Temu is cheaper, but not stronger in everything – this is what Hungarian stores can rely on

Domestic retail is undergoing a significant transformation, where traditional marketing tools no longer always achieve the desired effect. More than 80 percent of purchasing decisions are now made online, before the customer even enters the store. This shift also means that you have to be present in the mental map of consumers on digital platforms in order to come into physical stores.

The Temu phenomenon: price versus trust

One of the most defining trends in the Hungarian retail market in recent years has been the rapid expansion of Chinese e-retailers, such as Temu. The basis of the phenomenon is the price sensitivity of customers: similarly to Europe, every eighth customer in Hungary is specifically motivated by special offers and the lowest prices.

“The emergence of global Chinese players is a compelling force for local retailers. In order to remain competitive, they have to fight with the same weapons: relevant, immediate and attractive discounts. At the same time, domestic retailers have a huge advantage in trust and physical presence. If a product is not suitable, the customer knows where to return it – and this sense of security is appreciated,” said Oliver Olschewski, CEO of Shopfully in Central Europe.

The customer journey is no longer linear

The main task of retailers is to deliver relevant information to consumers at the right time. Price and reliability can also be important messages – but what resonates with different consumer groups is different. What is a valuable offer to one customer is annoying noise to another. The key to success is hyperlocal relevance: addressing the customer then and there, when they are making a purchase decision.

To do this, you need to find consumers with data-based advertising solutions, you need to know what is worth showing to which customer, on which platform. However, traditional consumer journeys no longer work.

“The customer journey is no longer a straight line, but a hopping between platforms. The customer sees a video on social media, then searches for a digital catalog, and finally pops into a nearby store. Retailers need to be there at every touchpoint, but it doesn’t matter how,” Oliver Olschewski emphasized.

Relevance and timing are also crucial: according to Shopfully’s research, shoppers perceive 60 percent of ads as spam. And how can you get to the effective 40 percent? Hyperlocal, relevant, and unobtrusive ads help to engage consumers.

Digitalization that can be financed by switching platforms

The main challenge in digital advertising solutions is the availability of a multitude of global technology platforms and local media. Shopfully’s advertising system allows ads to appear on social media and local media platforms, all managed from one system.

For brick-and-mortar retailers, printed advertising newspapers were the main means of communication. As Shopfully Hungary’s representative research conducted in October 2025 on a sample of 1,000 people showed, today the majority of consumers prefer digital advertising newspapers. 38 percent of respondents read only digital, 31 percent read both print and digital formats.

According to Shopfully’s experience, the digital transition not only makes promotional communication more effective, but can also bring significant cost savings, as the budget spent on distributing expensive printed advertising magazines can be reduced.

A properly designed strategy allows the media mix to be precisely aligned with the needs of individual target groups and local market characteristics, which not only results in more effective reach, but also significant cost savings for retailers.

The trend is clear: physical stores still account for 90 percent of the turnover in food and daily miscellaneous trade. But the path to these stores now begins in the pockets of customers, on their smartphones.