The coronavirus pandemic brought the fastest growth of the last five years to the domestic e-commerce market, the marked growth trends were especially noticeable in the second quarter – according to a recent research compiled by GKI Digital and commodity search.hu. According to the compilation, the online turnover of the first half of 2020 was 34.8% higher than in the same period last year, reaching the gross level of HUF 355.1 billion. Within the half-year results, the first quarter grew by 21%, while the second quarter alone grew by an impressive 47%, well above GKI Digital's previous forecast of 34% for the second quarter.
According to the research firm, the spectacular growth of the online sector was not surprisingly caused by the increased popularity of several product categories. In some categories, online demand has picked up specifically due to the epidemic (food, detergents, vitamins, medicines and other FMCG products), while in other categories digital education, telecommuting caused increased demand in the spring (technical articles, laptops, computer accessories).
Much of the increased demand was channeled from traditional stores to e-commerce as a result of measures taken during the emergency, while the other part of the increase in turnover was due to planned but early purchases, the research said.
As a result of the epidemic, the online FMCG sector was able to expand the most, the online food, drugstore and household goods market increased its turnover by 84% in the second quarter of 2020 – during April, May, June compared to the same period in 2019. In addition to daily consumer goods, demand for products in the home, home furnishing and garden and DIY categories also grew spectacularly. This segment expanded 54% year-over-year during the second quarter. In terms of the largest expansion, the range of computer products closed in third place, the turnover of this segment exceeded the results of last year by 51%.
However, with the elimination of the emergency, the conversion rates of online stores began to deteriorate by the end of the second quarter. Digital expects the market to no longer be as strong in the third quarter as it was in the first half of the year. The turnover of the busiest period of e-commerce, the last two months of the year, is difficult to predict for the time being, so it is questionable how early spending will affect the year-end holiday shopping season and how severe the second wave of the epidemic will be.
Gellert is Technology Editor at Counting News Media and contributor at other major tech publications. Her interests includes testing new gadgets and reading.