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Wine Industry Insight |
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A small number of savvy wineries have started tapping into the hot new trend of hip fashion web sites that offer “private,” time-limited sales to online shoppers.
Sites like:
originally sprang up as a way for online shoppers to get in on the action for fashion overstock and sample sales, but others like:
have expanded to include virtually every type of merchandise.
AN ATMOSPHERE OF EXCLUSIVITY AND URGENCY
The concept of “private sale” is only marginally true since anyone can shop at the sites as long as they register. While a trivial exercise, it seems to work as do the time limits imposed.
While a number of wine-only liquidator sites offer merchandise on a “while supplies last” basis, some of these new sites have established firm time limits — usually 24 to 48 hours. Others, like Gilt, also start a countdown when the shopper adds an item to their cart. If it’s not paid for in 10 minutes, the item disappears from the cart and is placed back in inventory.
NO LIQUIDATION STIGMA
Unlike wine liquidation sites like winestilsoldout.com, winewoot.com and thewineliquidator.com which sometimes carry the stigma of a liquidation sale, the new sites attract a hip, younger crowd looking for “must-have” items that they often didn’t realize they couldn’t live without.”
ACCESS TO A NEW MARKET
And while the total volume of sales is usually small — 100 cases or less — the sale on these sites offers exposure to a whole new — and mostly younger — market segment.
” They allow us to offer our wines to an audience who might not have the opportunity to visit our Salon for a tasting,” said Heidi Baron Godoff, Director of Consumer Sales at Swanson Vineyards. “Agility seems to be the name of the game. It has been a delight working with Rue La La. They professionally photographed all our offerings and have been extremely organized. ”
Other wineries selling through Rue La La recently include Silver Oak, Patz & Hall, Frog’s Leap, and Gary Farrell.
VENTURE CAPITAL SEES BIG BUSINESS
Although wines sales were not mentioned, the New York Times reported recently that the hip new category of sites have become big business.
“Private-sale sites are attracting brand-name investors,” said the article by CLAIRE CAIN MILLER and JENNA WORTHAM. “Kleiner Perkins Caufield & Byers, the venture capital firm that backed Google and Amazon.com, invested on Wednesday in One Kings Lane, which sells home décor. Gilt Groupe raised $55 million from Matrix Partners and General Atlantic, and Rue La La’s parent company was recently acquired by GSI Commerce for $180 million.”
STRICT TERMS AND RESTRICTIONS APPLY TO WINE
As might be expected, the terms and conditions for the sale of wine include more hoops to jump through than a sweater or pair of shoes.
The following come from recent RueLaLa.Com wine offerings:
Features
Terms & Conditions: