CZC’s fight for survival and Allegro’s vision for the future
The troubles of the Polish company Allegro, which bought the Mall Group two years ago, including the Czech e-shop CZC, seem to be a permanent problem. The recent layoffs of employees within the Czech e-shops and the slowing pace of transformation of the long-losing business point to the difficult situation the company faces in the e-commerce market. This situation raises questions about the long-term direction and competitiveness of one of the largest players in Czech e-commerce.
Information about plans to discontinue some key functionalities of CZC e-shop represent another challenge. CZC had built its own platform that allowed it to run specific functions such as a computer configurator and community discussions of experts. However, with the move to a single platform from Allegro, these functions are becoming costly and may be discontinued. This change may have a significant impact on CZC’s market position, particularly with more sophisticated and specialist customers.
Jiří Hlavenka, an experienced entrepreneur, recalls that CZC had a privileged position among “geeks” and was perceived as a “geek” store. If these functionalities are toned down, the e-shop may lose its strong position and be included in Allegra’s broader portfolio. This could mean that CZC would become a gateway to the market rather than a separate player with its own identity and specialisation.
CZC’s performance has been declining since the acquisition, which is a concern for investors and market observers. While competitors are not seeing major changes in their customers, CZC is struggling to maintain its market share. Alza, as a major player in the market, appears to be winning, although the company has stopped actively disclosing its results.
Allegro plans to strengthen its international position and expand into other countries. CZC remains a key merchant on the Allegra platform, but there are questions about the future and the strategy of running the e-shop. It is not clear how Mall and CZC will fit into the overall concept. In the near future, Allegro wants to strengthen the so-called omnichannel proposition, which could influence the further development of CZC.
Overall, the situation surrounding Poland’s Allegro and its acquisition of Mall Group, including CZC, shows the complexity of the e-commerce market and the challenges that await the big players in this area. The future of CZC depends on Allegra’s ability to adapt to the changing conditions and effectively exploit its potential in the e-commerce market.
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