Abstract
This is part of a case series. The history of the luxury wine brand Lafite can be traced back to the 14th century. After decades of attentive business management, the ultimate reputation was established and a new era was opened for this top luxury brand. The Rothschild group has chosen Hong Kong as their landing point in the Chinese market considering the cultural proximity by participating into the auction events held in Hong Kong. The crazy pursuit of Lafite has shortly spread to the Chinese mainland. The abundant capital and rapid wealth accumulation as well as the rich men’s willingness to show off their social status push Lafite’s price up to an unprecedented level. Why Rothschild has chosen the auction as their entry mode? Is this method replicable for other brands? A very detailed comparison has been carried out concerning the culture aspects as well as the positioning strategy. However, the quality of Chateau Lafite seems not correspond with its absolute popularity in China. The explanation and analysis can be found in this article. Students are supposed to understand the specific cultural raisons for this question. Along with its fame, Lafite encounters also severe problems like fake products etc what will be the possible solutions for dealing with these obstacles? Moreover, Rothschild has recently achieved several cooperation with its Chinese partners, are those new strategies efficient for conquering a bigger market? All kinds of analysis are in this article.