In 2019, The Romanian IT&C market was estimated at a value of EUR 7 billion, and it’s believed to be one of the most competitive in retail, with an estimate of 5.168 companies fighting for a bigger share of the profit.
Flanco is one of Romania’s largest retailers, with a turnover of 250M € registered in 2019. Established in 1994, Flanco is considered a pioneer in many ways, as it introduced the concept of a larger-sized electro-IT shop to Romania and was one of the first to start the Black Friday phenomenon here. In 2018, on Black Friday, Romanians spent EUR 250 million just on online shopping.
So how did Flanco manage to continue ranking as one of the top players in IT&C, 26 years after entering the market? In such a volatile field, we believe that innovation is key to both thriving and surviving.
Zitec’s contribution to Flanco’s digital transformation strategy
Digital transformation is a continuous process and our partnership with Flanco has spanned over six years, throughout which we’ve had the opportunity to collaborate throughout several successful projects.
Our first major accomplishment is the optimization of the product management platform and website. For this, we improved the checkout process, made integrations for the eMAG Marketplace and NOD, generated an electronic billing system, handled the management of re-sealed products, RMAs (Return Merchandise Authorizations), cache optimization, and Flanco card.
After all these changes, Flanco registered a significant increase in orders. Plus, selling re-sealed products became a feature available also online, and not just in physical stores.
These good results lead to Flanco’s decision to improve operational efficiency in the context of the biggest shopping event in Romania, Black Friday. Due to high traffic estimations for this event and for the purpose of avoiding downtime in order to register more sales, Flanco decided to move the infrastructure of their website to the cloud.
For this purpose, we developed an open-source web platform for Flanco, by using Microsoft Azure cloud technologies, capable of supporting high data traffic. The hosted platform is a PHP app that perfectly integrates with other open-source technologies that Flanco uses on a regular basis for the infrastructure of the website hosted on local servers. Thus, during an event, website traffic is easily directed to its cloud-based version.
Furthermore, our collaboration with Flanco also involved the development of options subsequent to the initial launch of the app, such as: real-time stock reporting, automatic QA testing and continuous performance checks.
The results were soon to follow. Using a Microsoft Azure infrastructure lead to a cost reduction of 80%, compared to its traditional version. Moreover, Flanco became one of the few market players to have zero downtime during Black Friday, which translated into a successful campaign that registered 30% over the initial estimations through the dedicated Black Friday app.
Would you like to see how a custom-made digital transformation process could benefit your company? Reach out to us and let’s have a discussion about your specific business needs. Then, we can work on the plan that’s most advantageous to you.
This has been a story of digital transformation in IT&C retail. Stay tuned for more case studies, this time in B2B eCommerce. More information about all the industries and services we provide digital transformation for can be found here.