Chinese electronic product retailer GOME to push imported wine sales online

One of China’s biggest electronic product retailers GOME is testing the water of the online wine market by launching a selection of imported wines ‘directly sourced from producers’, as a part of its strategy to boost its e-commerce presence.

Based in Beijing, GOME Electrical Appliances launched its wine retail and service arm, GOME Cellar, on its online platform GOME.com.cn this week, featuring a range of ‘good value’ imported wines sourced from Bordeaux, Champagne, Australia and Chile, said the company.

Despite government austerity drives still haunting the top end of the Chinese market, more general consumers, especially the younger generation, are starting to drink wines regularly, according to a resent Wine Intelligence research.

GOME isn’t the first renowned Chinese enterprise to ‘crossover’ to the wine imports business. Joyvio Group, a subsidiary of Lenovo IT giant Legend Holdings, launched its imported wine operation at the end of 2013. To move GOME Cellar online, however, is part of GOME’s latest strategy to further explore the potential of its e-commerce platforms, said the company.

By sourcing the wines directly from abroad, GOME.com.cn can ‘save the middle cost on distribution channels and agencies, so as to minimise the price, and benefit our consumers,’ said Huang Xiangping, vice president of GOME’s online department.

The new wine operation aims to directly reach out to more wineries in key producing countries such as France, the US and Germany by the end of 2015, said GOME.

A team of wine buyers from GOME Cellar was present during the 2014 en primeur earlier this year seeking for ‘good value’ Bordeaux cru classes, reported its social media channels, reflecting a certain amount of China interest amid another difficult campaign.

The electronics retailer also launched a quarterly wine subscription service last month, according to the GOME website. Once consumers purchase a wine fridge, they may also subscribe to receive a variety of wines selected by GOME Cellars every three months; a service commonly seen in mature wine markets such as the UK.

GOME’s 2014 annual report recorded a 43.5% increase in net profit and 84.4% increase in online sales. With a focus on electrical appliances, GOME.com.cn is also pushing the sales of alcoholic drinks, digital devices, cloths and bags, as well as daily necessities.