Digital commerce: slow and import-driven expansion

This article is available for reading in Trade magazin 2025/11.

Guest writer:
Dr. Tamás Kozák 
secretary general
OKSZ

The benefits of digitalisation include market expansion, increased efficiency and the creation of personalised customer experiences, but market and data security challenges are also growing. The digital transition is costly, especially for SMEs.

The situation in Hungary

In Hungary e-commerce generated a turnover of approximately HUF 1,474bn in 2023, which represented nearly 10% of total retail sales. This is still below the EU average, but there is dynamic growth: in 2015 this proportion was only 3-4%. During the Covid-19 pandemic online sales grew rapidly, but between 2022 and 2024 the growth slowed down to 6-8% per year. There are 5-6 million online shoppers in Hungary and the home delivery of FMCG products is also increasingly important. Among FMCG chains the major international players (Tesco, Auchan, Lidl, Spar) are all strengthening their online services. An important development in Hungary over the past two years has been the spectacular rise of Temu and Shein.

Strong foundations, below-average usage

The digital maturity of Hungarian retail companies presents a mixed picture. On the one hand, the country’s digital infrastructure is particularly good: the broadband internet network is well developed, 4G/5G coverage is high and fixed networks are fast. This means that the technological basis for digitalisation is in place. On the other hand, only some businesses are taking advantage of the benefits of digitalisation. The in-depth application of digital technologies is particularly low among SMEs. According to the 2023 Digital Decade country report, progress has been made but the majority of Hungarian firms aren’t fully exploiting the potential of digital technologies yet. Data from the Central Statistical Office (KSH) reveals that only 12% of domestic companies use social media for business purposes, and only 6% perform big data analysis, compared to the EU averages of 25% and 12%, respectively. However, there are positive developments too: the e-commerce turnover of Hungarian SMEs (as a proportion of their total revenue) is roughly in line with the EU average, at around 11%.

Strengths and weaknesses of digital commerce in Hungary

Strengths: advanced digital infrastructure, growing online market, presence of major international players.

Weaknesses: low digital maturity of SMEs, moderate e-commerce share.

Opportunities: growth in online sales, introduction of new technologies, spread of omnichannel models.

Threats: intensifying global competition, technological lag, data security issues.