“Life is too short to drink bad wine.” – Johann Wolfgang von Goethe
You enjoy an occasional glass of red wine, or you just want to pair the day’s love infused dinner with an exquisite bottle of white. You go to the nearest wine shop, liquor store or supermarket only to be left alone staring at the abundance of options. Of course, you can ask the salesperson at the shop, but can he or she incorporate the knowledge of millions of wines into his recommendation? No, I didn’t think so either. It is your lucky day though, Vivino is here to help.
Finding the perfect bottle
Vivino boasts over 9 million different wines in its database covering over 3000 different wine regions for its community of 29 million wine lovers. Founded in the capital of Denmark, Copenhagen, by Heini Zachariassen and Theis Søndergaard in 2010, it is world’s largest online wine marketplace. The company is spread over three continents with their offices in Copenhagen, San Fransico, Ukraine and India, and so far has secured $56.3 million in funding including a staggering $25 million from SCP Neptune, the family office investment vehicle of the Moët Hennesy CEO, Christophe Navarre. A “community-powered e-commerce platform for personalized recommendations” as Zachariassen puts it, allows users to scan the labels of the whichever bottle they are about to buy and the app recognizes the key pieces of information such as the price, producer, year and the region of production. The app also gives tasting notes and recommends food pairings to go with your precious bottle.
Here’s a 60-second video explaining how:
Wine lovers unite!
The community dimension of Vivino is what makes it a truly customer-centric platform. It allows users to rate the wines, read the comments of other users and even follow their fellow oenophiles, possibly consisting of family and friends whose reviews will be highlighted in their feeds. Since the launch of the app some seven years ago, half a billion labels have been scanned and 88 million ratings have been submitted. With such a wealth of data, the company launched Vivino Market in 2017 offering wine lovers customized recommendations depending on their past behavior on the platform. The more labels they scan and more ratings and reviews they leave on the platform, the better recommendations the users get. Vivino seems to be the perfect conjunction of social media, big data, and machine learning assisting wine lovers to never be disappointed ever again with their choice of wine.
A new era for selling wines
Vivino’s value proposition does not only concern wine lovers in the pursuit of a good wine. It also benefits retail partners and sommeliers alike. Guest-to-sommelier interaction is usually an awkward one: guest trying to explain what kind of wine he or she likes and sommelier trying to pinpoint “the one” with not much to go on other than “dry”. Vivino successfully steps in at this point. The users of the platform can simply show the sommeliers wines that they previously enjoyed, making everyone’s lives a little easier. And Scott Zocolillo, Managing Partner, and Sommelier at Nectar in suburban Philadelphia’s Berwyn agrees: “Vivino, to me, shows trends and preferences. I love when a guest has their app out, [as] it helps move the conversation along and helps me do my job and get them the best wine for their experience.” It doesn’t end there, though. Through its marketplace, Vivino charges a flat commission for retailers on the orders that are bought on its website and app. With over $40 million worth of wine sold through Vivino, it provides a disruptive opportunity for wine producers to reach a vast community of users who are appreciative of wine. A win-win situation for all parties involved!
Powered by a solid community of users with its current data capabilities, the company plans to expand to emerging markets such as Hong Kong, Brazil, and Mexico through its increased partnerships. The goal is to sell $1 billion in wine by 2020 and with 2 years to go, that doesn’t seem to be an easy target. However, Zachariassen seems to believe in the potential of the online market for wines. “Wine is a $300 billion industry and if you look at the online part of wine, e-commerce, it’s still very, very small,” says Zachariassen, pointing towards a plethora of opportunities in the online wine retail business in the years to come. For now, what we can do as wine lovers is to sit back, relax and crack open that bottle of red which is guaranteed to be a pleasure.
Here is another article written about Vivino from 2014: https://consumervaluecreation.com/2014/05/18/viva-il-vino-exploring-wine-with-vivino/
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