Omnichannel or nothing – a new direction in e-commerce

This article is available for reading in Trade magazin 2025/6-7.

Norbert Madar
lead manager
Digital Commerce and
Research Services
PwC Magyarország

Storm zone: retail under external pressure

In recent years Hungarian retail has faced a series of external shocks: pandemic, war, inflation, rising energy prices and tighter customs regulations have shaped the operating environment. The decline in purchasing power has affected not only the volume of spending but also its structure, as a growing proportion of household spending is flowing into the services sector, particularly tourism and hospitality. Retail has emerged as the loser from these changes: domestic consumption is suffering, basket values are shrinking and the decline in domestic online sales is accelerating. Hungarian online retailers are also battling with global competitors. The most striking change is that domestic players are no longer responsible for the majority of the online market’s expansion: the growth momentum is typically driven by global platforms.

Temu: market leader in just one year

In 2023 Temu became the number one ordering platform in Hungarian e-commerce with unprecedented speed: its order volume of 9.1 million and HUF 120bn sales value exceeded the performance of the biggest domestic players by far. Temu’s active Hungarian customer base grew to 1.8 million in just one year – this isn’t only market domination, but also a habit-forming breakthrough. The secrets behind Temu’s success were targeted price-sensitivity, fast delivery, a Hungarian-language user interface and mobile-friendly operation. According to PwC data, 77% of customers chose the platform because of its low prices. Parallel to Temu’s conquest in Hungary, Hungarian e-retailers see their room for manoeuvre shrink: PwC says 26% of the TOP 100 domestic web stores are already foreign-owned, and imports account for 17% of the online market.

Reinterpreting promotions: experience, not just discounts

Research by PwC has found: the primary reasons for shopping cart abandonment isn’t price but service quality – 75% of shoppers cited high shipping costs, 65% named long delivery times and 52% mentioned not good payment options. This means that promotion is only effective if it is associated with a smooth shopping experience. Temu applies this logic as a comprehensive activation strategy: it offers timed coupons, gamification features and personalised offers, while also integrating user reviews and feedback into the decision-making process. Thanks to this promotion isn’t a campaign, but an experience-inducing system that motivates, converts and re-engages. Today digital shoppers think platform-independently – they don’t look at where they shop, but how quickly, transparently and personally they get what they are looking for. True omnichannel operation doesn’t mean the parallel use of channels, but a single, seamless shopping experience at every touchpoint. The system works well when the website, app, customer service, store and delivery all work as one – and know the same things about the customer everywhere. The direction is clear: omnichannel or nothing.