Recession boosts Internet sales – Investments guaranteed solid growth for Smilehouse
The current serious economic recession has not frozen investments in e-commerce. Smilehouse, a company focusing on e-business solutions and expert services, achieved an organic, profitable turnover growth of more than 50% in 2008.
The Internet is gaining more and more ground both in consumer and business-to-business trade. Fundamental changes are to be expected in consumers’ purchase behaviour and b2b trade, based on research data on e-commerce and online purchases, as well as the rapid growth of the value of online trade and increasing investments in e-commerce.
- Our estimates indicate that the recession will boost the purchase behaviour change that is already in progress. In bare markets, consumers and companies strive towards increasingly sensible purchases, and the Internet and online stores offer particularly efficient ways to support more thoughtful purchasing, both in terms of cost savings and the ability to offer more extensive background information, says Tapio Talvisalo, CEO of Smilehouse.
In the field of product and service sales, e-commerce is not only a necessary channel for making customer contacts but also an investment that will bring significant yield once fully up and running. It enables companies to boost sales and also gain notable cost savings through automated functions.
- Companies that can see the big picture keep up their investments in e-business regardless of the recession in order to ensure success when the economy turns up again, Talvisalo says, crystallising the point.
Smilehouse showed the industry’s highest organic growth
As the only e-business expert company, Smilehouse made it to the Deloitte Fast 50 list ranking the fastest growing technology companies in Finland. This was Smilehouse’s third time on the list that requires strong, long-term growth.
- We are extremely pleased with the strong growth and particularly the fact that last year, for example, we were able to achieve growth that was organic and profitable, unlike many other industry players. This means that our top position is the outcome of competence and expertise, not external capital injections of corporate acquisitions, Talvisalo points out.
In 2008, Smilehouse achieved the planned growth of over 50% and increased its turnover to EUR 5.5 million. Smilehouse’s e-business solution expertise was utilised by such customers as Konebox, Sanoma Magazines, Anglo-Nordic and Kalevala Koru.
Smilehouse’s strong growth can be, above all, attributed to the increased investments in e-commerce made by major corporations as well as small and medium-sized companies. Smilehouse gains competitive edge from such features as its actively developed solution software package, a decade’s experience in e-commerce and the ability to serve as a one-stop shop for all e-business solutions and services.
Smilehouse even seeks growth in recession
Despite the economic recession, Smilehouse is targeting nearly 40% growth for the current year. The turnover target is set at EUR 7.5 million. Achieving this goal will require major new customer accounts but also an increase in personnel.
It is difficult to estimate how the macro economy will effect the company growth but as the market leader Smilehouse is in a good position when companies select their partners for successful e-business.
- The growth target is a major challenge in the current economical situation, even for us. No company is independent of the general market trends. However, we believe that there will be demand for expertise and competence even during difficult times, says Talvisalo in conclusion.
Further information:
Tapio Talvisalo
CEO
Smilehouse Ltd
Tel. +358 9 25 122 10
tapio.talvisalo@smilehouse.com
or
Esa Luoto
Communications manager
Smilehouse Ltd
Tel. + 358 9 25 122 168
esa.luoto@smilehouse.com | 
