VINOMOFO
Client:
VINOMOFO
Brief:
Asian market expansion
Adeptx Services:
- Development of an Asian market strategy
- Analysis of optimal Asian product mix
- Creation of legal, financial, and operational framework.
About VINOMOFO
Established in 2011, Vinomofo is one of Australia’s leading online wine retailers. The Company has won numerous awards throughout the years as a pure play platform. Vinomofo is a B2C e-commerce business whose focus is premium wine brands. Its unique proposition lies within the direct relationship the business has with wine producers enabling access to exclusive vintages and competitive pricing. The Company has established a stronghold within the Australian wine market.
Objective
Vinomofo had created a successful business model for the Australian market. The deep relationship amongst wine producers had enabled the business to access unique wines which is popular with the Company’s customer base. Furthermore, the Company was able to build a strong talent base in key aspects of the business which had enabled it to scale rapidly since its early years. However, the Company had yet to expand its operations internationally.
The objective was to determine the appropriate markets for expansion, a penetration strategy and supply chain.
The Work
Adeptx worked with Vinomofo and advisers to:
- Determine key markets
- Develop a penetration strategy for each of the markets
- Determine the optimal product mix
- Establish an international business model framework
- Develop a viable supply chain for wine export
One of the major considerations for Vinomofo was its lack of experience beyond the domestic market. Hence, Adeptx started from scratch in planning the framework, resourcing, legal and financial constructs, target markets and associated supply chain processes. It involved taking the founders on field trips through Asia to establish networks and better understand local consumer behaviour patterns.
Working with the founders, Adeptx created a tiered penetration strategy within Asia targeting those markets which had a customer base similar in profile to the domestic market. The strategy was to initially enter markets such as Singapore to develop proficiency in managing an overseas operation prior to considering larger and more complex markets such as China and Korea. This was successfully undertaken.
There was considerable preparation work required to ensure tax efficiency and protection of Vinomofo’s IP which Adeptx lead with external advisers throughout Asia, particularly China, Hong Kong, and Singapore. In addition, a supply chain network was structured to service key Asian markets.
As well, Vinomofo had relied upon its buying team for the domestic market. Consequently, there was a lack of in-depth analysis into the Company’s customer cohorts and consumption patterns. Through development of performance metrics and analysis, Adeptx was able to shed insights into the cyclical nature of Vinomofo’s top line both from a seasonal and event perspective. Importantly, Adeptx was able to determine an optimal match between Asian consumer preferences and Vinomofo’s access to unique varietals.
Outcome
We worked with Vinomofo to create a tiered expansion plan for penetrating the Asian markets. The planning required a strong collaborative effort between teams within Vinomofo and external advisers which Adeptx lead. As well, insights into Vinomofo’s revenue model were unlocked further benefiting their domestic performance. To date, the Company has successfully launched into several international markets.
