French website mon-marche.fr expects profitability by 2015

Mon-marche.fr was one of the first French sites to deliver fresh produce, and it’s CEO now hopes to reach financial equilibrium in 2015. Created in 2007, they offer consumers fresh produce that they can order online, such as fruit, vegetables, meat, fish, bakery, cheese and wine) for next day home delivery. They have 3,000 references of fresh products and 1,200 organic products supplied directly from producers at Rungis market.

In 2013, the site had sales reaching €2.98 million, and it is expected to reach €4 million this year. “We have growth that reaches 50% every year, and we currently have 8,400 regular clients” stated Renaud Paquin, leader and co-founder of the site. However, like many online retailers, including American giant Amazon, the site has yet to make profit. This should change next year. “We should end 2014 with more or less €80,000 net, but 2015 is expected to be the profitable year, with a net profit expected at €130,000 for a €5.1 million turnover” estimates Mr Paquin.

Mon-marche.fr are aiming to increase the average basket, which is currently €101, and find new clients (+5,000 last year), which makes up of for the decrease in buying frequency (-5% this year) which is currently 7.5 orders per client per year.

They also count on the increasing awareness to “eat well”, which contributes to sales of fresh produce both online and in stores. Amongst the 100% online retailers in the sector, they are mainly young startups and include paysans.fr, lepiceriederungis.fr and carredeboeuf.fr.

Mon-marche.fr’s clientèle is 75% Parisian. Although some orders reach a few hundred Euro, others are a lot less frequent and smaller, around €45 (minimum order for free delivery). They also have baskets for €10 or so which have free delivery to companies through partnerships. Mon-marche.fr have a small team of 37 employees, they carry out their own deliveries. Cutting and packaging of products is also done internally as is data analysis.

The site also intends to develop their offer of organic produce (which went from 5% to 22% turnover between 2007-2013) and local produce. Local produce represents 3% of their offer, this figure will almost be doubled next year to 7-8% according to Mr Paquin.

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