The New World of Online Wine 2012

The New World OF Online Wine 2012 This February, Lot18 launched in the UK. Last November, a year after opening, the company had already registered over half a million members. Lot18 is a significant leader among a growing number of startup online wine companies which are capitalising on the fruitful relationship between the centuries-old wine trade and modern technology. The Birth Of Flash Wine Sales Sites Wine sites such as the Bordeaux Index have been going since 1997, Last but most Flash Wine Sales sites are less than ten years old. Bottle Wines 2011 Lot18 Invino What Is A Flash Wine Sales Site? 2009 Wine Last 2010 Cinderella Shopper Call Wine Flash Wine Sales sites choose a Wines selection of wines for their customers. Wine Spies 2007 Wine Wines Woot Til Sold Out Many of these sites are members 2006 only. They offer a limited amount Launch Dates of stock over a limited time period at a discount. Most operate on a first-come-first-serve basis. Number Of Offers January 2012 A company's focus can vary depending on whether they aim to sell the cheapest wine possible, source wines of high quality, or strike a balance between the two. 27 154 32 41 149 118 113 42 30 Average Price Of Offers January 2012 The level of the average price may reflect the intended clientele of each site. 24 $22.05 $24.63 $25.93 $21.71 $23.98 $20.72 $29.35 $19.17 $37.67 Average Discount On Offers January 2012 Different companies may place a different emphasis on either quality or price. 31% 51% 29% 43% 37% 47% 30% 38% 51% Page Views In January 2012 The pageviews below may suggest that due to the UK launch, Lot18 is generating a lot of interest. (All numbers in thousands.) Lot18 766 612 204 29 11 225 766 104 Lot18 vs Wines Til Sold Out Even though they are two of the biggest flash wine sales sites out there, in many ways Lot18 and WTSO could not be more different; not least in terms of how long they have been around (see above). Lot18 Sales Half a million bottles in its first year ATA ATA ATA AIA ATA AIA AIA ATA ATAAIA ATA AIA AIA ATA ATA ATA ATA ATA ATA ATA AIA AA AIA Staff AIA AIA AIA AIA AIA AiA AIA AIA ATA AIA AIA AIA ATA ATA ATA AIA AI ATA ATA ATA ATA Highlights In its first year, Lot18 raised a staggering $30million in a third round of capital. Lot18 raised $3m and $10m in the first and second rounds respectively. Wines Out Til Sold Out Sales 3.5 million average per year (7000-12000 bottles daily) Staff ATA ATA ATA ATA ATA ATA AIA ATA ATA ATA ATA ATA ATA ATA ATA AIA AIA AIA ATA AIA AIA iA AIA AIA AIA ATA ATA ATA ATA ATA Highlights On Wednesday 22 February 2012, WTSO had its second $1 million day. In one of its famous marathon events, the site sold 87,000 bottles in one day. Alternative Mdels: Email. Only Jon Rimmerman, founder of Garagiste, has been making his flash wine offers through email alone since the 1990s. 2010 Garagiste did not set up a website until: Garagiste now has 120,000 followers and makes up to $30million a year, based on a $500 initial investment. The email model shows how the internet celebrates the skills of the expert oenophile to the ultimate benefit of the customer and artisanal winemaker. Choosing A Wine Company From the Garagiste to WTSO, to Lot18 we can see the variety of approaches the wine industry can accommodate. Last year, Berry Bros & Rudd, who have been trading in wine for over 300 years sold $39million of wine online. The internet has also allowed traders to tap into the rapidly expanding market in the Far East. The only question is now, that out of all these companies, which company do you choose? Sources Data for the following sections from www.winesandvines.com: Number of Offers January 2012, Average Price of Offers 2012, Average Discount on Offers January 2012 Data for the following section from compete.com: Page Views in January 2012 Lot 18 http://siliconangle.com/blog/2011/11/04/lot18-closes-30m-round-as-deals-sector-takes-off/ http://allthingsd.com/20111104/exclusive-lot18-closes-third-round-in-a-year-this-time-for-30-million/ http://smallbusiness.foxbusiness.com/sbc/2011/11/11/young-guns-wine-startup-for-oenophiles-and-average-joes-alike/ http://econsultancy.com/uk/blog/9196-wine-site-lot 18-launches-in-the-uk http://econsultancy.com/uk/blog/2785-q-a-philip-james-ceo-of-wine-comparison-site-snooth WTSO http://www.businessinsider.com/wow-the-woot-of-wine-just-had-a-million-dollar-day-2012-2 Garagiste http://www.bloomberg.com/news/2012-03-05/insider-wine-sleuth-rimmerman-seeks-bargains-for-internet-sale-elin-mccoy.html Berry Bros Rudd http://www.andoveradvertiser.co.uk/business/9549147.Wine_merchants_toasts_online_sales_of_25million/ Bordeaux Index http://www.bordeauxindex.com/aboutus.php Last Bottle Wines WineShopper Lot18 Invino Last Call Wines Cinderella Wine Wine Spies Wines Til Sold Out Last Bottle Wines Wine Woot WineShopper Lot18 Invino Last Call Wines Cinderella Wine Wine Spies Wines Til Sold Out Last Bottle Wines Wine Woot WineShopper Lot18 Invino Last Call Wines Cinderella Wine Wine Spies Wines Til Sold Out Last Bottle Wines Wine Woot WineShopper Lot18 Invino Last Call Wines Cinderella Wine Wine Spies Wines Til Sold Out Wine Woot