Vinomofo says it has been overwhelmed following its launch in Singapore two months ago. Its strategy is to launch in more markets faster, and get a foothold overseas, but Singapore has completely taken the company by 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.”
“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.”