Secrets of CEE’s Most Successful E-Retailers

The State of CEE E-Commerce: Trends, Challenges, and Opportunities

E-commerce in the CEE region has undergone a series of transformations, shaped by the challenges and opportunities unique to this part of the world. From 2020 to 2022, the pandemic created a massive surge in online shopping, with annual growth rates of 30-40%. However, as offline shopping began to regain traction in 2023 and 2024, e-commerce growth started to slow, influenced by factors like inflation and shifting consumer behaviour.

Despite these headwinds, the CEE region’s e-commerce market remains vibrant, showing significant resilience and continued growth potential. However, the entry of global giants like Temu, Shein, or Trendyol is creating challenges for regional players by increasing competition and driving up digital advertising costs.

Source: Growww Digital

Top Exporting E-Retailers in the CEE Region: Performance and Growth

The CEE’s top-performing digital retailers have consistently outpaced the market, with many companies showing double-digit growth in recent years. The top 50 e-retailers in the region saw annual revenue increases of 30% on average throughout the period from 2020 to 2024.

For instance, major players in marketplaces such as Allegro, which reached a gross merchandise volume (GMV) of EUR15 billion, and specialised retailers in fashion, cosmetics, and groceries have been particularly successful in adapting to market conditions. Their growth has been driven by effective channel expansion, product diversification, and strategic international expansion.

These companies have been able to maintain their momentum by continuously evolving their business models and responding to both regional and global trends. They are leveraging advanced technology, including artificial intelligence and machine learning, to streamline operations and enhance the customer experience.

Source: Growww Digital

Source: Growww Digital

Growth Strategies Employed by CEE E-commerce Players

• Expansion into New Sales Channels

One of the key strategies employed by the region’s top e-retailers is the expansion into new and diverse sales channels. E-commerce companies have increasingly turned to SEO, PPC advertising, social media influencers, and online marketplaces to drive traffic and sales. Additionally, some have partnered with major platforms e.g. Wolt in the FMCG sector, to enhance their delivery capabilities, tapping into new consumer segments and improving service offerings.

Case Study: Knuspr.de

Thinking partnerships and new acquisition channels, from SEO, PPC, influencers through marketplaces.

The German arm of the Rohlik Group (Knuspr.de) expanded its reach by partnering with Wolt, successfully integrating the food delivery service into its operations. This partnership allowed Knuspr to scale rapidly while improving its logistics and service efficiency, reaching incremental millions of incremental customers.

Source: Growww Digital

• Product Portfolio Expansion
  

  Constantly expanding and diversifying their product offerings has been another vital growth driver for many CEE e-retailers. In an increasingly competitive market, companies need to offer a broader selection to attract and retain customers. For example, the popular online store Muziker, initially focused on musical instruments, has successfully expanded into outdoor equipment and arts products.

Case Study: Muziker

Muziker’s expansion into new categories has allowed it to broaden its customer base, leveraging its expertise in a highly specialised niche and branching into complementary markets, including sports equipment and creative arts related items.

• Regional Expansion and Market Penetration

Many successful CEE digital retailers are not just expanding within their domestic markets but are increasingly looking to internationalise their operations. The most successful players have reached new markets within the region and beyond, expanding their geographic footprint. Typically, they target countries that are experiencing high growth potential, entering new territories and reaching a break-even point after 12-18 months.

Case Study: Berlin Brands Group

Berlin Brands Group (BBG), a notable player in the European market, has been successful at rolling out its operations across multiple CEE countries, making significant inroads into both Western and Eastern European markets. Their focus on rapid geographic expansion and market penetration has allowed them to build a strong regional presence.

Case Study: Notino

They perceive the whole world as their market, gradually enrolling their operations in phases. Always testing new markets, the most successful ones hitting break-even within 1.5 years.

Source: notino.co.uk/about-us/

• Adapting to Changing Consumer Behaviour

Acknowledging the shifting dynamics of consumer behaviour has been crucial for these e-retailers. With inflation affecting purchasing power, companies have adapted by offering targeted promotions, enhancing their customer loyalty programmes, and integrating AI to personalise shopping experiences and optimise pricing strategies. This focus on personalised services has helped businesses differentiate themselves in a crowded market.

Overcoming Challenges in the E-Commerce Landscape

While the region’s top e-retailers have been successful, they face several challenges, including the rising dominance of global players like Temu, who have reshaped the competitive landscape. As one of the largest online advertisers in 2023, Temu has forced regional companies to adapt their digital advertising strategies to remain competitive.

To overcome these challenges, regional players have doubled down on efficiency, leveraging AI to optimise operations and reduce waste. As margins in retail become thinner, efficiency and cost management will continue to be key battlegrounds for success in the years ahead.

Source: Growww Digital

Future Outlook and Key Takeaways

Looking forward, the CEE e-commerce market shows considerable promise. Companies that continue to focus on improving operational efficiency, expanding their product offerings, and tapping into new sales channels will be best positioned to thrive. Furthermore, regional players who use AI and machine learning to enhance decision-making and streamline processes will have a competitive edge.

Key Takeaways:

• Channel Expansion: Expanding into new channels and partnerships is critical for sustained growth.
• Product Diversification: Broadening product portfolios can help attract new customers and retain existing ones.
• Regional Expansion: Penetrating new markets within CEE and beyond is key for future growth.
• Efficiency: Emphasising operational efficiency through AI and technology will be crucial for overcoming increasing competition and improving profitability.

As CEE e-retailers continue to adapt to these trends, their ability to innovate, collaborate, and scale will determine their place in the increasingly competitive e-commerce landscape.

“Efficiency is the next battleground. Margins in retail are razor-thin. If you’re not using AI to cut waste, speed up processes, and optimise every inch of your business, you’re already behind. Here’s the real takeaway: AI isn’t here to replace people, it’s here to make them 10x better. The companies that use AI to supercharge decision-making, not just cut costs, will be the ones that dominate.” – says Tomáš Čupr, Chief Executive Officer at Rohlik Group.

About the CEE TOP 50 e-commerce research

Since 2020, Growww Digital has been working on putting together a list of the most prominent e-commerce export companies in the Central and Eastern European region.

The Budapest-based regional digital marketing agency aims to define the main trends and developments based on their own experience, published statistics, their clients’ data and insights as well as collecting first-hand information from the major regional players.