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What are the player of online wine sales in Germany, how large are they and how are they positioned?
Hello! Thanks for your question about players in online wine sales in Germany! Lidl, Weinfreunde.de, Edeka, Hawesko and Jacques' Wein Depot are just five of the ten German retailers with extensive online wine sales in the following report. Below you will find a deep dive of my findings.
METHODOLOGY
I first divided the companies into three categories as outlined in "The Online Wine Market in Germany and Europe" report. The first category contains the top four players in the online wine industry in Germany based on revenue. These companies all have large supermarket locations as well as an online shop. I then discuss wine sellers exclusively operating via an online shop. Next, I give two examples of smaller retailers in Germany that also have online shops. The list of ten players in the online wine industry follows. I included revenue and employee size where available in English, and looked at the companies' positioning in the overall industry.
I researched company websites, annual reports, consumer and market insights and company social media sites to determine the list.
BACKGROUND
As reported by Canadean Ltd. in October 2016, "the Wine market in Germany is forecast to register higher growth in value terms during 2015-2020 compared to 2010-2015 driven by an increasing GDP per Capita and low inflation."
"According to data collected by the GFK (Gesellschaft für Konsumforschung) in Germany in 2014, 5% of total turnover for wine was generated online." This corresponds to 300 million euros worth of wine, with each litre of wine averaging 6.68 euros. Undoubtedly, the online share of wine sales will continue to rise. In October 2015, the Wine Business Management department of Heilbronn University conducted a study that found "57% of wine buyers have already purchased one or more times online." In this same study, these buyers were asked about future purchasing intentions, and "73% said that they intend to order 'online' or 'both online and in bricks and mortar' in the future."
RETAILERS WITH SUPERMARKETS & ONLINE SALES
"Leading retailers with physical shops (i.e. supermarkets) account for most online sales in Europe. This includes the "REWE Group that brought their 'Weinfreunde.de' wine management business to market in Summer 2015" as well as the "food retailer LIDL that has already been massively advertising its online wine shop since the end of 2014." The first four retailers in the list are large supermarkets and also players of online wine sales in Germany.
RETAILERS WITH EXCLUSIVELY ONLINE WEB SHOPS
"In Germany, the strong history of catalogue sales has resulted in less suspicion of companies without physical stores and this supports the fast adoption of online market channels by wine consumers." The buzzwords for these "pure players," or suppliers who sell their wines exclusively online, are: Click & Collect, which offers tons of product availability information, a goods reservation system and same day delivery. Retailers numbered five through eight on this list fall into this category.
RETAILERS WITH COMBINED PHYSICAL STORES & WEB SHOPS
Those retailers who combine online sales with brick and mortar storefronts are called "stationary retailers." This group contains many specialist wine retailers, some of which are chains. Brick and mortar shops have access to their preexisting customer base for their online sales. "The opportunities here are not bad: 90% of the wine buyers polled in the Heilbronn survey state that they would also buy wine or sparkling wine online from their bricks and mortar retailer." The last two retailers on this list are stationary retailers.
PLAYERS OF ONLINE WINE SALES IN GERMANY
1) Aldi
Positioning in overall market:
According to Ernst Büscher of the German Wine Institute (DWI), Aldi was Germany's biggest wine seller in 2014. Like Lidl, Aldi is also a discount retailer who offers free wine deliveries over a certain price. They are newer to the online industry and advertise inexpensive wine on their website. They also have promotions on their social media sites to entice their customers. One particular example from 2015 was their use of California wine to promote a raffled trip to California.
Positioning in overall market:
Lidl is a discount retailer and they intend to stay that way. "'We are a discounter and we will remain a discounter" the Member of Board Sven Seidel said. "We will create a new moderns shopping experience, but we will not give up on our discount store model which lies on fundaments like limited assortment, simple processes and good price.'" They offer wine deals of the week as well as reduced price wines. They keep consumers up-to-date on this information through their website and social media. One particular post on the company's Facebook page stated: "Wine Lovers Beware: Subscribe to our #wine-newsletter and get the chance to win a wine-trip to France or one of 50 exclusive wine packages. By the way, every new subscribers will receive an exclusive free shipping coupon for the wines."
3) REWE Group (Weinfreunde.de)
Positioning in overall market:
In May, 2015 REWE launched its online wine shop: Weinfreunde.de. They offer a large array of red, white and sparkling wines, as well as "discovery" packages of six bottles or more. They offer free delivery within 1 - 3 days if the purchase is over 59 euros.
4) Edeka
Positioning in overall market:
"Edeka is one of the leading retailers in Germany with a web shop." Edeka has around 450 wines from 15 countries available on its online wine shop. They offer still and sparkling wines and certified organic wines including larger packs with free delivery. Edeka also has its own vineyard: the Rheinberg Winery that just celebrated 75 years of wine making.
Positioning in overall market:
Hawesko "generated online retail turnover worth 72.1 million euros in 2014." They are a premium wine online retailer. They are present in the "catering trade, and via mobile, online and specialist wine-shop sales channels." Their wines are all listed as discounted with variety packs as well as individual bottles available. They also offer "ecological and sustainable" wines.
6) Vinexus
Positioning in overall market:
Vinexus offers over 6000 top-quality wines from all over the world. Additionally, they offer wine novelties, wine sets and organic wines. This is one of the few online sites from this section offered in English as well as German.
7) Vicampo
Positioning in overall market:
Vicampo is an online retailer offering tasting packages and thematic assortments of wines as well as individual premium wines. They offer "100% enjoyment or money back guarantee." Shipping is 4.90 euro within 2-3 days, or 12 bottles or more are shipped for free.
8) Wine in Black (Otto Group)
Positioning in overall market:
Wine in Black offers fine, premium wines exclusively online. They offer individual promotions around peak times, specifically Christmas and Easter. Docdata, the delivery and logistics company for Wine in Black, ships about "six tons of wine bottles" daily. Wine in Black also offers promotions via its social media channels.
Employee size: N/A
Positioning in overall market:
Jacques' Wein Depot has over 280 physical locations throughout Germany in addition to their online shop. While they offer an extensive selection of wines on their website, they also have information about wines and wine regions divided by country of origin all in German.
Positioning in overall market:
Rinchens Weinkontor is a wine retailer with physical stores as well as an online shop. All wines are priced at a discount and the website includes an extensive blog discussing all things wine. They also offer wine events and wine seminars.
CONCLUSION
To wrap it up, Lidl, Weinfreunde.de, Edeka, Hawesko and Jacques' Wein Depot are just five of the ten German retailers with extensive online wine sales. I hope you find this list of ten players in the online wine sales sector in Germany helpful. Thank you for using Wonder! Please let us know if we can help with anything else!