Magazine: The Trade Has Changed – E-commerce in the time of the pandemic
Right before the outset of the second wave, the Visegrád conference of this year’s Ecommerce Summit took place with an abundance of issues discussed by over 50 experts. No wonder, that COVID-19 and its effects were put on the table, too.
After the opening ceremony, Norbert Madar, senior advisor, GKI Digital sketched an overview of the market underlining how huge a leap the population and the business sector took in terms of digitalisation. From March until the lift of restrictions, e-commerce saw a pre-Christmas sales level and between mid-March and late April, some 50,000 new online shoppers showed up. As a result of the pandemic, e-payment solutions started to gain ground. He reminded that retailers who expect growth in both the number of new shoppers and the size of the shopping basked had better plan ahead for the holiday season.
Conservative Hungarians, innovative webshops
Eva Slezáková, digital marketing expert at Alza recalled how much Alza was surprised by the extent Hungarian shoppers are conservative about the method of payment and delivery.
Bernadett Simon, director of marketing of Aqua talked about the same experiences and added that they have been renting a logistics centre for two years and are able to provide same-day delivery.
Increasing demands, added value
The first roundtable discussion by the representatives of eMAG&ED, Alza and Aqua was titled „Growth(constraints) in the shade of the virus”. The three companies followed different strategies:
Alza filled up its warehouses way ahead and added products that moved very fast in preparation for the pandemic; Aqua focused on female shoppers and products they seek, as well as started forging plans to open pick-up points.
Balázs Várkonyi, MD of eMAG & ED stressed how important it is to promote online shopping that has a very small share here than in Western countries.
All the three expect the second wave to have a smaller effect and expressed careful optimism about Q3 and Q4.
Hope or fear?
Ecommerce Summit devoted a separate section to the issue of sustainability.
Dr. Zsolt Hetesi, associate professor at the University of Public Service talked about the decline of biodiversity and the ecosystem, erosion of the arable land and climate change, then concluded that the process is still reversible, what necessitates a change in the attitude of the economic actors.
Ákos Kozák, Ph.D sociologist and futurologist explained that the changes in shopping habits are not only attributable to the pandemic, but a constant evolution in the past 10-20 years. He reminded that in a crisis, shoppers prioritize while trying to adapt and resonate, which is why companies had better „pull on customers’ heartstrings”. In response to the „homization” of shopping and consumption, retailers have to shift towards multi- and omnichannel models.
Dr. György Bőgel, lecturer at CEU talked about supply chains and consumers who make up a mass of 7.5 billion – meaning the same number of end points in a supply chain. He remarked that Hungary has a well-performing agricultural sector, still import increases at the same pace as food export. As regards the future, he just asked questions.
Me vs. the outside world
The session on sustainability closed with a roundtable discussion about the future of trade and commercial processes from the aspect of sustainability and environmental consciousness. Péter Kurucz on behalf of Nielsen and Zoltán Neszmélyi, senior market analyst at Tesco joined to the above presenters in discussing environmental corporate and personal social responsibility.
Zoltán Neszmélyi reminded of the conflict between the price sensitivity of CEE-customers and sustainability goals explaining that making products sustainable usually causes the average price to grow.
Péter Kurucz said that only products are a success with consumers that are perceived to be „good for me” and „good for my environment”, COVID-19, however, has put an emphasis on the „ me” element.
Ákos Kozák pointed out that it is the regulator’s task to bring sustainability and responsibility to consumers’ consciousness. Dr. Zsolt Hetesi noted that recently a promotion urges more people to act than any sustainability issue.
Fruzsina Donáth, managing director of SmartCommerce Consulting presented the ways companies reacted to the pandemic in terms of digital transformation. She underlined that those who managed to adapt rapidly got hurt less. She noted that most of the solutions availed during the lockdown had also been formerly available, but many companies only reallocated resources to digitalisation under pressure, which is why we can’t talk about real innovation but a leap forward in time.
Consumers protected
At the business breakfast on the second day, Péter Cseresnyés, secretary of state, Ministry for Innovation and technology presented on the „Ecommerce in Hungary”. He pointed out that the 6-8 weeks with a trough in April showed how well retail trade is able to react to significant challenges. He stated that the Ministry wants a national retail sector that provides consumers with high-quality products at a very high service level. To this end, they want to develop parcel delivery and e-commerce in order to stabilize the supply also in small settlements.
Nikoletta Keszthelyi Nikoletta, deputy state secretary talked about the changes in consumer protection regulations concerning the e-commerce business.
The early days of digital taxation
Szabolcs Czöndör, head of department at the National Tax and Customs Authority (NTCA) presented on the digitalisation of taxation. He said that NTCA has recently implemented several digital solutions that caused profound changes in the taxation of certain market sectors.
Zombor Berezvai, head of Competition Policy and Market Research Section at the Hungarian Competition Authority talked about the competition policy and consumer protection correlates of the rise of e-commerce. //
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