PHH Group Significantly Reduces Number of Products from Chinese Sellers, Improving Overall Assortment Quality
The largest e-commerce group in the Baltics, PHH Group—which operates platforms such as 220.lv, Pigu.lt, Kaup24.ee, and HobbyHall.fi—is implementing significant changes to its assortment strategy. Following a comprehensive analysis, the group has decided to reduce the number of products from Chinese sellers on its marketplace platforms by more than 80%. These changes will take effect this week.
“In the past, we focused too much on assortment volume and expansion, rather than on creating real value for the customer. Today, it is clear that quality and customer experience must come first. That’s why we are discontinuing products that raise concerns about quality or delivery times,” says Dainius Liulys, CEO of PHH Group.
This strategic step—assortment optimization—is part of a broader quality improvement program aimed at strengthening customer trust, ensuring fast delivery, and maintaining high product standards. The decision is based on internal evaluations as well as AI-powered analysis tools.
“The formula for successful e-commerce hasn’t changed—competitive pricing, a wide but valuable assortment, and fast delivery. We are returning to this formula with focus: we’re strengthening quality, rebuilding trust, developing sustainable partnerships with sellers and suppliers, and keeping our promises. These are the cornerstones of our renewed strategy. Our shareholders fully support this direction,” says Liulys.
He adds that in recent months, the group has already taken important steps—improving quality control mechanisms and accelerating delivery across all markets. Now, the time has come to optimize the product offering.
“Our goal is for every product on our platform to provide real value to the customer. We will choose quality, reliability, and products with added value. We are confident this will support long-term success across all our markets,” Liulys emphasizes.
He also notes that these strategic changes will benefit Marketplace sellers. By raising the bar for quality control, those offering high-quality products will gain better visibility, and improved customer satisfaction will increase loyalty and sales. Quality standards are being reviewed not only in the assortment itself but also in the post-purchase stage, as underperforming sellers harm not only themselves but the entire marketplace ecosystem.
