Mikołaj Wezdecki1:29
Of course, with pleasure! But maybe before I talk about what I do on a daily basis, let me walk the listeners through what I've done so far and how my professional career has progressed — because not everyone knows me. If I had to summarize my career in one sentence, I'd say that over these 15 years, I've had the opportunity to work on and co-create three of the five largest e-commerce businesses in this country — in Poland. I'm referring to my first job, RTV Euro AGD, and Euro is still in the top five largest online stores in Poland. Then eObuwie, now known as Modivo, and currently LPP, which brings together five very large brands that are also very strong in e-commerce. So I think I had the chance to co-create three of the five largest Polish e-commerce brands.
The experience I gained in these firms gave me a unique perspective. First, in terms of rapid scaling of e-commerce businesses. Most of these companies — when I started, they were teams of just a few or a dozen people, and most of these e-commerce businesses were growing very fast, at rates of 100%, sometimes even over 100% per year. This rapid scaling allowed me to gain valuable professional experience in how such a fast-growing business should develop — how to develop the organizational structure, processes, to keep up with the pace of growth. That's the first experience. The second experience from these firms is omnichannel. I'd say that the companies I worked for were more mature companies — ones that skillfully used various channels and tried to be consistent across those channels. And you know what, let me maybe go through it chronologically to explain how my whole story looked. I think this is especially interesting for people starting their careers in e-commerce and wondering how to achieve success in this field.
I was actually lucky because my parents ran a skate shop — they founded the first skate shop in Poland. It was located on Smolna Street in Warsaw. Some older residents of Warsaw might even know this skate shop. One day, when I was about 17 or 18, I went to my dad and said: 'You know what, Dad, it's great that you have this skate shop, the business is going well, but I'd like to help you set up an online store.' My dad looked at me a bit like I was crazy, because this was the very beginning of online stores, the very beginning of the internet. There were maybe around a million internet users at that time, so it was truly the dawn of the internet. My declaration to set up an online store sounded a bit like a trip to outer space. But he agreed.
Together with my brother, we built that online store. We created the website, photographed the entire physical store, started some first campaigns in Google. And that online store we built for the physical store, after three months, was generating larger turnover than the entire physical store. I remember my brother and I were going to the post office twice a day. The ladies at the Polish Post Office knew us — those two guys who kept bringing in strange-looking packages all the time. It was an amazing experience for me. If I had to summarize it, I'd say two 'aha' moments came to mind. First, the internet is a channel that gives you the possibility to sell 24 hours a day, 7 days a week, whereas the physical store had limitations — nobody could sit in the store that long, and customers weren't coming in 24 hours a day. And second, I realized that skateboarding is a niche category, but geographically the market for such niche products is very dispersed. The internet would give me the ability to reach those niche customers, because the geographical barrier effectively disappears. We were selling from this skate shop to customers from Zakopane and Suwałki — basically from all corners of Poland.
After building this skate shop, I decided I could either continue running my own or family business, or try to develop further in e-commerce. I decided to look for a company that already had a position built in e-commerce. I went to Hopla. Hopla was an investment that was backed by MCI — a publicly traded company — with an investment of 1.5 million PLN. I became the head of marketing there. I remember my mom reacted skeptically, tapping her head — 'Where are you going to sell washing machines over the internet?' And she wasn't wrong to worry, because these were truly the very beginnings, and it wasn't at all obvious that the internet would become such an important sales channel. Today, more than half of washing machines are sold online — back then, it was truly the dawn of everything. So Hopla was my second experience.
If I had to say what happened at Hopla and what the biggest lessons were — the problem with Hopla, I think, was that it entered the market a bit too early. In innovative businesses, timing is key — it can't be too early, and it can't be too late. The second issue was that manufacturers, especially big players like Samsung and LG, didn't want to engage with Hopla because they viewed online stores as a threat to their business model and price stability. We mainly bought products from wholesalers, but those wholesalers quickly started setting up their own online stores and became our competition. This ultimately led to Hopla's failure, despite it being billed as the star in MCI's portfolio. There was also an attempt to go public, but it ended in failure. I moved to Euro — RTV Euro AGD — which, unlike Hopla, had the advantage of an established business model and built relationships with suppliers. Comparing Hopla to Euro, Euro's real advantage was those supplier relationships, which allowed them to buy products at better prices. And better pricing is essentially the main tool in e-commerce — the commercial terms a company has. But at Euro, we had entirely different challenges. Our main issue was that there were very large price differences between online and physical stores at the time. Pricing policy was probably the biggest thing we had to tackle.
To solve this problem, one of the ideas — and one of the things that happened — was creating the online store OleOle. I'm sure most of you, or at least many listeners, know this store. We went in the direction that OleOle was a pure-play player with slightly lower prices, while Euro.com.pl was a typical omnichannel strategy — supporting physical stores, consistency of shopping experience, price consistency. Over the 12 years I worked at Euro, we went from zero to e-commerce turnover of about 2-2.5 billion PLN when I left. When I joined, I had a 4-person team, and when I left, I had over 300 people under me. The scaling of the business was enormous — spread over 12 years, of course. When I left Euro, I was already with a very stable, well-organized organization, also in terms of e-commerce — with structure, with processes.
