🔢 2023 Financial Overview 📊
OTTO, Germany's largest e-commerce site, reported a Gross Merchandise Volume (GMV) of approximately $7.05B for the fiscal year 2023/24, marking a 2% increase from the previous year. This growth occurs despite a broader market downturn, with the German e-commerce sector overall seeing an 11.8% drop in sales. OTTO's IFRS external sales, however, declined by 8% to $4.56B. The marketplace business, launched in 2020, now represents a third of OTTO's sales.
🔢 Strategic Marketplace Expansion 🌍
OTTO has significantly boosted its marketplace by 33%, now featuring over 6,500 partners. Chairman Marc Opelt mentioned, "We are already very well positioned with German marketplace retailers. Now we are preparing to open it up to European marketplace partners." This move aligns with OTTO's strategy to increase partner sales and expand its product offerings across the EU.
🔢 AI and Advertising Growth 💡
OTTO is enhancing its digital footprint by incorporating Artificial Intelligence (AI) with more than 65 AI tools in use, including 10 genAI-based tools. Furthermore, OTTO Advertising reported a remarkable 39% growth in sales, significantly outpacing the retail media sector's 25% growth in Europe.
OTTO is advancing its sustainability goals, achieving a milestone with 100% replacement of shipping bags with eco-friendly alternatives. Additionally, a new collaboration with GoodShipping aims to replace marine diesel with biofuels, targeting a 25% reduction in CO2 emissions by the end of 2024/25.
Will OTTO's EU expansion boost its market share?
