As part of MALL Group's merger with Allegro, we have prepared a summary of the most frequently asked questions that may be of interest to you.
What is the goal of the joint company?
This merger creates the leading e-commerce platform in the entire region, which will bring together a number of popular brands under one roof - MALL, mimovrste, CZC.cz, WE|DO and of course Allegro, Ceneo, eBilet and One. Together, we want to create a leader in e-commerce in the CEE countries where we already operate, but also reach out to the rest of Europe.
Our goal is to become the #1 shopping destination, where we want to improve the shopping experience for our customers every day. While they will benefit from the best prices, the widest selection and maximum convenience, you - our partners (3Ps) - will be able to "list once, sell everywhere". We want you to have the best tools and solutions at your disposal to serve our customers easily and profitably throughout the region. All tools and services will be scalable in all countries where we decide to win.
We want to be your preferred platform to successfully manage your local and pan-European business with very competitive commissions in all CEE markets.
We want to combine the best of our worlds and leverage our strengths. At the same time, our own vendors (1P) are, and will continue to be a very important and strategic part of our business. It is an area where we are very strong in the Mall Group and one that we want to leverage and possibly expand. While Allegro is the marketplace champion, we have long-standing good relationships with suppliers and we are strong in selling goods from our own warehouses and offer access to extensive infrastructure and last-mile solutions in the countries where we operate. Our aim will be to develop this unique model across the region, which customers will look to as their number one shopping destination.
What is Allegro's strategy and how does it reflect into the joint companies?
Allegro's strategy focuses on providing the best shopping experience for customers, merchants and suppliers alike. Its innovative DNA has translated into many improvements, be it in terms of expanded offerings, pricing and shopping convenience, which has led to Allegro's NPS (net promoter score) being the highest in the industry.
Allegro is the most popular online marketplace in Poland, attracting more than 21 million internet users per month with approximately 250 million offers. One in three people in Poland, a total of more than 13.5 million people, is an active shopper on Allegro. Its GMV in 2021 reached almost EUR 9.1 billion (PLN 43 billion) and adjusted EBITDA exceeded EUR 424 million (PLN 2 billion). Allegro is based primarily on a marketplace model (3P), which means it fits perfectly with our model based primarily on suppliers and selling goods from our warehouses (1P). Together, we will offer our customers, retailers and suppliers across Central and Eastern Europe something unique.
We look forward to doing great things together and replicating a unique model that customers will look to as their number one shopping destination.
What changes can be expected in Mall Group and WE|DO as a result of the transaction? Could Mall Group and WE|DO continue on their own?
This transaction will kick-start our growth and help us take our business to the next level. Together, we gain a clear competitive advantage as we will leverage Allegro's knowledge and expertise in the market across Mall Group brands and markets. We're a perfect fit not only in terms of how growth-oriented, innovative and teamwork-oriented we are, but more importantly in terms of business - our 1P model complements Allegro's 3P model and vice versa. It's a win-win.
What are the differences between Allegro MP and Mall MP? What changes should we prepare for? / What is changing for me as a result of the transition from Dropshipment to Marketplace model?
There are no changes to our current operations and any changes that may affect you will be communicated in a timely and transparent manner.
Our goal is to create an international platform for you that will allow you to grow your sales faster than ever before, and offer our customers the best selection at the best prices. Allegro's new online platform will gradually cover the newly connected markets, starting with the Czech Republic early next year, while the implementation of strategic solutions for customers across the Group will begin shortly.
We will be preparing you for the switch to the new international platform in due course and will do everything possible to make it a smooth and simple process so that you can start enjoying all its benefits as soon as possible.
With the launch of the new platform, we plan to switch to the Marketplace financial model (instead of the current drop shipment model), which brings with it a number of benefits for you, including the ability to sell a bigger variety of products. The new model also comes with a new billing system that features direct billing to customers, as well as the ability for you to communicate directly with customers in all areas, from answering their questions to resolving complaints.
These changes will, among other things, speed up communication and payment flow.
Will the existing platforms remain in operation or will a new one be created? / Will we operate on the original platform? What does the possible change (new connections?) technically mean for us and when will it happen?
