Fine Wines out of the pandemic at a time when market consolidation has forced many players to downsize or exit the market, but also led EMW to deliver deliver its best financial performance yet during the pandemic in 2021.
Reflecting on this remarkable feat, he explains, “When everybody in Europe and in the US was hit by the coronavirus, we did our best year in 2021 in the whole history of EMW.” This success, he notes, was partly fuelled by the surge in domestic tourism within China. As international travel ground to a halt, destinations like Sanya and Hangzhou saw a boom, benefiting from local spending.
“When everybody in Europe and in the US was hit by the coronavirus, we did our best year in 2021 in the whole history of EMW.”
Olivier Six, CEO of EMW Fine Wines
However, the following year presented new challenges. He describes 2022 as an even tougher year, marked by uncertainty and repeated lockdowns: “When all those lockdowns happened, not only the Shanghai one, which is the one everybody’s talking about, but I still remember Xi’an lockdown. We have a sales manager there. It was very tough for them as well.”
Despite these hardships, EMW remained committed to its staff. Speaking with conviction, he said: “We still managed to keep all the staff. We didn’t lay off anyone. We took care of our people.”
At the heart of EMW’s resilience lies its ethos and the importance Olivier places on having the right team. “Edouard and Gregory hired a very talented team,” he says, emphasizing the role of his colleagues in the company’s success. This approach, combined with a commitment to service excellence and education, has been crucial in creating a richer experience for their clients.
“Now all the leadership team is composed of people who have been in the company, with most of them more than 10 years and many of them around 15 years,” he remarked.
Service excellence is another key strategy that led to EMW’s 20 years of growth. “It’s not just about delivering wine on time,” he explains. “It’s about providing the right service, wine education is also part of it, helping our clients understand and appreciate the wine.” This dedication to education and engagement has been a cornerstone of EMW’s approach, enhancing the depth and breadth of their client relationships.
Reflecting on the factors behind EMW’s sustained success, he hesitates to attribute it to just one or two elements. Over the past twenty years, it’s been a tapestry of various factors woven together. He elucidates, “Success at EMW has been about blending professionalism, quality work, and open-mindedness with, of course, our talented team and a portfolio of great wineries.”
“Success at EMW has been about blending professionalism, quality work, and open-mindedness with, of course, our talented team and a portfolio of great wineries.”
Olivier Six, CEO of EMW Fine Wines
The company’s portfolio has grown from what the initial founders – Edouard Duval and Gregory Bielot – had started with, roughly 60 family-owned wineries, to close to 120 brands.
“We grew with them, we built a brand with them, and China became a major market for some of them,” said the resilient CEO. This approach allowed EMW to not only introduce new brands to the Chinese market but also to foster growth and recognition for these brands.
“A number I am quite happy to share,” Olivier said with pride, “more than 95% of the brands that partnered with EMW in its early days remain with the company,” underscoring the depth and endurance of these relationships.
Filling the Middle Ground
But looking back, in a nascent wine market in early 2000s, the wine offerings then were polarized – at one end were top French wines, and at the other, low-value local Chinese wines. This dichotomy presented EMW with a unique opportunity to cultivate the middle ground, an area that was noticeably underserved.
Reflecting on those early days, he said, “The market itself was very much different from what it is right now. Much smaller, less mature.”
Skepticism was an initial hurdle, as he recalls conversations where people expressed doubts about their strategy, saying, “‘you’re crazy, it will never work. It will only be Grand Cru or cheap wine.'”
Today, the company has built a vast portfolio that includes wines, sakes and spirits from 16 different countries and has carved out a niche of on trade supplying wines to Michelin-starred restaurants, 5-star hotels and bars, direct sales, wholesales and e-commerce.
Aside from diversity, the main evolution the seasoned wine merchant has observed over the years is the notable shift in the balance between red and white wines. In what has started as a 9:1 ratio for red and white has now evolved to be 7:3 ratio in some areas in East China and South China.
“When I arrived, I was working in North China, where red was really the big part of the business. And it was like a big 90%-10% or at least something around there,” Olivier recalled.
However, recent trends show a significant change: “Now, when we’re looking at the number of the wine, the white wine in every region is growing.” He notes the increasing popularity of white wine and Champagne/Sparkling across various parts of China, including traditionally red wine-dominated areas like North China.
“The white wine consumption is representing, not the major, but it’s becoming an important one, with champagne, which saw also a very big increase during the pandemic. During the pandemic, we sold a lot of champagne.”
This trend is indicative of a broader evolution in consumer preferences: “This is something really good because it shows you that people’s taste is evolving and are becoming more adventurous,” he explained.
The increasing demand for a variety of white wines, including those from regions like Alsace and the Rhône Valley, underscores this trend. “We saw a huge increase in our Alsace wine compared to the last 10 years. We more than doubled the numbers in those last 10 years,” he noted.
Rise of Chinese Wine
The rise of Chinese wine is another trend he observed during the pandemic. EMW has been at the forefront of promoting quality Chinese wines, a testament to the foresight of its founders, Gregory and Edouard. “We started with Legacy Peak more than 12 years ago,” he recalls, highlighting a commitment that began well before the current surge in interest.
“I still think that there’s going to be a bigger future for the Chinese wines, including, outside of China.”
Olivier Six, CEO of EMW Fine Wines
EMW now has four leading Chinese wineries in its portfolio including Legacy Peak, Xige and The Starting Point in Ningxia and Tiansai Vineyards in Xinjiang. Optimistic about the future of Chinese wine, he ascertains: “I still think that there’s going to be a bigger future for the Chinese wines, including, outside of China.”
Looking ahead, the company encapsulates its forward-looking vision with the theme “Beyond 20,” signalling a readiness to embrace the next chapter of growth and innovation and expansion.
Speaking with a warm sense of enthusiasm, he reflected, “The theme of this anniversary this year is called Beyond 20. So it’s really what we want to say we’re looking forward to those next 20 years.”
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