The wine industry is in uncertain times. Nobody denies that. In uncertain times it is more important than ever to rely on reliable information, solid strategy and facts.
The industry has a lot going for it. It’s a dynamic industry with dynamic performance indicators. If solid strategy gets implemented successfully – the growth possibility is vibrant with performance capability. But what do we know about businesses that grow in ‘bad times’ – during economic recession and depression? (Yes – there are businesses that utilise adversity and come out stronger!)
There are studies that show innovation in times of distress, and one study identified that there are more than 128 business models that could be applied to ensure business survival and/or growth. Some of them very simple to implement.
But what are some of the fundamentals that are identified for “rock-star” wine businesses?
They are obsessed with learning
In research done in various global businesses – it was found that companies who remain “stuck” in their ways – well – stay stuck. Those that are willing to learn and grow – and obsessively focus on learning and upskilling – tend to grow during recession and long after. The question is which areas to grow? And that is a crucial question to answer to ensure resources are applied and performance directed correctly.
They ensure they get “intervention-driven expert advice”
A few important examples of information that could be the boost your brand needs right now are:
In a study by Gyanwali (2020) it was found that getting expert advice on the right aspects of business resulted in significant increase in skills, performance and profitability. Leadership remains the key driver of strategy implementation – and those that can call in the right people to improve “intervention-driven” expertise – outperformed those who delayed intervention. Again – do not get “sucked” into expert advice. Call in the right expert advice.
In research on financial aspects in times of difficulty or disaster – financial control is more important than ever. It requires more than just a cost-analysys. It requires leadership and management to look at:
– Value offerings
– Profit margins and market conditions
– Real time adaption to financial changes
What does this mean for the Wine industry?
The industry is getting flooded with information right now. It is also known to be a “follower” industry – rather than an “innovation” industry. This might make Competitive advantage a challenge – exactly when this is most needed…Information to assist in decision making could mean the difference in setting a winery en-route to growth – or mean that its on its last vintage…
– 60% of travelers are already making plans to travel…Know who they are, what they are looking for – and how to reach them. Don’t assume anything about them. Now is time for hyper targeting.
– Cognitive offloading is happening in wine (check the stats!). Wine knowledge is decreasing, and wine involvement is increasing.
– There are a new range of markets developing. “Hangers ‘on” and people only interested in customized experiences. Do you know which ones your brand should focus on?
You need an online strategy. Repeat that. You need an online strategy.
Do not confuse social media presence, or brand awareness and lifestyle images on its own, or an online shop – with an online strategy. (It’s the same as getting a wine listing with a random major retailer). It hasn’t sold a bottle yet, and it won’t unless it’s not the right shelf and the right product talking to the right customer…
Social media is very important – but the days of measuring success with likes and followers are long gone. It needs to bring “return-on-investment” – just like all other activities.
Do you know how your online strategy compares to others’? Customer for customer. Rand for Rand. Dollar for Dollar? Not just what it’s costing, but what its earning?
Wine business is heading for exciting times.
Nobody in the wine industry is very comfortable right now. And that’s a good thing. Growth can only happen outside of your comfort zone. We have learned a lot from businesses who grow and are profitable. We know they chase competitive advantage; they are pro-active and are driven by entrepreneurial upskilling. Some businesses will grow beyond prediction this year, whilst others might get left behind…some for good. There are certainly things that can’t be controlled… But how are you shaping up your wine business with what you can control and what you do know…?
Contact us for a glass of (online!) wine…
Let’s get together for an online glass of wine and a chat.
ACHIEVE STRATEGY SPECIALISTS
082 875 5935 | firstname.lastname@example.org