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 Árukereső.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 storesʼ 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.