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WINE ECOMMERCE SHINES BRILLIANTLY IN THE DIGITAL ERA

13/01/2023

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Over time, the Covid-19 pandemic has greatly damaged the world economy, with significant consequences for investors and business owners across a wide range of sectors, including the wine sector.

Sales of alcoholic beverages have decreased dramatically as a result of the closure of hotels, restaurants, and nightclubs as well as the postponement of big events and festivals.

Despite the global economic issues, eCommerce must be considered among the industries that perform very well. Some companies across multiple areas have enthusiastically embraced eCommerce to weather the downturn.

Also, wine firms follow that wave of change, making eCommerce shine in the new era – the era of digital transformation.

Why 2023 is the perfect year to deploy wine eCommerce?

Wine eCommerce growth statistic

Wine eCommerce sales reached $6 billion in 2021, an increase of 131% compared to 2020. In the two years 2021-2022, online wine sales increased by 4%, while in 2020 they only increased by 2%.
The online revenue of the wine market reached more than 261 billion USD in 2022 and is expected to grow at 10.51% annually from 2022 to 2025.
According to IWSR, the global wine eCommerce market value will reach $42 billion by 2024.
An estimated 1.6% of the total liquor market revenue in 2023 will be generated from online sales.
The average annual growth rate of wine eCommerce in the US is around 20%.

Key drivers of wine eCommerce growth

Global Pandemic

In the midst of the global pandemic-related crises, the wine business, like many others, saw a breakthrough in the speed of online purchasing.

When the pandemic breakout occurred, 44% of American consumers placed their first-ever online wine and liquor orders.

The year 2020 saw a 42% increase in wine eCommerce as a result. Online wine sales increased from just $1 billion in 2018 to $6 billion by 2021.

Young wine consumer

In the US, according to Avalara, Millennials and the legal drinking age population are steadily increasing.

By 2023, the Millennial generation is estimated to account for nearly 45% of the LDA (Legal Drinking Age) population under the age of 80. By 2030, this number is projected to be 54%.

In Vietnam, Millennials (25–38 years old) and Gen Z (18–24 years old), often known as MillennialZ, currently make up 47% of the population or about 45 million people who are of drinking age. The population structure of the MillennialZ generation is expected to keep growing.

The primary factors influencing the growth of the eCommerce sector as well as the digital economy of Vietnam will also be the young people’s awareness of and keeping up with new trends in digital technology compared to previous generations.

Case study

iShop Changi Wines

The Duty Free Shop Group (DFS) and Changi Airport Group (CAG) collaborated on the iShop Changi Wines eCommerce online project, which offers world-renowned and premium wines and spirits with exclusive discounts to visitors to Changi Airport, particularly those who are CAG members.

The iShop Changi Wines website is cutting-edge and exquisitely styled, showcasing the distinctive qualities of the wine industry as well as the aesthetics from page layout, color, font text, logo, and banner, all of which are guaranteed to optimize the purchasing experience while also, and this is crucial, emphasizing the identity and brand-development elements for both CAG and DFS.

Due to the fact that this is a project of well-known companies, the iShop Changi Wines website has consistently received a lot of traffic, averaging approximately 592 thousand views each month since its introduction.

Therefore, to combat the unexpected surge in traffic and orders during the busiest shopping seasons of the year, the eCommerce system must be continually enhanced and optimized.

The fact that major corporations CAG and DFS both started and developed successful wine eCommerce websites shows the enormous potential of this industry now and in the future.

Previously, the business scope of wine businesses was quite limited, but now that limit has been broken thanks to the dominance of the Internet and the rise of eCommerce.

Moreover, the government’s assistance in lowering legal restrictions has given wine producers the assurance to confidently market their goods to a significant number of potential buyers in several nations across the world.

The Warehouse

The Warehouse, established in 2001, is renowned as a top supplier of wines and spirits in Vietnam, offering more than 16 different varieties of wine from numerous nations.

In addition, along with Annam Gourmet Market, Yves Rocher, and Flormar, this is another well-known retail brand of the Nam Group. Before being formally put on the market, products at The Warehouse are consistently inspected and carefully chosen to fulfill quality criteria.

The company has so far increased the reach of its distribution network across the nation, including Ho Chi Minh City, Hanoi, Da Nang, Nha Trang, Hoi An, Quang Ninh, and Phu Quoc.

The Warehouse achieved its objective of serving the wine market with B2B and B2C business models by utilizing the Magento platform.

