Chinese online video service Letv will enhance its supply chain in the wine industry to build a closed-loop operation of its wine business on its subsidiary website Wangjiu.com.
Letv has reached strategic deals with France's Rauzan Group to introduce its V-Chevalier brand. V-Chevalier wines reportedly started sales on Wangjiu.com from September 22, 2014, with price ranges from CNY158 to CNY268 per bottle.
Xu Tao, vice president of Wangjiu.com, told local media that by cooperating with the French wine group, Letv will be able to participate in the control of product quality of upstream chateau suppliers. Xu said in the future, the competition in China's wine industry will be about the entire industrial chain and comprehensive capacity of suppliers. In order to integrate the wine ecosystem, it is important to dominate the production process system, which is the most important component in the entire industrial chain.
Prior to this, Letv established a wine industrial base in Linfen, Shanxi province, at the end of 2013, which included grape seedlings introduction and cultivation, a wine brewing process, wineries construction, and wine culture exhibition center.