Otto Group is the world’s second-largest internet retailer. It operates 120 companies in more than twenty countries and has more than EUR12 billion in annual sales. From a mail order company, it has now expanded into ecommerce, financial services, real estate and lifestyle brands. The group is now aiming to generate 17 billion euros by 2022.
Ecommerce remains a major growth driver for Otto Group. In the last two years, the company has increased its online turnover by 10.9%. During this time, the company has digitised its processes and developed new digital business models. As part of its ecommerce strategy, Otto has invested in a number of technological platforms. For example, in the last year, the company introduced a new software that significantly improves the speed of updates. Other projects include augmented reality and voice assistants.
Today, Otto has more than 20,000 employees working in the online business. Many of these are remote workers who work from home. This helps the company provide services to a global customer base. Currently, 55 percent of Otto’s purchases are made on mobile devices. OTTO also offers its customers SMS notifications when they have their products delivered.
The company has been successfully piloting ecommerce events at Bonprix and Mirapodo, as well as Mytoys. In the upcoming financial year, the Otto Group plans to increase its range of products and services and will invest in new live shopping formats. Meanwhile, it is working on social commerce and will develop complete service packages.
During the current fiscal year, Otto expects its ecommerce revenue to grow by 23 percent. According to the company, the consumer sentiment is subdued, but it is still on track to achieve its target. During the next few months, Otto will further invest in the group’s core brands and focus companies. These investments are designed to bring significant growth to the company.
Otto plans to invest more than three million euros in advance of the upcoming financial year in its ecommerce development. Among other things, the group is aiming to facilitate online payments for its 100+ companies. They have also recently teamed up with Google to launch voice assistants for its products. Ultimately, Otto Group wants to become the most important ecommerce player in Germany and Europe.
In addition to ecommerce, Otto has expanded into retail, financial services, real estate and lifestyle brands. OTTO, the group’s main online offering, sells everything from toys to washing machines. However, Otto sees furniture as the next sector to enter the online market. OTTO has been successful in this area, and it hopes to further expand its portfolio.
Otto plans to increase its global online revenues to 8.1 billion euros in the coming financial year. It will continue to focus on innovation and digitisation in the future. With more than 60 years of experience, Otto has established itself as a leading e-commerce and mail order company. Having embraced the digital disruption, Otto is now ready to set clear standards in the market.
