Wine Vision Live News Blog: Why wine is integral to Amazon's growth strategy

By Richard Siddle

Published: 20 November, 2013

Amazon has its sights firmly set on the wine and alcoholic drinks sector as it sees the "consumables" sector as a vital part of its future growth strategy.

If it is to reach its target of becoming a $100billion then $300billion business then it has to crack the consumables market as well as it has done the general media, book, DVD and electrical sectors.

Bram Duchovnay of Amazon told today's Wine Vision conference that its mission to target the wine sector was like "Day one " for the business. It was busily trying to understand how the wine market works, and was exploring different options, but its commitment to sell wine successfully was absolute. It was a "tremendous opportunity" for the business.

He set out how it currently uses carefully targeted personalised customer segmentation models to be able to present selected products relevant to individual shopper needs. Amazon proposes doing the same for wine.

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It also sees wine as an ideal product area for the 30% of users who are using Amazon as their primary search tool online where they come to research products which they might then go on and buy somewhere else.

Duchovnay said that for every $1 spent on Amazon it generates a further $6 in offline sales. The opportunity with wine is to be able to tell stories, and provide the information and background story that is not as possible in other product categories. It is also ideal for building more video content online which it is keen to explore more.

Duchovnay said it was looking to work closer with wine producers in helping to shape its potential wine offer and to look at different promotional opportunities on the site.

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