Nelly.com's German test launch becomes permanent
CDON Group AB (Nasdaq OMX Stockholm: CDON) (publ.), one of the leading e-commerce groups in the Nordic region, today announced that it will make its presence on the German market through its leading online fashion retailer Nelly.com permanent.
Nelly.com was test launched in Germany in May 2010 and marked the first expansion of CDON Group outside the Nordic region. The internet store’s initial marketing campaign comprised affiliate programmes, online social media as well as TV advertising campaigns. The test launch showed a healthy demand for Nelly.com products in the German marketplace; hence the decision has been made to pursue the test launch through a permanent presence of Nelly.com in Germany. Nelly.com’s German launch is expected to be loss-making for 2011 and 2012.
Mikael Olander, President and Chief Executive Officer of CDON Group, commented: “The test launch of Nelly.com in Germany has proven commercially viable and we have therefore decided to make our presence permanent in this sizable and dynamic market, which we expect to become Nelly.com’s fourth largest market by the second half of 2011.”
Facts on Nelly.com and the online retail sector
Nelly.com is the leading Nordic online fashion and beauty retailer, aimed primarily at fashion forward 18-40 year olds. Nelly.com attracted more than 30 million visits 2010.
The German online retail sector market was estimated at $21.6 billion in 2009[1]. The Nordic online retail sector was estimated at $9.2 billion[2].
1 Datamonitor Market Research 2 HUI Handelns utredningsinstitut and CDON Group.
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For further information, visit Cdongroup.com or contact:
Mikael Olander, President & Chief Executive Officer
Tel: +46 (0) 10 703 2000
Investor and analyst enquires:
Andreas Ericson, Head of Investor Relations
Tel: +46 (0) 70 080 7668
Email: ir@cdongroup.com
Press enquires:
Fredrik Bengtsson, Head of Communications
Tel: +46 (0) 70 080 7504
Email: fredrik.bengtsson@cdongroup.com
About CDON Group
CDON Group is one of the leading e-commerce groups in the Nordic region. Established in 1999, the Group has continuously expanded its product portfolio and is now a leading e-commerce player in the Entertainment (CDON.COM, BookPlus.fi, Lekmer.com), Fashion (Nelly.com, LinusLotta.com, Heppo.com, RUM21.se), and Sports & Health (Gymgrossisten.com, Bodystore.com) segments. CDON Group’s nine online stores attract approximately 115 million site visits and two million unique customers a year and the Group reported revenues of SEK 2.2 billion for the full year 2010.
The information in this announcement is that which CDON Group AB is required to disclose under the Securities Markets Act. This information was released for publication at 08:00 CET 16 March 2011.