This implies that the business will broaden the retail channel to include private customers in addition to distributing wines to restaurants, hotels, resorts, pubs, and lounges.

A series of symbols, logos, and banners created especially to fit the characteristics of the wine industry are combined with Bordeaux red to create a website interface that is focused on UI/UX perfection.

The Warehouse is flexible, secure, and has quick ordering, payment, and delivery options. Therefore, customers can place orders through phone, mobile app, or eCommerce website.

Customers can then pick up their purchases from the store or, in major cities like HCM, Hanoi, and Da Nang, the company will deliver them quickly within 2 to 3 hours. In other places, conventional courier delivery takes 2 to 5 days.

The Warehouse has been successful in raising brand recognition, expanding its customer base, and increasing both offline and online sales as a result of the timely growth of its business model and digital transformation

Trentham Estate

Long-standing Australian company Trentham Estate Winery, founded in 1988, focuses on the manufacture and distribution of wine.

After many years in business, the company is well regarded for its creativity in the wine-making process, which resulted in a variety of wines with different delicious flavors. Also, the brand has received hundreds of medals, titles, and other industry awards.

In the beginning, the business created and ran a WordPress website system for branding purposes.

Trentham Estate, however, has been forced to increase its company scale by making a substantial investment in an entire eCommerce website system due to the growth of eCommerce and the increasingly varied purchasing needs of potential clients.

In the beginning, the business created and ran a WordPress website system for branding purposes. Trentham Estate, however, has been forced to increase its company scale by making a substantial investment in an entire eCommerce website system due to the growth of eCommerce and the increasingly varied purchasing needs of potential clients.

That is what led to the creation of the website trenthamestate.com.au, which has a modern interface while still accurately capturing the distinctive features of the wine industry.

Similar to The Warehouse, Trentham Estate likewise creates an eCommerce website based on the Magento platform with a variety of features that satisfies eCommerce requirements and wine industry specifics.

Therefore, businesses can access and serve a wide range of large customer files not only in Australia and internationally thanks to effective marketing and branding strategies, towards a sustainable business model along with the changes of the digital age.

It would be hard to believe that an industry as sensitive as wine could be traded online so easily and efficiently. In that efficiency and convenience, there is a great contribution of the trend of eCommerce and the comprehensive National Digital Transformation program that is committed to supporting by the Government. This is an extremely appropriate time for wine businesses to confidently deploy eCommerce because of the support from the Government and the push from the market.

However, planning to implementation are two completely different categories. Businesses are required to have a practical strategy and technical assistance from highly skilled firms to hasten the success journey and help advance the National Digital Transformation goal.

SECOMM has many years of expertise in effectively executing eCommerce for numerous customers in various countries. We specialize in offering free consultation services with qualified eCommerce implementation solutions.

MAGENTO, AN ECOMMERCE PLATFORM TO KICK-START WINE ECOMMERCE TODAY

26/12/2022

8,498

During the period of digital transformation and the strong impacts of the COVID-19 epidemic on the international markets as well as in Vietnam, the requirement to kick start and expand the eCommerce channel of the wine industry has accelerated faster than ever.

According to Nielsen, contrary to the expectation of a downward trend during the COVID-19 epidemic, the amount of alcohol sold through online stores during the Covid-19 epidemic increased by 27.6%. Particularly in Vietnam, many reports show that wine import volume in the past 3 years has always increased by 10% above average per year and tends to increase rapidly in the coming time, one of the reasons for the increase in wine imports is the changing trend from familiar alcoholic drinks to wine (Thanh Nien News).

However, to seize opportunities and deploy an effective eCommerce system for the wine industry businesses have to choose the most appropriate platform meticulously. Besides the platform that must match with the business model and the business plan, flexibility, and high scalability are the top two most important factors. Out of many highly-rated eCommerce platforms, the open-source Magento platform is well-chosen by many Wine eCommerce giants.

So how did Magento solve the eCommerce problems for the wine industry?

Special eCommerce requirements for the wine industry?

Magento, an eCommerce platform to kick-start Wine eCommerce-Wine-industry — Magento, an eCommerce platform to kick-start Wine eCommerce

A modern user interface

The eCommerce system for the Wine business not only needs to have a neat interface, and match with UX/UI standards but must have a high aesthetics level, and bring out the most unique characteristics of the industry to convey the brand and the production values to the specific customer segment of the industry – customers with “style”.

In addition to investing in high-quality images, arranging the layout scientifically and conveniently, such as the display of new arrivals, best-selling products, and most viewed products right on the homepage of the online store, the interface should reflect the distinctive characteristics of the industry and the unique highlight from the business to the customers.

