Croatian Post in Digital Transformation With its Internet Store
The Croatian Post started to digitize and change the way of doing business, and after the introduction of the ePošta e-mail service went on and launched their online Yellow Ticket www.zutiklik.hr.
We discussed this with Rosa Stojnić, head of the Department for Digital Services Development and Management in Croatian Post, which points out that in Croatia only half of the internet users (48%) regularly make purchases over the Internet and see great potential for further growth e-commerce.
She explains that one of the reasons for entering this business segment is that the growth of online commerce affects the volume growth of 5 to 20 percent a year, affecting HP's business, but also makes it possible to buy online, in post offices as well as delivery in accordance with this was at home as a packet in the post office.
Croatian Post is experiencing digital transformation. After your new service launch with ePošta, you are now presenting your new e-commerce platform called www.zutiklik.hr. What are your reasons for entering the online marketplace?
Digitalization is one of the key elements of the Croatian Post’s Business Development Strategy - Pošta2022. As an integral part of its business development philosophy and an important business driver. Today, the level of innovativeness and speed and adaptability in business and digital transformation are what guarantees survival in the market. The rise of e-commerce in Croatia is steady, but there is still room for improvement, and that is certainly one of the reasons for Croatian Post’s entering a new digital market. An increasing number of domestic customers are starting to shop from home, and research shows continual growth of the online marketplace in Croatia and on a global scale as well. In Croatia, regular online customers are only half of Internet users (48%), and this is where we see further growth potential for e-commerce. Also, due to the growing popularity of online shopping, there is a 5-20 percent increase in the number of packages, and that is how Žuti klik influences the development of Croatian Post’s parcel logistics.
Also, we are using some comparative advantages our company offers: Žuti klik is the only online store on the Croatian market offering multichannel approach to sales. Selected items, except directly on the website www.zutiklik.hr, may also be ordered in all post offices or via our Contact Centre at 072 07 07 07. Multichannel approach to sales enables us wider coverage and better use of the potential of our wide sales network, i.e., 1016 post offices. Ordered items are delivered to the buyer’s home address in the shortest time possible and, if more convenient, parcels may be collected from the nearest post office.
How long did it take you to develop the system and what is the type of your e-commerce platform? How much did you invest to date and what are your future investment plans?
The application for the Žuti klik online store has been developed in cooperation with the Slovenian Post which, through the Moj paket brand, has been successfully operating in the Slovenian market for the past three years. It is a nopCommerce platform adjusted to our market needs and successfully integrated in the Croatian Post’s systems. In a brief time of only five months, technical solutions have been implemented, and integrations completed enabling successful operation of the Žuti klik online store. This collaboration is based on the platform hire, and future investments and upgrades will be agreed with our business partner, when necessary.
What have you planned for your online store in the future?
After the initial phase of introducing customers to the new online store and market positioning, the plan is to connect Žuti klik with other products and services in the Croatian Post’s portfolio. Also, we plan to expand out assortment and further upgrade all our service segments, from sales to delivery. Our goal is continual development of our online store so that Žuti klik soon becomes one of the most popular online shopping destinations in Croatia.
Many products available in your online store are delivered by mail carriers. Which products are the most popular ones and are you planning to expand your product range?
Žuti klik offers a wide range of selected high-quality products in several categories, with an accent on seasonality, promotional and special occasion products. The range is not too wide, but categories feature a diverse assortment of quality products, and there are always special offers and quality products available at favourable prices. Current categories are Garden and Tools, Sports and Recreation, Children’s Toys and Accessories and Home. We plan to expand our assortment and add new categories gradually.
In addition to kitchen and bathroom sink faucets, which are currently very popular on Žuti klik, among the most popular are those in a higher price range, such as stainless steel cookware, chainsaws and electric cars for kids. Good price, free delivery, and seasonality are the three main factors affecting the sales. It is important to adjust the product range to the needs of our customers in rural areas where there aren’t many stores and sometimes even no Internet connection, but there is always a post office nearby.
With the construction of the new sorting centre in Velika Gorica, this is another big step forward for Croatian Post. That is not in line with the common opinion that big state-owned companies are slow. How do you comment on that? What are your plans for the future?
The construction works on the new sorting centre in Velika Gorica started in June of this year, and everything is going as planned. The new sorting centre will cost HRK 345 million, and it is the biggest capital investment in the history of Croatian Post to date. This investment is important not only for Croatian Post but will also facilitate the overall development of logistics in Croatia.
Croatian Post is one of the biggest employers in Croatia, and there is nothing slow about us. From the presentation of our Business Development Strategy - Pošta2022 in May this year, there have already been several project launches and strategic investments. For example, Digital Postman, currently available only in Varaždin, is in the final stage and soon all postal workers in Croatia will carry smartphones and mobile printers. Digital Postman is a project that speeds up parcel delivery to home address, and it is important for the company and postal workers and especially for our end users.
With the launch of our Žuti klik online store, the strategic initiative of digitalization and making services more approachable to end users is being implemented. In addition to launching a new online store, we are also working on the development of the existing ePošta digital service enabling users multiple convenient solutions, such as online payment services and sending of registered postal items and letters from own computer or mobile phone via the mPošta application. ePošta is interesting to businesses as well because our applications enable invoicing and document delivery in digital form. Epošta significantly reduces costs and paperwork and makes communication with clients easier.
Also, in addition to core business and digital service development, we have made several investments in new technological solutions. In Split our new automated postal item sorting system is operative, and soon the same will be put into operation in Zagreb as well. The investment is worth about HRK 50 million. Due to a significant growth of the parcel delivery market, also stimulated by the rising popularity of e-commerce, Croatian Post will invest in the new parcel distribution system. The new systems will speed up the distribution and delivery of postal items to their destination.