eMAG.ro, Romania's biggest online store, this year targets total sales worth 140-150m euros, after it reached sales worth 77m euros last year- double year-on-year.
In comparison, Altex, the biggest retailer of electronics and electrical home appliances, estimated in 2007 overall sales worth 300m euros, while Flamingo International (ranked second on the market) in the first nine months of 2007 generated turnover worth around 100m euros.
Last year, eMAG.ro held a 70% market share of trade in IT&C products and derived turnover worth 76.7m euros, above officials' expectations, who forecast turnover worth 70-75m euros.
"eMAG is a profitable business due to the fact that it has sustained development through its own means. Profit indicators for 2007 will be positive for the entire group of companies that support eMAG.ro," explained Radu Apostolescu, brand division manager of eMAG.ro, although he did not reveal the company's profit in 2007.
The increase represents twice-as-high sales, after in 2006 eMAG.ro sold IT&C products worth 35m euros, and in 2005 sales revolved around 18m euros. Dante International and eMAG International, which are controlled by Radu Apostolescu and other individuals, own the store.
According to the Finance Ministry, the two companies in 2006 generated cumulated turnover worth 35m euros and net losses worth 0.45m euros.
The online retailer previously estimated that 60% of its customers were individuals or small companies, whilst 40% were medium-sized and large companies.
The online store, set up in 2001, early last year had around 150 employees, with their number currently topping 250.
The e-commerce market will rise to 250m euros this year, more than double last year's level, when online sales amounted to 115m euros, according to eMAG estimates. "(...) The shift from classic retail to online retail will further influence the market's growth this year, and the process will be further stimulated by the expansion of product supplies," said Apostolescu.
eMAG considers that the top five online stores in Romania will weigh over 85% of the market in 2008.
The main product category eMAG sold were notebooks, whilst the company targets a 22-25% share of this segment in 2008. On the photo-video segment, the company estimates a 15% market share for this year, up 3% on 2007.
"At present, the best-selling online products are notebooks, photo-video devices, as well as LCD screens and TV sets, followed by multifunctionals, phones, mobile solutions and PC components. In 2008, the biggest growth will be registered in the case of notebooks, followed by mobile phones, multifunctionals and software solutions," explained Apostolescu.
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