Zgonc: Stagnant sales due to online competition

Ggonc looks back on a stable year 2024. The domestic one generated 123 million euros in sales Tool and machine dealers last year and therefore about the same as the year before.

Despite stagnating sales, it shows Zgonc CEO Michael Dockal satisfied given the “difficult market and trading conditions”.

Not only are large online platforms like Amazon and Ago more and more to the competition, and the cost increases, which could only be passed on to a limited extent through price increases, prevented sales growth.

Can’t compete with low prices

Zgonc cannot keep up with the “very low prices” of its online competitors, says Dockal. And this despite the fact that the company… Tools and accessories from its own brands Would like to offer alternatives to high-priced branded devices.

These are manufactured by partners, the classic cordless screwdriver is manufactured by the market leader Einhell. As with the other brands, the majority of the tools on the domestic market come from the Far East. According to Dockal, the share of own brands in total sales is less than ten percent.

Zgonc generates four to five percent of its sales online. Dockal emphasizes that customers particularly value the personal advice in the branches. The company operates 38 locations in almost all federal states throughout Austria. Another branch is scheduled to open in autumn 2025 former Kika building in Saalfelden (Salzburg) to be added.

Further location openings cannot be ruled out

Also further location openings Dockal doesn’t rule it out, but doesn’t want to rush anything here: “If good locations come along, we’ll take the step, but not at any price.” After all, Zgonc is a company purely Austrian company with 100 percent equityas Dockal proudly points out.

He is proud of them too Market leadership in the field of batteries and battery-powered devices. Like a survey of the market research institute You have showed that around a quarter of those surveyed attested that the company had the highest competence in this area compared to the competition.

Main sponsor of this year’s Ski World Cup

In order to increase its own awareness as a battery specialist, Zgonc will be doing so for the second time this year World Ski Championships support as main sponsor in February.

Beim Mega-Event in Saalbach-Hinterglemm Dockal announces that the company wants to have the start house, the finish arch and the athletes’ starting numbers illuminated in bright yellow.

Despite the international recognition that Zgonc receives through the sponsorship, the company does not plan to expand abroad. “We want to appeal to an audience of millions in Austria at the World Ski Championships,” says Dockal.

18 million Austrian viewers

He expects that a total of 17 to 18 million Austrians will be reached across all races (including those who watch several races). This results in a wastage of 80 to 85 percent.

Dockal does not want to say exactly how much the sponsorship costs. But it is “not a bargain, but decent values”.