Kolonial serves its first customers. It has 120 suppliers and a unique logistic model

The business model of Kolonial, which includes its own storage, SAP implementation, network of suppliers and other features, required the investment of several millions CZK. “We want to build business with long-term profitability, which would not hit its roof shortly after being launched, ” says Jan Jírovec, CEO of E-commerce Holding which runs Kolonial.

Kolonial offers products from 120 direct suppliers: “If an online store is to operate as a fully-fledged channel, not only as an alternative to classic retail, it must be perceived this way especially by the suppliers and manufacturers. That is why the only way was to start direct cooperation with them, ” explains Petr Vyhnálek, the head of Kolonial. Beside groceries, Kolonial offers also cosmetics and household products, children´s products and pet food. The offer is by no means final and shall be broadened, especially the assortment of groceries, so that it offers also special products for discerning customers. Also the web functions and customer service are to be extended.

Kolonial´s customers get their deliveries the next day and free of charge during all June. What seems to be a disadvantage, in comparison to current competitors, has a good reason. “The next day delivery enables to provide maximal freshness. We do not store fresh goods; the manufacturer delivers is only after the order is made and it goes directly to the customer. As a result, the product is on the way only a few hours in comparison to classic retails where it could take several days, ” says Petr Vyhnálek.

Second day delivery is not the only difference in terms of logistics. The storage in Rudná u Prahy used by Kolonial was designed specially for the requirements of online grocery store. The set-up and systems which operate it were designed to master even a big number of orders per day and remain maximally efficient: “The success of online grocery sale depends directly on efficient logistics, ” Petr Vyhnálek summarizes the importance of logistics.

E-commerce Holding represents a network of specialized online stores co-owned by Rockaway group and Czech Media Invest. Since its launch in 2014, it has built 16 online stores with total customer base of 3 million users. By the end of 2015, they are going to broaden their portfolio with new verticals, and start expansion and building the position of a regional player.