German online grocery stores owned by foreign companies are under pressure. But Rohlik Group, an online Czech Republic-based grocery store, is experiencing a ‘great response.’
Founder Tomas Cupr has told Reuters that the company is ramping up and is “on track” to break even within the next year.
Almost 70% of German e-customers have never bought a product from a foreign store. Luckily for Rohlik Group, it is privately held and operates under the Knupsr.de brand in Germany.
Germany: A good place to invest
Germany has the fourth largest economy in the world. More than 62 million people prefer online shopping, making it an attractive country to start an e-commerce business.
Mobile commerce is taking the world by storm, but it has not yet reached a peak in Germany. However, there are endless opportunities, with nearly 80% of Germans owning smartphones.
ALSO READ: Record Breaking: Half of Germany’s online sales on marketplaces
Rohlik Group expands fast
The online grocery group says it wants to add 15 more German cities in the next few years, but this will only happen after another fundraising round. Rohlik was last valued at more than $1 billion.
Reuters quotes Cupr as aiming to be the “winner in CEE (central Europe) and DACH (Germany, Austria, Switzerland).”
The online grocery story is using automation in its distribution centers, which “boosts efficiency and offers more delivery options,” says Cupr. Its customers mainly use its ultra-fast delivery service for locally sourced products.
The competitors
Amazon is the most popular (87%) online marketplace in Germany. It’s followed by Zalando, Otto.de. and electronics marketplace Mediamarkt.de
Last year, Amazon generated a turnover of $37 billion in Germany. It also includes Prime subscriptions, cloud services, and marketing revenue. It’s a whopping growth of 12% compared to the previous year.
About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
