Last article on Christmas

Online sales of Christmas trees yield 40% profit
Autor: Irina Crudu Data: 22 Dec 2006 Ziarul Financiar


Walking on a cold weather and spending a lot of time searching for the perfect Christmas tree have not been among the most practical activities for a long time. The Romanians of the 21st century know that a simple mouse click can bring both the ideal Christmas tree and the specific ornaments right to their living rooms. And those who provide such services turn them into a business worth over 25,000 per year. "The Christmas tree business lasts for only a month. In December 2004, we derived turnover worth some 6,500 euros. In December 2005, the turnover amounted to 25,000 euros and it will grow this year," says Diana Nitu, the owner of brazidecraciun.ro website.

Since 2005 Diana Nitu's online business with Christmas trees has increased by 300%, with profitability maintaining around 40-50%. "Although, in the beginning, the clients were distrustful of the online order system, when they made sure of the trees' quality, each of them recommended us to other two or three clients," says Nitu. All Christmas trees are imported from Denmark and the prices range depending on height, starting from 90 RON (26.27 euros) to 4,500 RON (1,314 euros). The biggest order received by brazidecraciun.ro consisted of 45 Christmas trees, and was made by an advertising agency for its partners and clients. The 6-metre trees were sold before December 1st, the 3 to 4-metre trees were sold between December 1st and December 10, while the 1 to 2-metre trees, after December 14.

"We delivered Christmas trees to companies and this is the reason why the orders were for high trees, but when we started delivering to apartments, the trees were 2.5 metre high, at most," explains Nitu. The delivery is free in Bucharest and is usually operated within three ours from the moment of order. Depending on the number of orders received in a day, it may take six hours for the delivery to be made.Cezar Palii is another owner of an online Christmas tree business, operated through the brazi.com.ro website. He came up with the idea to start the business three years ago, while thinking of developing a niche service for Christmas holidays. The site took several thousand euros to become operational, with investments going to computers, distribution means and advertising. "In 2004, we simply tested the market. In 2005 we managed to build a customer base and for the 2006 season we estimate an about 35-40% growth," says Palii.

Prices range from 95 RON (27.73 euros) for up to 120cm trees that come with a wooden stand to 2,200 RON (643.65 euros) for 6-metre trees. The trees in highest demand are those priced between 185 RON (54.01 euros) and 380 RON (110.95 euros). "We had our biggest order last year and it amounted to 9,100 RON (2,657 euros)," Palii adds. Profit in 2005 stood at several thousand euros. Brazi.com.ro expects some 35-40% profit growth in 2006. Christmas tree business:
Initial investment: over 2,000 euros
nvestment necessary to running an online business with Christmas trees may amount to 30,000 euros per year
Annual turnover derived from online sales of Christmas trees stands at 25,000 euros
Profit margin revolves around 40-50%
Prices of the trees range depending on height, from 90 RON (26.27 euros) to 4,500 RON (1,314 euros)