Proactive Investors - Run By Investors For Investors

Dawine shifts focus to direct sales into China’s lucrative wine market

The change of focus will result in a direct annual saving of about $400,000 in fixed cost outflow.
French wines and grapes in front of vineyard
Dawine is focused on bringing quality wines from around the world to China.

Dawine Ltd (ASX:DW8) has transitioned from the implementation phase of multiple online sales channels to direct sales and marketing into the lucrative Chinese wine market.

The company believes the change of focus will result in a direct annual saving of about $400,000 in fixed cost outflow.

Dawine is focusing its efforts on marketing of retail and wholesale wine sales as well as continuing discussions with potential strategic partners for scalability.

A “logical transition”

Executive chairman Piers Lewis said: “Dawine has made the logical transition from establishing multiple sales channels to focusing on marketing and brand awareness in the online and wholesale wine market in China.

“This transition will result in a cost rationalisation to ensure we focus our resources on growing our sales and the Dawine brand in China.”

Multiple online sales channels, including a Tmall store, WeChat store, bilingual Chinese website and app, were launched in June 2017.

Retail wine market continues to grow

Market research has indicated that the retail wine market in China targeted by the online sales channels continues to grow.

Wholesale wine opportunities are being pursued as Dawine continues to establish itself as a provider of quality imported wine.

Significant management resources were required to achieve the implementation milestones and these resources are now being aligned to increasing sales.

Pursuing strategic partners

Lewis added: “We continue to pursue strategic partners who have a track record of success in the China wine market and can open up distribution channels.

“Dawine has established an end-to-end process of selling quality imported wine to the China market, which is a valuable asset of the company.

“Working with partners that can increase our footprint in the world's largest wine market will expedite our growth and scale.”

View full DW8 profile View Profile

Dawine Ltd Timeline

Related Articles

uBUCK graphic
July 06 2019
The company operates 1SHIFT Logistics, a software platform that enables brokers, shippers, and carriers to track shipments and settle payments in real-time without having to micromanage individual drivers. It also owns uBuck Technologies, a subsidiary that is revolutionizing payment in the shipping industry.
Australian dollars
February 04 2019
The recruitment, building and training services provider is working to a target to triple its business operations.
lung
June 11 2019
Company has developed a drug-device combination, which uses hyperpolarised 129-Xenon gas MRI.

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use