Wangjiu.com, LeEco’s O2O wine subsidiary, announced on Tuesday that it will apply LeEco’s ecosystem to the liquor industry and subsidize consumer purchases with promotions using RMB 100 million (USD 15.4 million).
This strategy means that LeEco plans to use the branding for its film and tv content to market wine and liquor products on Wangjiu. For example, LeEco developed a rice wine brand derived from a popular historical drama about a Qin dynasty queen.
Wangjiu also plans to hold promotions like the cash-back event it held recently. When members put up to RMB 1000 in their accounts, the website matched the amount they put in.
Wangjiu is a site owned by tech giant LeEco with multiple subsidiaries including video streaming, smartphone, EV, sports, etc.It sells liquor direct to members through its site and claims to be China’s first vertically integrated wine ecosystem.
The platform completed a RMB 200 million round of Series A financing in January 2016.
Li Rui, the CEO of Wangjiu and vice president of Le Holdings, said the website’s sales in 2015 totaled RMB 200 million and their sales goal this year is RMB 700 million. According to Chinese media, Wangjiu.com will list on China’s New Third Board in April or May 2016.
Two rivals for the website are Jiubianli and Jiuxian. In January 2016, Legend Holdings, Lenovo’s parent company, injected RMB 230 million into Jiubianli, an O2O liquor provider. Jiuxian.com, an online liquor provider, listed on China’s New Third Board in October 2015.
（Top photo from nipic.com）