“We expect growth of about 30% in the online sales of our group in 2014, compared with the year-on-year growth of 40% in 2013. The computer and electronics retail market (both traditional and online) will see about 10% growth in 2014, mainly driven by the rising demand for smartphones, tablets, new generation TVs, other new generation electronics and computer products,” Ghenea, one of the most famous entrepreneurs in Romania told ZF.
“Under the circumstances, the PC Garage group continues to grow at a higher rate than the overall market.”
PC Garage posted EUR16.8 million revenue in 2012, according to Finance Ministry data. Therefore it was one of the top five online computer and electronics retailers on a (online and offline) market, which amounted to EUR1.2 billion that year. Online sales accounted for some 20% of the EUR1.2 billion.
Judging from Ghenea’s statements about the growth rate in 2013 and the Finance Ministry 2012 data, PC Garage sales stood at about EUR24 million last year.
The entrepreneur does not believe this year will be a good year in terms of overall spending in retail, which will be rather flat as in 2013 or even slightly lower because of macroeconomic and financial factors – unavailability of consumer loans, consumers’ tendency to keep saving money and the lack of a significant increase in consumers’ incomes due to the rise in other costs in the consumer basket such as utilities.
Online computer and electronics retail will continue to increase, driven by the new smart device launches, as well as by the growing consumer confidence in online purchases, Ghenea believes.
PC Garage invested in developing its online platform and in a new building for its offices in 2013, and integrated the operations of all its online stores. This year’s strategy is to expand the portfolio with new product categories such as travel and insurance. The garagemall.ro store already sells more than computer and electronics products, such as do-it-yourself products, sporting goods, car accessories and toys.
(English version by Loredana Fratila-Cristescu)