Overview 4Q/2022
*AOV = Average Order Value
**Conversion = The percentage of shop visitors who bought something
Important developments during 4Q
Tough.
That is the 4th quarter in one word.
The quarter started positively with record sales, thanks to new products, including our own designs which started finally to bring results. As seen from the table above, we did manage to grow 4Q sales, albeit just. On a weekly basis, the sales went up & down throughout the quarter, so all things considered, we are happy with this result. In order to keep the volumes high, we had to give up a bit on profitability.
We again ranked class 5 in the kitchenware category in T-Mall, i.e. our shop was among the top 5% of all shops.
As we wrote earlier in previous quarterly reviews, our focus was again on making the 11/11 and 12/12 shopping festivals as successful for Euroeat as possible. Therefore we started our promotion activities earlier than before, to ensure the maximum amount of traffic to our shops. And this worked, traffic to Euroeat shops were all time high and conversion from visitors to buying customers developed very well.
Covid was again a topic, although 4Q was a very different story to all previous quarters. To begin with, the situation got again clearly worse with lockdowns. Our warehouse was again locked down for a while & restrictions affected our logistics. But then, the government abolished all the covid limitations, which led to very high infection numbers: our whole team in China, including partners, were impacted. Luckily, that wave went through relatively quickly and life returned to more or less normalcy in big eastern cities towards the end of the year.
So all in all, challenging quarter, but we ended the year on a positive note and as covid now seems to be something of a past, we can look positively to the future.
Looking ahead for 2023
We made good progress with our own designs. More products got approved for production and this will remain our focus area for Moomin products in 2023: finding best-selling own products, improving our overall profitability.
Another key area for development for Euroeat is to expand our customer base. This is & has been work in progress and remains critically important for us as we look to take Euroeat to the next level in terms of revenues and profitability. We must be able to increase our revenues further to reach satisfactory profitability levels.
Regarding the market conditions, we see the local development at least for the foreseeable future as positive: now that the zero-covid policy is a thing of the past, we can focus on systematically building & developing our operations further. Something the continuous lock-downs efficiently prevented.
So we are looking forward to the year of the Rabbit through positive lenses.
