[jmaskell]

There was a huge bubble, that popped. Our timing was off completely (a lot of our target sellers want to sit on their stock until prices go back up), but the other problems we faced (outlined in the post) were greater.

As for wine prices - they're starting to creep back up again. It's an interesting commodity - a finite amount is produced each year. It tends to improve with age, while supply decreases and demand increases.

Prices increased so much (more than the normal 10-15% per year) because newly minted Chinese people got a taste for it and bought everything they could get their hands on.

[seanmcdirmid]

The Chinese have very few domestic investment option, so they invest like crazy in things like this, not really because they like or care about wine. They were responsible for the last wine bubble and will be responsible for the next.

For me, the cheap Xinjiang wine is good enough.

[jmaskell]

They were buying a lot for consumption too. Drinking (or gifting) a bottle of Lafite or Petrus is a good way to show how wealthy you are.

[seanmcdirmid]

Ya, but most couldn't tell the cheap stuff from the expensive stuff, wine scams are common here even at the most reputable high end establishment.