Andras Kobza – Member of the governing board of Ecommerce Hungary
How can companies stay ahead of market dynamics, and what strategies have been most effective in adapting to changes?
To stay at the forefront of market dynamics, companies need to continuously evolve and adopt strategies that enable them to adapt effectively to changing market conditions. Building a strong brand and fostering customer loyalty are pivotal in navigating through challenging times and maintaining a competitive edge. This approach entails understanding customer needs deeply, delivering consistent value, and ensuring customer experiences that reinforce trust and loyalty. Moreover, innovation in products, services, and business models, alongside leveraging data analytics for strategic insights, can significantly contribute to staying ahead of market trends and competitors’ moves.
How does your organization perceive the role of eCommerce in contributing to the economic development of the local region?
Ecommerce Hungary views the development of the ecommerce sector as a vital component of Hungary’s future economic landscape. We are dedicated to fostering growth within this sector, recognizing its potential to contribute significantly to the economic development of the local region. By enhancing the ecommerce infrastructure, supporting local businesses in adopting online sales channels, and advocating for policies that encourage digital commerce, we aim to stimulate not only sectoral growth but also broader economic prosperity. This commitment reflects our belief in ecommerce as a driver of innovation, job creation, and access to global markets for Hungarian businesses.
Can you point out any regional characteristics in terms of payments, logistics, customer behavior, shopping habits etc.?
Regarding regional characteristics, payment methods, logistics, customer behavior, and shopping habits exhibit unique trends in Hungary. Cash on Delivery (COD) remains a prevalent payment method, signaling a still-present preference for physical transactions. The expectation for rapid delivery, typically within 1-2 days, underscores the demand for efficiency and convenience. Additionally, offering free delivery has proven to be an effective unique selling proposition (USP). There’s also a noticeable shift towards “out of home” delivery options, with parcel lockers gaining significant popularity. The expansive network of over 5,000 parcel lockers across Hungary, serviced by eight different providers, illustrates the logistical adaptations to meet changing consumer preferences and enhance delivery efficiency.
How do organizations approach innovation in eCommerce, and what role does technology play in the picture?
Innovation in eCommerce within Hungary tends to follow rather than lead when compared to regional counterparts. The majority of innovation is driven by new features and services introduced by leading local e-commerce platforms (e.g., Shoprenter, Unas) and logistics and other service providers. This approach helps Hungarian online shops to remain competitive and meet consumer expectations influenced by global e-commerce trends. Technology plays a crucial role in this context, facilitating improvements in logistics, payment processes, and customer service. By adopting technological advancements, Hungarian e-commerce businesses can enhance their operational efficiency, customer experience, and ultimately, their market position.
What rating from 1 to 10 do you give to the local logistic companies and their role in delivery efficiency and customer satisfaction?
The performance of local logistic companies in Hungary is commendably high, with customer satisfaction ratings hovering around 8 to 9 out of 10, based on regular surveys conducted by GKID, a leading market research and consulting firm specializing in e-commerce. This indicates a robust logistics framework capable of supporting the e-commerce ecosystem with efficient delivery services, which are crucial for customer satisfaction and repeat business.
In the context of increased interest in cross-border sales, how well prepared are the logistics companies from your country?
As for cross-border sales, Hungarian logistics companies are well-prepared to support e-commerce businesses in expanding their operations to the Central and Eastern European (CEE) region. International logistics providers in Hungary have tailored their services to facilitate cross-border commerce, offering special deals and support for Hungarian e-commerce stores aiming to penetrate neighboring markets such as Slovakia, Slovenia, Croatia, Serbia, and Romania. This readiness is pivotal for businesses looking to leverage the growing interest in cross-border online shopping and capitalize on the opportunities it presents.
How do eCommerce businesses leverage data analytics to make informed business decisions?
In the realm of data analytics, there is a recognition that Hungarian eCommerce businesses are not fully utilizing the potential of data-driven decision-making to the extent of their regional competitors in the CEE. While there is some use of generally available data and internal analytics, the scope for leveraging advanced data analytics for strategic decision-making is substantial. Enhancing capabilities in this area could unlock significant opportunities for optimizing operations, personalizing customer experiences, and predicting market trends, thereby facilitating more informed and effective business decisions.
Can you share key eCommerce or digital marketing events a foreign business person should visit in your country?
Ecommerce Summit in June
Hungarian Ecommercd Day (Magyar E-kereskedelem Napja) in May
Which are the key companies and organizations in your region helping the ecosystem grow?
Ecommerce Hungary (ecommerce.hu)
Digital Retail Alliance – DKSZ (dksz.hu)
Data needed for the infographics:
– Size of the eCommerce as % of GDP of the country; (1,56%)
– Internet usage; – 69,4% (2022)
– Number of people buying goods online – 3,9 million
– Approximate number of eCommerce shops – appr. 18k active, 36 800 total
– Average size of shopping cart in Euro; 43.9 € (2022)
– Key market players:
According to GKID’s annual eTOPLIST, by online revenue these are the TOP15:
1. eMAG.hu
2. Alza.hu
3. MediaMarkt.hu
4. IKEA.hu
5. Kilfi.hu (Rohlik)
6. Telekom.hu
7. Euronics.hu
8. Tesco.hu
9. Aqua.hu
10. iPon.hu
11. Libri.hu Bookline.hu
12. Pepita.hu
13. Mall.hu
14. Decathlon.hu
15. Auchan.hu