In the 21st century, plenty of businesses, firms, and companies sell their products not only in offline outlets but also online via various e-commerce shops. This option became extremely popular and useful during the coronavirus pandemic. Stay with us to learn the history of Zoot, one of the famous e-commerce shops in the Czech Republic.
The story of Zoot dates back to 2007 when the company was established in Prague, the capital of the Czech Republic. Initially, it was named Ichtys Delta a.s; however, the name was changed to Brands4Friends a.s. in 2009 and to Zoot a couple of years after. The principal purpose of the business was a social network with a focus on fashion; nevertheless, such a perspective of the company was never successful, and they kept losing revenue and continuously going to debt. Luckily, one of the investors, Oldřich Bajer, had a passion for online communication. He tried his best to save the company: the brand became an e-shop of approximately 250 well-known companies such as Calvin Klein, Diesel, Lauren Ralph Lauren, and others with more than 100,000 goods. Despite being in debt, the business was recognized as a fast-growing company based on the revenue reports in 2016 by Financial Times.
The negative equity of the business started to decrease: from -125 million CZK to -68 million CZK by 2018. All debt repayments were covered, and the additional money was transferred to Natland Finance, an investment fund. The primary reason for the loss was a high rate of return ( about 80%) where Zoot was paying for all transportation fees. The policy of returning the goods is an integral part of the consumer law in the European Union, and the company did not have the power to cancel it. In 2019, the company was still struggling with bankruptcy, and it was persuaded to reorganize its structure by officials. The new plan turned out to be beneficial for Zoot: it gained profit for the first time since the establishment.
In 2020, Zoot has considerable revenue to keep the business alive and growing. Since it is only based in the Czech Republic, the laborforce is small – 250 people. Ladislav Trpak, the co-founder of the company, does not lose hopes of going abroad with the company’s outlets. Zoot is already situated all over the Czech Republic – in Prague, Brno, Ostrava, and Plzen. Trpak plans to reach Central and Eastern European markets, including Slovakia, Hungary, Poland, and Romania. We wish all the best to the brand and hope it will continue to expand and grow!