French online fashion outlet Showroomprivé has increased its sales by more than 50 % during the first quarter. The platform now wants to switch entirely to dropshipping.
Foreign business is growing
E-commerce has taken off since the coronavirus crisis: although sales of holidays and tickets on the platform are still suffering badly from the Covid measures, the company reports a growth in net sales of 50.9 % in the quarter up to the end of March. Online sales increased 53.7 % to 176.5 million euros.
On its French home market, online sales went up by 51.8 % to 147 million euros, but it was mainly the much smaller foreign market that saw an increase: international sales reached 29.5 million euros, up 64.1 %. In particular, Italian subsidiary Saldi Privati is getting back on its feet after the hit of the pandemic.
Today, the platform has 25 million members, 620,000 of whom were new this quarter. On average, customers buy for 44.7 euros at each purchase, and each buyer was worth 106.6 euros in the first quarter, up 22.8 % year-on-year. For the rest of this year, the group plans to expand its branded offering further, switch entirely to dropshipping and put the new automated warehouse into operation.
"We are gaining market share, and all operational indicators are positive, also in terms of profitability", founders and co-CEOs Thierry Petit and David Dayan said without disclosing any profit figures. "While we have benefited from a favourable comparative base this quarter, we continue to build on the hard work we have done in recent months to improve our luxury brands offering."