Marek Harag, Head of Transport & Distribution, MODIVO S.A.

The Goal: 80% Revenue Brought by Foreign Markets by 2025

  • 5 August 2022
  • 7 min to read
  • 33 views

Tell us about the very beginning: how Modivo started and what were the prerequisites?

The history of MODIVO S.A. is a story of breaking the usual thought patterns and boldness in the rapid implementation of the new technologies. In 2006, the group started online sales and expanded its logistics infrastructure to prepare for further business growth. It was done by leasing new warehouse space in 2011.

The beginning of the company’s international expansion was marked in 2013. The first market where we launched our platform was the Czech Republic. A year later, we expanded our business to Slovakia. Until 2017, our products were available to residents in 14 countries.

We dynamically developed multi-channel sales by opening our first stationary store in 2018. Our innovative esize.me tool was presented later that year: the right shoe size selection became available with the 3D scan of the foot. One of the key undertakings in 2019 was the creation of a new MODIVO sales platform, offering premium brands clothing and accessories. Later, we opened our first stationary store with the eobuwie.pl and MODIVO offer in Prague. At the turn of 2021 and 2022, we launched our first foreign logistics center in Bucharest.

Now, we are finalizing an additional platform, Marketplace. We are tracking an increasing interest in this sales model in both large and smaller brands. With the help of Marketplace, we will be able to expand our stock with other product categories.

The company’s business also includes key investors to cooperate with. They support both the company and the entire team in further, rapid development and in building our position as a European leader in online sales.

In addition, at the beginning of this year, we decided to change the company’s name to MODIVO S.A. This is due to our striving for international growth and debuting on the stock exchange.

You are one of the stellar online retailers in Poland. Do you intend to expand your activities to other markets?

One of the most important issues for our supply chain was certainly the opening of a new logistics centre in Bucharest, which I mentioned earlier. Our first foreign facility – a warehouse with an area of 15,000 sqm. focuses on serving three markets: Bulgaria, Greece, and Romania. The opening of this facility was related to the transition to our Next Business Day policy. We want most of the shipments in this region to be delivered to customers the next business day. This move was also crucial from the standpoint of developing certain patterns that will allow us to open new warehouses faster and easier while maintaining the same level of quality.

Another important aspect supporting the process of foreign expansion is the automation of logistics activities. Our main goal is, above all, to shorten the time involved in preparing and packing shipments and optimise costs.

I think it is worth mentioning our cooperation with Meest, which supports our orders to Ukraine. The company collects parcels from our logistics centre in Zielona Góra, from where they are then transported to Lviv after customs clearance. Meest’s activity also involves the implementation of the entire process of returns, which begins with its verification of products that go from Ukrainian consumers to the warehouse in Lviv. After confirming the completeness and quality of the returned goods, the customer receives a refund. With dynamic and comprehensive cooperation, consumers receive a refund quickly.

You mentioned operating on the Ukrainian market. The situation is being monitored all over the world. How the company is working in martial law in the country? And what has changed?

As a trading company, we are inevitably under the influence of changes taking place not only in the Polish economy but also in the world. Thanks to our unique business model, we have learned to respond to them effectively. Due to the suspension of operations in Ukraine by courier companies since the outbreak of war, we’ve been forced to temporarily cease sales in the region. We are constantly monitoring the situation in Ukraine to react to the circumstances and manage the challenges we are facing. We plan to return to the local market as soon as possible.

Global changes in the world affect the markets. What are your thoughts on the future of cross-border e-commerce? Are you going to develop it in other markets?

Our primary goal is to build and strengthen our leading position in the shoe, clothing, and accessories merchandise in the CEE region. Our ambition is to acquire over 80% of revenue from foreign markets by 2025. This year, our list of goals includes, among others, a debut in several more countries. However, apart from the mere presence in a given region, we also want to understand the needs of our foreign clients. With that in mind, this year, we created the International Business Unit. It will deal with the development of the eobuwie.pl and MODIVO platforms on European markets. This step will adjust our logistics processes in the e-commerce area, so that our consumers could be satisfied.

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