Chinese online drinks retailer 1919 Wine and Spirits has bounced back from losses it incurred during the pandemic as it swung back to profitability in this year’s first half.
1919, a company partly owned by e-commerce giant Alibaba, said in a press statement that its revenues between January and June jumped by half to 2.58 billion yuan over the same period previously.
It pocketed 61.5 million yuan in net profits in the stated period, recovering from a loss of 137.6 million yuan in 2020’s first half.
The Chengdu-based retailer said its operations have gradually resumed and sales soared significantly since the start of the year, leading to increased revenues. It also attributed its profitability to the changes it made in its portfolio, raising the number of its strategically sold products.
Launched in 2010, 1919 has over 1900 online and offline stores across 500 cities in China. The retailer attempts to deliver orders within 19 minutes, which inspired its name. It also offers an on-demand sommelier service.
In 2018, Alibaba made a 2 billion yuan investment (US$290 million) in the company, building the brand to compete against the e-commerce firm’s rival JD.com.
The Chinese market for wine was projected to hit US$18 billion in value by 2023 from US$14.8 billion in 2018, Vinexpo and IWSR said in a report last year.
