Electric dealer ferocious, wind investment focus on wine

you may often receive greetings from your email inbox such as wine, wine, and wine, etc. Indeed, as you feel, in the wine industry chain, the eyes of the VCs are focusing on the wine electric dealer this piece of "Hot Land" on.

The electric dealer is ferocious. In the wine industry chain, the eyes of VCs are also focused on the "hot Land" which has been the most capital concern in recent years.

Comprehensive Liquor consumer website, a special wine consumer website, liquor enterprises from the establishment of the consumer website or the use of Consumer-to-consumer form of electronic business platform and buy platform for sales in the face of the growing wine consumption market, in recent years, the successful wind investment in the liquor dealers more and more well-known cases such as also buy wine, jiuxian nets, wine, the United States Network, Products such as red wine.

China's current per capita consumption of red wine is about 0.38 litres/year, 2% of Europe. In the vertical field of electricity, the world is not like many "star enterprises" in other areas as a reference, which makes the valuation of domestic wine-making website full of imagination space.

At the same time, the reason why the VCS value the liquor dealers, but also based on the high gross margin of wine products. It is reported that offline supermarket channels domestic wine gross margin is generally in 50%, imported wine higher. and remove the intermediate link of the electric Dealer website, the profit is obviously higher than other types of goods. Compared with the Department of General merchandise, the liquor consumer website also shows a faster profitability.

Industry data show that the current domestic electricity business platform of red wine sales of less than 1% of the total sales, meaning a huge potential for development. It is estimated that the next five years will account for the total red wine sales of 10%, that is, about 20 billion yuan in the market share.

But wine is mainly different from other online sales of goods is the special requirements of warehousing and logistics, how to control warehousing and logistics, as well as marketing costs, reduce costs, to become a wine-electric dealers long-term development and profitability of the key.

Maximum value of online consumer: User base

Lin, a managing partner of DCM, said in an interview with our correspondent: "Wine is a fast-growing product with a high repeat purchase rate." At the same time, a wide range of wine in the world, suitable for the directory-style marketing strategy, and in this regard, the electric business has advantages. "

The Silicon Valley's renowned venture capital has been investing three consecutive rounds of domestic wine-electric companies in the three-year period. Lin told reporters that in a chat three or four years ago, he found that the founding team that also bought wine was ideal and executive, "they are trying to change the Chinese middle class consumption habits, and they are based on the business model itself as the starting point to consider online sales." In this narrower vertical area, the majority of traditional offline sales models are replicated, and the few that really think about new models of sales are the few that we think the business model of buying wine has the opportunity to make some subversive attempt in the traditional area of wine sales. "

Although they have been to this "to start the database marketing business," the founding team has been hesitant, but the company's performance of high margins, market space, growth and so the advantages of the final success of attracting capital injections.

According to industry analysts, in this market, user bottleneck is mainly limited by two aspects: first, the quality and authenticity is difficult to guarantee, the second is the problem of product channels and wine merchants to maintain the attitude of profiteering space, so that the line of wine at a price of hundreds of yuan to discourage consumers, the original is to achieve the platform of trading transactions often become product display platform

In order to break through the bottleneck of users, most of the electricity dealers will cross the layers of distribution, reduce the intermediate link to reduce costs. such as the successful wind investment in the United States last year, the wine network, is said to be the first domestic wine directly from foreign wineries, online direct sales of electric business enterprises.

Also in the last year of the same Albert investment of wine also said that 80% of its products are directly from foreign procurement, 20% by domestic distributors to supplement.

Also the way to buy wine is to enter into a contract with the importer directly, or negotiate with the platform supplier, and proceed to purchase directly from the overseas manor. In order to ensure cost-effective, the product through the "winery recommended, internal blind products, membership selection, expert Group to determine" and other screening, public notice of the original certificate of origin and customs materials on the line, it is said that screening in the elimination rate of more than 75%.

