Online retailing is ruling the market for various products such as Apparel, Accessories, Luggage and Leather Goods, Books, News and Stationery, Electricals and Electronics, Food and Grocery, Health & Beauty, Music, Video and Entertainment Software and Sports and Leisure Equipment. Majority of the consumer base is inclined towards online shopping. Consumers find online shopping very user friendly. Due to hectic office schedules and tech savvy lifestyles, consumers do not want to take burden of approaching traditional shopkeepers; they order online and get the desired product.
Overview of Consumer attitudes and online retail dynamics in Poland
The total population in Poland was 38.5 million in 2015. From the total population, 22.8 million people are internet users and 12 million are e-shoppers. Apparel, accessories, luggage and leather goods constitute 42.5% of the total online retail sales in 2015. The growth of online retailing has reduced the market for retail shops. Online retailing is flourishing at the cost of traditional shops. It’s an alarming issue for the traditional shopkeepers as either they have to shut their shops or have to operate under temporary losses unless they use market expansion strategies.
Consumers have developed a positive attitude towards online shopping. The online retailers have successfully met the consumers’ expectations. There are various payment methods for the purchased product such as cash on delivery, online transfer, net banking and online wallets or through debit and credit cards. All the payment systems are secured via a gateway so that the sensitive details provided by the customer remain confidential and is not misused. Also there is after sales service facility of exchanging or returning the product for a certain specified number of days. These user friendly policies, delivery options and effort free methods save their time as well as money.
The top three popular e-commerce websites in Poland are:
- Allegro; it is the most popular e-commerce platform in Poland and the leader of polish e-commerce. It has huge client base and largest transaction platform in Poland.
- Ceneo; it is the most significant e-commerce website connecting merchants and buyers. It is the second most popular online shop in Poland, reached roughly 27% of internet audience in 2014.
- Zalando; third most popular online shop in Poland, reached roughly 11.14% of internet audience in 2014.
Key Driving Factors in retail online market
- Young and adult population with their busy schedules prefer online shopping
- Wide variety of products
- Flexibility: can shop, 24 hours a day and seven days a week
- Secure payment option
- Customer service available
- Price competition among retailers helps consumers to get products at lower prices
- Fast delivery of products
- Exchange facility available
- Save time and money
Future of online retail market
Online retailing has very bright prospects in Poland over the forecast period. There will be an increase in consumer base for online products. The growing number of online store will add to the sales of the online products and there will be a tough price competition. To make differentiation in the products and for capturing the large share in the market, retailers are trying to make customized products. Secure payment options and flexibility of timing in purchases is giving online retailing a competitive edge over the traditional stores.
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Ankur Gupta, Head Marketing & Communications