New players, new strategies

This article is available for reading in Trade magazin 2024/10

In 2023 and the first quarter of 2024, most domestic online retailers posted negative results and no major recovery is expected for the rest of the year. Recently several new international players have entered the Hungarian market, attracting customers with good prices and a large selection of products, and by this strengthening the competition.

Decisions are based on many and ever more precise data in the competition that grows increasingly fierce

E-commerce has also seen many people reacting to high inflation by becoming more careful in their spending and focusing on basic needs. Inflation and rising fuel prices have increased transport costs, which is a challenge for e-commerce businesses. Companies are now trying to find more efficient transport alternatives, such as partnering with new logistics providers or developing their own logistics network.

Priority delivery

After last year’s test run, foodora started 2024 with the promotion and launch of the foodora PRO subscription system, and within a short period of time achieved the highest usage rate and user number growth of any Delivery Hero country.

Zsolt Szauter
marketing director
foodora

“The foodora MARKET and other chains on foodora, from small florists to large national chains, make it possible to shop in practically minutes, which as a PRO member can also be done at a discounted rate from anywhere, without queuing and detours. This year we also offer a priority service, which guarantees that for a small surcharge the courier will deliver the order without any other stops, so that the order reaches the address faster than usual”,

says chief marketing officer Zsolt Szauter.

Users can choose from thousands of foodora partners and the company’s own delivery service is available in 50 municipalities.

Logistics systems working accurately and fast and being capable of handling large volumes have survived

In-house developments

Kinga Daradics
CEO
eMAG Magyarország

Recently eMAG has launched eMAG Genius in Hungary: this service provides free parcel pick-up or home delivery when a predefined order value is reached. With Genius eMAG customers can choose from a wide range of offers, with excellent deals on everything from electronics to fashion and consumer goods. Thanks also to the free trial period, the number of users has already exceeded 175,000.

“At the same time we support the other side, the retailer partner too: companies selling on our platform can participate in our frequently organised promotion campaigns at their own discretion. As a data- and technology-driven company, eMAG has been using big data based solutions for many years, and increasingly also those based on AI. All of our developments are done in-house, from algorithms that drive back-end logistics tasks to mobile apps, we don’t use externally developed models”,

explains Kinga Daradics, CEO of eMAG Magyarország.

Balázs Polgári
Marketplace director
eMAG Magyarország

“The strengthening of our Marketplace platform is also a priority, as we now offer more than 12 million items in collaboration with our merchant partners”,

adds Marketplace director Balázs Polgári.

Tuned to customer experience

Tibor Székács, CEO and co-founder of Avokado says that their company’s main focus is data-driven decision-making, while constantly monitoring trends and adapting to market expectations.

Tibor Székács
DEO, co-founder
Avokado

 “Competition is increasing and it is getting harder to get price-sensitive consumers to shop online. This is the reason why we concentrate on customer experience and add to our portfolio products from retailers with a high quality assortment and competitive prices”,

informs Tibor Székács.

Avokado places great emphasis on making the website mobile-friendly and providing a seamless user experience, as well as offering a dedicated mobile app for shopping. They cooperate with several suppliers and keep improving the logistics network to guarantee fast and accurate delivery.

Bank background

Fizzi customers can contact the Hungarian-language customer service every day, which is a source of great trust for shoppers.

Szőcs András
ügyvezető igazgató
Fizz

At Pepita.hu online sales have made a breakthrough in the following categories: electronics, household cleaning products, nappies, clothing and clothing accessories.

József Dorcsinecz
co-founder
Pepita.hu

“Customers can benefit from a 14-day no-quibble return policy, debit card payment and cash on delivery, and we also offer telephone and e-mail customer service. We think the product reviews of previous customers are very helpful for new customers”,

says József Dorcsinecz, co-founder of Pepita.hu. //