DKSZ Helping Hungarian E-merchants Conquer Int'l Markets

The professional program will provide support to the management teams of Furbify, Lumenet and Vágyaim.hu through personalised mentoring sessions to help them successfully conquer international markets.

The potential of the digital sector is unquestionable, with some predictions that it could contribute an additional HUF 8 trillion to the Hungarian economy by the end of the decade, according to a press release sent to the Budapest Business Journal.

Hungarian e-commerce, which has taken off since the pandemic and was the second fastest growing market in the European Union in 2021, could be an important player. There is huge potential for players in the Hungarian e-commerce ecosystem, but this requires the development of digital commerce. 

As last year's Online Export Research, jointly conducted by DKSZ and GKID, showed, Hungarian e-retailers face challenges and difficulties that significantly hamper their development and expansion in foreign markets. Some of the barriers to foreign market entry include:
● Lack of a long-term strategy defining growth directions and opportunities; 
● The pursuit of underdeveloped and inflexible logistics solutions;
● Legal and administrative problems due to lack of local knowledge and market expertise;
● Difficulties in localization processes adapted to the local regulatory environment;
● Risk-aversion inherent in the domestic business culture; 
● Misconceptions such as inadequate product offerings or low supplier bargaining power.

Commenting on the prospects and opportunities for foreign expansion, Norbert Madar, senior analyst at GKID, said, "Domestic e-commerce players are currently lagging behind in international expansion for complex reasons: on the one hand, we are not sufficiently protecting our local market, and, on the other hand, the sector is facing a significant resource gap. However, building problem knowledge, changing attitudes, changing strategic thinking and consistent long-term planning will all bring us closer to overcoming the existing gaps."

To overcome the existing challenges, which are also reflected in the research, DKSZ has created the program, which not only provides practical assistance to participants but also sets an example to more and more e-tailers through their successes that expansion abroad is an achievable and realistic goal for Hungarian traders.

Pál Bíró, head of Google Hungary and president of the DKSZ said, "In a program that has attracted a record number of applicants, this year the Digital Commerce Association will start working with three companies - Furbify, Lumenet, and Vágyaim.hu - who will be supported by the management of the companies over the next six months with tailored advice to help them achieve similar success abroad as they have done at home."

He added, "DKSZ aims to help market players develop and expand internationally beyond the Mentor Program participants."