Published by Global Banking & Finance Review®
Posted on May 22, 2025
2 min readLast updated: March 1, 2026
Add as preferred source on GoogleAllegro enhances local offerings to compete with Asian rivals, focusing on AI and marketing to maintain its e-commerce lead in Poland.
GDANSK (Reuters) -E-commerce platform Allegro is doubling down on its local offering in a bid to differentiate itself from Asian competitors like Temu, its finance chief said on Thursday.
Allegro, which aside from its home market Poland runs third-party marketplaces in the Czech Republic, Slovakia and Hungary, has in recent months removed offers with long shipping times, mostly from East Asia, from its international platforms, it said in an earnings statement.
"We're looking to really double down on our differentiators versus the Asian players that are in the market, and make it really clear to the consumer why they look to Allegro every day as the main place to shop," CFO Jon Eastick said during a conference call.
Eastick told Reuters in an interview that the move followed a similar one for its Polish marketplace, which he said had "almost no impact" on the gross merchandise value of the business.
It also plans to improve its platform, including features for its consumer loyalty scheme and initiatives that use AI solutions to drive better recommendations and choice of advertisements, Eastick said.
Allegro, which has been developing the platform since 1999, remains the go-to online shopping place for millions of Poles despite growing competition from international players.
Its share of the Polish retail e-commerce market was 38.8% at the end of 2024, according to data analytics company Euromonitor International. Amazon held a 3.9% share, followed by AliExpress with 3.4% and Temu with 1.5%.
"There was fairly rapid progress from zero in 2023 and early part of 2024, but it's slowed down dramatically now," Eastick said about the performance of Asian platforms in its markets, referring to Allegro's own monthly survey looking at transaction share across e-commerce players.
"We'll continue to defend our position in terms of marketing spend," he added.
Temu entered Poland in June 2023 and has been splurging on marketing.
"The advertising intensity may be a little bit higher so far, but it hasn't changed massively," Eastick said. "But marketing spend and share of voice is definitely where we feel the impact of the new competitors the most."
Allegro's marketing costs rose 10% to 317.1 million zlotys ($84.46 million) in the first quarter, slowing down from a 28.7% in the fourth quarter that included the busy holiday season.
($1 = 3.7545 zlotys)
(Reporting by Anna Pruchnicka, editing by Milla Nissi-Prussak)
Allegro is focusing on enhancing its local offerings to stand out from Asian competitors like Temu. The company aims to clarify to consumers why they should choose Allegro as their primary shopping platform.
Allegro holds a 38.8% share of the Polish retail e-commerce market as of the end of 2024, significantly ahead of competitors like Amazon and AliExpress.
Allegro's marketing costs increased by 10% to 317.1 million zlotys in the first quarter, although this was a slowdown from a 28.7% increase in the previous quarter.
Allegro plans to enhance its platform by introducing features for its consumer loyalty scheme and leveraging AI solutions for better recommendations and advertisements.
Temu entered the Polish market in June 2023 and has been actively increasing its marketing efforts since then.
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