Vinomofo Wine Sales Soar in Singapore

Andre Eikmeier, co-founder and joint CEO of online wine retailer Vinomofo speaks candidly about how sales performance following its launch in Singapore was a complete surprise.

“Vinomofo’s strategy was to launch in more different markets faster, and just to get a foothold overseas as a starting point, without the right resources to go as big we would have liked,” says Eikmeier.

New Zealand for instance was quite exciting as we launched our full site there rather than our light model. So that’s been going good. We put a bit of effort in and it has been tracking well.”

Singapore however has been a completely different story, according to Eikmeier. “Singapore on the other hand, which has been in line with New Zealand in terms of effort, was ignited straight away.”

Eikmeier says Vinomofo was unprepared for the demand of its range of premium Australian wines in Singapore, which sold out within its first two weeks there.

“We were totally unprepared for the demand in Singapore, and in our second week there, we really had to catch up and really change our benchmarking of revenue and stock.”

Vinomofo co-founders Andre Eikmeier (left) and Justin Dry (right) at its Singapore launch in December 2016

“Anecdotally, and in the results, back in Australia when we launched, there was no product proposition like Vinomofo, and there was no way to buy the kind of wines we sell, at the price we sell them, and offer that kind of experience as well (online).”

Since the company launched in Australia in 2011, things have progressed. The market has matured and online wine retail is more prevalent now. “When we first launched there was no other wine online retailer in Australia.”

According to Eikmeier, online wine retail is a new thing in Singapore, and this a major reason for the company’s success there thus far; that, and Vinomofo’s value proposition.

“What we’re seeing is that in New Zealand, where we have a really sharp proposition, we’re not the first online wine retailer they’re seeing, so you know, it’s taking a while to show them that it’s great. Whereas in Singapore, they had nothing like it and they’re paying too much for wine.”

The Singapore market has made the realisation of Vinomofo’s product and value proposition instantly. “We felt it at the launch, but you know, everybody’s excited at the launch, and although there was a really nice feel about it, you never really know until you actually get into it.”

“We’ve been really sold out in Singapore which as been kinda cool!”

The company is looking towards its big launch in the US later this year. China will follow. “Singapore is doing so well, we’re actually looking to explore that into Southeast Asia as well, so that’s exciting.”

 

4 thoughts on “Vinomofo Wine Sales Soar in Singapore

    • Steve
    • 17th February

    Vinomofo have done a great job however the biggest hurdle for vinomofo moving forward is going to supply. There has been rationalization in the Australian wine industry in the past 6-7 years and there is no longer a glut of wine.

    There are many producers who don’t want their brand value diminished by excessive discounting even under the vinomofo secret deals and black market deals. Many wineries will not supply them any longer.

    I think that vinomofo will move further down the track of their own buyers own brands just like Coles, Woolies, Aldi etc etc they have already dipped there toe in it with their collaboration brands such as Fanny Limehead, art of War, Duck sauce etc etc.

    It will be interesting to watch how they maintain supply relationships moving forward.

    Reply
  1. Hi Steve,

    André here, founder of Vinomofo. You’re spot on, and we recognised this a couple of years ago, which is why we’ve been focused on becoming a complete wine destination.

    A lot of our biggest-selling wines now in Australia aren’t necessarily hugely discounted. They’re just damn good wines, offered at a good price.

    As we expand around the world, we add more and more value to Australian producers, helping them reach more and more people with their wines.

    But even in Australia, our value to producers is in the wine lovers who trust us, and look to us to help them find good wines. If you’re a producer who makes good wine, with love and care, then we can get that wine in the hands and mouths of people who will love it.

    There are also times when every producer, no matter the supply v demand state of the broader industry, has a great wine that they have too much of. We will always be able to help producers turn that stock and/or cash flow issue into a solution, whilst still getting their wines into the right hands.

    And if they do not have a stock problem on a good wine, we can also help them get it into the hands of good people who will love their wine, at a sustainable price that works for them and the drinker.

    That’s come with having half a million mofos in our tribe, and looking after them.

    We’ve very much moved into an era of ongoing value to a producer, not simply a solution for over-supply.

    And we love it.

    Cheers,
    André

    Reply
    • Steve
    • 17th February

    Hi Andre
    Thanks for the reply much appreciated. You guys do a great job and I have been a member since the start.
    Great wines are not your only selling proposition but the huge savings from the normal branded prices charged for the wineries wine.

    You promote that discount heavily for each wine deal and the number of secret and black market deals has been incresding which might be because the wineries don’t want a reduction in their brand value but are willing to accept that if their name is not associated with the deal until it arrives on the customers door step.

    Like you said in the article when you guys started there was no real online wine retail. Since then the wineries themselves have all got online sales capability direct to the consumer. How will you stop your supply chain being threatened by your suppliers with their integration online.
    There is only so much margin in a product and the heavy discounting of a brand is not sustainable long term especially with a further cost of export overseas to satisfy the new markets you are after.
    I hope you guys succeed overseas it would be great to see!

    I think vinomofo is awesome but supply is going to get tougher in s discount environment and I have noticed more 25+ per bottle wines on the site lately.

    Reply
  2. Hi Andre, good job for your debut in Singapore. Do you intend only to offer australian wine only, or in the future, also wishing to offer French and Italian wines? As a Wine lover, I’d love to try good wines from different countries at the best prices

    Reply

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