Chinese e-tailer 1919 reports 141% increase in revenue

2nd May, 2017 by Natalie Wang

Leading Chinese alcohol e-commerce company, 1919, has reported a staggering 141% increase in annual revenue to RMB 2.887 billion (US$418.6 million), boosted by its growing offline presence and product portfolio.

Its net profit also rose by 51.88% to RMB 263 million (US$38.1 million), making a strong rebound from last year’s profit loss of RMB 86.6 million (US$12.5 million). By contrast, JD.com, China’s second biggest e-commerce company after Alibaba, suffered consecutive profit loss from 2011 to 2015 although its annual revenue reported growth each year.

The increase in both revenue and profit is a result of the company’s expanding portfolio that includes popular Chinese baijiu, imported spirits and wine brands, in addition to the company’s growing network of offline stores that cover 31 provinces and municipalities in China.

The company is planning to open 6,000 stores by 2019 (the current number is 881) and is ambitiously planning to multiply its sales revenue to RMB 100 billion (US$14.5 billion) by 2021, the company announced.

Last year, 1919 signed a strategic agreement with spirits giant Diageo for a five-year cooperation on distribution and brand building online and offline in mainland China. Haig Club Clubman, a single grain Scotch whisky, for instance, represented by David Beckham, was launched in China via 1919 and became an immediate success.

The company also entered a partnership with Vinitaly International and the Vinitaly International Academy as their official educational partner. Its CEO Robert Yang, speaking at ‘OperaWine, Finest Italian Wines: 100 Great Producers’ earlier in April, revealed that the company is planning to boost its Italian wine sales in China to more than two million bottles by 2020.

Founded in 1998 in Sichuan province in southwestern China, unlike other Chinese e-commerce companies, 1919 specialises only in wines, spirits and other alcoholic beverages. The company has warehouses in 31 different Chinese provinces.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

New Business Development Manager Nordic

Concha Y Toro
Stockholm, Sweden

Experienced Administrator

The Drinks Business
Central London, UK

Sales Executive (London – Craft Spirits)

Bimber Distillery
London, UK

2 x Buying Assistants

Berry Bros. & Rudd
Battersea and Basingstoke, UK

Temporary Christmas Sales Support - Wines & Spirits

Harrods
Knighsbridge, London, UK

Head of Wholesale

Hispamerchants Ltd
London, UK

Sales Manager

Hispamerchants Ltd
London, UK

The World Bulk Wine Exhibition

Amsterdam,Netherlands
20th Nov 2017

The Drinks Business Green Awards 2017

London,United Kingdom
20th Nov 2017

The Global Spirits Masters Lunch

London,United Kingdom
1st Dec 2017
Click to view more

Green Awards 2017

Deadline : 25th October 2017

The Global Riesling Masters 2017

Deadline : 30th October 2017

Click to view more

Champagne Masters 2017

The only Champagne blind tasting in the UK, the competition will reward the best wines in the following categories:

The Global Rosé Masters 2017

With wines from the palest of pink to almost ruby red, bone dry to almost cloyingly sweet, reductively handled to barrel-aged, as well as gently spritzy to fully sparkling.

Click to view more