CHL concentrates on regional sales through the e-commerce channel. Also, we have developed a very profitable e-commerce services business unit, which is pretty similar to Amazon. This involves replicating the platform that we have developed for the traditional business and we provide it as an outsourced service to companies who need the platform for their own e-commerce initiatives.
TWST: Could you break down the various online areas from which CHL derives its revenues, in percentage terms?
Mr. Giacomelli: Yes, I can provide approximate figures for these areas. Around 95% of sales turnover comes from the customers who buy from the store online. These sales consist mainly of consumer electronics, most of which is IT hardware such as PC's etcetera. The remaining 5% is derived from services sold to companies, such as
1-Online advertising, CHL easily being the largest e-commerce portal. 2-E-commerce services, which is the platform service for outsourcing - that is what is often called ASP (application service provider) but we add the option for client companies to be able to deploy logistics for certain kinds of goods and therefore clients can use the technological platform plus warehouse and distribution systems.
Tickers included in this excerpt: CHL.MI
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