The company generated most of its revenue from its own sales (first party sales)
🛍 It is now moving towards an “e-commerce platform” / marketplace positioning where merchants retail products and send these to clients
$CDON is the leading e-commerce player in the Nordics, it counts 2m active customers and over 1,300 merchants
💸 It retails over 8m products and scored a Gross Merchandise Value of SEK 2.4B ($ 288m) in the 12 months leading to Q3 ’20
$CDON belongs to a cohort of local e-commerce player which have successfully managed to fight $AMZN’s dominance
🇳🇱
https://t.co/jUdtPRTkdU in the Netherlands is the leading e-commerce player with 111m website visits (+30% in H2 ’20) vs 33m for $AMZN (+67% in H2 ’20)
🇫🇷
https://t.co/r9rdGvrx9d in France is the N°2 e-commerce player with 84m visits (+21% in H2 ’20) vs 270m for $AMZN (+42% in H2 ’20)
🇸🇪
https://t.co/m8OyFnNYNJ in Sweden scored 7m visits (+27% in H2 ’20) vs 10.3m for $AMZN (entered market in 2020)
Following $AMZN’s example, $CDON is turning itself into a marketplace
🛍 It doesn’t sell products directly to consumers but takes a commission on sales
📦 It doesn’t need to manage inventory or insure product quality
💸 It generates additional sales through advertising
In order to attract and retain merchants, the company is developing a range of tools
📊 Provides data-insights on products sold
🛍 Integrations to $SHOP and Magento
📦 Delivery, warehousing management
On the market side, e-commerce penetration is high in the Nordics
🇳🇴 Norway: 26%
🇩🇰 Denmark: 25%
🇸🇪 Sweden: 25%
🇫🇮 Finland: 23%
Compared to other European countries:
🇫🇷 France: 22%
🇬🇧 UK: 21%
🇪🇺 EU Average: 18%
https://t.co/5wGqyJQqmd
Nothing too extraordinary for now - What is the pitch?
1️⃣ $CDON was previously valued as a brick & mortar retailer as its activity-mix consisted mainly in conventional retail operations
2️⃣ Marketplace sales now account for 67% of total in Q3 ’20, up from 40% a year earlier
3️⃣ Despite the change in activities, the company still trades at a PS of 1.5
For comparison:
✅ $OZON trades at a PS of 8
✅ $SE trades at a PS of 30
✅ $MELI trades at a PS of 28
4️⃣ Growth is overshadowed by the decline in its conventional retail activities
5️⃣ When looking only at the “marketplace” sales, these are up 94% YoY to SEK 1.5B ($ 180m)
Thank you
@T_I_M_P_P_A for surfacing this gem!
Happy to hear your thoughts!
@miljonjakten @cmuggla @KodarnMotMelon @mhvestergaard @Matematikern3 @JGSventures @SJ_Invest @tjylha @Andan_swe ⁉️ Other gem worth surfacing ⁉️
🔥 $GFG.DE is on the watchlist as well
🔥 We have a stake in $CDON.ST 🔥
Disclaimer - This is not investment advice in any form and investors are responsible for conducting their own research before investing.
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