Vinehoo Lands RMB 5 Mln in Funding
36Kr.com, 12/05/12
Shanghai-based Heidao Network, operator of SNS wine e-commerce site Vinehoo, has announced that the company has received RMB 5 mln in funding. Vinehoo was one of the first wine aficionado sites in China when it was launched in 2008. Originally serving as a wine forum and bulletin board service (BBS), the site began implementing a flash-sales B2C model in early 2010.
Vinehoo offers a variety of wine-related services, including limited availability flash wine sales, wine discussion forums, and general wine education. Vinehoo revenue passed RMB 10 mln in 2012, with wine purchases accounting for around 90% of total revenue. Heidao is aiming for Vinehoo to become one of the three largest wine e-commerce sites in China.
According to the company, Vinehoo is able to offer its products at a lower price than other B2C wine sites because of its flash sales, limited availability model, which serves to reduce storage and other costs. Vinehoo is able to offer direct wine sales through a combination of partnerships with foreign wine companies and local industry associations. The site also works with a number of Chinese wine importers to offer lower prices for imported wines.
Vinehoo has more than 100,000 users and reports its user loyalty and conversion rates to be relatively high. The new round of funding will be used to push the company's mobile strategy, in addition to marketing and SNS business development. Vinehoo currently has two mobile apps.
Keywords: Vinehoo business model wireless e-commerce Internet funding revenue users B2C SNS alcohol flash sales Heidao Network Technology
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