Enjoei wants to occupy (and vacate) more and more Brazilians’ closets. A goal that works for your operation, but has had side effects outside of it. Since the IPO in November 2020, when it raised BRL 1.13 billion, the company’s share value has melted more than 72%. The economic situation is one of the reasons behind the stampede of small cap papers, in the case of Enjoei. But the retail analyst at XP Daniela Eiger notes that the circular economy, to which the business is linked, is new to the financial market and its results are not measured in the short term, which is under stress in the crisis. “The company’s plan has always been to generate a profit within two to three years,” he said.
Keeping up with your business evolving according to the initial strategy is what relieves the pressure on Tiê Lima and Ana Luiza McLaren, CEO and chairman of the board, respectively, who co-founded the company in 2009. “We managed to overcome this first year of IPO and structure ourselves to a new phase”, stated Lima. In the presentation of the operational preview of the fourth quarter, Enjoei announced the readjustment of the platform fee, from 13% to 18%, in an effort to improve margins and appease the malaise of the market. The sprint in the last period also helped the platform to move BRL 826 million in sales, up 67% over 2020. It ended 2021 with the purchase of Gringa, a second-hand luxury goods trader, for BRL 14 million.
To sustain growth in 2022, executives broaden the perspectives for the brand, considering the expansion to physical channels, but first, they must prioritize the online universe. “The Gringa operates in a niche with good margins and in which the brands themselves generate a desire to buy”, stated Ana Luiza. “It will be up to us to offer excellent service.” Under the agreement, former global actress and platform founder Fiorella Mattheis will remain at the helm of Gringa. The platforms continue in separate operations, but they come together to invest in technology and leverage traffic.
As an operational tactic, they keep an eye on audience movements. According to the CEO, “if the market becomes more competitive for user acquisition, we seek to improve the recurrence of transactions.” Among these features, Tiê Lima cites the increase in the assortment, with more than 1 million active sellers on the platform. By the previews of the last quarter, the offer of products published between October and December totaled 3.8 million items, 15% more than the fourth quarter of 2020. He also celebrates that, in the third quarter of 2021, 53% of transactions were performed by users who purchased six or more times.
TREND The global used market is expected to reach $77 billion by 2025, according to Statista. It is a segment that tends to grow 20% a year after a slight retraction in 2020. But it was in this first year of Covid-19 that Enjoei tripled its number of active users. In addition to operating in e-commerce, boosted during this period, the economic crisis and supply chain shortages led to searches for the platform. Ana Luíza says that “even before the pandemic, we already saw acceleration in periods of crisis or when the budget tightens, as in the month of January”.
For Danniela Eiger, from XP, for offering a channel to generate extra income and products at more affordable prices, Enjoei occupies a privileged position in the market in 2022, even with a challenging year for consumption. “But it is important to remember that, as it is discretionary retail, this may not have a direct impact on results,” said the analyst.
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