eMag Sees Online Electro-IT Market Up 20% In 2014

01.07.2014 By Bogdan Neagu , Ioana Niţă

Romania’s economy will most likely stagnate this year, but the online electro-IT market is poised for a significant growth, of more than 20%, according to Iulian Stanciu, general manager of eMag, the largest IT&C retailer on the Romanian e-commerce market.

“I would like GDP to advance by over 4%-5%, but in realistic terms, I believe we will have only marginal growth, which in fact is stagnation. The online electro-IT market will witness significant growth in 2014, of more than 20%. Electrical home appliances and electronics will boast the biggest increases,” Stanciu told ZF.

“The market is expanding, a tendency set to maintain for many years,” he added.

For this year, Stanciu targets growth above the rate registered in 2013.

In 2012, the company reported EUR154 million in turnover. For 2013, financial data has not been released, yet.

“Whereas in 2013 we focused on investments aimed at business infrastructure, in 2014 we will center on boosting turnover by a percentage significantly exceeding the 2013 one,” mentioned Stanciu, adding he targets investments in IT, logistics and marketing, and not profitability.

The three departments are also the areas where the retailer will hire this year, with over 100 vacant positions. At the end of September 2013, eMag had 500 employees.

After the takeover by Naspers in 2012, eMag expanded to Hungary and Bulgaria and for the coming period it plans to enter other major markets in the region, such as Ukraine and Turkey.

“We are strongly expanding in Romania and neighboring countries and we need investments. Our plan is a long-term one, as investments we are operating now will bear fruit in 3-5 years,” noted Stanciu.

(English version by Catalina Apostoiu)