You might not know it but there is a war out there. A wine war is happening between wine sellers and there are numerous dimension to consider before understanding issues and interest at play. In this first article we'll review the current situation, and begin by analyzing the main customer barrier.
How to identify customer main percieved risks when it comes to buying wine online ?
By 1995, start-ups are betting to sell wine over the Internet.
These new businesses called cybercavistes, differ by their innovative distribution channel, but also by their quality and range depth (supermarkets and wine shops have an average of 450 references, while the average number rises to a cybercaviste references to 5000).The turnover from wine sales at the retail stage has reached 106.985 billion dollars in 2005. In 2010, global wine consumption remains stable compared to 2009, with a total of 236.3 million hectoliters. Given the volumes and potential profit, it is natural that Internet captured this product.
The wine was thus the first food product to be sold on the internet.
But wine is by nature a final product whose quality is unknown because it depends on a subtle mix: vintage, grape variety, terroir and storage conditions. The quality remains unknown to the consumer until the opening of the bottle.Also the web is a distribution channel that does not reassure consumers by virtual nature. Indeed the product is not palpable, you have to trust the e-shopping.The challenge of cybercavistes is to reassure consumers. We must give them confidence for them to agree to buy on a website.
The e-wine market is very attractive since the intensity of the rivalry is moderate. However moves from players have been initiated by the acquisition of ChateauOnline.com by 1855.com, strong turbulence and increased competition is announced in the coming months and years ahead.
Identify potential sources of customer perceived risks
- Sources: The way to buy & remote merchant site.
- Brakes: Timing and delivery charges.
- Motivation: Confidence in this type of site.
Sources of perceived risk involved in the choice process seem to depend on the type of website on the one hand and the experience of individuals with online purchase and the level of expertise on wine consumption on the other hand. Solving issues then consist in proposing reducing risk adjusted depending on the type of site and different targets by offering diverse requirements, and better manage the relationship with shoppers by optimizing the contact between the merchant and the consumer.
Thus, the general website appears to meet the utilitarian nature of the purchase of wine from the perspective of short-term consumption, for a special occasion and as part of a larger shopping cart. Nevertheless benefit from the commercial site offering a varied insofar as it constitutes a unifying and reassuring consumer confidence.
For expert websites , the main source of risk involves brakes associated with rather unfavorable sale conditions for the buyer (time and delivery costs) but also confidence into the website. Also, this incentive could be enhanced by authentication of the merchant with a identity record of the seller specifying its history, business, contact information or direct chat for example.
And those issues are only one dimension of several difficulties encounter for online wine sellers. Other aspect will be detailed in the next article.
By Shirley Jagle
Sources
Winefair - 2010 - "What are Internet users who visit merchant's sites and social networks in the field of wine? "
SOWINE barometer - 2010 - "Internet, social networks and wine"
GALLEN Celine and Anne-Sophie CASES - 2007 - "The role of perceived risk and experience in buying wine online»
