Profits soar at Chinese online retailer 1919.com

Chinese online alcoholic beverage retailer 1919.com has reported a net profit increase of 51% in 2017, bolstered by strong online and offline beverage sales, the Sichuan-based company has announced.

Its company revenues amounted to RMB 3.288 billion (US$518 million), a year-on-year increase of 14%, and its net profits jumped to RMB 397 million (US$62.5 million).

This was a robust profit turnaround for the retailer’s online alcoholic beverage sales, following a profit loss in 2016 of RMB 86.6 million (US$12.5 million), mainly attributed to its strong online sales and expanding offline network where its physical stores set up roughly 2 or 3 years ago are starting to profit as well, the company said in its financial report.

Meanwhile its number of physical stores nationwide has increased to 1071, up 190 from 2016.

Sichuan province in southwestern China, the home base of the alcohol e-commerce company, is also the first province that generated more than RMB 1 billion sales for the company.

Last year, its alcoholic beverage sales in Sichuan totalled RMB 1.2 billion (US$189 million), according to a report by Chinese website SC.com.

The company has signed a few partnerships with leading domestic and overseas companies including China’s biggest e-commerce company, Alibaba, as well as drinks companies such as Diageo, Pernod Ricard and Treasury Wine Estates and well-known domestic Baijiu producers.

Founded in 1998 in Sichuan, unlike other Chinese e-commerce companies, 1919 specialises only in wines, spirits and other alcoholic beverages. The company has warehouses in 31 different Chinese provinces.