eMag, no. 1 in IT&C retail has big plans again: over 100m-euro turnover

eMag, no. 1 in IT&C retail in Romania expects to hit the 100 million-euro turnover mark in 2010 for the first time in the company’s nine-year history, amid a rise in the number of Internet users and a rise in electronics and in web-connected products such as laptops and smartphones. The company ended last year with a 12% turnover decline to 64 million euros, very close to its original estimates of 66 million euros. “This is a very good result, we virtually gained market share despite seeing an around 50% sales decline,” explains Radu Apostolescu, marketing manager and one of the founders of the online store. This is not the first time that eMag targets an over 100 million-euro turnover. After the company had doubled its turnover in 2007 to 70 million euros, representatives of the online store planned a new doubling, to 140-150 million euros for 2008. The company had adjusted its costs and personnel in view of this target but the recession ruined everything, with the online store narrowly managing to avoid major financial trouble, which affected its rivals K Tech Ultra Pro and Flamingo, amid the sales collapse.

However, the company managed to leave its financial troubles behind after Asesoft Distribution, one of the leading IT&C distributors on the Romanian market, bought 51% of eMag in April 2009. The retailer ended last year with a few tens of thousands of euros in profit and has a solid financial position, say company representatives, who expect the company will be able to grow as the number of clients for Internet services rises and as Romania’s confidence in online acquisitions increases.