JD wants to dominate the sale of wine in China

Jun 14, 2016 1 Comment by

The domination of wine in China

 

The wine market is facing new challenges in China: e-Commerce. As we already know Chinese consumers are big fans of online shopping. So what will be the future of fine wine in China on the e-commerce market?
Chinese consumers are looking for a way to buy quality imported wines on the internet without the fear of falling on fake wines.
Therefore JD.com is expanding its partnership with the brand of Australian wine Penfolds in order to meet the demands of Chinese seeking online quality wines. JD.com is the largest platform for online wine sales, “quality wines at affordable price. “.

Penfolds Max

The platform e-Commerce held its 3rd International Wine Festival on May 4th  in Beijing. China’s online sales company announced at the event the expansion of its cooperation with the producer of Australian wine. JD.com become the first e-commerce platform to offer the new range of wine Penfolds Max in China.

Indeed, Penfolds has chosen China as the second place in the world to offer its new wine collection, which was created in honor of the former chief of wine production Max Schubert.

Penfolds Max2
This choice of Penfolds in China is not random, with China being the biggest consumer of Australian wine of the moment. China is now the fifth largest wine consumer in the world. But mostly Chinese crave for the Australian Wine and demand for e-commerce wine is on a rapid growth in China. In 2015, the number of bottles sold on JD.com has doubled compared to last year up to 22 million.

This e-commerce platform has launched the sale of wine 5 years ago and currently sells imported wines from 12 different countries: France, Australia, Chile, Spain, Italy and United States. But demand for the Australian wine is particularly strong, including Penfolds is one of the most popular wine brands in China.

Organization statistics Wine and wine exhibitions showed that the imported wines in China increased by 44% year over year, reaching 550 million liters. The growing Chinese middle class is one of the wine market drivers.

chinesewine
The ability to order online is very convenient and plays a major role in stimulating demand online. Similarly, JD.com offer a delivery service for the next day which pushes Chinese consumers more to buy online. But the main success factor of JD.com for selling wine online is its official partnership with major brands of wines which guarantees consumers a genuine quality wines. In China, the problem for big wine brands is the circulation of fake bottles of wine, making it difficult for consumers to trust websites claiming to sell good wine. Peter Dixon, head of North Asia Penfolds explains why they chose their partnership with JD.com “This is one of the most coveted online platforms for authentic wines. ”

 

What is the next step for JD.com?

 

Wine-Bottle-and-Glass
The platform e-Commerce will at a later stage be able to offer the wine brands directly on its site Worldwide JD cross-border e-commerce. This approach will allow Chinese online shoppers to ship bottles directly from vineyards abroad. This strategy is mainly due to increasing demand of cross-bording e-commerce in China. Chinese consumers in recent years want to buy foreign products online from abroad because they get better prices. The Chinese government has recently implemented a new fee policy that will increase taxes on products purchased online from abroad.

Glass wine
This new tariff on taxes occurs because JD.com and Alibaba competitor are working hard on strategies to attract luxury brands on the domestic platform and cross-border platform. JD.com recently held fashion shows in New York and Milan Fashion Show in order to promote its platform. They were able to sign contracts with major brands that like Sephora and Luxottica.

While Tmall of Alibaba Group, also worked for major fashion brands to join its network as Burberry and Calvin Klein have already launched their official shop on Tmall. Alibaba has organized a fashion show to promote his new partnership with Mei.com, a website selling luxury goods.
Demand for imported wines is increasing at a higher speed, either on e-commerce sites domestic and cross-border. Chinese consumers have developed a sophisticated palate for wines. They are willing to spend a lot to get quality wines from abroad.

 

For More Information :

Will Australian Wines succeed to conquer China ?

Chinese wine company in Spain

Wine Distribution in China, Wine Events, Wine Marketing in China

About the author

Olivier VEROT, is a Marketing expert for the Chinese Market. He will speak about the Internet trends about wine and about the Marketing best practices.

One Response to “JD wants to dominate the sale of wine in China”

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