Now Digitec Galaxus is getting serious in Germany
The beta phase is over, and Digitec Galaxus is now on the attack against the competition in Germany - and is already flirting with further expansion countries.
With Germany, Digitec Galaxus tackled Europe's largest and most fiercely contested market a year ago. Under the management of Managing Director Frank Hasselmann and with the Galaxus name, Digitec Galaxus launched in Germany at the end of the year. Headquarters is Hamburg (Werbewoche.ch reported). "This is a logical step for us that we should have taken earlier," Digitec-Galaxus CEO Florian Teuteberg (pictured above) said shortly before the launch at the Brand Congress. "The product has good chances in the European environment. But the challenges and competitors are numerous".
As CEO Florian Teuteberg told the NZZ on Sunday explains, the beta phase is now complete: "We are ready for a full offer." So now that the test is over, it's time to get serious. The chances of being able to compete in the German market are not bad. Although they have hardly done any marketing, they are already making well over a million euros in sales per month, says Teuteberg. In Switzerland, it's about 76 million euros per month. In Germany, Amazon generates an average of more than 760 million euros in sales per month.
After electronics should follow the toy
The ambitions in Germany are great, but the structures are still small. Today, Galaxus Germany offers 150,000 products, while in Switzerland - Digitec and Galaxus combined - it offers over 2.6 million items. While the company employs a total of 1,300 people, only 30 are currently employed in Germany.
Even though the Galaxus brand is the only one used in Germany, the first step is to follow the "Digitec path" and build up the buyer base around the electronics range. The next step will be to include the toy category, with other areas to follow, so that in the end - as in Switzerland - the company will be able to offer a complete range.
The Galaxus brand has yet to be popularized
As Teuteberg told the NZZ on Sunday explains, the next step is to take the Christmas business with us. "In the spring, we will take stock and decide with what ambitions we will continue in the German market." He remains convinced of success: "I firmly believe that we can be successful in Germany."
In order to survive in the battle against Amazon, Otto or Media-Markt, the Migros subsidiary will need to make considerable investments, especially in marketing. Unlike the established German e-commerce giants, the Galaxus brand is still virtually unknown in the far north.
However, Digitec Galaxus can launch its attack on the German market with a solid, stable home base behind it: In Switzerland, the company is growing steadily, profiting unabatedly from the shift of retail to the Internet and leaving its domestic and foreign competitors far behind with a comfortable lead.
After Germany, Austria could follow
Expansion abroad seems a logical step in view of the limited Swiss market with its growth potential reaching its limits at some point. If the move into Germany is crowned with success, other markets could soon follow: "If we succeed in gaining a foothold in Germany, we want to expand into other countries," says Teuteberg.
Austria is still likely to be a hot candidate. In October 2018, the company told Handelszeitung: "Provided the expansion in Germany is successful, Austria will be the next foreign market for Digitec Galaxus. (Werbewoche.ch reported).
