The Hungarian retail sector is undergoing a significant transformation, in which traditional marketing tools no longer consistently achieve the desired impact. More than 80% of purchasing decisions now take place online before a customer even enters a store, according to research by Shopfully. This shift means that retailers need to be present on consumers’ “mental maps” on digital platforms to drive foot traffic to physical locations.
One of the most defining trends in the Hungarian retail market in recent years has been the rapid expansion of Chinese e-commerce players, including Temu. The phenomenon is rooted in consumer price sensitivity: Like consumers across Europe, one in eight Hungarian shoppers is motivated specifically by promotional offers and the lowest prices.
“The appearance of global Chinese players is a forcing function for local retailers. To stay in the game, they need to compete with the same weapons: relevant, immediate and attractive discounts,” says Oliver Olschewski, managing director of Shopfully Central Europe.
“At the same time, domestic retailers have a huge advantage in trust and physical presence. If a product is not suitable, the customer knows where to return it, and this sense of security is increasingly valuable,” he notes.
Retailers’ primary task is to deliver the right information to consumers at the right time. Price and reliability can be important messages, but they resonate differently with different consumer groups. What is a valuable offer for one shopper may be noise for another. The key to success is hyper-local relevance: reaching the customer at the exact moment they make their purchasing decision.
This requires data-driven advertising solutions, understanding which message to show to which consumer on which platform. Traditional consumer paths no longer work effectively.
“The customer journey today is no longer a straight line, but a hop across platforms. The consumer sees a video on social media, then searches a digital catalog, and finally drops by a nearby store. Retailers need to be present at every touchpoint, but how they are present matters,” Olschewski emphasizes.
Relevance and proper timing are critical. According to Shopfully research, consumers perceive approximately 60% of advertisements as spam. How can retailers reach a more effective ratio of around 40%? Hyper-local, relevant and non-intrusive ads help capture consumer attention.
For physical retailers, printed promotional leaflets used to be the main communication tool. As Shopfully’s representative survey of 1,000 respondents in Hungary showed, the majority of consumers now follow digital leaflets. Some 38% read only digital leaflets, while 31% read both printed and digital formats.
The main challenge in digital advertising is the sheer number of global tech platforms and local media options. Shopfully runs an advertising system it says allows campaigns to appear on social media and local media channels, all managed from a single platform. The company’s experience indicates that the digital transition not only makes promotional communication more effective but also delivers significant cost savings by reducing the budget for distributing printed leaflets.
A well-designed strategy allows the media mix to align precisely with the needs of target groups and local market conditions, resulting not only in more effective reach but also in substantial cost savings for retailers.
The trend is clear: physical stores still account for 90% of grocery and daily retail turnover. But the path to these stores now begins in consumers’ pockets, on their smartphones.
The European Union is set to reshape the competitive landscape for e-commerce by removing the duty exemption for low-value imports, a move that directly ties into the trends highlighted in the growing influence of platforms like Temu on Hungarian shopping habits. Price competition has been a key driver behind Temu’s rapid rise, but EU regulations approved late last year could begin to rebalance that dynamic.
Under the rules agreed by EU finance ministers, goods valued below EUR 150 will no longer enter the bloc duty-free, closing a loophole that has long benefited non-EU sellers, including China’s Temu and Shein. This policy shift is designed to level the playing field for local retailers, whose competitive advantage lies more in trust and physical presence than in pricing alone.
According to estimates cited by the European Commission, up to 65% of small parcels entering the EU may be undervalued to avoid customs duties, while approximately 91% of low-value e-commerce shipments in 2024 originated from China. By eliminating the exemption, the EU is not only addressing lost revenues but also reducing incentives for ultra-low-cost imports that have intensified price pressure across the market.
A more fleshed-out version of the new rule will enter force when the EU Customs Data Hub, envisioned as a shared central platform for interaction with customs authorities and for strengthening controls, begins operations around 2028. Until then, a customs duty of EUR 3, roughly equivalent to HUF 1,150, will be imposed on low-value parcels entering the European Union. The duty will take effect on July 1 and is expected to remain in place until the customs data hub is operational and a more comprehensive solution is found.
This article was first published in the Budapest Business Journal print issue of March 27, 2026.
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