ShowroomPrivé grows 21.9% in 2016, targets €1.1 billion revenue by 2020
The French event sales website increased its revenue by 21.9% in 2016, reaching €540 million, and is targeting between €690 and €720 million in 2017. For 2020, it has set the ambitious target of reaching €1.1 billion. ShowroomPrivé's annual results were published on 27th February, at the same time as the group announced the acquisition of Beauté Privée, the French market's event sales leader.
In 2016, ShowroomPrivé's EBIDTA was €28.3 million, yielding a margin of 5.4%. Sales increased notably in France, rising 22.6% to €453.7 million, while internationally they grew by 13.4%, reaching €71.7 million. The e-tailer's business outside France benefited from the acquisition at the end of last year of its Italian competitor Saldi Privati.
"It was a highly positive year in terms of growth, which was strong and sustained, notably in the last quarter, when the initiatives we took in the last few months began to bear fruit, said the co-CEO David Dayan to FashionNetwork. Also, our margin was stable. Our company constantly generates a positive cash-flow, something which is truly unique in e-commerce, and is reassuring for investors and for our partner brands." In terms of customers, the website now claims 28.3 million subscribers, up 15.1% on a yearly basis. Orders were 13.6 million, up 15.8%, with a further 5.8% rise in annual revenue per buyer, which was €159.9.
Last year was remarkable for setting a new record in mobile-generated business. Mobiles accounted for 77% of connections and produced 55% of sales, up 7 points, as the ShowroomPrivé app topped the 10 million-downloads mark. This is all the more significant since mobile customers generate 50% more orders than their counterparts who use a fixed web connection.
ShowroomPrivé has reportedly added 700 labels to its portfolio in 2016, and business with ongoing partners has grown by 17%. Chiefly though, last year the event sales specialist reaped the first benefits of its 'multi-local' strategy, as the group opened procurement offices in Spain, Italy and Germany. It also launched the Infinity premium subscription and the Single Basket function (allowing customers to group together purchases from multiple sales) in Spain and Portugal.
"The group has successfully implemented its plan aimed at meeting its customers' requirements for each brand, and at strengthening customer engagement and loyalty," stated Showroomprivé. In the second half of the year, the group also boosted its marketing investment on international markets.
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