eMAG, Naspers to launch eMAG Labs tech testing center

eMAG will launch this year in Romania a tech testing and implementing center for new technologies, representing an EUR 500,000 investment. The solutions developed by eMAG Labs will be used by Naspers at a global level.

Representing a EUR 500,000 investment, eMAG Labs will test and implement new technologies such as VR, IoT and machine learning, among others, to be used in e-commerce. For the project, the company’s current team of 600 IT engineers will be supplemented with 300 programmers, to be hired within the next two years to ensure the development of the platform. In its initial phase, the project will be initiated by a team of ten. EMAG Labs will be developed with support from Naspers, and the solutions will be used by Naspers in its global operations.

“E-commerce is a technology model that saves us times and money. We are investing in technology developed in Romania and are exporting this model to Bulgaria, Hungary and Poland, eMAG CEO Iulian Stanciu explained.

“Romania is a key market for Naspers, and e-commerce is one of the sectors with the fastest growth in the region in the upcoming years. A Romanian business, e-commerce leader, created and led by a talented and dedicated team, eMAG is in the ideal position to benefit from this growth. We are happy we can support these plans,” said Naspers CEO Bob van Dijk in a press release.

In 2015, eMAG’s turnover stood at RON 1.95 billion across all markets, up by 56 percent year-on-year. The company‘s total investments totaled EUR 48 million last year, with half going towards regional development. In Romania, eMAG’s turnover saw a 28 percent increase, up to RON 1.39 billion, amid a fast increase of the range of products offered, the growth of the market and the increased popularity of online shopping.

In July 2016, eMAG offered over one million products to its 19 million visitors. According to Stanciu, the company is channeling its resources in developing the Marketplace platform. “eMAG is currently the largest store, with over one million products and 17,000 brands. We will invest in diversifying the product selection, in developing them in depth and in the accelerated growth of the Marketplace platform. In one year, we want to reach 4,000 partner stores. Marketplace eMAG represents the biggest growth opportunity for every seller,” the eMAG CEO said.

By the end of October, eMAG will increase the number of delivery centers in Bucharest and the country to 200, out of which, 120 in collaboration with the Romanian Post, which currently operates 35. On October 1, eMAG launches the 2-hour delivery service, available 24/7.

eMAG’s other expansion plans include the opening of three new distribution centers in the country, in Timisoara, Brasov and Cluj respectively, and on the long term, the introduction of new services, such as payment of utility bills.

Georgeta Gheorghe