There is another store that probably burned its expansion. The challenging conditions have now exposed the problems of the popular online retailer Dedoles, which is run by a Slovak company, but whose most important market is the Czech Republic.
Marketing bet
Dedoles have been growing extremely fast lately. In just three years, he has managed to move from a turnover of 15 million euros to an unbelievable 92 million euros. He focused mainly on the sale of underwear and socks with attractive and non-traditional patterns.
It must be added, however, that the success of Dedoles lay primarily in sophisticated marketing. The products themselves were not of very high quality, which was probably to encourage customers to change them quickly.
But at the time of the belt tightening, the Dedoles concept seems to have been somewhat exhausted. People will no longer order new underwear every week for fun, which was a sign of the company’s sales slump. After all, other online retailers, especially those with fashion, say that the last few months have been very difficult for them because customers have almost stopped shopping at some point.
The only hope is gone
Now the situation is improving a bit again, but it may be too late for the Dedoles. Although its owner assured the media that nothing much was really happening, even though the company was not really able to pay the invoices and had to start massive layoffs. But as soon as similar voices begin to sound, it is necessary to sharpen them.
The only hope for saving Dedoles at the moment is probably to find an investor. Many companies were approached, even on the Czech market, but according to the available information, the negotiations are not very positive, because it turns out that the value of Dedoles is only in the brand of the store, while everything else is easily replaceable.
In addition, Dedoles appears to have grown only through massive investment in advertising. Some sources then claim that the larger its turnover, the greater the loss, which speaks to the company’s completely unhealthy fundamentals.
In any case, the company has already applied for protection from creditors and its future is highly uncertain. It can collapse relatively quickly. Evaluate for yourself whether you will be shopping in such a store with a prepayment.
Foto: Shutterstock
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