The desire to pay less, and getting more characteristic of any normal person. How to take advantage of this desire to think about four years ago, thanks to which the world saw a new niche in the e-commerce market - penny auctions, we are better known as Scandinavian auctions.
The concept of Scandinavian auctions, in contrast to many types of network commerce, is quite simple to explain: a lot (usually expensive cars) is set at a record low price, after which users make bids for which they pay with real money. The meaning of this process is that, on average, a hypothetical laptop (phone, PDA, etc.) can be won for 10% of the actual amount of goods.
In this case, the economic relationship between the “seller” and “buyer” is as honest as possible - at the expense of mass, the site covers the cost of the lot that went away for nothing, and its lucky owner does not believe that it was possible to buy a laptop for some 200 hryvnia. The main thing is the desire to win - say almost all the gurus of the "Scandinavian purchases".
Since 2005, the Swoopo startup has become the world market leader and set the fashion for the Scandinavian auctions, forever securing the role of the role model. Currently, Swoopo, which was originally based in Germany, has grown into a large international company with six local offices dealing with localization and delivery.
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In the CIS countries, the attitude towards such sites is still ambiguous because of the scammers who were the first to enter this market. That is why Scandinavian auctions are often accused of having “bots” that automatically increase the cost of the lot, and of “divorce” (“I bought bids, played at the auction, and they took and closed. I don’t know where to look,” such records often can be found on the forums.).
We asked Pavel Altman, Head of the Internet Projects Department at Premo Group LLC, to comment on the situation and thoroughly understand the business model of auctions, who is the project manager of the new shopping and entertainment portal
Mozgo.ua .
Pavel, why was the Scandinavian auction chosen?
This is a combination of e-commerce and entertainment. Since the niche of traditional e-commerce is now busy, we decided to look for other options. Seeing this idea, we realized that we want to organize everything correctly and truly. As a result, we decided to add all the gaming component and functionality of the social network. Thus, the challenge was the following: to create a community of fans "to buy fun."
What does your business model look like?
Our goal is not to strip the user to the skin, but only on average to have a lot of profit in lots so that the business can be profitable and provide opportunities to expand it. As a result, we offer the user just another way to make a purchase. When creating "Brain", we were guided by the slogan Swoopo - "entertainment shopping". I am sure that we have coped with the task of creating a platform for “entertainment shopping”.
You are talking about profitability. What is the estimated release date for self-sufficiency?
Exit to profitability is expected in the next two months. As for general investments in the budget, I can say that in a year or two we will be able to fully return the funds spent on launching, operating and promoting the project.
Try to briefly explain the specifics of the Scandinavian auction market in Ukraine. Foreign development scenarios differ?
There are three different markets: Europe, Russia and Ukraine. In the West, there is one clear leader Swoopo. In addition to this company, there are more than a hundred projects that are trying to work in a similar format. However, none of them makes up 10% of the leader.
Russia also has a pool of leaders who entered the market a little over a year ago. As in the case of the Western market, there are imitators, but they do not occupy a more or less significant market share.
In Ukraine, there is no leader. We want to become the undisputed leader and we have quite serious plans for entering the markets of the near abroad. However, these are plans for the future. The main task that now faces us is overcoming mistrust on the part of users. This requires an impeccable reputation. You understand that you can achieve it only with crystal fair work.