Also buy wine team in the marketing strategy pioneered the "Journal + poster + telephone + network + Mail + SMS Service + Wine +PSA (private service assistant)" of the three-dimensional interactive mode. This model can quickly snare all consumers who prefer one type of interaction, and there will be overlapping effects between the various modes of interaction.

They give all registered users a certain amount of alcohol knowledge and personalized wine selection services. Most of the domestic consumer, in addition to Lafite, to other varieties are not known, but also need a certain basic education. Users are not resistant to a variety of free and accessible experiences, so the number of registered members is growing.

In the Lin and wine-buying founding team, wine is a life-like, personalized commodity. The world has ten wine-producing countries, hundreds of famous production areas, 300,000 wineries. Any traditional business model, is not enough to show enough products, its sales targeted not high, often do not understand the wine people blindly buy, people who know wine can not find suitable products.

The electricity merchant concentrates the warehousing, carries on the online catalogue type sale, simultaneously the price is relatively economical, is suitable for the wine and the wine knowledge Interest Customer group.

"In this field, enter time early has the advantage, the accumulation customer base needs time, once the target customer group produces the stickiness, can breed a very big market, like Snowball." "Lin said, in order to further enhance customer stickiness, the site opened a" personal wine cellar "Community games, simulated wine storage, education wine tasting, daily community active users of about 60,000 people, apart wine lovers can exchange Tibetan wine, release wine commentary, and even organize a variety of party activities.

It is understood that at present also buy wine online membership of about more than 4 million, day sales have already broken through 10,000 bottles. "The greatest value of their business model in the future is the high level of education and consumption of consumers." Lin said.

"At present the domestic red wine consumption amount of tens of millions of dollars per year, but most of the growth through traditional channels." And we hope that 50% of the users of the electricity business are genuine taste-tasting consumers. Based on this huge consumer group, but also to buy wine service scale can gradually expand, not only is the electric business, may also intervene in the media and food industry, so in the current user training period, we must seize the brand building well. "

Storage logistics for burning money

For wine dealers, in addition to breaking the bottleneck of user volume, another key issue is warehousing logistics. Wine is different from other department stores, storage and transport processes have strict constant temperature and humidity stability and blowout prevention needs.

To address this critical issue, the veteran wine business has been insisting on a zero inventory operation. After the customer orders from the Supplier warehouse delivery, product turnover times, a long time, directly lead to high packaging and distribution costs. This has led to a slow development in the last two years.

Wine the United States to take the way is based on the site order of the centralized trend, in Beijing, Shanghai to establish warehouses, and gradually in Guangzhou, Hangzhou and other areas to establish a warehouse, one or two-line city to achieve the user orders within three days after receiving wine products. Distribution is the use of its own research and development of shockproof foam packaging, in order to control costs based on the promotion of delivery speed.

Also buy wine initially to take logistics outsourcing, but due to distribution is not timely, product deterioration or be switched, personal information leakage, the initial period of continuous customer complaints. Therefore, after the capital enters, they first of all solves is the own distribution facility's capital construction as well as the special equipment personnel training question.

C round financing, also buy wine also in the country 6 cities have established a constant temperature storage and logistics distribution center, warehousing and logistics to form a closed constant temperature and humidity system, to achieve the day distribution, the next day delivery. It is reported that so far its logistics, warehousing investment has reached billion. Lin said the future will continue to invest in this segment.

China's wine sales accounted for 40% of the Asian market in 2011, according to a report published by the International Wine and Spirits Research Institute (IWSR). 2012 China consumption will reach 1.2 billion bottles, the total market is close to 15 billion yuan.

"The investment organization that buys wine with invests is not only the electric business platform, but also the interactive mode of consumer group." Lin told reporters that in the wine industry chain, DCM Investment is still mainly bullish on the electricity quotient of this vertical subdivision area, its strategy is to continue to pay attention to also buy wine development, the future such as the birth of a new business model will continue to receive or chase.