Online shopping growth stalls in 2017
Online sales continue to grow faster in Hungary than regular retail sales; however, figures from last year reveal that the pace of online growth is slowing compared to preceding years, according to research by GKI Digital and price comparison site 脕rukeres艖.hu.
While retail commerce as a whole expanded by 6% last year, the online market saw growth of 18%, meaning that online sales now account for 4.3% of total retail commerce in Hungary, the research says, cited by business news site vg.hu.
However, the pace of growth of the online market appears to be stalling, stabilizing at 18%, the same as in the previous year.
Even so, online shops have no reason to complain, as 83% posted higher revenues in 2017 than the previous year. A large portion of their revenues were concentrated in the fourth quarter, with Black Friday promotions playing a crucial role. One third of online stores始 full-year revenues were generated in Q4, and one fifth of their Q4 revenues on Black Friday alone.
While the customer base for online shopping increases, buyers still prefer to pick up orders themselves rather than by courier. As a result, many online stores are opening a traditional store or establishing pickup points.
As for the geographical location of customers, 40% of online shoppers are located in Budapest or surrounding Pest County, which means that this year online marketing will focus on gathering customers from areas of the country further afield, the research says.
ADVERTISEMENT
Hungary PMI Edges up to 47.4 in September
Ukraine Suspends OTP Status on 'Sponsors of War' List
Karik贸 and Weissman Receive 2023 Nobel Prize in Medicine
P谩linka Added to EU-Japan Geographical Indication Deal
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
