On its way to be the favourite destination for eCommerce on the local and regional market, eMAG, the largest online retailer in Romania, recorded a turnover of RON 1.39 billion in 2015, up by 28 percent year-on-year, Iulian Stanciu (photo), CEO of eMAG stated in a press meeting on Tuesday.
At the same time, Dante International, the company which operates eMAG on Romanian, Bulgarian and Hungarian markets, recorded a turnover of RON 1.67 billion, up by 34 percent.
Taking also into account the businesses in Poland, where eMAG took over a year ago Agito, eMAG’s turnover on the four markets amounted to RON 1.95 billion, up by 56 percent, Romanian businessman pointed out.
His plans for eMAG business remain ambitious. Stanciu estimates the turnover will exceed the threshold of EUR 1 billion in 2018, and this threshold will be exceeded in 2017 by the value of the products ordered on eMAG Marketplace platform.
CEO Naspers: Romania – massive potential to be a technology hub in Europe
“We like Romania for having, among other things, a strong and growing internet penetration. Your country has a massive potential to be a hub of technology services in Europe. In the next three years, everything will develop on eCommerce. eCommerce is a technology model that saves time and money.
At the same time, we like eMAG for being an excellent Romanian product, build by Romanian talent. We admire eMAG for its sustained activities in expanding beyond Romania to be a regional leader,” Bob van Dijk, CEO Naspers, said in his turn.
The South African group Naspers holds 76 percent of eMAG shares, the remaining shares being held by Iulian Stanciu. Naspers also owns in Romania OLX, PayU, Autovit, Conversion, Fashion Days and Depanero.
Last year, the online retailer eMAG has invested EUR 48 million, of which EUR 24 million for international development, EUR 15 million for developing eMAG platform, EUR 3 million in IT infrastructure, EUR 2 million in brand development and EUR 1 million in logistics and employee development.
eMAG Marketplace goals
Attending the meeting, Tudor Manea, General Manager eMAG Romania, said that the number of products listed on eMAG Marketplace platform exceeded one million in July 2016, representing over 17,000 brands, considering that, for example, the largest hypermarket in Romania offers about 50,000 products.
“We will invest in diversifying the product categories, their in depth development and in the accelerated growth of Marketplace platform. In one year we want to reach 4,000 sellers. eMAG Marketplace is the biggest growth opportunity for any retailer,” Manea noted.
New projects on pipe
Also eMAG Romania wants to open three regional warehouses – Brasov, Cluj and Timisoara – for delivering big products and the company aims to reach 100,000 sqm warehouse spaces in Bucharest and the country until Q4 2016.
On the other hand, to improve the delivery time, eMAG will reach 200 delivery points in Bucharest and across the country until the end-October, of which 120 in partnership with the Romanian Post (Posta Romana). Moreover, eMAG will launch in the next period Bucharest the two-hour delivery service, meaning a super-fast local delivery service, 24/7 available. Also, as of September, the company is ready to launch eMAG Labs, a testing center, where new technologies (VR, IoT, machine learning) for eCommerce are going to be implemented. The EUR 500,000 investment project will benefit Naspers’ know-how and capital support and will create new jobs.
Not least, eMAG plans to introduce new types of services on the site, such as the online payment of taxes and utilities.