Direct-to-Consumer (DtC) reports are a great way to get data-driven information to help guide business decisions. Leveraging data and trends like the ones reported on in ShipCompliant’s DtC wine shipping report and Wine Direct’s DtC sales report alongside a wineries specific brand and business can help make strategic business decisions. Common trends like most popular varietals, the average value of an order, and the regions with the highest growth combined with a wineries specific sales and shipping data can help create new insights and initiatives.
Napa plateaus, Oregon and Washington grow
There were some interesting trends and growth in winery regions reported in 2018. It seems California’s Napa County is hitting a plateau. Its increase in shipments was only 1.6 percent, while the average price per bottle increased 7.1 percent, triple the increase of the overall channel. While Napa was near plateau, Sonoma County grew 18 percent in value of shipments and overtook Napa as the region with the most shipped wine. Oregon took the spot for most dynamic when it came to DtC shipping and for the 7th straight year outpaced the market in growth. Washington outpaced the overall market in DtC channel volume, and the average price per bottle shipped decreased. Considering the above, growth in the DtC channel will continue to be organic and strongly correlate to the emerging regions.
Common trends and growing channels
Trends involving favorite varietals, average price, and average volume are all great things to consider when making business decisions. Rosé continued it’s 8-year increase, with 24 percent growth and 29 percent growth in average shipment value. The top five varietals stayed the same, Cabernet Sauvignon, Pinot Noir, Red Blends, Chardonnay, and Zinfandel but Pinot Noir overtook Red Blend as the second most popular. In 2018 the average price per bottle shipped DtC was $39.70. There was healthy growth in shipment value overall, increasing 8.9 percent in the past year. Consumers spent 12 percent more per order than previously, supporting the idea of steady and consistent growth to the market.
With average order value and volume per shipment increasing, it’s important to reflect on the channels available to support those customer demands. The wine buying experience is adapting to the tech-focused society we now live in. The tradition point-of-sale method of buying wine in store is no longer the dominant way. Purchasing through wine clubs or from the wineries’ website is becoming more and more popular, presenting the greatest opportunity for growth. A key takeaway from these reports is the importance of a strong website, online presence and delivery experience.
Wine clubs, website orders and complaint shipping
Wine clubs, website organization and ease of use, and strong social media presence are incredibly important when trying to increase DtC sales. Having a mobile-friendly version of the website is also important, as mobile visits increased to 49 percent of total traffic in 2018, up from 44 percent in 2017. A website can create a wealth of data and information that can help support future decisions, like average order value, time spent on site, and frequencies of visits. Using that data with leveraging CRM information, search engine optimization, and customer feedback a winery can best market themselves to generate demand.
With the increasing popularity of online ordering and wine clubs, it’s important to consider the shipping process. Staying compliant when shipping wine can be complicated with rules changing state-by-state and new sales tax regulations being passed regularly. Having a solution to stay compliant in DtC shipping to ensure positive delivery experience, stay up to date on state and federal taxes and regulations, minimize risk and centralize processes is instrumental in creating happy and loyal customers. With more states opening to DtC shipping, customer demands growing in website and wine club orders, and winery regions continuing to expand and diversify it’s important to have solution that can simplify and streamline the entire direct-to-consumer process.