A functional system with high complexity

One of the biggest challenges when implementing eCommerce in the wine industry is the system’s high complexity.

Most eCommerce businesses in the wine industry own a complex category system with a diverse number of products and a variety of product attributes. In addition, to ensure that the eCommerce system is running smoothly and stably with the number of visitors entering the system increasing gradually over time, and spikes during many promotional campaigns, the eCommerce system also needs to be well-designed and built carefully.

Furthermore, many wine business owners often have many sales channels and use many different management software such as POS, CRM, and ERP… this requires eCommerce platforms to be able to integrate, seamlessly and efficiently with third-party software without affecting individual system performance.

This integration also helps businesses overcome the limitations of manual operation, and increase automation for back-office, and sales management processes, ensuring high accuracy and operational efficiency for business operations, and development.

To ensure the development and operation of a complex eCommerce system that meets the above characteristics required the developers of the eCommerce system for the wine industry must be experienced and highly skilled.

A seamless user experience

A complete buyer’s journey experience

One of the most important factors for eCommerce is the customer experience. Especially for the wine industry, which relies on personal interactions to build relationships with customers. However, the digital transformation that has been taking place in the wine industry since the beginning of the Covid-19 pandemic means that the in-store shopping experiences are limited, in exchange for buying wine online through an eCommerce website.

Therefore, businesses need to ensure that they have a product information management system ready, products in stock, pricing displays, well-known brands, various payment options, and delivery services to give customers a complete shopping experience.

Personalized user experience

Not only have a system that delivers a complete experience on the buyer’s journey, but businesses also need to prepare to personalize the customer experience. Beginning the personalization from the content, the product displacement, to navigating the buyer’s journey will be the key to helping businesses score points in the consumers’ eyes, effectively boosting sales and building Customer Lifetime Value (CLV) for the brand.

This requires businesses to know how to leverage unique data on consumers that has already been calculated and developed by using cutting-edge digital technology to build specific customer profiles, create buying habits that match the consumer’s interest, also provide customized content that matches each consumer’s needs, and bring a unique shopping experience to each customer when buying products on the system.

Multi-channel customer experience

Nowadays, besides the traditional way of buying goods offline, or through brick-and-mortar stores, shopping through mobile applications as well as through websites has become a common way. Having a business presence on multiple channels – in other words, integrated Omni-channels makes it easy for users to make purchases.

To deliver a seamless multi-channel experience, it is essential to ensure that each channel is optimized for operation, nondisruptively connecting through technological infrastructure improvements. Simultaneously, businesses also need to ensure that they have enough customer information and take full advantage of these data to build distinct competitiveness, ensuring a seamless experience on the system.

In addition, wine businesses must constantly develop technology to accompany generations of customers that have changed over time from the Baby Boomers (1946-1964), Gen X (1965-1980), Millenials- Gen Y (1980-1996), and lastly Gen Z (1997-2002). The customer segments are getting more complex by the day, requiring businesses must have a solid understanding and stay up-to-date with technology to optimize the system to bring the best shopping experience that is most appropriate for each generation.

Magento – Solutions for wine eCommerce

Magento is known as one of the leading eCommerce platforms for the wine industry with many outstanding advantages such as an open-source platform with high flexibility, a diverse ecosystem, optimal security, and owning all built-in features from basic to advanced for the eCommerce system.

Magento, an eCommerce platform to kick-start Wine eCommerce-Magento — Magento, an eCommerce platform to kick-start Wine eCommerce

Owning all built-in features from basic to advanced for an eCommerce system

Basic features

The Magento platform owns an extensive ecosystem that contains many online features that support business in the wine industry such as managing customer information, handling wine allocation, and controlling inventory, as well as handling orders, etc.

