Allegro’s expansion to HU🇭🇺 and what if Amazon enters CZ🇨🇿?

Allegro in the 🇨🇿Czech Republic? Hesitation with Mall and CZC, Expansion into 🇭🇺Hungary, and New Challenges

💰 Recent Financial Results for Allegro in the Czech Republic

• In the first quarter of 2024, Allegro increased its loss in the Czech market to CZK 661 million. Allegro’s international operations (Mall Group in five countries, CZC, Allegro CZ and SK marketplace) sold goods worth CZK 4.2 billion during this period, which is 8.1% less than the previous year.

• The number of items sold increased by 75% to 6 million units, but the average customer spend decreased by 26.6% to CZK 4,000.

• Allegro’s loss in the Czech Republic and Slovakia is split between the marketplace (EUR 13 million) and Mall Group (EUR 14 million).

• In contrast, Allegro in Poland saw growth, with GMV increasing year-on-year by 10% to approximately EUR 3.3 billion, and profit rising by 36.6% to approximately EUR 197 million.

Allegro’s Next Stop 🇭🇺🇭🇺🇭🇺

Shortcut called Mall.hu

Let’s not forget about Mall, which historically has had a presence in Hungary, but let’s be real—their market share is smaller than Mall in CZ. They used to be in Hungarian TOP 10, now they stay as TOP 15? Who knows...

What Does This Mean for Hungarian Brands?

Here’s what happened in other markets, while local brands lost a bit of market share to these platforms, they also gained new avenues for growth. You might lose a few sales locally, but Allegro makes it super easy to expand beyond Hungary’s borders. So, you might lose 1 out of 10 orders in Hungary, but you could gain 5 out of 10 orders from abroad. That’s a win in my book…..

What if: Amazon.cz

Amazon is expanding to Colombia or South Africa…., but is or isn’t the Czech Republic next on the Amazon menu….?