Webstores seen unlikely to kill traditional shops

Retail

E-commerce could generate annual revenues as high as HUF 1,100 billion by 2021 in Hungary, but this will not pose a threat to traditional stores, according to the Ministry for National Economy, cited in a report by business news portal vg.hu.

Gyula Pomázi, deputy secretary of state at the ministry, cited data released by market researcher eNet which show that revenues of Hungarian e-commerce already reached HUF 427 billion in 2016. According to even pessimistic forecasts, they may reach HUF 854 bln by 2021, while optimistic estimates say around HUF 939-1,110 bln.

Market researcher GfK said that 87% of the Hungarian population has completed an online purchase - up from 72% in 2012-2013 - but only 31% are placing orders regularly at web shops.

The most popular products purchased online are electronics, with a market share of 19.4% in the period January-June 2017. However, this is not threatening traditional store sales; on the contrary,  GfK says, they support each other, as customers use both channels.

The future holds other opportunities, such as cashier-free stores, face recognition, and augmented reality. Face recognition technologies are expanding rapidly, mainly in the security sector, vg.hu notes.

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

Budapest leaders make public transport free for under-14s City

Budapest leaders make public transport free for under-14s

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.