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May 17, 2021
BUSINESS

eMAG: Accelerated development and EUR 48 million investments

  • In 2015, eMAG invested EUR 48 million in development, out of which EUR 24 million in the international development and EUR 18 million in technology
  • In July 2016, eMAG offer exceeded one million products
  • In the next 2 years, eMAG will hire 300 programmers and will open eMAG Labs, a testing center for new technologies, with the support of Naspers
  • eMAG has increased by 56 percent, namely RON 1.95 billion, out of which RON 1.39 billion in Romania

 

In 2015 eMAG registered a turnover of RON 1.95 billion in all the countries, by 56 percent higher than the last year. Besides eMAG Romania, the eMAG Holding also includes eMAG Bulgaria, eMAG Hungary, Depanero, FashionDays, Vatera, Conversion and Agito.pl. The regional expansion was the main engine of the development and it benefited from a half of the investments in 2015, which amounted to EUR 48 million. In Romania, eMAG had a 28 percent increase of the turnover, namely up to RON 1.39 billion, on the background of the accelerated expansion of the product range, of the market growth and of the increased preference for online shopping.

eMAG shareholders are Iulian Stanciu (photo L), with a share part of 24 percent and Naspers, with a share part of 76 percent. Founded in 1915, Naspers is an internet and entertainment global group and one of the most important worldwide investors in technology. Being present in more than 130 countries and markets with long term growth potential, Naspers is building top companies, which help people and communities to develop. Naspers operates some of the most important internet, video entertainment and media platforms in the world.

The companies in the Naspers group connect people to the global community, helping them to improve their day-to-day life. Besides eMAG, Naspers also invested in Romania in OLX, PayU, Autovit, Conversion, FashionDays and Depanero.

“Romania is a key-market for Naspers, and the online commerce is one of the fields with the fastest growth in the region, for the coming years. Being a Romanian business, an ecommerce leader created and managed by a talented and committed team, eMAG has the ideal position to benefit from this growth. We are glad to be able to support these plans” stated Bob van Dijk, Naspers CEO.

“Ecommerce is a technology model that saves time and money. We invest in technology developed in Romania and we export this model in Bulgaria, Hungary and Poland”, said Iulian Stanciu, eMAG CEO.

eMAG last year’s investments totalized EUR 48 million. The main directions were the regional development of the company, which attracted investments of EUR 24 million, and eMAG technology development (EUR 18 million). Another EUR 6 million were invested in developing new categories and the brand, in logistic and HR development by special training programs.

“eMAG is currently the largest trade center, with more than 1 million products, 1,000 categories and 17,000 brands. We will invest in diversifying the product categories, in deeply developing them and in the accelerated growth of the Marketplace platform. We wish to reach 4,000 partner stores in one year. Marketplace eMAG is the biggest growing opportunity for any retailer”, stated Iulian Stanciu.

In order to improve the delivery time, eMAG will reach 200 delivery points in Bucharest and in the country by the end of October, out of which 120 delivery points will be settled in cooperation with Posta Romana (Romanian Post). Another action will consist in opening 3 regional warehouses for delivering big products, while in the Q4 of this year there will be contracted 100,000 sq. m. for storage. eMAG also launches the 2 hours delivery service for Bucharest, available non-stop, regardless the hour or the day in the week.

“We are also interested in the field of services, repair of electronics, utilities payment, fees payment. We want our users to be able to access all of these things in one single place”, stated Iulian Stanciu.

In August 2016, the eMAG group’s team totalized 2,900 employees, out of which 2,400 employees, representing 83 percent, are working in the Romanian team.

Technological development is performed by a team consisting in 600 IT engineers, and in the next two years, eMAG aims to hire more 300 programmers who will work to develop the platform.

eMAG Labs, a testing center for implementing new technologies for ecommerce (VR, IoT, machine learning) will be launched this year with the support of Naspers, with an investment of EUR 500,000. The eMAG Labs team will consist, for the start, in 10 employees. The solutions developed by EMAG Labs will be used by Naspers at global level.

 

 

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