Naked Wines' customers fund independent winemakers from around the world, in return for wines at self-described "wholesale prices". However, the Financial Times notes that most wines sold by Naked Wines are not available on the retail market, "making direct price comparisons virtually impossible", and most wines are priced "close to usual retail price". They currently ship wine throughout the UK, USA and Australia. The Naked model works as on social network principles, encouraging customers to review their wines and interact with other customers online; reviewers give the wines Likert-scale style scores out of five, a Yes/No to whether they would buy the wine again and a textual description. When prospective buyers look at a wine's page they will see the percentage of those who have said they would buy again a list of people's reviews. 'Archangels' are a smaller group of customers that Naked Wines have invited to assume the role on the basis that they engage actively on the site to help other customers and review all their wines. Naked Wines was named the Online Business of the Year at the National Business Awards in 2011. In December 2013 it was named one of the top 1000 companies to inspire Britain by the London Stock Exchange Group, winning the 'Top Online Retailer' award. On 10 April 2015, Naked Wines was acquired by Majestic Wine and Rowan Gormley was appointed CEO of the enlarged group.
In September 2013, it launched a financial bond to raise funds for fine wines – raising £5 million in a month. The Naked Fine Wine Bond offered consumers 7% gross in cash interest p.a. or 10% gross in Wine Credits p.a..
Advance Bookings
In March 2010, Naked Wines rolled out a pricing model similar to airline pricing, called Advance Bookings, at the London International Wine Fair. The model offers customers savings by ordering their wine in advance, with greater discounts the sooner the wine is ordered. The model is funded by investment from Naked Wines as well as its customers.
MarketPlace
In May 2011, the advance purchasing model was changed to a more direct approach in the form of the Naked MarketPlace. MarketPlace allows prospective and established Naked Winemakers to promote their wines at a discounted price to Naked Wines' customer base. Customers can bid on a proposed case if they want it, and once the market exceeds a minimum volume then the deal goes into effect and the wines are shipped and delivered at pre-determined future dates. Naked Wines takes a commission of 10% in this process.
