Shopping from the armchair

According to an estimate by GKI Zrt., the volume of retail trade via Internet has reached HUF 12 billion in 2004, exceeded HUF 19 billion in 2005 and was between HUF 26 – 27 billion in 2006. The assortment of shops selling through the Internet is becoming wider and it is difficult to distinguish purely online sales from those generated by enterprises operating traditional stores as well. New business models have also appeared in the market. According to GKI Zrt., net annual revenues of the majority of market players was below HUF 5 million in 2005. In 2006, however, many businesses expanded their sales successfully and entered the HUF 20-100 million segment. Online shopping is a good idea for consumers, because one third of online stores sell most of their products at a lower price than traditional shops, while another third of them use favourable prices for a smaller part of their assortment. More than 82 per cent of online shops grant discounts of 1-10 per cent for their customers even though online shopping is not common among the more price sensitive groups of consumers. Though convenience matters, good prices are even more important for online customers. Online sales of GRoby are strong. According to the manager of G'Roby Netshop Kft., the online store, 17 per cent of total G’Roby revenues are generated online. Their customers come from a very diverse background, but on out of two is an office or business. Substantial quantities of products used regularly like sugar, tea, coffee, mineral water, washing powder, shampoo, pasta etc. are often purchased online. Deliveries can be made within 36 hours from a central warehouse with 12 employees, but most clients prefer delivery in 48-72 hours.