Netpris - COMING SOON
This is a preview of an upcoming funding round
The Scandinavian grocery market is a 60 billion EUR market, which has not yet been digitalized and disrupted. Netpris is an online shop that provides the lowest prices on well-known grocery brands delivered directly to the consumer’s door.
Netpris, based in Flensburg, is a subsidiary owned by Online Grænsehandel Group A/S and was founded about three years ago as an online border shop. The company that began by selling traditional border products, has over the years expanded its number of products and will in the future be offering an even larger assortment of well-known products.
Foreigners typically buy products in Germany due to the significantly lower prices compared to most other European countries, because the VAT (sales tax) on foodstuff is only 7%.
Consumers experience wildly different prices on identical branded goods across Europe and in some cases the difference is up to 130%. Price differences are not only caused by structural features such as VAT, fees on product segments, and consumer habits, but is also influenced by the competitive situation on the producer and retail levels. It is often considered too expensive for companies to execute business in small countries.
In October 11, 2013 the Danish tax authorities approved Netpris’ request to sell goods to the Danish market with local German VAT, if the consumers subsequently organize the transportation themselves. For the customers’ convenience, Netpris displays prices for distribution through a collaboration with Shippii.
Netpris aims to sell stock-up products to consumers at low prices with high quality service. Consumers should not spend their most valued resource, time, to go to a retailer to buy overpriced goods.
Netpris targets the grocery category that is most suitable for e-commerce, with a strategy of:
- Not owning any physical shops or inventory holdings through collaborations with several retailers and wholesalers,
- No distribution costs because the customers pay for the costs through Shippii, and
- Utilizing the VAT structure in Europe
While emphasizing equal offerings for all (same branded assortment for all customers regardless of origin in Europe), we also believe customers value their time, and that they don’t want to waste it on low involvement products while they could be doing something more purposeful. The internet and e-commerce allows them to do that.
Where we are today
Netpris started delivering to consumers in 2013. Since then, we have secured a solid market share in our home markets and we are now ready to move to the next level. We have experienced significant traction right from the beginning, and we can present excellent development in:
- Growth from 2013-2015: 148% annual revenue growth
- Conversion: Average conversion rate of 1.98%
- Basket size: Average basket size of EUR 148 (from EUR 100 to currently EUR 200)
- Loyalty: 65% of our customers are re-buying customers
Where we are going
We have validated our market after some years of sustainable revenue growth, and the first step in moving on to the next level will be to rebrand of our service: Netpris will become “Savr.Club”.
The change is needed in our internationalization process. We believe Savr.Club is a more appealing name when entering the international markets and it is easier to understand for the customers.
The launch of the Savr.Club brand during the first half of 2017 will also bring an additional innovation of our service.
We will offer two different “customer packages”:
- Savr.Club Basic: Where customers can buy our products as they do now on Netpris however with a significantly larger grocery assortment.
- Savr.Club Member: Where customers will have access to premium discounts. The goal of the membership package is to increase user loyalty and thereby increase future revenues. The concept is very similar US-based Costco.
Our aim is to become one of the leading grocery suppliers in Scandinavia and to list the company in 2017 on one of the Scandinavian stock exchanges in order to offer our consumers the opportunity to buy shares and benefit from the company’s value creation.
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