City.com electronics hypermarkets have now sunk into oblivion; instead, the company intends to develop «e-commerce hubs». The first of its kind opened in Odessa last August. Compared to the previous year, the percentage of online sales grew by 20% and currently amounts to 60% of all transactions.
In the words of Alexey Tikhonov, City.com’s Marketing Director, in the first 9 months of 2016, the number of purchases increased 1.6 times compared to the same period in 2015 – a 180% growth in monetary terms.
In 2016, a new e-commerce hub – a novel outlet format – was launched in Odessa, and by the end of the year the website will offer better design and functionality. ‘We took the best from the available business models and offered our own concept – the «e-commerce hub» – to the market. This is a modern service format, a smart marketplace, where all benefits of online commerce are combined with the physical availability of devices,’ - says Alexey Tikhonov.
The outlet also offers a cross-border sale service, i.e. delivery of electronics from anywhere in the world. In July, the company launched a pilot project to deliver goods from Poland, and, before two months were over, received almost a thousand orders. «Thanks to our direct contacts with European suppliers, we were able to reduce price tags on most items by up to 30%, compared to average prices in Ukraine», says Alexey Tikhonov, City.com’s Marketing Director. Smartphones, smart watches, tablets, and portable speakers were among the items that Ukrainians purchased most often.
The company intends to expand e-commerce hubs throughout Ukraine. ‘The multi-purpose outlet format with an area below 200 sq. m offers the greatest advantages. Among the format’s features is an opportunity to use services offered by our partners, such as warranty and post-warranty repairs by Service Master, or purchases at any web shop in the world and prompt deliveries to Ukraine by Unitrade Express,’ adds City.com’s Marketing Director.
Online sales at City.com currently comprise 60% of all transactions. Compared to the previous year, a 20% growth rate was observed. «We want to expand the online segment even more and intend to achieve the 80/20 ratio», - says Alexey Tikhonov. In August, the city.com.ua online store was visited by more than 500 thousand customers, with the average purchase at the online store being 20 to 25% higher compared to that of City.com’s retail outlets.