Catalog Management: Develop and control all data that possess all product features, categories, attributes, pricing system, inventory, and media (images and videos) to maintain operation and optimize business performance. Especially for the wine business that needs high-quality images representing different wine brands on the system, as well as different price systems on different websites.
Content Management: Develop and enhance all content elements for CMS pages, media storage, theme customization, and web design, which helps businesses approach the consumer with nice personalized user and store interfaces.
Sales Management: Set up and operate sales, order, payment, and shipping processes. It is simultaneously diversifying information to deliver the best customer experiences.
Marketing Management: SEO optimization, marketing promotions implementation (promotion, upselling, cross-selling,…) with supporting tools to help businesses have more presence on digital platforms and boost sales.
Customer Management: Fully manage customer data to improve marketing performance, and buying experiences, and enhance customer experience. Businesses can fully develop a personalized customer experience.
Inventory Management: Easily fulfil the supply chain with inventory management tools, and distribute transportation to the proper warehouses that analyze subsequent efficient warehouses. This allows businesses to see exactly how many goods they have in stock.
Report: Effectively exploit data through comprehensive and detailed reports to improve and enhance business performance, including Marketing Reports, Purchasing/Procurement Reports, Customer Reports, Product Reports, Review Reports, and Operating Performance.
Analytic: Support monitoring and measuring eCommerce performance through integration tools, such as Google Analytics, and Facebook Pixels và Google Tag Manager (GTM). These analytics tools help to track and report web traffic, audiences, purchasing process, and buying behaviour, simultaneously help to measure ads performance and track website activities, and lastly help quickly update website metrics and related tags to maximize personalization and reach the right goals for the subsequent marketing campaigns.

These basic features have been built to help businesses operate an online commerce system without spending too much time designing, and developing special features. So businesses can kick start their eCommerce journey without spending too much time and money right from the start.

Advance features

The Magento platform is known for its outstanding features and extensions that are developed to meet the rapidly evolving eCommerce market as well as the specialized requirements of each business. Thousands of advanced functions in themes, add-ons, products, Marketing, optimal payment solutions, and shipping,… built with flexibility and high usability have shown remarkable results when integrating into the system, meeting all operational needs, and long-term eCommerce development needs.

Scalability

The Magento open-source eCommerce platform can accompany businesses with all business models from B2B, B2C, D2C to B2B2C, or from newly operated businesses to businesses that expanding their operating systems. Magento can support businesses to operate and develop, expand into many websites, many countries, multi-currency, and all can be managed on the same system.

Also, Magento has a stable operating system with the ability to handle up to 500,000 SKUs, and thousands of transactions in an hour, so the platform can support businesses operating a stable website that has an increasing amount of traffic over time or a sudden spike during the promotional period.

Ability to integrate

One of the outstanding features of the Magento open-source platform is the ability to easily integrate with third-party services such as payment, shipping & handling, analytics, and business management software to help operate the eCommerce system. seamlessly and efficiently.

Integration with a variety of payment and delivery methods

Many eCommerce businesses in general, as well as the wine industry in particular, need secure, flexible, and diverse payment software from domestic cards to international cards to payment gateways (Paypal, Stripe, OnePay, ), e-wallet (Momo, ZaloPay…).

Ex: Trentham Estate, the business has integrated with the Stripe payment gateway to process recurring orders without the need for customers to interact each time with a new order. This has simplified the buying journey as well as the customer experience, helping customers quickly make purchase decisions. The application supports customers effectively on many interfaces and devices, from websites, mobile apps, credit cards, e-wallets, etc.

About shipping and handling, businesses can easily integrate last-mile delivery services and other shipping applications in the markets to help optimize the delivery processes. In addition, businesses can completely customize the delivery modes that are suitable for businesses and customers to get the best shopping experiences.

In addition, wine businesses can develop their delivery options that allow the system to automatically select the corresponding store according to the address provided by the customer, allow orders to be allocated to the nearest warehouse, resulting in higher delivery efficiency, helping customers receive products faster and more conveniently as with businesses The Warehouse has applied for their delivery in everyday business.

Ex: iShopChangi Wine (Singapore) has designed and developed a pick-up feature at the arrival or departure terminal for passengers that are departing, arriving, or transiting at Changi Airpor with their flight information. In addition, customers can also choose “Home Delivery” as long as it’s within Singapore. The system allows all groups of passengers to customize and choose the most convenient pick-up times to get the best out of the shopping experience.

Integration with business management systems such as ERP, CRM

In addition to the ability to integrate diverse payment and delivery methods, many wine businesses are turning to the Magento platform because of the easy integration between this platform and management software such as ERP, and CRM to get a seamless connection of all supply channels from offline to online.

Through the integration of the Magento platform, businesses can overcome the limitations of manual operation and increase the automation of back-office and sales management processes, ensuring high accuracy, and operational efficiency for long-term development.

Integration with analytics and reporting software

Besides the built-in analytical tools available on the platform, wine businesses can fully integrate analytics and reporting software such as Business Intelligence (Power BI, Tableau, Looker,…) helping businesses easily analyze and utilise consolidated data, improving business strategy, optimizing the personalized shopping experience while using the system, and growing business, as well as getting the overall view of the business situation more accurately than using manual methods.

