Webstores seen unlikely to kill traditional shops
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.
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