Thanks to this merger, you will also be able to enjoy a unique international sales platform, which will allow you to sell goods across Central and Eastern European markets in one clear interface. We are working hard on its design. However, we can already reveal that it will offer, for example, automated translations into individual languages or the possibility of communication with end customers automatically translated into the language of the customer. It will also include advanced marketing tools that will allow you to increase the visibility of specific products on offer, or various business analyses and recommendations that will help you better manage and increase your sales. You can also look forward to new logistics options that enable fast and efficient transportation of goods to customers in each country.
We would like to assure you that nothing will change for you this year in how you operate on the platform.
We will be gradually integrating individual markets into the platform, starting with the Czech Republic early next year. Until then, we will operate on the original platform. We want to assure you that we will inform you of all the details and the launch date in due course and we will do everything we can to make this transition as easy as possible so that you can start enjoying the benefits it brings as soon as possible.
What are the advantages of combining Mall and Allegro? How will this change help us? / What will the planned change bring us? Will it offer new markets, better product searches, an influx of new customers, simplified administration, greater marketing opportunities?
The merger of Mall Group and Allegro will create the leading e-commerce platform in the entire region, which will bring together a number of popular brands under one roof - MALL, mimovrste, CZC.cz, WE|DO and of course Allegro, Ceneo, eBilet and One. Customers will be able to gradually benefit from the SMART! programme and a range of loyalty benefits such as free deliveries, fintech products or access to the B2B platform. You, our partners, will gain access to seamless sales, innovative solutions or marketing services for more than 70 million people and a retail market of more than €250 billion, in countries with above-average e-commerce maturity and rapid growth.
Do you expect any problems when combining a predominantly 1P business with a 3P business?
We believe that customers want the same things everywhere, namely the widest choice, the best prices and the most enjoyable user experience. These three things have always been our focus, both at Mall Group and our colleagues at Allegro, and we will continue to do so together in the future, combining the best of both sides. Ultimately, it's important to us that we can offer customers unlimited choice, great prices and delivery. Allegro's success is based on many years of experience in the online marketplace. Mall, on the other hand, comes with a quality international team and knowledge and experience in the large 1P business, we have long-standing good relationships with suppliers, we are strong in selling goods from our own warehouses and we offer access to extensive infrastructure and last-mile solutions in the countries where we operate.
We intend to leverage this as we expand our international footprint while maintaining a strong 3P model with 1P experience in accessing additional markets.
What specific support can I expect from you in the future?
This connection will bring you a number of advantages and benefits. We are glad and appreciate that you have merged your business with us and we are ready to provide you with maximum support throughout the integration process:
(i) an educational program on cross-border sales opportunities within the Academia Allegro training program,
(ii) a set of tools and processes on the platform that will enable the management of international sales (the principle of "list once, sell everywhere"),
(iii) attractive logistics solutions that will help the efficient flow of products in the region,
(iv) tools for efficient and easy management of contacts with local customers (e.g. (e.g. automated translation mechanisms, etc.).
We believe that by using these tools and knowledge, you will be able to not only easily identify the needs of local customers, but also effectively build your business to be successful in expanding to other markets.
Should we be concerned about the negative effects caused by increased competition, the reputation for the quality of Polish goods and the associated low prices? / Are you worried that the Mall will lose customers because of the reputation of Polish retailers in the Czech Republic? (focus on price instead of quality, scandals with defective food, infected meat, etc.)
Our common goal is to be the number one shopping destination for customers wherever we operate. Customers are interested in a wide selection at good prices and convenient and fast delivery. And together we are ready to deliver.
Allegro is an international platform and the merchants need to adhere to strict quality standards. Most of the products that are being sold at Allegro are world known brands with high quality. For cross-border only merchants with very good quality score are considered.