Successful wine business with the Magento open-source platform

iShopChangi Wine – Singapore

iShopChangi Wine website is an eCommerce website specializing in providing many famous wines worldwide with special offers for travellers entering or passing through Changi Airport, especially for the members of Changi Airport Group – CAG (Changi Rewards members) with many attractive promotions.

SECOMM accompanied by iShopChangi Wines begins the improvement starting with the interface, page layout, the product classification. Next, the business optimizes the entire operating system as well as the infrastructure on the existing website to ensure the website operates seamlessly, and stably.

Besides providing operational solutions, the business also focuses on keeping the system unique in terms of both aesthetics in design and the elements of brand development for both CAG and DFS. About functions, the business has developed a complex price calculation, and display system based on many tax principles for alcohol-containing products, as well as classifying customer groups to quickly process orders, as well as optimize the delivery feature at Singapore’s airport and bring the best buying experience.

iShopChangi Wines’ eCommerce system has effectively met the shopping needs of international tourists. The initial complex elements have been simplified into a standard UX/UI interface, and ensure a professional, outstanding overall look of a wine website.

Trentham Estate – Australia

Trentham Estate has been a long-standing Australian brand specializing in wine production and trading since 1988. Throughout the operation, the business has been honoured with hundreds of medals, titles, and significant awards in the wine industry. They were also appreciated for their flexible and creative winemaking method, producing various distinct flavour products.

Since the beginning, Trentham Estate Winery built and maintained a WordPress website to develop and manage all the branding activities. Until 2017, the company decided to switch to the open-source platform, Magento, to build a comprehensive website to be able to provide all wine products with a faster operation and management process.

Trentham Estate Winery and SECOMM built a complete website with the Magento platform to optimize the interface, bringing the unique features of the wine industry to businesses. Next is integrating the payment process with Stripe, and developing delivery on the eCommerce system according to the delivery frequency that suits the customer’s preferences. Finally, building the “Wine Club” program with many incentives for loyal customers, providing the best experiences, and increasing a source of revenue.

The Warehouse – Vietnam

The Warehouse stands out from the Vietnamese market as a wine and spirits distributor, which is also one of the An Nam Group’s retail brands (Annam Gourmet Market, The Warehouse, Yves Rocher, Flormar). Since 2001, the brand has spent its efforts to partner with more than 80 well-known wineries worldwide. Those corporations have supported The Warehouse to bring the Vietnam Market high-quality products with peculiarities from parts of the world.

Starting eCommerce with the Magento platform, The Warehouse is extremely focused on fine-tuning the interface, including the Vietnamese and English content, high-quality images, and harmonious website layout for all products on each page, helping businesses show the unique brand’s characteristics as well as the wine industry.

In addition, the enterprise also optimizes user experience and maximizes revenue by developing a product display system with complex categories and attributes, integrating the OnePay payment gateway, also integrating, and synchronizing data from business management software POS, and ERP (Microsoft Dynamics AX) with the Magento platform to limit manual operation, increase automation, and operate all resources and processes flawlessly.

Currently, the business is expanding its business with the Magento platform to meet all the needs of customers across Vietnam.

Evaluating the suitability of the Magento open source commerce platform with the Wine eCommerce business.

eCommerce is an inevitable trend as well as a “weapon” for wine businesses to break the market limits. This is a good opportunity for wine businesses to quickly grasp, develop, and expand their business models. To start their eCommerce journey, wine businesses can choose to build their system with Magento, an open-source eCommerce platform.

Magento, an open-source eCommerce platform, is a suitable platform for the wine industry with all business models such as B2B, B2C, and B2B2C. With all of the advantages of having a lot of features from basic to advanced, diverse ecosystems, scalability, and the flexibility of the Magento eCommerce platform, wine businesses can completely design a website that meets all requirements and delivers the ultimate online shopping experience.

In addition, businesses can easily change and develop specialized features according to product characteristics to keep up with the rapid changes in the market and develop long-term goals. That is also one of the main reasons that many wine businesses have chosen the Magento platform to go hand in hand, such as The Warehouse, iShopChangi Wines, and The Trentham Estate Winery.

SECOMM has significant experience developing complicated Wine eCommerce websites in different countries, and we know the challenges that businesses face when selecting and implementing an eCommerce platform.

Contact SECOMM for a free consultation on eCommerce website development!

TAG: trentham estate