Digitec Galaxus looks back on a successful 2017

In the previous year, the company generated sales of CHF 725 million. The two online stores Digitec and Galaxus thus grew by a combined 19 percent. Digitec Galaxus has also grown in terms of personnel: Last year, more than 300 new employees joined the company. At the end of 2016, the company employed 828 people; by the end of 2017, the figure had already risen to 1156.

Digitec thus remains the stronger brand, but the Galaxus online department store launched in 2012 is growing much more pronouncedly. "A wide range of products with low prices, good availability and fast delivery is the basis of our success," says CEO Florian Teuteberg. The decisive factor, however, is that shopping is convenient and a pleasure. "Online stores don't just have to look pretty and offer an easy product search; they have to inspire." At both Digitec and Galaxus, this is achieved through editorial content, clever buying suggestions, and exchanges with other customers in Switzerland's most active shopping community.

Advertising that stands out

Digitec and Galaxus were the talk of the town not least thanks to their controversial advertising campaigns: Digitec, for example, surprised with posters, TV spots and online banners featuring real comments from customers about products they bought. Galaxus' most succinct campaign, meanwhile, took an ironically exaggerated approach to the often strikingly simplistic political campaigns in which large, complex issues are dealt with in short one-liners. One slogan for a boxing glove, for example, was "For a strong right.

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The million is cracked

Digitec Galaxus has also greatly expanded its product range: at the end of 2017, the online retailer had more than one million products available for the first time. Digitec Galaxus thus more than doubled its product portfolio last year. "Our goal is to be able to offer our customers the best possible combination of maximum availability, fast delivery times and attractive prices across the broadest possible product range," says Teuteberg.

One means of achieving this is Digitec Galaxus' dealer program: since October 2016, the company has been offering established retailers in particular the opportunity to distribute their portfolio via galaxus.ch. Among the prominent companies already participating are the pet expert Qualipet, the furniture specialists Ikarus, Beliani, and Kare, and, most recently, the department store Globus.

Even broader range of services

2017 was also a year of innovative services at Digitec and Galaxus: In April, the online company introduced "DG Play" and "Galaxus Play," a new type of loyalty program. Since then, customers have been rewarded playfully with points, levels and awards when they shop and by discussing products or leaving reviews. This was followed in October by another feature: customers can now resell their products purchased from Digitec and Galaxus at the same location. The new service has been a resounding success: Several thousand used items have now been resold via Digitec and Galaxus.

Off to Germany

This year, Digitec Galaxus is also turning its attention to Germany in particular: The Swiss online retailer will be crossing the border with Galaxus in the coming months. As in Switzerland, Galaxus will be an online department store in Germany: customers will find smartphones, drones, printer cartridges, diapers, blenders, lipsticks, sofas or skateboards, for example. "We are convinced that with our online platform we have an offer that does not yet exist in Germany and will be well received by people," says Teuteberg.

Of course, Digitec Galaxus' Swiss customers will also benefit from the expansion into Germany: "We pass on more favorable purchasing conditions to consumers," promises Teuteberg. For him, it is already clear: "If we are successful in Germany, we will expand with Galaxus into other countries.