A closer look at Vente-privée

For Saturday October 10th class, we were required to analyse Vente-privée's business model, find an article about it, and apply the model to another industry.

The following powerpoint is my analyse of Vente-privée.

IEMI-EBM-VentePrivee-D

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In its article of march 2007, Supply Chain Magazine points out two specificities of Vente-privée : the services offered to its suppliers and the sorting platform organization.
Vente-privée proposes the brands a full organization service of the sale. It includes shooting, the selection of pictures selection, the creation of an original announcement clip, the creation of a catalogue, the invitation of members, the sale, the online paiement, the delivery to the customers.
According to the article, the efficiency of Vente-privée model depends on the ability of the company to manage the reception of the reserved stocks, their sorting, their repacking, and the deliveries to the customers. The fitting of Vente-privée warehouse is very flexible, as it faces real-time adjustments in tune with the needs of its various areas (croos-docking one, hand picking one, preparation one).


I've chosen to apply Vente-privée business model to the wine industry.

The business selling wine through private sale (let us call it WPS) would basically functions the same way as Vente-privée:
1. WPS would reserve stocks by various producers.
2. WPS would then sell the stock to the customers, who would straight pay for their commands.
3. WPS would then pay the reserved stock to the producers, who would thus deliver it to WPS.
4. WPS would finally deliver their commands to the customers.

What problems would this business model solve?
- WPS owner would avoid stock problems and would face improvement on money availability.
- The suppliers, in this case producers, would be more visible, would benefit from WPS advertising, and would gain ease of selling away remaining stocks. This business model would also reduce the number of middle men. And small producers could gain in viability.
- Customers would no more face the problems of weight (carrying bottles back home). They would access a larger panel of wines.

As future development, the business could also include sales of articles related to the wine, like guide books, bottle bags, corkscrews, wine-tasting tours, grapevine renting...

Cave-privée.com and chateau-privé.com are already proposing wine online private sale reserved to their members.