Chinese online wine and spirits shop 1919.cn and two other investors are set to invest five million RMB to establish a new company specialising in purchasing imported wines, announced the company last week.
1919.cn is set to invest 2.55m RMB, and take up 51% of the total share of the new company, according to its stock market statement.
Su Bei Commercial Group of Jiangsu Province and Shandong Nan Fei Wines and Spirits are the other two investors; with 35% and 14% of the total share respectively.
In addition, the Su Bei Group said it that it is prepared to make available a further two billion RMB as ‘operational fund’ for the new company, reported local media Yicai.com.
1919.cn said that it currently has ‘over 1000 physical shops in 500 cities’. These shops help the online wine and spirits retailer to deliver products to consumers more efficiently than many of its peers, the company said.
It took only ‘six minutes and eight seconds’ for 1919.cn to deliver its first order during China’s annual online shopping festival on 11 November, known as ‘Single’s Day’, announced the company one day after the shopping festival.
The Su Bei Group said it believes in the potential of ‘online shops combined with offline outlets’ as a business model for selling alcoholic drinks in China.
‘We look forward to exploring the overseas market with 1919,’ Zou Qiaoyun, the vice president of Su Bei Group and CEO-to-be of the new joint venture, told local media.
The fresh investment will allow 1919.cn to purchase more spirits, wine and beer from abroad via the new company, and ‘enhance the company’s negotiating power over price’, said Yang Lingjiang, CEO of 1919.cn.
1919.cn announced on 12th November that it sold 450 million RMB’s worth of wines, spirits and beer through its online and offline shops during the 24-hour ‘Single’s Day’ online shopping festival.
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