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Wine sales pop on the Internet. |
Red wine sales online are yet another e-commerce hot spot on the Chinese mainland after books, digital products, garments and other mass merchandise items.
Ordering imported red wine of all kinds to be delivered to one's doorstep is now more convenient than ever. Following dramatic changes in consumer tastes, the red wine market is expanding and the online channel helps promote the trend.
Today, red wine is consumed not only at corporate functions, but also at family and social gatherings, so all manner of occasions have become appropriate to drink it.
Annual retail sales in China's red wine market have grown to between Rmb60 and Rmb70 billion, with the figure expected to climb to over Rmb90 billion by 2013.
Taking into account the large quantity of "parallel goods" entering the country each year, the actual scale of China's red wine market is expected to exceed Rmb100 billion. This figure could double in five years, with imported high-end red wine accounting for half that figure.
The higher-end wines also command profit margins far greater than that of domestically produced red wines.
In this connection, online red wine stores have mushroomed in the last few years, with sites like Yesmywine.com, HongJiuHui.com and WineNice.com making inroads.
By sourcing their products from wineries or primary distributors and selling direct to consumers, these online stores manage to cut costs by dropping intermediaries and consequently gain considerable price advantages.
The retail prices of imported red wines they offer are generally about 20% to 40% lower than "physical" market prices.
Online wine stores also provide consumers with an exchange platform where connoisseurs and shoppers can share information on red wines, learn about wine culture and developments of renowned red wine labels around the world. They can also exchange insights and experiences of purchasing and tasting wines.
Some larger B2C online imported red wine stores themselves commanded values in excess of Rmb100 million in 2011 to change hands, so their potential is huge.
from Kelly Dai, Shanghai Office
(Image courtesy of ©iStockphoto.com/webphotographeer)