Allegro has become the most popular shopping platform in Poland and one of the largest e-commerce platforms in Europe, attracting more than 21 million internet users per month with approximately 250 million offers. One in three people in Poland, more than 13.5 million people in total, is an active shopper on Allegro. Its NPS (net promoter score, the measure of customer appreciation) is the highest in the industry and it remained consistently at an industry-leading high of 78.9 in Q4 2021. It shows that customers in Poland are very satisfied with the products and merchants. We believe that the customers are the same across countries - they want the best selection for best prices and with great delivery and if they like what they buy in Poland they will like it also in the Czech Republic.
We believe that by joining together we will change the current rules of the game and allow you to benefit from 'once you click, you sell everywhere', while giving tens of millions of EU consumers convenient access to better choice and the best prices and delivery experience.
We want to combine the best of our worlds and leverage the strengths that all companies have built so far in technology solutions and logistics, and further develop them together for the benefit of our mutual merchants and customers.
We now want to provide you with the best tools and solutions so that you can be successful with us and the customer can benefit from the widest range of offerings at attractive prices. Like us, Allegro places great emphasis on high product quality and customer and merchant care. We and Allegro have sufficiently strong control mechanisms to monitor the quality of the offer and to be able to adjust it in the event of problems or to take sanctions in the event of repeated misconduct and breach of terms and conditions.
Will Czech speaking support still be available, or will all communication be moved to Poland?
We are aware of the importance of mother tongue support for your business, so in the future we expect local language support in the countries where we operate or where our group decides to enter. For our partners in the Czech and Slovak Republics, we will continue to offer support in the Czech language.
There will be no changes to our current functioning and form of cooperation, including the contact persons with whom you work. We will inform you of any changes in due course.
Given the takeover of WEDO, is there a plan to expand Mall Delivery to Poland or other countries?
Allegro and MALL will be an international e-commerce platform and simplifying logistics across the region will be one of the Group's key priorities. We will expand our international logistics services to make it as easy and affordable as possible for merchants to send goods abroad. We expect a service analogous to the existing MALL Delivery to be available across the region in the near future.
Is there a plan to reduce or include new countries where it will be possible to trade?
This merger creates the leading e-commerce platform in the entire region. Together we want to create an e-commerce leader in the CEE countries where we already operate, but also reach out to the rest of Europe and continue our international growth. That is why we will continue to focus together on successful business in all six countries.
What negative impacts can change have on us? Will we lose sales due to the influx of PL merchants? / Loss of competitiveness due to the influx of cheap products from Poland?
On the contrary, the merger of MALL and Allegro will give all merchants the opportunity to reach more foreign markets, offer even better services and reach millions more customers.
Will MALL.CZ continue to exist? What will change for the end customer? ALLEGRO.CZ?
We are currently working on a detailed strategy for each brand, which we will inform you about in due course during the integration.
Poland is often the country where our partners buy their products (so now they will have to compete with their suppliers)?
We understand your concerns and it must be said that we are encountering similar situations now. However, there are a number of factors that influence customer decision making, including the appropriate choice of product name and description, or speed and price of delivery, that will allow you to differentiate yourself from your competitors. This allows the customer to opt for the best option according to their own preferences.
Can any changes in pricing policy e.g. margins or fees be expected within AMG? / Allegro is generally cheaper. Will the pricing policy change? How will this be reflected in our margins?
The fee and margin structure will be harmonized to be consistent across the Group and all countries. Fees and margins will be gradually adjusted to better reflect the specifics of each category and sub-category and enable partners to achieve even better business results.
Will a new contract be required? / Will the contractual relationship be transferred to Allegro? Will a new contract be needed? What changes to the General Terms and Conditions - other than adjustments to the price lists and fees - do I now expect?
There are currently no changes to the current contractual relationship and terms and conditions. Merchants and suppliers will continue to have a business relationship with the existing legal entity of MALL, which will continue to operate unchanged in each market. We will communicate any change in a timely and transparent manner.
Allegro is a pure marketplace, MALL is dropshiment, will this change? Will the merchants of MALL invoice customers directly in the future??
With the transition to the new platform, we are planning several changes within the operating model. One of the main changes relates to the ability for merchants to communicate directly with customers in all areas - from answering their questions to resolving complaints. This also entails a different billing system that entails direct billing of merchants to customers. These changes will, among other things, speed up communication and payment flow.