Recently, many boutique supermarkets which have good price control in wines have begun to make discounts. Some fine wines are sold in an incredible low price.
Why is this happening? WBO reporters conducted some on spot visits.
Ole' Boutique Supermarket Makes Great Discount in Fine Wines
Many fine wines in the Ole' Boutique Supermarket in Chengdu MIXC are on sale, among which, Tintara Winery, the red five-star winery in McLaren Vale in Australia, has a 50% discount on the original price of 408 yuan. Another winery from McLaren Vale Rose Winery Diamond Cabernet Sauvignon is 50% off on the original 198 yuan.
In addition, Wolf Blass from the Barossa region is originally 300 yuan, but the second bottle is only 50 yuan, which is equivalent to 175 yuan per bottle.
This supermarket in Chengdu Taikooli has even more discounted products. There is a whole shelf listing discounted wines.
We found that many of the white wines from Burgundy and Chateauneuf du Pape are in promotion. After the discount, the prices are as low as 276 yuan and maximum of 538.9 yuan. And an Italian Prosecco Emotivo is only 99 yuan.
Many fine wines from Bordeaux are also discounted. A bottle of Medoc’sCru Bourgeois is priced at 180 yuan per bottle.The fourth-growth chateauLatour Carnetis original pricedat 499 yuan, second bottle 50 yuan additional, which is equivalent to 274.5 yuan per bottle .
While asking about the reason for the large-scale promotion, a shopping guide told that it is mainly to clean up some stocks. Afterwards, some products will no longer be sold, and some products will be re-labeled.
Another shopping guide in this supermarket said: "There are different sales for different products every month.Some are very low priced that we self will buy them.
It is worth mentioning that the other boutique supermarket Itoyokado in Chengdu also launched great discounts on fine wines.
WBO reporters found that Aussino counter in Itoyokado Shuangnan store has a whole shelf of promoted wines. Nearly half of the fine wines are in promotion, most of which are “buy one get one free” or 50% off.
A salesperson at the store told WBO: "This is the first time in my working experience here in last five years that I have seen the largest middle of the year sales of wine and other products."
Itoyokado and 7-11 Convenience Store both belong to one parent company, and Ole' is a high-end supermarket brand belongs to the China Resources Vanguard Group which wine prices have been always high.
Still Profitable After the Discount; Unreasonable High Prices Removed
Jibo Gao, general manager of Jilin Suhe Trading Company, who is familiar with supermarkets channel, pointed out that this situation indicates the previous pricing is too high to sell wines. Therefore, supermarkets reduce the price by discounts.
“Actually, the prices in supermarkets such as Wal-Mart and Metro started to reduce the prices a few years ago, but some brands of supermarkets have not yet recovered. Yet consumers will compare prices, and boutique supermarkets do not mean high prices. This is a misunderstanding.” Jibo Gao said.
Indeed, in the past two years, wine prices in the new retail store Fresh Hema, for example, are quite affordable. For instance, commercial wine Yellow Tail is 58 yuan per bottle, which is only 10 yuan higher than the whole case purchase on JD.com. The price of the Wolf Blass Yellow Label in Yonghui Supermarket was once lower than 100 yuan per bottle.
In addition, the price of Hoegaarden Beer in Fresh Hema is moderately maintained at 12.9 yuan to buy one get one free, while the Ole' has the same beer of 12 yuan per bottle.
However, some people in the industry said that some of them are not cheap even after the discount. Xun Chen, founder of Chengdu Dumeitang, believed these Australian wines are indeed very good priced, but ordinary regional wines of Burgundy , which the prices are above 150 yuan per bottle and the village level is above 300 yuan per bottle, is not really cheap.
Jibo Gao also pointed out that the prices of Ole' boutique supermarket are generally reasonable. "Our company has Burgundy Village wines buy one get one free for 358 yuan and 58 yuan for Prosecco. It can still guarantee profits for years."
Xun Chen pointed out that instead of ultra-low price, it is better to say that supermarket channel is responding the return of wine value.
The Wine Consumption is Becoming More Mature; Distribution Channels are Diversified
Why are there the decreased prices of fine wines in boutique supermarkets like Ole'? Xinyu Song, general manager of Jinan Gelin Bao Liquor Company, believes that there are two reasons: Firstly, with the promotion of commercial products, the consumption of wine is now more than a few years ago. The increase in sales has allowed large supermarkets to get profits with fast turnover. In the past, a distributor sold 10 bottles a month. Now, one can sell 100 bottles per month with negotiable price. Therefore, there is an inevitable factor in price decrease. In particular, the profit in the wine industry is originally large.
XinyuSong believes that the second reason is the influence of the diversified distribution channels.
“In the past, Ole' was a high-end and high-quality representative, with high priced products. Many loyal customers recognized the brand and quality of China Resources Vanguard. However, in accordance of the diversified channels givemore choices, such as JD.com and Tmall, have their own direct methods of purchasing. This impacts the boutique supermarkets such as Ole', which drives the price reduction," he said.