- Due to COVID-19, the eCommerce channels and consumer behavior has seen rapid growth and changes over the past 2 years.
- That also leads to the future development of eCommerce platforms. The multiple channels from Marketplaces, Omnichannel, DTC, On-Demand, and Online Specialty Store are emerging to meet the industry demand.
- These channels varied from country to country depending on the distribution value chain, regulations, and consumer habits and preferences.
- CleanCo - Revamping the DTC delivery concept for non-alcoholic distilled spirits.
- Amazon Spirits - Capitalizing on?online spirit?sales.
- Hendrick's Gin - Optimizing brand reach with?branded Amazon store.
- Henkell & Freixenet - Acquired online delivery platform "Flaschenpost"
- LVMH - Joint ventured with "Campari" to develop a dedicated ECommerce platform.
- Pernod Ricard - Partnered with?On-demand?delivery service partner?"Glovo" which was later acquired by Delivery Hero.
- Premium Spirits Market Size, 2020 - €17.14 billion (ref:. IWSR Research, 2019).
- Expected Alcohol E-Commerce Sales, 2024 - €34 billion (ref:. IWSR Research, 2019).
- Premium Spirits Revenues, 2021 - €409 million. Expected Compound Annual Growth Rate (CAGR), 2025 - 6.79% (ref:. Statistica, 2020).
- While Marketplaces still hold a dominant position. Omnichannel, On-Demand, and Online Specialty are on the rise.
- Nevertheless, the DTC model holds a strong position within USA territory. Though the market share is comparatively low compared to other eCommerce channels.
- How to go about the DTC distribution model? That is what premium brands are rattling with and strived for.
- 8 key trigger points are valued by European consumers.
- Shifting towards Omnichannel or DTC channel would require multi-facets of customer experience.?
- One from the storefront, which particularly focuses on creating a seamless User Interface (UI) and User Experience (UX).?
- The other is the backend, which streamlines the delivery process, partnering with local logistic service providers.
- Due to the complexity of the distribution model, retail agreements, regulatory infrastructure, and involvement of numerous stakeholders. Creating a synergy between processes seems to be Hercules' task.
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