Then the next company in my career was eObuwie, today known as the Modivo Group. I joined eObuwie to help organize the business for CEO Marcin Grzymkowski, because eObuwie was growing at a rate of around 100% per year. When I arrived, employees told me that eObuwie was like Pendolino — except the employees had to lay the tracks in front of it every day so it could keep running. The rapid scaling of the business meant that the structure, processes, and logistics simply couldn't keep up. So with my experience from Euro — a well-developed organization — I helped organize things, create the right structures and processes, so it could start functioning as an efficient machine, where the tracks wouldn't need to be laid every day but would already be planned and laid out for several years ahead.
And that's what I managed to do. In the meantime, what I think is interesting — we came up with the idea of launching Modivo. The need to launch Modivo arose mainly because, looking to the future, we knew our position in the online footwear market was becoming dominant, and we had quite significant e-commerce market shares. To maintain the pace of growth, we needed to launch additional categories — to jump to another category. The most natural category for us was clothing — four times larger than footwear. We wanted to establish ourselves in that category too, which is why Modivo was created as a second brand, somewhat modeled on Western examples like Zalando. Modivo was launched and turned out to be a great success. Today, when you look at the Modivo Group's results, you can see that Modivo is really driving the growth, while eObuwie's growth is much lower. The scenario we envisioned worked out, and if not for Modivo, the group's growth rates today would be much, much lower.
Another very exciting project I was involved in — and I'd say the most developmental thing over these 15 years of my career — was securing an investor. At a certain point, we realized we needed additional capital for development — logistics development, marketing investments, building Modivo's brand awareness. We started searching, and after a process of over six months, we finally reached an agreement with SoftBank. SoftBank is today the world's largest technology investment fund. They invested, among others, in Cloudflare, in Uber, co-created Alibaba — so it's a very large company and investment fund. For me, participating in this project, in this process of securing an investor, was incredibly developmental. The questions these investors asked made you open your eyes to things you'd never thought of before. A lot of attention in their questions was focused on customer return rates — customer retention. I think a lot of e-commerce businesses in Poland over these 15-20 years focused on customer acquisition. SoftBank and investment funds really emphasized the quality of acquired customers — whether customers come back, how often they return. Acquiring a customer today isn't the problem; retaining the customer is the problem. And that was an aspect they paid a lot of attention to. And of course, they expected a multi-year plan, as investment funds do, and we had to create that plan too.
Let me move on to what's happening now and what my role at LPP involves. To tie everything together with a bow — the experience I built over these 15 years of my career, working at all these companies I mentioned, is experience in scaling and developing e-commerce businesses. Plus, I have fairly unique experience in building an omnichannel strategy. I'm currently trying to leverage that experience at LPP. For the first eight months, I worked very closely with Sinsay. Sinsay is a brand within LPP that has been the fastest-growing in recent years — a brand with enormous potential. From my perspective, when I arrived, it was quite comparable to eObuwie — a brand that had been growing very rapidly in e-commerce over the past few years and simply needed someone to help organize processes, organizational structure, and build the right management team. Over those first eight months, I mainly focused on Sinsay. My attention was primarily on three areas: first, customer acquisition — broadly speaking, performance marketing; second, building a strategy and direction for development, then not just customer acquisition but also building purchase repeatability and customer retention; and third, embedding the idea of 360-degree communication — building coherent marketing communication with a smooth communication schedule between channels. In these three areas — acquisition, direct marketing, and marketing communication — is where I mainly operated.
Among the more interesting projects we did in those first eight months was building an Academy for Internships — an academy built jointly with Google and Meta. Through this academy, we managed to recruit about 15-20 people for LPP. These were really people with enormous potential for growth, but who simply didn't have professional experience in the broadly understood digital marketing field. We recruited them from over 100 candidates, and today I believe these people will build, together with me and the various e-commerce directors, the strength of the brands online.
And for the past three months now — time flies — I've been at Silky Coders. It's important to explain what Silky Coders actually is, because I think many people don't know. Silky Coders is a subsidiary of LPP — our internal software house. Silky Coders handles IT services for the entire LPP Group. I am responsible for the e-commerce area within Silky Coders — so all the development, growth, and maintenance of e-commerce platforms and mobile applications falls under me. I mainly focus on developing mobile applications. From my professional experience, I can see that mobile apps, especially in the fashion industry, are a very important and significant sales channel as well as a marketing channel. So mobile apps are one of the most important elements I'm currently focusing on, and we want to develop them. The second area where I'm trying to help the company is broadly speaking the omnichannel strategy — my goal is to ensure that each brand provides the best, most consistent customer experiences across channels. Whether the customer buys in a physical store, online, or in a mobile app, the shopping experience should be as good as possible and consistent across channels. We know today that customers who migrate between channels are our most valuable customers.