László Szabó prezentuje o expanzi do Maďarska

1. Hungary as a target for (e-
commerce) expansion
Dataweps export event HubHub
2019. 06. 11.
László Szabó
Head of Growth
Growww Digital
1

2. ABOUT GROWWW DIGITAL
 Result-oriented digital marketing agency
 Building success stories in CEE region
 Performance
 Brand Communication campaigns
 80%+ avg. client YoY growth in main
business KPIs for the past 3 years
 CEE average: 10-15%

3. PUBLIC REFRENCES

4.  2012 – University friendship
 2017 – 16M+ EUR (5mrd Ft) turnover business

5. SUMMARY
 State of e-commerce in Hungary
 Kytary.hu Árukereső use case

6. BASIC DATA
Language:
Hungarian
Population:
9 820 000
Unemployment level:
2018: 3,7% 2017:4,2%
Capital City: Budapest
Other Major cities:
Debrecen, Szeged, Miskolc, Pécs, Győr,
Nyíregyháza, Kecskemét, Székesfehérvár,
Szombathely, Szolnok
Inflation rate:
2018: 2,7%
Gross ad spend 2018:
260 billion HUF (+7.7% vs 2017)
Currency:
Forint (HUF)
GDP:
+ 4.9% growth in 2018
Political
• Highly hectic and unpredictable situation
with strong control over all sectors.
• Confrontation with EU and IMF
Sociological
• Growing number of small towns
• Decreasing capital population
• Widening income gap
Technological
• Finished Analogue switch-down (TV)
• Growing tablet and smartphone market
• Slowing internet penetration growth
Economical
• Overall economy is growing, consumer trust
index increases.
• Decreasing inflation rate
• Growing state influence
320 HUF=1EUR
avg ROE in 2018

7. E-COMMERCE MARKET
 Total HU e-commerce market: 669 billion HUF – YOY growth:
+23%
 Share from total commerce: 7% - YoY growth: +13%
 5,4M people purchase online in 2018 vs. 4,6M in 2017
 84% of frequent internet users purchased something from
online sellers

8. Growth of Hungarian online retail turnover
Net turnover within Hungarian webshops
Gross turnover of purchases made in webshops abroad
More and more people
shop from abroad!
(e.g. Aliexpress)

10. E-MARKET FACTS IN HUNGARY
Average cart value grew: 15,400HUF (1,200Kc)
YOY growth +2000HUF
TOP 3 categories (YOY growth):
• Computer
• Fashion
• Entertainment electronics

11. E-MARKET FACTS IN HUNGARY
Most popular payment methods
• 56% Cash on delivery
• 51% Credit card on Internet
• 31% Cash in store
• 30% Bank transfer
• 25% Credit card in store
Most popular couriers*
• 41% GLS
• 39% MPL
• 16% DPD
• 13% Trans-o-flex
• 11% Sprinter
• 9% Royal Sprint
*available at hungarian webshops
The delivery by courier is still the most popular in Hungarian market 78% chose this type of delivery

12. KEY DRIVERS
• Cash on delivery
• Discounts/price promos
• Free shipping
• 0% installment payment
• Extended warranty
• Black Friday
Hungary is probably the
most price sensitive country
within CEE

13. Already did
groceries shopping
online
Shops on internet
at least quarterly
Has shopped for a
service online
Chooses cash
payment methods
Chooses delivery
by courier
Used to buy mobile
phone &accessories
online
Was shopping in a
webshop from
abroad
Uses a mobile
phone for online
shopping
Main characteristics of an online shopper in Hungary

14. Webshops with biggest turnover-2018

15. An example for a quick market entrance
• The beginnings:
• Opened a pick up point 5th of Dec 2016
• Hungarian website- lots of Google translation…
• set up the Hungarian communication in 2017
• 2nd stage:
• Better translations
• Huge showroom Oct 2018
• MASSIVE advertising campaign

16. Nr.4 on the market after 2 years!!!

17. CZ Vs. HU
 HU e-commerce market 1/3
 Lower basket values, conversion rates
 Lower costs to enter, lower CPC prices (approx. -30%)
 PPC advertising:
 No Shopping (yet to come in a few weeks)
 No Seznam/Sklik 
 Price aggregators more dominant (Árukereső.hu clear
market leader, Árgép.hu 2nd)

18. USE CASE: KYTARY.HU ÁRUKERESŐ OPTIMISATION

19. USE CASE: KYTARY.HU ÁRUKERESŐ OPTIMISATION
WHAT WE DID:
 Segmentation on a product and category level
 Optimising with custom rules set on product or category level
RESULTS:
TOOL USED
 Beed
2018 Q4 YoY
Visits +70%
Revenue +150%
ROI +30%

20. USE CASE: KYTARY.HU ÁRUKERESŐ OPTIMISATION

21. SUMMARY
 Now is the time to enter CEE (Hungary)
 When processes, economics in domestic
country are OK
 Be aware of the differences – Localise!
 Not everything what worked in CZ
works in HU

22. More detailed info after the presentation or in e-mail: szabo@growwwdigital.com