Read the winem8 teams direct to consumer insights and discover the direct route to increasing profitability
Australia exports around two-thirds of its wine production and most of the remaining one-third is sold in the domestic market through retailers. Wine sold direct to consumer (DtC) makes up around 10% of the total volume of domestic sales; however, this statistic doesn't do justice to the value and profitability of the DtC sales channel.
For more than 2000 wineries in Australia that produce fewer than 50,000 cases of wine per year, DtC channels are a very significant part of their revenue. Wine Business Solutions estimates more than 40% of revenue for these businesses comes from DtC channels.
The cellar door: more than just a sales channel
Cellar doors offer opportunities to link with wine tourism, offer value-adding experiences and connect with younger consumers, build converts and convey story and authenticity. The cellar door is a good place to sign up wine club members and build an ongoing relationship with the customer.
Wine clubs and websites: direct over distance
Wine clubs are also an important source of direct sales, with the advantages of minimal infrastructure requirements and greater geographical reach. Club sales accounted for 14% of DtC revenue in 2018, while club members were found to spend an average of $569 on wine club purchases.
A website is an essential part of doing business in an online world, and for wineries, it can be a very important marketing, data capture and analysis tool, as well as an avenue for sales.
Increase your profitability with winem8
winem8 is a wine club solution that understands you, your business, your challenges, your needs and desired outcomes. With the sole purpose of empowering you to maximise profit, winem8 is a beacon of opportunity in the wine industry's rapidly changing trading landscape.